ESPRESSIF SYSTEMS
2025 Q3 REPORTCONTENTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Contents
About Espressif 03 Management Report （Continued）
Business Model 14
Developer Community Content 15
Core Competitiveness 04 Ownership of Securities 16
Risks and Uncertainties 17
Core Technologies 05 Consolidated Financial Statements 18
Edge-Cloud AI 06 (Unaudited)
Consolidated Balance Sheet 18
Business Highlights 07 Consolidated Income Statement 20
Key Financial Data (Unaudited) 07 Consolidated Cash Flow Statement 21
Key Financial Indicators (Unaudited) 07
Further Information 22
Financial Analysis 08
Terms and Conditions of the Report 22
Management Report 09 List of abbreviations 23
Business Strategy 09
Key Products - IoT Chips 10
Key Products - Chip Matrix 11
Key Products - M5Stack DevKits 12
Market 13ABOUT ESPRESSIF ESPRESSIF SYSTEMS Q3 2025 REPORT
Build Smart with Espressif
As a publicly traded multinational fabless semiconductor
company (Espressif Systems SSE: 688018.SH) we
develop low-power wireless communication chipsets
and AIoT solutions that are green versatile and cost-
effective. With a closed-loop development cycle we
advance core technologies including Wi-Fi Bluetooth
LE IEEE 802.15.4 RF RISC-V MCUs AI operating
systems and cloud services. As IoT evolves our
expanding software capabilities have transformed
Espressif into a comprehensive AIoT technology
ecosystem company.
1.5 Billion+ Global 200+ IPs 10000+ 3 Million+
Global IoT Chip Leader In AIoT Satisfied Active Ecosystem
Shipment In Wi-Fi MCU Technology Customers Developers
Market Worldwide
SHARE CONNECT INNOVATE
Open-source Conferences & Education Diverse
Communities Initiatives Applications
3CORE COMPETITIVENESS ESPRESSIF SYSTEMS Q3 2025 REPORT
Brand Awareness ESP32 Google Trends100
The ESP32 and Espressif brands have a strong sense of
75
recognition among users. This recognition has become a key
factor in our competitive advantage and success. Users identify
with the ESP32 brand due to its reliability performance and 50
versatility which have been proven across various applications
and industries. This strong brand awareness not only fosters 25
customer retention but also attracts new users thereby solidifying
Espressif's position in the market. 0
2019-072025-09
Exceptional IC Design Capability Espressif Google Trends
100
Espressif independently designs and develops its own chip
products with core IPs being self-developed. These chips are
75
equipped with rich features ensuring that Espressif’s products
stand out in the market and avoid the pitfalls of homogenized
competition. By controlling the entire design process Espressif 50
can innovate rapidly and introduce unique functionalities that set
our products apart from competitors providing a distinctive edge 25
in the IoT semiconductor industry.
0
2019-072025-09
Full-Stack Engineering Capability
Espressif possesses comprehensive engineering development capabilities that span from IP development to
complete chip design operating systems firmware software frameworks application solutions hardware design
edge AI cloud and apps. This full-stack engineering expertise allows Espressif to offer highly integrated solutions
that meet a wide range of customer needs. The ability to control and optimize every layer of the technology stack is
unique in the industry and enables Espressif to deliver superior products and services that are seamlessly integrated
and highly efficient.Superior Cost-Effective and Stable Support
Espressif's products are known for their high performance and low cost making them competitive in the market. We
provide the cost efficiency necessary to promote large-scale commercialization in downstream industries.Additionally we ensure the long-term availability of our products and offer stable and enduring software support
ensuring that customers can rely on their investments for extended periods. This commitment to value and reliability
strengthens customer trust.Extensive Developer Community Support
Espressif has garnered support from a vast community of professional engineers who are familiar with Espressif's
development platform and actively promote its value proposition. This large and engaged community not only aids in
the rapid adoption and dissemination of Espressif’s technologies but also contributes to continuous improvement
through feedback and shared knowledge. The robust community support amplifies Espressif's market presence and
enhances our reputation as a trusted and innovative leader in the industry.
