1. Gogoro reported Q1 2025 revenues of $63.6 million, down 8.7% YoY. 2. Gross margin decreased to 4.9%, while non-IFRS margin improved to 18.2%. 3. Net loss increased to $18.6 million, attributed to financial liabilities changes. 4. Company anticipates cost savings of $25 million in 2025 amid restructuring. 5. Gogoro's battery-swapping business continues to grow, enhancing recurring revenue.
The revenue decline and increased net loss negatively affect investor confidence.
Financial struggles reveal operational risks, likely influencing investor sentiment and stock performance.
The immediate financial results may pressure stock price, though long-term outlook improving.
"The word that best describes our efforts over the past two quarters is focus. At Gogoro, we are focused on delivering an exceptional user experience, driving operational efficiency, and executing with discipline against a clear and ambitious long-term strategy. Our results in the first quarter of 2025 reflect that focus. We delivered solid gross margin and made critical investments in our future, while also significantly reducing operating expenses year-over-year," said Henry Chiang, interim CEO of Gogoro. "We remain firmly committed to our profitability milestones and the progress we have made this quarter reinforces our confidence in that trajectory."
"In the first quarter of 2025, we delivered meaningful financial improvements driven by a focused effort on operational efficiency and disciplined execution compared to the first quarter of 2024. This reflects the early success of our cost optimization initiatives and our commitment to building a more resilient and scalable business. We remain on track to meet our planned financial milestones. These goals are grounded in a clear roadmap and are supported by recurring revenue from our Gogoro Network battery swapping business, which continues to grow in both subscribers and service adoption," said Bruce Aitken, CFO of Gogoro. "Our capital position was further strengthened by securing a new NT$2 billion credit facility this quarter, which provides us with additional flexibility to support strategic initiatives and product innovation while reinforcing external confidence in our long-term plan. While we continue to face a challenging macroeconomic environment, we are actively managing risk, recalibrating expectations, and maintaining tight financial controls. We are confident that the foundation we are building today will enable sustainable growth and long-term shareholder value creation."
For the first quarter, the total revenue was $63.6 million, down 8.7% year-over-year and down 4.5% year-over-year on a constant currency basis. Had foreign exchange rates remained constant with the average rate of the same quarter last year, revenue would have been up by an additional $2.9 million.
For the first quarter, gross margin was 4.9%, down from 6.4% in the same quarter last year while non-IFRS gross margin was 18.2%, up from 15.1% in the same quarter last year. The change in gross margin was primarily driven by a combination of factors: (i) a $4.2 million increase in costs associated with our battery upgrade initiative, (ii) higher excess capacity costs due to reduced sales volume, and (iii) a decline in sales of high-margin accessories and parts. The change in non-IFRS gross margin was primarily driven by lower depreciation across our entire install base of battery packs from increased network efficiency as well as the extended lifespan of upgraded batteries and improvements in other operational efficiencies.
Gogoro was founded as an innovative energy business and we continue to invest heavily in growing and updating our Gogoro Network by deploying new GoStations, battery packs, and software updates. Over the last three years, we have invested approximately $100 million in capital expenditure annually.
For the first quarter, net loss was $18.6 million, representing an increase of $5.5 million from a net loss of $13.1 million in the same quarter last year. The increase in net loss was primarily due to an unfavorable change of $11.4 million in the fair value of financial liabilities associated with outstanding earnout shares, earn-in shares and warrants.
For the first quarter, adjusted EBITDA was $14.3 million, representing an increase of $4.1 million from $10.2 million in the same quarter last year. The increase was primarily due to a $7.1 million reduction in operating expenses resulting from various cost-saving initiatives.
In the first quarter of 2025, we incurred an operating cash outflow of $8.9 million, compared to an operating cash inflow of $0.9 million in the first quarter of 2024, primarily due to changes in operating assets and liabilities. With a cash balance of $93.3 million at the end of the first quarter of 2025, we believe we have sufficient sources of funding to meet our near-term business growth objectives.
We believe the Taiwan two-wheeler market in 2025 will remain approximately the same as 2024. For the full year of 2025, we reiterate our revenue forecast of between $295 million to $315 million on a constant currency basis. Our gross margin may be continuously negatively impacted in the short term because of our ongoing and accelerated battery upgrade initiatives which are expected to be completed by the end of 2025.
Gogoro's management team will hold an earnings webcast on May 8, 2025, at 8:00 a.m. Eastern Time to discuss the Company's first quarter 2025 results of operations and outlook. Investors may access the webcast, supplemental financial information and investor presentation at Gogoro's investor relations website under the "Events" section.
Founded in 2011 to rethink urban energy and inspire the world to move through cities in smarter and more sustainable ways, Gogoro leverages the power of innovation to change the way urban energy is distributed and consumed. Gogoro has quickly become an innovation leader in vehicle design and electric propulsion.
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. Forward-looking statements generally relate to future events or Gogoro's future financial or operating performance. Forward-looking statements may not materialize, and actual results in future periods are subject to risks and uncertainties.
The condensed consolidated financial statements are unaudited and have been prepared in accordance with the International Financial Reporting Standards. The Company's condensed consolidated financial statements reflect all normal adjustments that are necessary to provide a fair statement of results for the interim periods presented.