Gogoro Inc. (GGR) Q4 2025 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The earnings call showed mixed signals: while there were improvements in EBITDA, cash flow, and gross margins, the overall revenue declined due to market contraction and delayed launches. The Q&A session indicated a strategic focus on stabilizing and optimizing operations, but challenges remain in the scooter business. Despite some positive operational efficiencies, the lack of strong guidance, coupled with market headwinds and delayed product launches, balances the sentiment to a neutral outlook for the stock price over the next two weeks.

Key Financial Performance

Adjusted EBITDA $59.9 million, up from $44.7 million in 2024, representing a significant improvement due to operational efficiency and supply chain optimization.

Operating Cash Flow $31.1 million, more than tripled year-over-year, driven by improved production planning, reduced inventory, and disciplined resource allocation.

Gross Margin 8.3%, up from 2.6% in 2024, attributed to efficiency gains, reduced inventory write-downs, and optimized network depreciation.

Non-IFRS Gross Margin 19.5%, up from 14.9% in 2024, due to reduced share-based compensation and operational improvements.

Revenue (Full Year 2025) $281.5 million, a 9.4% decline year-over-year, primarily due to a drop in vehicle sales and market contraction, partially offset by favorable exchange rates and a shift to premium models.

Revenue (Q4 2025) $74.4 million, a 1.7% increase year-over-year, supported by favorable exchange rates and higher average selling prices.

Battery Swapping Revenue (Full Year 2025) $149 million, an 8.1% increase year-over-year, driven by subscriber expansion and high retention.

Hardware Revenue (Full Year 2025) $132.5 million, down 23.3% year-over-year, due to a drop in vehicle sales and delayed product launches, partially offset by premium mix shift and increased component sales.

Net Loss (Full Year 2025) $80.8 million, improved by $42 million year-over-year, driven by reduced operating expenses, increased gross profits, and lower one-time impairments.

Net Loss (Q4 2025) $20.8 million, improved by $50.5 million year-over-year, due to stronger gross profit and reduced operating expenses.

Subscribers 665,000, up 4% year-over-year, supported by flexible rate plans and high retention.

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Operating Highlights

Launch of EZZY and EZZY 500: Introduced in June and September 2025 respectively, these products achieved cumulative sales of over 8,700 units and became the best-selling electric scooters of 2025.

New modular swapping station: Planned for pilot deployment in Taiwan by late 2026, this station offers improved heat dissipation, lower power demand, and a smaller footprint for rapid deployment.

New models for 2026: Two new models targeting female and family riders, focusing on safety and premium experience, are set to launch in 2026.

Vietnam market entry: Launching a pilot with Castrol to establish a Gogoro-like ecosystem, targeting B2B customers and leveraging government mandates for electric vehicle adoption.

Taiwan government fleet adoption: Chunghwa Post added over 1,000 Gogoro Crossover S units for postal delivery, and adoption by other government agencies is accelerating.

Operational efficiency improvements: Achieved record adjusted EBITDA of $59.9M, up from $44.7M in 2024, and increased operating cash flow to $31.1M, more than tripling year-over-year.

Gross margin improvement: Full-year gross margin rose to 8.3% from 2.6% in 2024, with non-IFRS margin reaching 19.5%.

Subscriber growth: Battery swapping subscribers grew by 4% year-over-year to 665,000, supported by flexible rate plans.

Focus on high-value segments: Streamlined portfolio to target premium segments, particularly female and family riders, aligning with market demand for quality and safety.

Energy business strategy: Expanding network product roadmap and optimizing battery lifecycle with second-life applications.

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Risk or Challenges

Market Headwinds: The Taiwan scooter market faced significant headwinds, declining for a second consecutive year to its lowest level in 10 years, with a 5.9% year-over-year drop in 2025. This broader market contraction poses challenges for maintaining or growing market share.

Revenue Decline: Total revenue for 2025 declined by 9.4% year-over-year, primarily due to a substantial drop in vehicle sales and delayed product launches, such as the EZZY model. This decline was partially mitigated by favorable exchange rates and a shift towards premium models.

Delayed Product Launches: The delayed launch of key volume drivers like the EZZY model impacted vehicle sales, contributing to the overall revenue decline.

Regulatory and Market Challenges in Vietnam: While regulatory mandates in Vietnam create opportunities, the unique riding environment and the need for tailored products present challenges for successful market entry and expansion.

Operational and Financial Risks: Despite improvements, the company still faces risks related to achieving profitability in its hardware business by 2028 and maintaining operational efficiency amidst market uncertainties.

