Taiwan’s Gogoro Inc. posted improved profitability metrics in the third quarter despite declining overall revenue, as its battery-swapping subscription business continued to expand while hardware sales contracted in a weakening market.
The electric scooter maker’s gross margin climbed to 12.2% in the quarter, up 6.8 percentage points from a year earlier, while adjusted EBITDA rose 30% to $20.2 million. Both figures marked the highest levels since 2022. Operating cash flow for the first nine months surged to $25.7 million, nearly double the prior-year period, while net losses narrowed 18% to $14.9 million.
Battery-swapping service revenue grew 11.5% year-over-year to $38.9 million, with the subscriber base reaching 657,000 users. That growth offset a decline in hardware sales as Taiwan’s overall two-wheeler market weakened.
CEO Henry Chiang cited improved supply chain and inventory management as key drivers behind the enhanced margins. Operating expenses fell by approximately $21 million in the nine-month period compared with 2024.
The company expects its energy business to reach breakeven in 2026, followed by positive free cash flow in 2027 and hardware profitability in 2028. Gogoro plans to launch three new scooter models next year and is developing higher-density batteries with improved manufacturing efficiency.
The EZZY model, launched in June, has led Taiwan’s electric scooter sales for five consecutive months, while the September-released EZZY 500 topped October sales charts. Both budget models target mainstream consumers as the company seeks to broaden its market reach beyond premium segments.
