Gogoro (GGR) Q4 2025 Earnings Call Transcript

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DATE

Thursday, February 12, 2026 at 7 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Henry Chiang
• Chief Financial Officer — Bruce Aitken

TAKEAWAYS

• Adjusted EBITDA -- $59,900,000 for the full year, a record high, up from $44,700,000.
• Gross Margin -- 8.3% for the full year, rising from 2.6% the previous year; non-IFRS margin increased to 19.5% from 14.9%.
• Operating Cash Flow -- $31,100,000, more than tripling year over year.
• Full-Year Revenue -- $281,500,000, a decrease of 9.4%, in line with recent guidance.
• Net Loss -- $80,800,000 for the full year, narrowing by $42,000,000; Q4 net loss was $20,800,000, an improvement of $50,500,000.
• Q4 Gross Margin -- 14.3%, up from 7.4% in the prior year.
• Battery Swapping Revenue -- $149,000,000 for the year, up 8.1%; Q4 revenue was $38,000,000, increasing 5.9%.
• Subscribers -- 665,000, marking a 4% year-over-year increase.
• Hardware Revenue -- $132,500,000 for the year, down 23.3%, driven by lower vehicle sales and a delayed product launch; Q4 hardware revenue was $36,400,000, down 2.3%.
• Market Share -- Gogoro (NASDAQ:GGR) and partners held 68% of the electric two-wheeler market in Taiwan, with Gogoro alone accounting for 57% of electric vehicle sales and 4% of the overall scooter market.
• Cost Reductions -- Operating expenses dropped by $31,000,000 year over year, aided by prior one-time impairment charges and ongoing efficiency initiatives.
• Cash Position and Equity Commitment -- Year-end cash balance was $70,600,000; a secured $80,000,000 equity commitment for 2026 supports liquidity.
• 2026 Guidance -- Revenue forecasted at $285,000,000 to $305,000,000, with approximately 95% expected from Taiwan.
• Profitability Outlook -- Management projects the battery swapping business to achieve non-IFRS profitability in 2026, and hardware in 2028.
• EZ Product Success -- The EZ family surpassed 8,700 units sold since launch, becoming the top-selling electric scooter of 2025.
• B2B and Government Adoption -- Chunghwa Post integrated over 1,000 Gogoro Crossover S units, validating penetration of public fleet markets.
• International Expansion -- A Vietnam pilot with partner Kestrel is set to position Gogoro for growth as local policy mandates drive demand for electric vehicles.
• Operational Improvements -- Portfolio complexity reduced, supply chain optimized, and new modular battery swapping infrastructure introduced with planned pilot deployment in Taiwan late 2026.
• OpEx Savings -- $24,000,000 in recurring savings achieved in 2025, excluding one-time impairments; management notes sustaining this level of benefit is unlikely in 2026.

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RISKS

• Bruce Aitken stated, "it will be hard to replicate that same level of OpEx savings, so we need to look to reduce BOM costs, increase our manufacturing efficiencies, and execute to some value engineering projects to continue to drive margin improvement, which is critical to our ongoing success," signaling margin and cost risks for 2026.
• The overall Taiwan scooter market contracted 5.9% to 708,392 units, the lowest volume in ten years.

SUMMARY

Management underscored disciplined execution and a deliberate strategic shift that delivered record adjusted EBITDA, sharply improved margins, and substantial cost reductions, even as revenue declined. Notable gains in the battery swapping business and high retention among 665,000 subscribers drove recurring revenue strength amid reduced hardware sales and a shrinking Taiwanese scooter market. With a robust cash position and a new $80,000,000 equity commitment, leadership signaled readiness to accelerate network and product initiatives, pursue non-IFRS battery swapping profitability in 2026, and expand international operations—especially in response to policy-driven opportunities in Vietnam.

