Gogoro Inc. Q3 FY2025 earnings call

• Over the first nine months of 2025, the company generated over $25.7 million in operating cash flow, nearly doubling the previous year's level, and achieved approximately $21 million in operating expense savings. Adjusted EBITDA increased to $47 million over the first nine months, representing a 25% growth compared to the prior year, and the adjusted gross margin for the nine months was 19.3%, an improvement of 4.3 percentage points from 2024. • The launch of the EZ and EZ500 models in 2025 expanded Gogoro Inc.'s reach across price segments. The EZ has been the best-selling electric two-wheeler in Taiwan for five consecutive months, and the EZ500 became the best-selling 125 cc electric two-wheeler in Taiwan in October. • Powered by Gogoro Network Partners continued to scale and innovate, such as Yamaha's launch of the QC in August. • Operationally, the company made progress in efficiency and cost management, reducing inventory by 34% year over year through more effective procurement and production planning.

Energy business: Battery swapping service revenue grew 11.5% year over year to $38.9 million in the third quarter of 2025. The subscriber base reached 657,000 riders at quarter-end, up 5% year over year. Hardware and other revenues: This segment amounted to $38.7 million, a decrease of 25.5% year over year, primarily due to a 43.7% decline in vehicle sales volume, which was affected by macroeconomic headwinds and weaker consumer sentiment.

• The company adjusted its full-year 2025 revenue outlook to between $270 million and $285 million due to the contraction in Taiwan's two-wheeler market. • It is expected that the fourth-quarter gross margin will be temporarily impacted by the accelerated battery upgrade program, which is anticipated to be completed by the end of the year. • The company aims to achieve profitability in the Gogoro Network in 2026, generate positive free cash flow from the energy network business in 2027, and achieve profitability in hardware sales in 2028. • In 2026, the company intends to leverage its renewed product and technology portfolio to capture electrification growth across Asia and beyond.

• Taiwan's motorcycle retail sales, including both gasoline and electric, decreased by roughly 9% year over year, and consumer confidence reached its lowest point since early 2024, with no near-term rebound expected. • The company is facing macro-economic headwinds, weaker consumer sentiment, and decreased discretionary spending, which are affecting both gasoline and electric motorcycles.

Q: Congratulations, Henry Chiang, on your appointment as an official CEO. Over the past year as interim CEO, you have overseen quite a few strategic and operational changes at Gogoro Inc. Can you share what this appointment means to you personally? And what your vision and priorities are for Gogoro Inc. over the next twelve months?

A: Thank you, George, and I really appreciate the kind words. It has been a privilege to lead Gogoro Inc. over the past year and to now take on the role as a permanent CEO. Throughout the history, any transformation requires full dedication to fundamentals like products, technology, and execution. Gogoro Inc. has been investing in shaping and even creating an industry for the past decade. Over the past year, beyond the quarterly numbers, we have been diving deep to understand the true core and spirit of Gogoro Inc. The more I uncover, the more I see a company with enormous potential and untapped upside. Of course, challenges remain, and many more lie ahead. But at the heart of it all are solid fundamentals, a resilient team, and a clear mission. My vision for turning Gogoro Inc. around begins with streamlined operations and ensuring our financial results consistently meet expectations while building the operational resilience to thrive in dynamic markets. With this strong foundation in place, we can confidently focus on creating sustainable long-term value and unlocking the full potential of Gogoro Inc.'s innovation and impact. With our operations stabilized, we are now focusing on product and technology innovations. This is the season we are anticipating in 2026. We have seen policy tailwinds in Southeast Asia that indicate broad adoption of battery swapping and electrification. I am excited, active, and also cautious as I look into expansion opportunities. I look forward to sharing more with you in the coming quarters. My vision is clear and remains unchanged: to change the way people use and share energy and build cleaner and smarter cities for the future through battery swapping, which is the best solution for dense urban mobility. Thanks again for the question, and we will continue to push forward toward a better future.

Q: Your stock has declined following the 20-to-1 reverse stock split you executed in early October. Can you provide your view on this decline? Do you have any concerns? How do you view the long-term prospects for Gogoro Inc.?

A: Thanks, George. There are two ways to look at stock performance. One is the immediate reaction to the reverse stock split, which I will address first. But then also, there is a strategic perspective on the stock in general. So you are absolutely right. We have experienced a decline since the reverse stock split in early October. We think that is largely a near-term and largely a technical reaction. Many companies that do a reverse stock split do, in fact, experience a decline in the near term immediately after the split. So we have observed that pattern in other companies. We are not surprised by the stock price decline, but obviously, we will do everything we can to regain confidence among the investor group. But really, the short-term movement does not change the underlying fundamentals of the business. So with our operational discipline that Henry Chiang spoke about earlier, our cash flow generation capability, our cost control, and the growth opportunities that we have in front of us, we will continue to focus on executing. We will continue to focus on strengthening the balance sheet, and we will try to deliver long-term value for shareholders. And if you look at the stock price from that more strategic lens, then we do not believe that the stock price reflects the intrinsic value of our business. We think the most challenging period for Gogoro Inc. is behind us. We believe there are better days in the future. Whether you look at policy tailwinds, you look at the speed with which cities are accelerating their electrification, whether you look at customer and partner engagement, all of those point to a faster adoption of electric mobility in the future. As Henry Chiang pointed out, for dense urban cities, the battery swapping technology is the preferred option. It is probably the only option that will work in many locations and for many customers. So our message to investors is clear: focus on those long-term fundamentals, focus on the platform's growth, focus on our mission. We are committed to delivering sustainable value to our shareholders over the long haul.