Gogoro Inc. (NASDAQ:GGR) reported a narrower net loss and record gross margin for the third quarter of 2026, despite a 9.1% decline in revenue to $70.6 million, as the electric scooter and battery-swapping company continued implementing changes to its product portfolio and operating structure.
The company recorded an adjusted loss of $0.17 per share for the quarter ended September 30, which was narrower than analyst expectations. Its reported net loss decreased to $3.4 million from $14.9 million in the corresponding period of 2025.
Gogoro shares advanced 0.74% in premarket trading on Wednesday following the announcement.
The company also revised its full-year revenue guidance downward, citing market conditions affecting electric two-wheeler demand in Taiwan.
Gogoro reported third-quarter revenue of $70.6 million, representing a 9.1% decrease compared with the same period of 2025.
On a constant currency basis, revenue declined 2.9%.
The company attributed the reduction primarily to a 9.7% year-over-year decline in scooter registrations and lower component sales.
Revenue from hardware and other activities fell 13.5% to $33.5 million, reflecting the impact of reduced vehicle-related sales.
Battery-swapping service revenue decreased 4.7% to $37.1 million on a reported basis.
However, battery-swapping revenue increased 1.8% when adjusted for currency movements, supported by growth in the company’s subscriber base.
The contrasting reported and constant currency figures indicate that foreign exchange movements affected the year-over-year revenue comparison.
Gogoro’s battery-swapping network reached approximately 684,000 subscribers during the third quarter, representing an increase of 4% compared with the previous year.
The growth in subscribers contributed to the 1.8% constant currency increase in battery-swapping service revenue.
On a reported basis, service revenue declined to $37.1 million from the corresponding period of 2025.
Battery swapping remained the company’s largest reported revenue category during the quarter, accounting for slightly more than half of total revenue.
The service allows customers using compatible electric two-wheelers to exchange depleted batteries for charged units through Gogoro’s network.
The increase in subscribers occurred despite the decline in scooter registrations, reflecting different trends between the company’s existing service customer base and new vehicle activity.
Gogoro reported a gross margin of 24.4% for the third quarter, compared with 12.2% in the corresponding period of 2025.
The improvement of 12.2 percentage points represented the company’s highest reported quarterly gross margin.
Management attributed the increase to several factors, including the completion of battery upgrade initiatives, improved absorption of operating overhead and changes in the company’s product mix.
The company also benefited from a greater contribution from higher-end electric scooter models.
These included the Gogoro Luna, which was introduced towards the end of the second quarter of 2026.
The shift towards higher-end models contributed to improved gross profitability despite lower overall revenue.
Gogoro’s net loss narrowed to $3.4 million, compared with $14.9 million a year earlier, reflecting the changes in its financial performance.
Chief Executive Officer Henry Chiang said the company’s revised product strategy contributed to its third-quarter performance.
“Our product transformation strategy is delivering encouraging results, with our refreshed product portfolio successfully reaching our intended customer segments during the third quarter,” Chiang said.
The comments followed the introduction of updated electric scooter models and changes in the composition of Gogoro’s vehicle sales.
The company identified its product mix as one of the factors behind the improvement in gross margin.
The Gogoro Luna, launched late in the second quarter, formed part of the company’s updated product offering.
Although scooter registrations declined during the period, the higher contribution from premium models supported the company’s gross profitability.
Gogoro revised its full-year 2026 revenue outlook to between $270 million and $290 million.
The midpoint of the updated range is $280 million.
The company reduced its previous expectations in response to challenging market conditions, particularly continued softness in Taiwan’s electric two-wheeler market.
The revised guidance reflects the impact of lower scooter registrations and the operating environment affecting vehicle demand.
Despite the reduction in its revenue forecast, Gogoro maintained its longer-term financial objectives.
The company expects to achieve positive free cash flow in 2027 and profitability in 2028.
These targets remain forward-looking and depend on future revenue, operating costs, capital expenditure and market conditions.
Gogoro reported operating cash flow of $27.9 million for the first nine months of 2026.
The figure represented an 8.8% increase compared with the corresponding period of the previous year.
The company also received $16.7 million in equity proceeds during the third quarter.
An additional $61.8 million was received in October, completing a funding commitment from Gogoro’s largest shareholder.
The two equity funding receipts totalled $78.5 million.
These proceeds represent financing inflows rather than revenue generated through the company’s operating activities.
The additional capital provides funding for Gogoro’s operations as it continues implementing its product and financial plans.
Gogoro’s third-quarter results reflected a combination of lower revenue, improved gross margins and a reduction in net losses.
Revenue declined as scooter registrations and hardware-related sales decreased, while the battery-swapping subscriber base continued to expand.
The record gross margin of 24.4% reflected changes in the company’s cost structure and product mix, including the contribution from higher-end scooter models.
Management’s updated full-year revenue guidance indicates that demand conditions in Taiwan remain a factor affecting its near-term outlook.
The company continues to target positive free cash flow in 2027 and profitability in 2028, supported by its operational initiatives and the completion of additional shareholder funding.
Future results will provide further information on whether improvements in margins and cash generation can be maintained alongside changes in vehicle demand and battery-swapping revenue.
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