Third Quarter 2025 Business Update and Outlook Third Quarter 2025 Financial Summary "Over the past few quarters, we've right-sized and streamlined our operations, boosting agility and focus across our supply chain, inventory turnover and cash conversion cycle, all to drive our mission forward and deliver lasting value for the cities we serve, our customers, and our shareholders." said Henry Chiang, CEO of Gogoro. "The benefits of our strong operational foundation are evident: stronger cash generation, impro ...

Core Insights - Gogoro Inc. has appointed Henry Chiang as the official CEO, effective immediately, after serving as interim CEO since September 2024 [1][2] - The board believes Henry's leadership will drive Gogoro's turnaround and align with the company's growth strategy [2] - Under Henry's interim leadership, Gogoro improved operating cash flow from $4.8 million in H1 2024 to $15.2 million in H1 2025, while reducing operating expenses by approximately $11 million year-over-year [2] Company Performance - Gogoro expects to achieve profitability on a non-IFRS basis in its energy business by 2026 and in its vehicle business by 2028 [2] - The company plans to generate free cash flow from energy operations in 2027 [2] - In 2025, Gogoro launched three new electric scooter models: Pulse STARLUX, EZZY, and EZZY 500, enhancing its market position [2] Leadership and Strategy - Henry Chiang has a strong background in the industry, previously leading GoShare and launching customer engagement initiatives at Gogoro [2] - His leadership has focused on operational efficiency, innovation in urban mobility, and expanding Gogoro's global footprint through partnerships in Vietnam and Latin America [2][3] - Gogoro aims to leverage its brand popularity to re-establish financial success while continuing to deliver innovative products [2]

Core Insights - Gogoro continues to make progress towards profitability, with improvements in non-IFRS gross margin and operating cash flow in the first half of 2025, indicating positive impacts from strategic efforts [4][5][10] - The company faced challenges in revenue due to the delayed launch of its new product, EZZY, but remains optimistic about achieving its full-year revenue targets [4][5][15] - Gogoro is focused on cost discipline and innovation, with plans for new product launches and battery pack developments in the coming years [4][5][11] Financial Performance - Total revenue for Q2 2025 was $65.8 million, a decrease of 18.7% year-over-year, and down 22.5% on a constant currency basis [5][11] - Battery swapping service revenue increased to $37.6 million, up 8.5% year-over-year, while hardware sales dropped to $28.2 million, down 39.1% year-over-year [5][11] - The gross margin was 0.3%, down from 5.2% in the same quarter last year, while non-IFRS gross margin improved to 17.0%, up from 13.5% [7][11] Cost Management - Operating cash flow improved significantly to $15.2 million in the first half of 2025, compared to $4.8 million in the same period of 2024, driven by cost-saving initiatives [5][14] - The company saved approximately $11 million in operating expenses in the first half of 2025 compared to the same period in 2024 [5][10] - Organizational restructuring and streamlined product offerings contributed to reduced operating expenses [10][14] Market Outlook - The Taiwan two-wheeler market is expected to be subdued in 2025, impacting Gogoro's revenue projections, which are now anticipated to be at the low end of the previously provided range of $295 million to $315 million [15] - International markets, particularly Korea and Vietnam, are showing positive signs with increased demand for Gogoro's solutions and supportive government policies for electrification [5][11] Product Development - Gogoro plans to launch a new vehicle in Q3 2025 and an all-new vehicle platform in 2026, alongside ongoing battery pack upgrades [5][11][15] - The company has invested approximately $100 million annually in capital expenditures over the past three years to enhance its battery swapping network [8][9]