Faraday Technology (3035) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q26 was NT$2,589 million, down 7.8% sequentially and 65.2% year-over-year.

• Net income for 1Q26 was NT$135 million, a 39.0% decrease from 4Q25 and 61.6% lower year-over-year.

• Gross margin improved to 47.3% in 1Q26 from 42.2% in 4Q25 and 20.3% in 1Q25.

Financial highlights

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

• EPS for 1Q26 was NT$0.40, down from NT$0.80 in 4Q25 and NT$1.33 in 1Q25.

• 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 liabilities rose to NT$6,486 million.

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.