HTC (2498) Q2 2026 earnings summary

Executive summary

• Quarterly revenue reached NT$614.2 million, with a gross margin of 42.6%.

• Operating loss for Q2 was NT$573 million, narrowing from NT$836 million year-over-year; six-month operating loss was NT$1,135.4 million.

• Net loss attributable to owners for Q2 was NT$279 million, with EPS of -NT$0.33; six-month net loss was NT$521.1 million.

• Launched VIVE Eagle smart glasses in Japan through partnership with KDDI, expanding presence in the AI wearable market.

• Introduced new XR experiences in collaboration with major cultural institutions and technology partners.

Financial highlights

• Revenue for 2Q26 was NT$614 million, down from NT$695 million year-over-year; six-month revenue was NT$1,266.8 million, down 10% year-over-year.

• Gross margin improved to 42.6% in Q2 and 42% for the six months, up from 36.5% and 37% year-over-year.

• Operating expenses totaled NT$834 million in Q2; six-month operating expenses decreased 33% year-over-year to NT$1,669.4 million.

• Cash and cash equivalents at June 30, 2026 were NT$2,195.7 million.

• Net cash used in operating activities for the first half of 2026 was NT$1,473.3 million.

Segment performance

• VIVE Eagle smart glasses launched in Japan, marking a strategic entry into the Japanese AI wearable market.

• VIVE Arts and VIVERSE launched immersive XR experiences in partnership with international cultural and technology organizations.

• G REIGNS achieved a milestone in Open RAN system integration, supporting future U.S. market expansion.