Merry Electronics (2439) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached NT$10.327 billion, down from NT$12.352 billion in Q2 2025, reflecting a YoY decline.

• Gross profit margin decreased YoY by 13.81%, with gross profit at NT$1.042 billion.

• Operating income dropped sharply YoY by 98.36%, while non-operating income surged 280.2% YoY.

• Net profit attributable to owners was NT$583 million, a YoY increase of 4,633.92%.

Financial highlights

• Operating expenses rose 7.56% YoY to NT$1.194 billion.

• EPS for Q2 2026 was NT$0.50.

• Free cash flow for Q2 2026 was negative NT$1.504 billion.

• Cash and cash equivalents at quarter-end were NT$7.333 billion.

Outlook and guidance

• Q3 2026 revenue expected to rise as the company enters peak season.

• Headset revenue projected to grow QoQ, remain flat YoY; audio to increase YoY due to acquisition synergies.

• TWS revenue expected to decline YoY due to market softness and model transition.

• Speaker and phone segment revenues anticipated to grow significantly YoY.

• Battery revenue expected to grow both QoQ and YoY as new projects ramp up.