Gogoro's Q3 2025 Earnings Call: Contradictions Emerge on Financial Outlook, Market Position, and Battery Model Competitiveness

Date of Call: None provided

Financials Results

• Revenue: $77.6M total (Battery swapping $38.9M, +11.5% YOY; Hardware & other $38.7M, -25.5% YOY)
• Gross Margin: 12.2% (IFRS), up from 5.4% YOY; non-IFRS gross margin 22.2%, up 5.9 percentage points YOY

Guidance:

• Full-year 2025 revenue revised to $270M–$285M.
• Q4 gross margin expected to remain temporarily impacted by accelerated battery upgrade program, to be completed by year-end.
• Targets reiterated: Energy network profitability in 2026; Energy network positive free cash flow in 2027; company-wide hardware profitability in 2028.

Business Commentary:

* Operational and Financial Improvement: - Gogoro generated over $25.7 million in operating cash flow over the first nine months of 2025, nearly double last year's level, and achieved approximately $21 million in operating expense savings compared with the same period in 2024. - The improvement was due to operational efficiency, stabilization, efficiency, and cost optimization, resulting in better cash conversion and flexibility.

• Product and Market Expansion:
• The launch of the Easy and Easy 500 models expanded Gogoro's reach across price segments, with the Easy being the best selling electric two wheeler in Taiwan for five consecutive months.
• This expansion was driven by the company's focus on product innovation and a strategic approach to the mass market segments.

• Energy Business Growth:
• Battery swapping service revenue grew by 11.5% year over year to $38.9 million despite a contracting two-wheeler market in Taiwan.

• This growth was attributed to an expanding subscriber base, reaching 657,000 riders at quarter end, up 5% year over year, and the subscription-based nature of the business, which allowed for improved network utilization and profitability.

• Challenges and Strategic Adjustments:

• Hardware and other revenue was $38.7 million, down 25.5% year over year, primarily due to a 43.7% decline in vehicle sales volume.
• This decline was attributed to macroeconomic headwinds, weaker consumer sentiment, and decreased discretionary spending. The company is proactively addressing these challenges by right-sizing its cost structure and focusing on models and technologies with the best long-term return.
  

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted operational improvements: >$25.7M operating cash flow (first 9 months), adjusted EBITDA of $47M (9M, +25% YOY), adjusted gross margin 19.3% (9M, +4.3ppt), Q3 non-IFRS gross margin 22.2% (+5.9ppt YOY), narrowed net loss to $14.9M, and reiterated network profitability targets for 2026–2028.

Q&A:

• Question from George (Investor Relations): Congratulations Henry on your appointment as official CEO. Over the past year, as interim CEO, you have overseen quite a few strategic and operational changes at Gogoro. Can you share what this appointment means to you personally and what your vision and priorities are for Gogoro over the next 12 months?
  Response: Primary focus is to stabilize and streamline operations and financial performance now, then prioritize product and technology innovation to drive renewed growth and market expansion in 2026.

• Question from George (Investor Relations): Your stock has declined following the 20-to-1 reverse stock split you executed in early October. Can you provide your view on this decline? Do you have any concerns? How do you view the long term prospects for Gogoro?
  Response: Management views the decline as a near-term, technical reaction to the reverse split; fundamentals unchanged — they remain focused on cash generation, cost control and execution and believe long-term electrification and swapping tailwinds support intrinsic value.

Contradiction Point 1

Gogoro's Financial Outlook and Growth Strategy

It involves changes in financial forecasts and strategic focus, which are critical for investor expectations and company direction.

What is your view on the stock decline following the 20-to-1 reverse stock split in early October? Do you have concerns about this decline? How do you assess Gogoro's long-term prospects? - George, Investor Relations, Gogoro

2025Q3: We believe the most challenging period for Gogoro is behind us, and we have better days ahead due to policy tailwinds, city electrification, and customer engagement. - Bruce Aitken(CFO)

Given Gogoro's continued investment in battery upgrades and network infrastructure through mid-2025, with positive operating cash flow insufficient to offset these costs, is this a front-loaded investment cycle where capital expenditures will taper in 2026? Assuming current adjusted gross margins are maintained, can we expect net cash flow to turn positive by 2026? - Unidentified Analyst

2025Q2: Investments in network infrastructure are critical for growth and improving gross margins. Battery upgrades are expected to be completed by the end of 2025, and Gogoro anticipates the battery business to achieve full-year breakeven in 2026, assuming current gross margins are maintained. - Henry Chiang(CEO)

Contradiction Point 2

Gogoro's Market Position and Government Policy Influence

It involves the company's stance on government policy and market position, which are crucial for strategic positioning and investor confidence.

What does this appointment mean to you personally, and what are your vision and priorities for Gogoro over the next 12 months? - George, Investor Relations, Gogoro

2025Q3: Our Smart City-as-a-Service platform has been adopted in 23 cities globally, and we've seen an inflection point in our market share growth in Taiwan, with a strong pipeline of opportunities across multiple regions. - Henry Zhang(CEO)

Given Taiwan's 2035/2050 net-zero targets and slow EV adoption, especially among 15M scooters, is the government planning more aggressive subsidies or regulatory incentives to accelerate electrification, and how is Gogoro positioning itself to align with or influence these policy changes? - Unidentified Analyst

2025Q2: The government is committed to achieving net-zero emissions by 2050, but current EV adoption rates are not sufficient. Gogoro is actively engaging with officials to encourage more aggressive subsidies and regulatory measures in the region. - Henry Chiang(CEO)

Contradiction Point 3

Stock Performance and Long-Term Prospects

It involves differing perspectives on the stock performance and long-term prospects of the company, which are critical for investor confidence and decision-making.

What are your thoughts on the stock price decline after the 20-to-1 reverse stock split in early October? Are you concerned about the decline? What are your long-term prospects for Gogoro? - George, Investor Relations, Gogoro

2025Q3: We have experienced a decline since the reverse stock split. This is largely a near-term and technical reaction, not unusual for companies post-split. - Bruce Aitken(CFO)

Comment on the transfer to NASDAQ's capital market, future compliance with NASDAQ requirements, and other listing status plans? - Operator

2025Q1: We transferred to the NASDAQ Capital Market to gain an additional 180-day grace period. We're focused on long-term financial improvements and stock price increase. - Bruce Aitken(CFO)

Contradiction Point 4

Battery Swapping Model's Competitiveness

It highlights differing views on the competitive advantages of Gogoro's battery swapping model, which is a fundamental part of their business strategy.

What does this appointment mean to you and what are your vision and priorities for Gogoro in the next 12 months? - George, Investor Relations, Gogoro

2025Q3: We recognize the rapid advancements in fast charging and supercharging technology, but these innovations don't pose a direct threat to our battery swapping model. - Henry Chiang(Interim CEO)

What does this appointment mean to you personally, and what are your vision and priorities for Gogoro over the next 12 months? - George, Investor Relations, Gogoro

2025Q3: Our platform was purpose-built for urban mobility, offering speed, convenience, and efficiency. - Henry Chiang(Interim CEO)