Wetouch Technology 2025 Q3 Earnings 23.7% YoY Net Income Growth Outpaces Expectations

Wetouch Technology (WETH) reported fiscal 2025 Q3 earnings on November 13, 2025, with revenue rising 5.6% to $12.18 million and nine-month net income surging 23.7% to $7.3 million. The company reaffirmed its guidance for Chengdu facility completion by year-end 2025, aligning with its capacity expansion strategy.

Revenue

Wetouch’s Q3 revenue reached $12.18 million, driven by a 6.1% year-over-year increase in sales volume. Automotive touchscreens led with $3.08 million, while industrial control computer touchscreens contributed $2.57 million. POS and gaming segments added $1.95 million and $1.78 million, respectively. Medical and multi-functional printer touchscreens rounded out the portfolio with $1.66 million and $1.15 million. Domestic sales in China grew 13.5%, offsetting 7.3% overseas revenue declines.

Earnings/Net Income

Despite a 4.5% EPS decline to $0.21, net income rose 23.7% year-over-year to $7.3 million for the nine-month period. The 30.1% tax rate reduction from 26.9% to 20.1% offset margin pressures from raw material and labor cost inflation.

Price Action

The stock surged 48.24% month-to-date following the earnings release, though intraday volatility saw a 15.15% drop on the reporting day.

Post-Earnings Price Action Review

A backtest of buying WETH shares on revenue-raising report dates and holding for 30 days showed an average return of 14.5% over three years. Positive market reactions followed four Q3 2025–Q4 2024 revenue beats, with gains ranging from 10% to 20%. Minimal risk was observed, as no declines occurred during the 30-day holding periods.

CEO Commentary

Zongyi Lian, CEO of Wetouch Technology, emphasized resilience in Q3 results despite margin challenges. “Disciplined operations and growing domestic demand in China supported year-to-date profitability,” he stated. The CEO highlighted progress on the Chengdu facility, on track for completion by year-end 2025, and reiterated confidence in leveraging $113.2 million in cash reserves for expansion.

Guidance

The company expects to complete Chengdu facility construction by December 2025, with mass production slated for Q2 2026. Management also aims to maintain debt-free operations while exploring shareholder value-enhancing strategies.

Additional News

Wetouch received a Nasdaq notification regarding delinquent periodic reports, though no immediate delisting risks were disclosed. The Chengdu facility construction remains a key focus, with plans to fund it through existing cash and operational cash flows. Additionally, the company’s nine-month operating cash flow turned positive to $8.5 million, up from a $0.7 million deficit in 2024.