Novatek Microelectronics (3034) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NT$24.57 billion, down 6% quarter-over-quarter and 11.8% year-over-year, at the high end of guidance.

• Q3 2025 net income was NT$3.65 billion, down 2% sequentially and 30.5% year-over-year.

• EPS for Q3 2025 was NT$6.01, down from NT$6.14 in Q2 and NT$8.64 a year ago.

• For the first nine months of 2025, net sales were NT$77.85 billion, flat year-over-year, with net income down 18.6% to NT$12.66 billion.

• Consolidated financials were prepared under Taiwan regulations and IAS 34, with a qualified audit due to minor unreviewed subsidiaries.

Financial highlights

• Q3 2025 gross margin was 36.29%, down from 39.7% a year ago and flattish sequentially.

• Q3 2025 operating income was NT$3.86 billion, down 20% quarter-over-quarter and 38% year-over-year.

• Q3 2025 operating margin was 15.7%, down from 18.44% in Q2 and 22.4% a year ago.

• Cash and cash equivalents as of September 30, 2025 were NT$39.66 billion, down from NT$54.72 billion at June 30, 2025 and NT$48.77 billion at December 31, 2024.

• Inventory at September 30, 2025 was NT$9.20 billion, with inventory days at 59.

Outlook and guidance

• Q4 revenue is expected between NT$22-23 billion, with gross margin around 35% and operating margin 14.5%-17.5%.

• Q4 is anticipated to be a low season for consumer and IT products, with panel makers controlling production.

• Revenue growth is projected for 2026, driven by new product launches and edge AI demand.

• Management expects no material impact from new accounting standards.

• Tax rate guidance for 2025 remains at 16%-17%.