Accton Technology (2345) Investor Update summary

Financial performance highlights

• Q3 2025 revenue reached TWD 72.94 billion, up 20% from Q2; nine-month revenue was TWD 176.3 billion, a 147% year-over-year increase.

• Q3 gross margin was 17.2%, down 0.7 percentage points from Q2, mainly due to product mix and FX impacts.

• Net income for Q1-Q3 2025 was TWD 17.958 billion, a 140% increase year-over-year; Q3 net income was TWD 7.8 billion.

• EPS for Q1-Q3 2025 was TWD 32.18, up 140% year-over-year; Q3 EPS was TWD 14.

• Cash and cash equivalents at quarter-end were TWD 27.3 billion, up 113% year-over-year; debt ratio at quarter-end was 63.93%.

Revenue breakdown

• Network Application segment contributed 63% of revenue, growing 361% year-over-year.

• Switch segment accounted for 34% of revenue, up 46% year-over-year.

• America region generated 81% of revenue, increasing 178% year-over-year.

• Taiwan revenue surged 1266% year-over-year, now 7% of total; Europe contributed 7% of revenue, up 57% year-over-year.

• Inventory increased 22% from Q2, mainly for Q4 shipment preparation.

Business and technology strategy

• Focus on long-term growth through excellent execution, especially to meet strong hyperscale AI demand.

• Strategic investments in 224G/448G series for 1.6T and 3.2T switches, and in optical technologies like OWS and WSS.

• Emphasis on innovation, operational efficiency, and talent development to support scaling and quality.

• Flexible resource planning and global footprint support business scaling.

• Organization alignment and rewarding high performers emphasized.