Gogoro Inc. shares tumbled 15.4% in pre-market trading after the Taipei-based electric scooter company reported a narrower net loss and stronger margins for the second quarter, despite revenue growth.
The company posted a net loss of $4.9 million for the quarter, an improvement of $21.6 million from the same period last year. Earnings per share came to a loss of $0.24. Revenue rose 7.3% year-over-year to $70.6 million, driven by a 17.8% increase in hardware and related sales to $33.2 million. Gross margin expanded to 22.6%, the highest level in more than five years, up from just 0.3% a year earlier.
The margin gains were attributed to battery upgrade initiatives, improved overhead absorption, and efficiencies in the energy network. Adjusted EBITDA increased to $19.3 million from $12.5 million in the prior-year period. Operating cash flow for the first half of 2026 reached $26.0 million, up over 70% from $15.2 million in the same period of 2025, while cash and equivalents stood at $68.8 million as of June 30.
Gogoro-branded scooter registrations and deliveries to sharing partner WeMo grew 50.8% year-over-year, contributing to a rebound in market share to 6% in the second quarter, up from 2% earlier in the year. Battery swapping service revenue declined 0.6% to $37.4 million, while subscribers increased 4% to 677,000.
Despite the positive operational trends, Gogoro maintained a cautious outlook for fiscal 2026, projecting revenue between $285 million and $305 million. The midpoint of $295 million suggests modest growth from 2025 levels, with management noting ongoing market softness.
CFO Bruce Aitken highlighted the financial impact of operational discipline, stating that the results demonstrate "a strong gross margin recovery to 22.6% and a $21.6 million reduction in net loss to $4.9 million."