• Aggressive product and retail channel simplification, combined with ongoing restructuring, was credited for operational and financial turnaround.
• Recurring revenue from battery swapping outpaced hardware, highlighting a pivot toward subscription-based economics and platform utilization.
• The EZ product family’s rapid adoption and government fleet wins provided tangible evidence of market acceptance and portfolio realignment.
• Management emphasized, "We will not buy revenue or chase empty volume," reiterating a disciplined approach to growth and investment allocation.
• Forthcoming modular swapping station design aims to reduce installation time, enable network densification, and lower operating costs, with initial deployment targeted for Taiwan in late 2026.
• Female and family segments have been identified as primary volume drivers for upcoming vehicle launches, aligning strategy with shifting demographic demand for premium, high-safety products.

INDUSTRY GLOSSARY

• PBGN (Powered by Gogoro Network): Gogoro's technology platform and partner network that supports battery swapping and electrification solutions for third-party manufacturers.
• EZ family: A range of electric scooter products introduced by Gogoro targeting new customer segments with designed price points and features.
• Gen 1 batteries: The first generation of Gogoro's swappable lithium battery systems, now being transitioned to second-life applications.

Full Conference Call Transcript

Henry Chiang: Thanks, Annie. Thank you for joining us. In 2025, we deliberately stepped back to simplify and sharpen our focus. We made hard choices and actively restructured to meet market challenges. We consolidated our portfolio, optimized our product mix, and tightened our operational discipline. We prioritized long-term sustainability over short-term results. And the results prove that our refocus worked. While 2025 was a year of challenges, both internally and externally, it was essential for establishing the foundation for Gogoro Inc.’s next chapter. Our outstanding operational results are the direct payoff of our focus on efficiency. By reinforcing our core strengths and optimizing our supply chain, we achieved a record high full-year adjusted EBITDA of $59,900,000, up from $44,700,000 in 2024.

Operating cash flow increased more than three times year over year to $31,100,000, while strong execution lifted our gross margin to 8.3%, up from 2.6% in 2024, and our non-IFRS margin to an impressive 19.5%, up from 14.9% in 2024. These are not just numbers. They are the direct result of our team working with discipline and shared accountability. We realigned resources, reduced inventory, and improved production planning, translating tough decisions into real financial improvement. These difficult choices are now clearly reflected in our improved results. We have built a solid foundation. We completed our key milestones in 2025 and are driving our plan forward step by step, with clear focus and determination.

In 2025, we did not just update our vehicle business. We reengineered it. We reinforced our technology leadership with the launch of EASI in June, and EZ 500 in September. They were the right products at the right price points. The EZ family of products surpassed 8,700 units in cumulative sales from the time of launch to end of year and was the best-selling electric scooter of 2025. This success demonstrates our ability to innovate, execute, and capture new target audiences. This is not just a sales figure. It is proof that when we innovate with precision, we can create and capture new segments. We applied that same discipline to the entire business.

We slashed portfolio complexity and realigned our road maps with market demand. We overhauled our retail channels to drive speed and efficiency. We have done the hard work and preparation and we enter 2026 ready to capture the market. We deepened our presence in the B2B and government fleet segments. In alignment with Taiwan’s net zero policies, adoption by local governments and corporations is accelerating. We are proud to enable this public service transition. We have been working with the police department for the past five years, and we are seeing this commitment expand across government agencies. Notably, Taiwan’s government postal service, Chunghwa Post, added over 1,000 units of the Gogoro Crossover S to its fleet for postal delivery services.

A powerful validation where durability and reliability matter most, customers choose Gogoro Inc. Our Powered by Gogoro Network (PBGN) partners continue to select Gogoro Inc. technology as their core electrification strategy. Yamaha’s QC launched in Q3 generated strong market momentum while ADAS heavy-duty three-wheelers are scaling rapidly with leading delivery platforms. Each deployment validates our technology, increases network utilization, expands our reach, and reinforces our shared path forward. Our strategy is built directly on the operational success of 2025. Last year was about setting the foundation. This year is about execution. Our theme is “establish,” signifying that we are fully prepared for the next phase of growth. We will not chase volume for volume’s sake.

