HTC (2498) Q1 2025 earnings summary

Executive summary

• Quarterly revenue reached NT$0.71 billion with a gross margin of 37.6%.

• Operating loss was NT$1.14 billion, operating margin at -161.5%.

• Net income attributable to owners was NT$4.05 billion, EPS of NT$4.86.

• Completed a US$250 million agreement with Google, transferring XR R&D and granting IP license.

• Showcased new XR, VR, and AI-driven solutions at MWC 2025, including VIVE Mars CamTrack and VIVERSE Create.

Financial highlights

• Revenue for Q1 2025 was NT$708 million, up from NT$595 million year-over-year.

• Gross profit was NT$266 million, gross margin at 37.6%, down from 41% year-over-year.

• Operating expenses totaled NT$1.41 billion, leading to an operating loss of NT$1.14 billion.

• Net income before tax was NT$6.17 billion, driven by NT$7.08 billion in other gains (mainly asset/licensing income).

• Net income for the period was NT$4.05 billion, compared to a net loss of NT$900 million year-over-year.

Key financial ratios and metrics

• Gross margin declined to 37.6% from 41.3% sequentially.

• Operating margin was -161.5%, compared to -202.8% year-over-year.

• Cash and cash equivalents increased to NT$27.6 billion as of March 31, 2025.

• Total assets rose to NT$51.0 billion, with total equity at NT$25.9 billion.

• EPS was NT$4.86, reflecting significant non-recurring income.