Gogoro Inc. Q3 FY2025 earnings call

• Operational efficiency: Over the first nine months of 2025, generated over $25.7 million in operating cash flow, achieved ~$21 million in operating expense savings, adjusted EBITDA grew to $47 million, and adjusted gross margin was 19.3% (improvement of 4.3 percentage points from 2024).
• Product roadmap: Launch of EZ and EZ500 models broadened reach, with EZ being best-selling in Taiwan for five months and EZ500 best-selling 125 cc electric two-wheeler in October. Developing a new motor for late 2026 launch and a new battery pack.
• Powered by Gogoro Network Partners: Yamaha's QC launch in August exemplifies deepening commitment to ecosystem, expanding value of swapping network.
• Financial results: Gross margin improved to 12.2% (up from 5.4% same quarter 2024), adjusted EBITDA rose to $20.2 million, net loss narrowed to $14.9 million.

Energy Business: Battery swapping service revenue grew 11.5% year over year to $38.9 million, with a subscriber base reaching 657,000 riders at quarter-end, up 5% year over year. Hardware and Other Revenues: This segment was $38.7 million, down 25.5% year over year, primarily due to a 43.7% decline in vehicle sales volume. The energy business generated recurring cash flow, while hardware faced headwinds from a contracting two-wheeler market in Taiwan.

• Full-year 2025 revenue outlook adjusted to between $270 million and $285 million due to Taiwan's two-wheeler market contraction.
• Q4 gross margin expected to be temporarily impacted by accelerated battery upgrade program, which is expected to complete by year-end.
• Milestones: Energy network profitability in 2026, positive free cash flow from energy network business in 2027, hardware sales profitability in 2028.

• Market headwinds: Taiwan's two-wheeler market contracted, affecting hardware and other revenues. Soft consumer sentiment and macroeconomic factors impacting vehicle sales.
• Short-term stock price fluctuations: Decline following 20-to-1 reverse stock split, though management views as near-term technical reaction.

Q: Congratulations on your appointment as official CEO. Can you share what this appointment means to you personally and your vision/priorities for next twelve months?

A: It's a privilege to lead Gogoro Inc. Vision is to streamline operations, ensure financial results meet expectations, focus on product and technology innovations, and capitalize on expansion opportunities in Southeast Asia with battery swapping as a key solution for urban mobility.

Q: Your stock declined after reverse stock split. View on decline and long-term prospects?

A: Stock decline is largely near-term technical reaction to reverse stock split. Underlying fundamentals strong with operational discipline, cash flow generation, and growth opportunities. Long-term prospects positive due to policy tailwinds, city electrification acceleration, and battery swapping as preferred solution for dense urban areas.