We are pursuing value creation in both our energy and vehicle businesses. In our energy business, we are elevating our service commitment by actively expanding our network product road map. We are developing new swapping infrastructure, not just as an upgrade but as a strategic extension of our portfolio designed for agility and performance. This new modular swapping station represents a significant technical improvement. It addresses key operational challenges with increased heat dissipation efficiency and lower power demand. Its design features a significantly smaller footprint, enabling rapid deployment and drastically reducing installation time. This innovation allows us to add network density with precision, ensuring we meet rider demand exactly where it is needed.

We are targeting an initial pilot deployment in Taiwan by late 2026. At the same time, we are optimizing our battery life cycle. As we begin to recycle our Gen 1 batteries, we are transitioning them into innovative second-life applications, maximizing their value beyond mobility. Our vehicle business is pivoting to be more customer-centric. The market is evolving. As Taiwan’s demographics shift, we are seeing a flight to quality. Customers today demand more than just mobility. They demand exceptional safety, premium design, and superior reliability. To lead this shift, we are streamlining our portfolio to focus strictly on high-value segments where demand is resilient and growing. We have identified two powerful drivers: female and family riders.

We see a clear, rapid shift among female consumers toward mid- to high-end vehicles. They are choosing performance and style over basic utility. In an era of lower birth rates, parents are adopting a quality-over-quantity mindset. They are investing heavily in safety standards and build quality. This aligns perfectly with our DNA. To capture these sophisticated groups, our 2026 road map is aggressive. We are launching two new models specifically engineered to set a new benchmark for safety and premium experience. We will gain market share inch by inch by satisfying our customers’ needs. The transformation of Asian mobility is accelerating. Electric two-wheelers and battery swapping remain the most effective and scalable solution for high-density urban environments.

We are approaching international expansion with a focused strategy.

Henry Chiang: strategy.

Henry Chiang: In Vietnam, we are launching a pilot with a strategic market leader, Kestrel. This partnership leverages their strong brand presence, local market dominance, and deep distribution network to establish a co-Gogoro-like mobility ecosystem, tailored to specific local needs. This move is timed to capitalize on aggressive government mandates. Hanoi will ban fossil fuel motorbikes in key districts starting July 2026, with a full ban within the city center by 2030. At the same time, Ho Chi Minh City is mandating that all ride-hailing platforms transition to 100% electric fleets by 2030. The transition is not just an option. It is a strict policy. This regulatory pressure creates an immediate, urgent demand for a reliable electric replacement.

However, winning in Vietnam requires more than just policy support. The riding environment is unique. To win in this condition, we are launching a new scooter model specifically engineered for durability and performance. This pilot will validate our model and set the stage for a broader commercial launch targeted in B2B customers later in 2026. 2025 was defined by grit and discipline. We delivered real financial progress. Now we are well-positioned for 2026. The foundation is set and I am confident we will continue to deliver strong financials. With that, I will turn the call over to Bruce to walk through the 2025 financial results in more detail.

Operator: Thanks, Henry.

Henry Chiang: As Henry emphasized, our strategy in 2025 was defined by a focused discipline.

Bruce Aitken: Let me first provide the overall market performance. The Taiwan scooter market faced significant headwinds, declining for a second consecutive year to 708,392 units, down 5.9% year over year, marking the lowest level in ten years. Despite this drop and our deliberate decision to prioritize financial health over volume, we maintained our leadership in the electric scooter segment. Gogoro Inc. and our partners accounted for 33,228 units, or 68% of the overall electric two-wheeler market of 49,228 units. Gogoro Inc. alone accounted for 28,176 units, 57% of all electric vehicles and 4% of overall market share, and our partners accounted for 5,052 units. While vehicle volumes reflected our strategic tightening, network adoption continued to grow.

