Wetouch Technology 2025 Q2 Earnings Sustained Profitability Despite EPS Decline

Wetouch Technology reported its fiscal 2025 Q2 earnings on October 9, 2025, showing mixed results. The company maintained profitability for six consecutive years in the corresponding quarter, though EPS declined 17.4%. No formal guidance was provided, but the CEO emphasized confidence in future growth.

Revenue
Wetouch Technology reported total revenue of $12.42 million in fiscal 2025 Q2, representing a 1.5% year-over-year increase from $12.23 million. The growth was broadly distributed across key segments. Automotive touchscreens generated $3.12 million, while industrial control computer touchscreens contributed $2.73 million. Point-of-sale touchscreens brought in $1.95 million, and gaming touchscreens added $1.80 million. The medical touchscreen segment contributed $1.67 million, and multi-functional printer touchscreens accounted for $1.15 million, rounding out the total revenue.

Earnings/Net Income
Wetouch Technology’s earnings per share (EPS) declined 17.4% to $0.19 in the quarter, down from $0.23 in the same period a year ago. The company’s net income also fell by 17.0% to $2.24 million from $2.70 million. Despite the decline, the company continued to deliver profitability for the sixth year in a row, signaling ongoing operational resilience and stability.

Price Action
Following the earnings release, the stock of Wetouch Technology surged 10.01% on the day, 35.25% for the week, and 37.57% month-to-date.

Post-Earnings Price Action Review
CEO Zongyi Lian highlighted the company’s strong performance in the first half of fiscal 2025, with a gross margin of 35.2%, returning to 2023 levels, and an operating cash flow of $4.7 million. He attributed growth to increased domestic sales in China and new customer acquisitions, while emphasizing strategic investments in curved and ultra-large-size touchscreen technologies. Expansion into automotive electronics, professional gaming, and commercial displays was also noted, with optimism surrounding the Chengdu facility expected to begin mass production in Q2 2026. Wetouch’s robust financial position, with $110.5 million in cash and over $130 million in shareholders’ equity, supports its expansion plans.

CEO Commentary
The CEO expressed confidence in the company’s ability to maintain disciplined execution and sustained profitability as it expands. He reiterated a focus on long-term value creation and operational efficiency, though no specific guidance for future revenue or EPS was given.

Guidance
WeTouch expects the Chengdu production facility to be completed by the end of 2025, with mass production beginning in Q2 2026. The company aims to continue its disciplined execution and profitability while exploring strategic opportunities to enhance competitiveness and shareholder returns.

Additional News
Within the past three weeks, Wetouch Technology has been active in strategic planning and customer acquisition. The company announced plans to expand its R&D operations in Shenzhen, aiming to enhance its technological leadership in advanced touchscreen solutions. Additionally, Wetouch entered into a partnership with a major Chinese automotive supplier to develop next-generation touch interface systems for electric vehicles. The company also confirmed a key executive appointment in its sales division, with an experienced industry veteran joining to lead business development efforts in Asia. These developments reinforce the company’s focus on innovation and market expansion in key growth sectors.