Faraday Technology (3035) Q2 2026 earnings summary

Executive summary

• Revenue for 2Q26 reached NT$3,314 million, up 28.0% sequentially but down 26.6% year-over-year.

• Net income surged to NT$285 million, a 111.2% increase quarter-over-quarter and 712.1% year-over-year.

• Operating income rose sharply to NT$271 million, up 182.2% sequentially and 324.0% year-over-year.

• Consolidated financial statements for H1 2026 were reviewed with a qualified conclusion due to certain subsidiaries' statements not being reviewed by independent auditors.

• The group operates as a leading fabless ASIC vendor and silicon IP/system platform provider, listed on the Taiwan Stock Exchange.

Financial highlights

• Gross profit for H1 2026 was NT$2,722,980 thousand, slightly up from NT$2,599,125 thousand in H1 2025.

• Gross margin improved to 45.2% in 2Q26 from 24.2% a year ago, and for H1 2026 was 46.2%, up from 21.8% in H1 2025.

• EPS increased to NT$0.76 in 2Q26 from NT$0.40 in 1Q26 and NT$0.1 in 2Q25; basic and diluted EPS for H1 2026 were both NT$1.16, compared to NT$1.43 in H1 2025.

• Cash and cash equivalents rose to NT$9,488 million as of June 30, 2026.

• Operating revenue for H1 2026 was NT$5,902,036 thousand, down from NT$11,949,434 thousand in H1 2025.

Outlook and guidance

• Sequential revenue growth in 2Q26 was driven by strong MP (mass production) recovery, while year-over-year revenue decline was attributed to lower MP sales compared to 2Q25.

• The group expects to recognize revenue from unsatisfied performance obligations totaling NT$3,470,780 thousand within 1 to 1.5 years.

• Adoption of IFRS 18 is expected in 2028, with no material impact from other new standards.