Subscribers reached 665,000, up 4% year over year, supported by new, more flexible rate plans. The energy business continued progressing towards profitability, supported by improved operating leverage and the completion of battery upgrades, positioning us for efficiency and financial gains starting in 2026. For the full year 2025, we delivered revenue of $281,500,000, which was within our updated guidance range. Despite a full-year 9.4% reduction in revenue from 2024, we achieved a historic high adjusted EBITDA. This marks a fundamental shift in our business health. Our net loss improved substantially, gross margins expanded, and operating cash flow strengthened considerably. These results reflect our focused discipline and commitment to improved financial results.

And as we enter 2026, we expect new products and operational leverage to drive continued cash flow and set the path towards profitability. For the fourth quarter, we generated total revenue of $74,400,000, a 1.7% increase year over year. On a constant currency basis, revenue was down 2.4%, with favorable exchange rates contributing approximately $3,000,000 to the top line. Our recurring revenue engine remains robust. Battery swapping revenue grew 5.9% to $38,000,000, driven by high retention and a subscriber base that expanded by 4% to 665,000 riders. As this base grows, we continue to see better network utilization and improved platform economics. Hardware revenue was $36,400,000, down slightly by 2.3%.

While vehicle volumes were impacted by broader market softness, we largely offset this pressure through two key drivers: a higher average selling price resulting from a shift towards premium models and increased component sales to our partners. For the full year 2025, total revenue was $281,500,000, a 9.4% decline year over year. On a constant currency basis, the decline was 12.2%, with favorable exchange rates preventing an additional $8,900,000 impact. Our recurring business remains a highlight. Battery swapping revenue grew 8.1% to $149,000,000, demonstrating the strength of our subscription model through steady subscriber expansion and high retention. Hardware revenue was $132,500,000, down 23.3%.

This was primarily due to a substantial drop in vehicle sales, reflecting a broader contraction in the Taiwan vehicle market, which hit its lowest volume level since 2016, and the delayed launch of our key volume driver, the EZ. However, this volume decline was partially mitigated by higher average selling prices from a premium mix shift and increased component sales to our PBGN partners. Our focused strategy drove significant improvements in profitability. We saw a dramatic improvement in gross margin. Q4 gross margin reached 14.3%, up from 7.4% versus 2024, while full-year margin rose to 8.3%, up from 2.6% in the previous year.

Q4 non-IFRS margin hit 20.1%, up from 14.7% in the previous period, while full-year non-IFRS gross margin hit 19.5%, up from 14.9% for the full year 2024. Improvements were driven by the completion of battery upgrades, reduced inventory write-downs, lower share-based compensation, and efficiency gains from our restructuring and optimized network depreciation. For the fourth quarter, net loss narrowed substantially to $20,800,000, an improvement of $50,500,000 year over year. This progress was driven by stronger gross profit and a $31,000,000 reduction in operating expenses, primarily due to the absence of last year’s one-time impairment charges and improved organizational efficiency.

For the full year, we narrowed our net loss by $42,000,000 year over year to $80,800,000, down from the previous year’s $122,800,000. This reduction was fueled by significant OpEx reductions, including lower general and administrative expenses, marketing expenses, R&D expenses, and share-based compensation expenses, as well as increased gross profits and lower one-time asset impairments. Adjusted EBITDA reached $59,500,000, an all-time high and an increase of $15,200,000 over 2024. Q4 adjusted EBITDA rose to $12,900,000. These gains reflect higher gross profit combined with disciplined cost-saving initiatives and organizational restructuring. Our improved efficiency translated directly into cash. We generated $31,100,000 in operating cash inflow, more than triple the amount from 2024. We ended the year with $70,600,000 in cash.

To strengthen our liquidity position, we have secured an $80,000,000 equity investment commitment for 2026 from our largest shareholder, so we are fully funded to execute to our near-term objectives. In 2026, we anticipate a modest revenue recovery, forecasting a range of $285,000,000 to $305,000,000. We estimate that approximately 95% of full-year revenue will be generated from the Taiwan market. Our strategic priority remains profitability. We expect our battery swapping business to achieve non-IFRS profitability in 2026, with our hardware business following suit in 2028. With new products launching and continued operating leverage, we are well-positioned to drive strong cash generation in the year ahead. Thanks.

