Merry Electronics (2439) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was NT$10.327 billion, down from NT$12.352 billion in Q2 2025, while revenue for the six months ended June 30, 2026 was NT$21.408 billion, up 12% year-over-year.

• Gross profit margin decreased YoY by 13.81%, with gross profit at NT$1.042 billion; operating margin for the six months was 11%.

• Net profit attributable to owners for Q2 2026 was NT$583 million, a YoY increase of 4,633.92%; for the six months, net profit was NT$382 million, up from NT$356 million in 2025.

• The group completed the acquisition of MWT Holdings in February 2026, enhancing market presence in Northeast Asia.

Financial highlights

• Operating expenses rose 7.56% YoY to NT$1.194 billion; operating revenue for Q2 2026 was NT$10.438 billion, up 1% YoY.

• EPS for Q2 2026 was NT$0.50; basic EPS for the six months was NT$1.54.

• Free cash flow for Q2 2026 was negative NT$1.504 billion; operating cash flow for the six months was NT$151 million.

• Cash and cash equivalents at quarter-end were NT$7.333 billion.

Outlook and guidance

• Q3 2026 revenue expected to rise as the company enters peak season; management expects continued growth from the integration of MWT Holdings and expansion in Northeast Asia.

• Headset revenue projected to grow QoQ, remain flat YoY; audio to increase YoY due to acquisition synergies.

• TWS revenue expected to decline YoY due to market softness and model transition.

• Battery revenue expected to grow both QoQ and YoY as new projects ramp up.