Supply Chain and Production Planning: The company has had to optimize its supply chain and production planning to reduce inventory and improve efficiency, which could pose risks if market conditions change unexpectedly.

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Guidance & Outlook

Revenue Projections: In 2026, the company anticipates a modest revenue recovery, forecasting a range of $285 million to $305 million. Approximately 95% of full-year revenue is expected to be generated from the Taiwan market.

Profitability Goals: The company expects its battery swapping business to achieve non-IFRS profitability in 2026, with the hardware business following suit in 2028.

Product Launches: Two new vehicle models will be launched in 2026, specifically engineered for safety and premium experience, targeting high-value segments such as female and family riders. Additionally, a new modular swapping station will be piloted in Taiwan by late 2026.

International Expansion: In Vietnam, the company is launching a pilot with Castrol to establish a Gogoro-like mobility ecosystem. This includes a new scooter model engineered for durability and performance, targeting B2B customers later in 2026. This move aligns with Vietnam's government mandates for electrification by 2030.

Market Trends and Customer Focus: The company is focusing on high-value segments where demand is resilient and growing, particularly among female and family riders. It is also adapting to Taiwan's demographic shifts and evolving customer preferences for safety, premium design, and reliability.

Operational Improvements: The company is optimizing its battery life cycle by transitioning Gen 1 batteries into second-life applications. It is also developing a new modular swapping station with improved heat dissipation, lower power demand, and a smaller footprint for rapid deployment.

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Shareholder Return Plan

The selected topic was not discussed during the call.

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Key Q&A

Q:How should we think about your strategy for the scooter business, which appears to be underperforming and absorbing a disproportionate share of group losses?

A:The focus has been on stabilizing the business and positioning Gogoro Network for profitability in 2026. The scooter business strategy involves being selective about models, geographies, and channels, reducing complexity, and aligning investments with returns. The aim is to regain traction by rolling out superior products, expanding margins through economies of scale, optimizing the supply chain, and streamlining operations. By targeting high-potential markets and attractive customer segments, the scooter business is expected to become a growth engine, contributing to Gogoro's long-term financial targets.

Q:Can you sustain the level of OpEx savings achieved in 2025, and can we expect ongoing improvements in gross margin?

A:The total OpEx reduction in 2025 was $51.9 million, including onetime impairments, or nearly $24 million excluding impairments. While it will be challenging to replicate the same level of savings in 2026, the focus will shift to reducing BOM costs, increasing manufacturing efficiencies, and executing value engineering projects to drive margin improvement. The company is committed to cost savings and margin improvement, but the 2025 savings were substantial and necessary for rightsizing the organization.

Q:Review of Unclear Management Responses

A:No questions were avoided or lacked clarity in the responses provided by management.

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Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

GGR Transcript

Gogoro Inc. (GGR) Q4 2025 Earnings Call Transcript

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Gogoro Inc. (GGR) Q3 2025 Earnings Call Transcript

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The earnings call indicates several negative factors: a downward revision of revenue guidance, market contraction in Taiwan, macroeconomic headwinds, and a significant drop in vehicle sales volume. Although there are positive financial improvements in operating cash flow, expense savings, and gross margin, these are overshadowed by weak market conditions and reduced discretionary spending. The Q&A section did not provide new positive insights to counterbalance these concerns. Overall, the negative factors outweigh the positives, leading to a 'Negative' sentiment rating.

Gogoro Inc. (GGR) Q2 2025 Earnings Call Transcript

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The earnings call presents a mixed picture. While there are positives like increased operating cash flow, adjusted EBITDA, and subscriber growth, the company faces challenges such as a decline in the 2-wheeler market, hardware sales, and a net loss. The strategic partnerships and government discussions offer future potential, but immediate concerns like high revenue concentration in Taiwan and short-term margin pressures temper optimism. The Q&A section did not reveal any significant new information to alter the sentiment. Overall, the stock is likely to remain neutral over the next two weeks.

Gogoro Inc. (NASDAQ:GGR) Q1 2025 Earnings Call Transcript

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The earnings call summary reveals mixed financial performance with a significant revenue drop and supply chain challenges. Despite some positive developments like increased EBITDA and subscriber growth, the lack of a shareholder return plan and short-term negative gross margin impact due to battery upgrades weigh heavily. The Q&A section highlights ongoing competitive pressures and regulatory concerns, which further dampen sentiment. These factors, combined with no new partnership announcements or shareholder returns, suggest a likely negative stock price movement.

GGR Report

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