Henry Chiang: Thank you, Henry and Bruce, for the updates. As attendees are formulating their questions, I will ask two questions that we have collected. Question number one, you have been executing well on the first phase of your strategy, stabilizing the business, stopping the cash burn, and positioning Gogoro Network to reach profitability in 2026. Assuming the energy business achieves profitability as planned this year, how should we think about your strategy for the scooter business, which from an external perspective appears to be underperforming and absorbing a disproportionate share of group losses.

Henry Chiang: The first thing to remember is our focus over the past period: stabilize the business, get execution back on track, and put GN on a path to profitability in 2026. That is the foundation we needed before tackling any broader challenge. On the scooter business, we know it has not yet delivered our desired results. Our approach is not about growth at any cost. This means being more selective about models, geographies, and channels, reducing complexity, and aligning investment levels with demonstrated returns. Importantly, we are managing the scooter business with clear financial guardrails so that it does not jeopardize the profitability trajectory of GN and Gogoro Inc. as a group.

With this approach, the scooter business will regain traction by rolling out superior new products and expanding margins by leveraging the economics of scale, producing more units, lowering per-unit costs, optimizing our supply chain, and further streamlining operations. By focusing on high-potential markets and the most attractive customer segments, we can improve utilization of our infrastructure and distribution network. Combined with disciplined pricing, a refined product mix, and stronger after-sales services, the scooter business will become a major growth engine over time, generating sustainable profitability and contributing meaningfully to Gogoro Inc.’s long-term financial targets.

Henry Chiang: Question number two. You put in lots of hard work in reducing OpEx in 2025. Can you sustain that level of OpEx savings and can we expect ongoing improvements in gross margin?

Bruce Aitken: Thanks for the question. You are right that the team worked super hard on cost savings in 2025. Our total OpEx reduction on an IFRS basis was $1,900,000, which does include some one-time impairments. Without including the impairments, we still saved nearly $24,000,000. So thanks to everyone on our team for contributing, whether through lower variable marketing and promotional expenses, which result from lower vehicle sales, savings in research and development expenses by focusing the vehicle business on a streamlined product portfolio, lower payroll driven by operation efficiency, or savings in share-based compensation. This is a huge achievement. It is a clear indication that we are tightening things up and that we are focusing.

And, again, we really appreciate the hard work of all Gogoro Inc. employees to contribute to this. In 2026, it will be hard to replicate that same level of OpEx savings, so we need to look to reduce BOM costs, increase our manufacturing efficiencies, and execute to some value engineering projects to continue to drive margin improvement, which is critical to our ongoing success. We are committed to those cost savings across the board. We are committed to associated margin improvement, but it is unlikely that we will be able to replicate the size of the savings from 2025. These were substantial and necessary cuts that we made to rightsize the organization and refocus our efforts on value-adding investments. Thanks.

Henry Chiang: Thank you, Henry and Bruce. Now we open the line for more questions.

Operator: Thank you. As a reminder, at this time, if you would like to ask questions on the phone, you may press 11 and wait for your name to be announced. To cancel your request, you can press 11 again. If you would like to ask a question, please press 11. No further questions. I will turn the call over to Henry for closing remarks.

Henry Chiang: Before we close, I want to reinforce one message. Financial discipline remains our top priority. We will not buy revenue or chase empty volume.

Bruce Aitken: empty volume.

Henry Chiang: Growth must be organic, gross-margin positive, and aligned with our efforts to establish long-term profitability. Operating cash flow is the true measure of our success, and we are laser focused on long-term sustainability. Our 2025 performance serves as solid evidence in our critical target: Gogoro Network pursuing profitability in 2026. I have confidence that the energy business will demonstrate profitability by the end of the year as promised, to reestablish Gogoro Inc.’s foundation for the future. Thank you for joining us today. We look forward to updating you on our progress throughout the year.

Operator: That does conclude today’s conference call. Thank you for your participation. You may now disconnect.

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