HTC (2498) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was NT$652.6 million, down 7.9% year-over-year, with a net loss of NT$241.7 million compared to a net profit of NT$4,054.5 million in Q1 2025, which included a one-time gain from a Google transaction.

• Gross margin improved to 42% from 37% year-over-year, but operating expenses remained high at 128% of revenue.

• Total comprehensive income for Q1 2026 was NT$483.9 million, mainly due to other comprehensive income items.

Financial highlights

• Operating loss narrowed to NT$562.8 million from NT$1,144.1 million year-over-year.

• Non-operating income was NT$334.3 million, down sharply from NT$7,313.3 million in Q1 2025, which included a NT$8,045.9 million gain from asset and IP licensing to Google.

• Basic and diluted loss per share were both NT$0.29, compared to earnings per share of NT$4.86 and NT$4.82, respectively, in Q1 2025.

• Cash and cash equivalents at quarter-end were NT$2,751.1 million, down from NT$27,590.9 million a year earlier.

Outlook and guidance

• The company continues to focus on long-term investments in the Metaverse sector and expects to maintain its strategy of holding equity investments for long-term value.

• Management is monitoring the impact of inflation, interest rate fluctuations, and global trade measures on future estimates.