Faraday Technology (3035) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was NT$2,589 million, down 7.8% sequentially and 65.2% year-over-year.

• Net income for Q1 2026 was NT$135 million, a 39.0% decrease from 4Q25 and 61.6% lower year-over-year.

• Consolidated financials reviewed with a qualified conclusion due to unreviewed subsidiaries representing 11.71% of assets and (7.64)% of comprehensive income as of March 31, 2026.

• The group operates as a single segment focused on integrated circuit design products.

• Gross margin improved to 47.3% in Q1 2026 from 42.2% in 4Q25 and 20.3% in Q1 2025.

Financial highlights

• Operating income rose 34.3% sequentially to NT$108 million but fell 70.7% year-over-year.

• EPS for Q1 2026 was NT$0.40, down from NT$0.80 in 4Q25 and NT$1.33 in Q1 2025.

• Cash and cash equivalents increased to NT$8,381 million as of March 31, 2026.

• Total assets grew to NT$20,896 million, while total equity was NT$14,409 million and liabilities NT$6,486 million.

• Gross profit for Q1 2026 was NT$1,224 million, compared to NT$1,508 million in Q1 2025.

Segment performance

• MP (Mass Production) revenue increased 11.9% sequentially but dropped 75.1% year-over-year.

• NRE (Non-Recurring Engineering) revenue fell 42.3% sequentially but rose 18.4% year-over-year.

• IP (Intellectual Property) revenue remained stable, up 0.1% sequentially and 2.4% year-over-year.

• MP accounted for the majority of revenue, despite significant year-over-year decline.

• Communication, industrial, AI, IoT, and multimedia/consumer/PC segments contributed variably to NRE and MP revenues, with notable shifts in application and technology mix.