Sercomm (5388) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was NT$16.65 billion, up 47% year-over-year, with gross profit of NT$2.27 billion and net income attributable to owners of the parent at NT$301.6 million.

• Earnings per share were NT$1.01 basic and NT$0.99 diluted, compared to NT$1.02 and NT$1.00 in Q1 2025.

• The audit opinion was qualified due to certain subsidiaries' financials not being reviewed, but these subsidiaries are considered insignificant.

Financial highlights

• Operating profit for Q1 2026 was NT$490.2 million, up from NT$359.4 million in Q1 2025.

• Total assets as of March 31, 2026 were NT$51.41 billion, with equity attributable to owners at NT$15.69 billion.

• Cash and cash equivalents decreased to NT$4.91 billion from NT$9.04 billion a year earlier.

• Short-term borrowings increased to NT$4.79 billion from zero in Q1 2025.

• Operating cash flow was negative NT$3.22 billion, compared to positive NT$2.15 billion in Q1 2025.

Outlook and guidance

• The Board resolved to issue up to NT$5 billion in new domestic corporate bonds to support long-term development, pending regulatory approval.

• The company continues to monitor the impact of Pillar Two global minimum tax rules, with no immediate effect as of Q1 2026.