Gogoro Inc. Q2 FY2025 earnings call

• Focused on delivering customer experience, predictable financial results, and strategic streamlining. - Operating cash flow increased from $4.8 million in H1 2024 to $15.2 million in H1 2025. - Cost savings initiatives saved ~$11 million in OpEx YTD 2025. - Launched new products in Q2, with a new vehicle to launch in Q3 and an all-new vehicle platform in 2026. - Battery pack developments underway for cost targets and second life uses. - International markets showing positive signs, e.g., increased demand in Korea, Vietnam policy support, and joint venture progress with Castrol in Vietnam.

Battery swapping business: Revenue of $37.6 million in Q2 2025, up 8.5% year-over-year. Hardware and other revenue: $28.2 million in Q2 2025, down 39.1% year-over-year. The battery swapping segment contributed significantly, while hardware and other was impacted by delayed vehicle launches.

• Anticipate seasonal sales pickup in H2 2025 and expect to be on track to low end of revenue guidance for the year. - Remain on track for energy breakeven in 2026, energy cash flow positive in 2027, vehicle business profitability in 2028, and whole company profitability in 2027. - Revenues likely to come in at low end of $295M to $315M full-year range due to delayed Ezzy launch.

• Macroeconomic trends including global trade uncertainty and Taiwan consumer confidence issues led to 2-wheel market reduction. - Delayed vehicle launches impacted hardware and other revenue. - Ongoing battery upgrade initiatives may negatively impact gross margin in short term.

Q: Given Taiwan's net zero targets and EV adoption pace, is the government planning more aggressive subsidies and how is Gogoro positioning?

A: Taiwan govt committed to net zero, Gogoro engaged in dialogue, expects stronger action, and is leading with scalable solutions.

Q: Investment in battery upgrades and network infrastructure, will net cash flow turn positive in 2026?

A: Investments in infrastructure are fundamental, upgrades to complete by H2 2025, expecting gradual margin improvement, battery business to be full-year breakeven in 2026.

Q: Update on Castrol joint venture in Vietnam and revenue recognition?

A: Partnership strong, moving towards pilot end of 2025, full launch in 2026, expect some revenue in 2026 but not sizable.