Novatek Microelectronics (3034) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was TWD 22.82 billion, down 7% quarter-over-quarter and 9.7% year-over-year, at the high end of guidance.

• Full-year 2025 revenue was TWD 100.7 billion, a 2% decrease year-over-year.

• Net income for Q4 2025 was TWD 3.69 billion, up 1% sequentially but down from TWD 4.08 billion a year ago.

• Full-year 2025 net income was TWD 16.35 billion, a 19.6% decline year-over-year.

• Q4 2025 EPS was TWD 6.07, down from TWD 7.89 a year ago.

Financial highlights

• Q4 2025 gross margin was 38.2%, up sequentially but down from 39.5% a year ago.

• Full-year 2025 gross margin was 37.7%, down from 40.4% in 2024.

• Q4 2025 operating income was TWD 3.86 billion, with an operating margin of 16.92%, down year-over-year but improved sequentially.

• Operating expense for Q4 was TWD 4.85 billion, down 4% both quarter-over-quarter and year-over-year.

• Net cash at year-end 2025 was TWD 42.42 billion, up TWD 2.76 billion from Q3 2025.

Outlook and guidance

• Q1 2026 revenue expected at TWD 22.2–23.2 billion; gross margin 36%–39%; operating margin 15%–18%.

• Tax rate guidance for 2026 is 16%–17%, similar to 2025.

• OpEx expected to grow slightly in 2026 due to increased R&D and talent investment.

• Early 2026 sales showed a 10% year-over-year decline in January.

• Tight memory supply and rising prices may impact demand, especially for smartphones and PCs.