Gogoro Inc. Ordinary Shares 2026 Q2 Earnings Call

Thanks, Wendy. Thank you everyone for joining us today. The second quarter marks an important milestone for Gogoro. Over the past 2 years, we've remained focused on strengthening the fundamentals of our business, improving operational discipline, simplifying our cost structure, and executing a more focused product strategy. This quarter, we're beginning to see those efforts translate into tangible business results. Revenue returned to year-over-year growth. The gross margin reached its highest quarterly level in more than 5 years. Operating cash flow continued to strengthen. At the same time, our newest products gained encouraging customer traction and supported a recovery in our market position. Taken together, these results reinforce our confidence that the strategy we've been executing is working. More importantly, they demonstrate that we're building a healthier business, one capable of delivering both sustainable growth and improving profitability. Let me begin with our products.

One of the priorities we've discussed over the past year has been transforming our product portfolio from the ground up, reaching new customer segments while preserving the Gogoro riding experience. I'm pleased to say that the first phase of our multi-year product renaissance is off to an exceptional start. EZZY, our Disney and Pixar's Toy Story series, and Gogoro Luna represent the first wave of a broader product strategy designed to strengthen our core franchise, attract new consumers, and expand our addressable market. The EZZY family is strategically designed for consumers seeking simple, hassle-free, everyday mobility, and its performance continues to exceed our expectations. During the quarter, it contributed more than one-third of our scooter sales revenue and attracted family-oriented consumers into the Gogoro ecosystem. We continue to see family-oriented consumers as an important pillar of Gogoro's long-term growth strategy. Gogoro is a leading scooter brand among female riders.

As part of our strategy to expand our product portfolio to this targeted consumer group, we introduced Gogoro Luna toward the end of the quarter, our newest premium scooter designed specifically for female riders. Gogoro Luna is more than just a new model, it represents the next phase of our product portfolio strategy. Showing absolute empathy for our consumers is the guiding principle behind Gogoro's product development. Our goal was to create a scooter that women find effortless to ride, beautiful to look at, and practical for daily use. As daily life grows increasingly busy and women balance more roles, we believe a Gogoro product should serve as a true partner and supporter, matching the rhythm of life, helping people navigate each day smoothly, and empowering them to embrace every role with ease and confidence. This was our core motivation in crafting a brand-new product tailored specifically for women.

We believe this scooter will become a benchmark in the female scooter market, and results have already proven that our empathy truly resonates with consumers. We believe one standout innovation is its innovative effort-saving center stand, requiring just 47 kilograms of stepping force, making parking significantly easier, particularly for petite riders and in tight urban spaces. The early market response has been very encouraging. Rather than relying on a single flagship model, we're building a portfolio designed around distinct customer needs. We believe this approach better positions us to expand our addressable market while strengthening the long-term competitiveness of our hardware business. We're also encouraged by the improvement in our market position. During the quarter, our market share recovered to approximately 6%, reflecting stronger customer demand for our newest products.

While Taiwan's overall scooter market remains competitive, we believe our recent launches demonstrate that innovation, thoughtful product positioning, and disciplined execution continue to differentiate Gogoro. Ultimately, our goal is not simply to launch more scooters. We are building a broader and more relevant product portfolio that can bring more consumers into the Gogoro ecosystem, expand our addressable market, and create a stronger foundation for sustainable growth. Beyond hardware, our recurring energy business continues to provide the stability that sets Gogoro apart. Our subscriber base grew to approximately 677,000, reflecting continued year-over-year growth. Although the continued success of entry-level vehicle has modestly affected average revenue per subscriber, the expansion of our subscriber base strengthens utilization of the Gogoro Network and reinforces the long-term value of our recurring revenue model. Equally important, we continue to improve the economics of our business.

We are increasingly seeing the benefits of continuous operational excellence and disciplined execution across our Gogoro Network. In Q2, we delivered our strongest operating performance to date, with expenses coming in below budget while continuing to improve year-over-year. More importantly, these improvements are now translating into tangible financial progress and strengthening the underlying economics of the network. What is particularly exciting is seeing this progress validate the thesis behind Gogoro Network. We remain deeply committed to delivering clean, efficient, and increasingly accessible energy to urban communities, and we are encouraged to see the business model increasingly demonstrate both operational scalability and financial viability. As we continue to scale the network, improve efficiency, and expand adoption, we believe we are building not only a more profitable business, but also a sustainable energy platform that can play an important role in the future of urban mobility.

This is what we are passionate about building, and seeing the model increasingly validated by both our operating results and financial performance gives us tremendous confidence in the opportunity ahead. Looking ahead, our priorities remain unchanged. We will continue executing our focused product strategy, we will continue improving the efficiency and profitability of the Gogoro Network, and we will continue allocating capital with discipline while investing in opportunities that support sustainable long-term growth. Before I hand the call over to Bruce, I would like to take a moment to recognize that today's call marks his final earnings call as Gogoro's Chief Financial Officer following our recent announcement. Bruce has been an exceptional partner over the past eight years and has played an instrumental role in building the financial foundation that supports Gogoro today.

I will have an opportunity to say more before we conclude the call, but on behalf of all of us, Bruce, thank you for your leadership and your many contributions. With that, let me turn the call over to Bruce.

Thank you, Henry. Before I begin, I would like to echo Henry's comments. It has been a privilege to be part of Gogoro's journey, and I will share a few personal thoughts towards the end of our call. But first, let me review our second quarter financial results. Overall, we are pleased with the progress we made during this quarter. The financial results reflect continued operational discipline, improving execution, and the benefits of the actions we have taken over the past two years to strengthen the business. Second quarter revenue was $70.6 million, representing a 7.3% increase year-over-year, or approximately 10% growth on a constant currency basis. The return to revenue growth was driven primarily by stronger Gogoro-branded scooter sales, supported by the continued success of the EZZY family and initial deliveries of our Luna model.

Hardware revenue also benefited from deliveries under our previously announced WeMo fleet agreement. Battery swapping service revenue remained resilient despite foreign exchange headwinds and the continued mix shift towards entry-level scooters. Subscriber growth continued to offset much of the pressure on average revenue per subscriber, highlighting the strength of our recurring revenue model. Overall, we're encouraged to see both our hardware and energy businesses contributing to top-line growth. The highlight of the quarter was another meaningful improvement in profitability. Gross margin reached 22.6%, the highest it has been in the last five years. Importantly, this improvement reflects structural changes in the business rather than temporary cost reductions. Completion of our battery upgrade program, improved manufacturing efficiency, lower battery depreciation, better network utilization, and continued cost discipline all contributed to the improvement.