Gogoro Inc. Q2 FY2025 earnings call

• Streamlining efforts have increased operating cash flow from $4.8 million in the first half of 2024 to $15.2 million in the first half of 2025, with approximately $11 million in OpEx saved year-to-date. - Launched new products in the second quarter, continued cost savings efforts, and improved adjusted gross margin to 17.0% (up from 13.5% in 2024). - Invested in future products and battery upgrade initiatives; a new vehicle will launch in Q3 and an all-new vehicle platform in 2026. - International markets show positive signs: increased demand in Korea for B2B applications, government policy support in Vietnam for 2-wheeler electrification, and progress on joint venture with Castrol in Vietnam. - Battery pack developments underway to meet cost targets and identify second life uses with partners.

Battery Swapping segment: Generated revenue of $37.6 million in the second quarter of 2025, which is an 8.5% year-over-year increase. Hardware and other revenue: Sales were $28.2 million in the second quarter, a 39.1% year-over-year decrease. This decline was primarily due to a decrease in vehicle sales volume, delayed launch of the Ezzy vehicle, minor reduction in parts/accessories/service revenue, and less international sales compared to Q2 2024.

• Anticipate seasonal sales pickup in the second half of 2025 and expect revenue to be at the low end of the previously provided range of $295 million to $315 million for the full year. - Expect the battery swapping business to be breakeven in the full year 2026. - Long-term goals: energy breakeven in 2026, energy cash flow positive in 2027, vehicle business profitable in 2028, and whole company profitable in 2027.

• Macroeconomic trends, including global trade uncertainty and consumer confidence in Taiwan, led to a reduction in the overall 2-wheel market. - Delayed launch of the Ezzy vehicle temporarily affected Q2 sales cadence. - Ongoing and accelerated battery upgrade initiatives may continuously negatively impact gross margin in the short term.

Q: Given Taiwan's 2035 and 2050 net zero targets and current EV adoption pace, is the government planning more aggressive subsidy programs and how is Gogoro positioning?

A: Taiwan government is committed to net zero, Gogoro is actively engaged in dialogue with officials, hopes for more aggressive subsidies and regulatory measures, and is leading with scalable solutions to be ready when policy shifts.

Q: Gogoro continuing to invest in battery upgrades and network infrastructure, when to expect net cash flow positive?

A: Investments in infrastructure are fundamental. Expect gradual improvement in margins, and the battery business is expected to be full year breakeven in 2026 as it's effectively breakeven when excluding one-time battery upgrade expenses.

Q: Update on relationship with Castrol and joint venture in Vietnam, when to expect revenue from partnership?

A: Partnership with Castrol is strong. Working on pilot in Vietnam end of 2025, full launch in 2026, expect some revenue in 2026 but not sizable given overall full year revenue expectations.