Gogoro Inc. Q2 FY2026 earnings call

Overall Business Transformation

• After two years of focusing on strengthening business fundamentals, improving operational discipline, simplifying cost structures, and executing a focused product strategy, the company achieved tangible positive results: return to year-over-year revenue growth, the highest quarterly gross margin in over five years, and strengthening operating cash flow.
• New CFO Jackie Lee was appointed to replace outgoing CFO Bruce Aitken, who is stepping down after eight years with the company.

Product Portfolio Strategy

• Completed the first phase of a multi-year product portfolio overhaul, launching new models targeted at distinct underpenetrated customer segments to expand the addressable market while retaining the core Gogoro user experience.
• The EZ product family, designed for entry-level consumers seeking simple daily mobility, outperformed performance expectations and attracted new family-oriented consumers to the Gogoro ecosystem, a key long-term growth pillar.
• The new Gogoro Luna, a premium scooter launched late in the quarter specifically designed for female riders, features an innovative low-effort center stand and has received very encouraging early consumer demand. Management expects it to become a benchmark in the female-focused scooter market.
• Overall scooter market share recovered to approximately 6% in the quarter on the strength of new product launches.

Gogoro Network Performance

• The recurring battery swapping energy business continued to provide stable revenue, with the company making progress toward profitability for the network business.
• Operational improvements including the completion of the battery upgrade program, improved manufacturing efficiency, lower battery depreciation, and better network utilization delivered structural, permanent improvements to the business' economics, rather than temporary cost cuts.

Financial Performance Highlights

• Gross margin reached 22.6%, the highest level in five years, driven by structural operational improvements.
• Net loss improved by over $21.6 million year-over-year, and adjusted EBITDA increased to $19.3 million.
• Year-to-date operating cash flow for the first half of 2026 grew more than 70% year-over-year, supported by improved operating performance, disciplined working capital management, and lower capital expenditures after the battery upgrade program completion.
• Ending cash and cash equivalents totaled $68.8 million, strengthened by the initial GoldSignal equity investment, leaving the balance sheet considerably stronger than one year prior.

Total Q2 2026 revenue was $70.6 million, a 7.3% year-over-year increase (10% on a constant currency basis). 1. Hardware (branded scooters): Drove overall revenue growth, supported by strong demand for the new EZ product family (which contributed over 33% of total scooter sales revenue in the quarter) and initial deliveries of the new Gogoro Luna model. Additional hardware revenue came from deliveries under the Wemo fleet agreement. 2. Battery swapping energy (recurring): Service revenue remained resilient despite foreign exchange headwinds and a mix shift toward lower-priced entry-level scooters. The total subscriber base grew year-over-year to 677,000, which offset most pressure on average revenue per user (ARPU).

• Management reaffirmed full-year 2026 revenue guidance, maintaining the prior range of $285 million to $305 million.
• The company remains on track to achieve non-IFRS profitability for the Gogoro Network battery swapping business in 2026, based on strong first-half operational and financial progress.
• Management is encouraged by current business momentum but remains mindful of ongoing macroeconomic headwinds and competitive market conditions, and will maintain disciplined capital allocation and operational execution through the second half of the year.

• Foreign exchange headwinds continue to pressure battery swapping service revenue.
• A continued mix shift toward lower-priced entry-level scooters has modestly reduced average revenue per subscriber for the recurring energy business.
• Rising material costs present ongoing margin pressure for the hardware business.
• Macroeconomic conditions and the highly competitive overall Taiwanese scooter market create uncertainty for performance in the second half of 2026.

Q: With the return to year-over-year revenue growth and five-year high gross margins this quarter, how does management balance growth and profitability for the second half of 2026? / A: Over the past two years, the company built a stronger operational foundation through streamlining operations, optimizing cost structures, completing the battery upgrade program, and improving resource discipline. For the second half, management will remain cautiously optimistic while maintaining operational discipline, continuing to launch customer-focused products that expand the company's base while preserving the margin gains achieved from recent operational improvements. This approach is positioned to deliver sustainable growth alongside ongoing profitability improvement over time.

Q: What gives management the most confidence in Gogoro's long-term growth outlook after years of building a stronger operational foundation? / A: Management is most confident because positive momentum is broad across all business segments, not just one area: new products are attracting new customers and recovering market share, the recurring subscriber base continues to grow, and structural operational improvements to manufacturing and the Gogoro Network have permanently improved business economics. The company will continue to invest thoughtfully in innovation across the product portfolio, network, and new market opportunities, with a consistent focus on disciplined execution to build long-term shareholder value.

Q: Is there an update on the Gogoro Vietnam Castro partnership, and when will overseas operations begin contributing meaningfully to results? / A: A full grand launch of the Vietnam partnership is expected very soon. Management sees strong and growing demand for electric two-wheelers in Vietnam across Ho Chi Minh City and Hanoi, with the overall EV market in the country accelerating rapidly. With over 10 years of operating experience and more than 1.5 million batteries deployed in Taiwan, Gogoro has a mature, market-proven system well positioned to capture this Southeast Asian growth opportunity. Meaningful revenue contribution from the business is expected over the next several quarters and years.

Q: Is the Taiwan government's target of 35% electric scooter new sales by 2030 attainable under current incentive policies? / A: Management views the 35% target as an attainable goal, with steadily growing consumer adoption of electric scooters, particularly among younger generations who see EVs as a mainstream option. The company expects the government to continue supporting the EV transition, and while management is cautiously optimistic about current policy, it looks forward to additional policy support to further accelerate market adoption of electric scooters.