4CORE TECHNOLOGIES ESPRESSIF SYSTEMS Q3 2025 REPORT
Core Technologies
SoCs AI
Espressif’s AI solutions enable efficient edge
ESP8266 ESP32 ESP32-S ESP32- intelligence with ready-to-use frameworks.C ESP32-H and ESP32-P Series ESP-DL provides deep-learning inference on
resource-constrained SoCs ESP-WHO
Espressif offers integrated reliable and supports image detection recognition and
energy-efficient SoCs for Wi-Fi visual applications while ESP-SR delivers
Bluetooth Low Energy Thread and Zigbee advanced speech recognition. Together they
to various segments of the IoT market. empower developers to build scalable low-
power and intelligent human–machine
interfaces across a wide range of AIoT
products.OS
ESP-IDF Cloud
Espressif’s official IoT Development Framework.It provides a self-sufficient SDK for any generic ESP RainMaker
application-development on these platforms
using programming languages such as C and A comprehensive development-free and
C++. maintenance-free AIoT solution for private Cloud deployment.ESP-IDF currently powers millions of devices in
the field and enables building a variety of It is an all-inclusive solution that covers
network-connected products ranging from everything from the underlying chip to device
simple light bulbs and toys to major appliances firmware third-party voice-assistant
and industrial devices. integrations mobile apps and the dashboard.Customers can build their own AIoT devices
and ecosystem with ESP RainMaker.Software
With our open-source software Matter
such as Espressif's IoT
Development Framework ESP-IDF
Audio Development Framework One-stop Matter Solution
ESP-ADF Mesh Development
Framework ESP-MDF Cloud This is the culmination of
Connectivity Platform ESP Espressif’s ongoing contribution to
RainMaker Facial Recognition the Matter platform in various
Development Framework ESP- areas including protocol
WHO and Voice-Controlled formulation core stack
Assistant ESP-Skainet we have implementation and certification
developed a framework for building test events.AIoT applications which is both
complete and innovative.
5CORE TECHNOLOGIES ESPRESSIF SYSTEMS Q3 2025 REPORT
Edge-Cloud AI
Leveraging AI and NLP technologies Espressif’s edge-cloud AI and Human-Machine Interface (HMI) solutions
deliver a seamless and intuitive interaction experience. ESP32-S3 and ESP32-P4 support localized voice
assistants and graphical touch interaction while integrating with cloud-based LLMs for more accurate semantic
understanding and contextual engagement.The LLM solution enables natural language processing and on-device voice recognition which reduces cloud
dependency lowers latency and enhances privacy. Meanwhile the HMI solution combines voice touch and
gesture recognition to provide a more intuitive and efficient user experience. Backed by a comprehensive
support system our solutions unlock the full potential of intelligent interactions at lower costs and higher
efficiency driving IoT devices to evolve from mere "tools" into "companions."
Audio Solutions HHMMI SI oSloultuitoinons s
6BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Business Highlights (Unaudited)
Key Financial Data (Unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30 2025 Sep 30 2024 Sep 30 2025 Sep 30 2024
Consolidated Statement of Income Data
Revenue 666706221 539802521 1912247017 1460014787
Gross profit 319845390 227468464 882881140 624965248
Selling expenses 21202823 15669020 59114434 44584871
General and administrative expenses 24222903 18401225 62091408 50398878
Research and development expenses 155163791 121655135 423408329 340337505
Net income 116499045 99183742 379538810 251896811
Net income attributable to Espressif 115500538 99472328 376762715 251114792
Earnings per share:
Basic 2.4280 1.9405
Diluted 2.4280 1.9405
Consolidated Cash Flow Data
Net cash provided by operating activities 195644872 117326698 310067697 91649864
Non-GAAP Adjustment
Stock-based compensation 11339881 10109422 30130386 25440612
Non-GAAP net income attributable to Espressif 126840419 109581750 406893101 276555404
Sep 30 2025 Dec 31 2024
Consolidated Balance Sheet Data
Working capital 3635516285 1432356145
Total assets 4984509028 2649465358
Long-term obligations 126585594 116956630
Total shareholders’ equity 4349275947 2179369221
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2025 the earnings per share for each reporting period have been recalculated
based on the adjusted share count.Key Financial Indicators (Unaudited)
Three Months Ended Nine Months Ended
Sep 30 2025 Sep 30 2024 Sep 30 2025 Sep 30 2024
Gross margin 47.97% 42.14% 46.17% 42.81%
R&D-to-sales ratio 23.27% 22.54% 22.14% 23.31%
EBITDA margin 22.28% 21.16% 22.90% 19.03%
Net income margin 17.47% 18.37% 19.85% 17.25%
Weighted ROE 15.93% 12.91%
Number of Espressif employees 878 758
7BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Financial Analysis
Espressif’s total revenue in the first three quarters of 2025 was CNY 1912.25 million marking an increase of 30.97%
from CNY 1460.01 million in the first three quarters of 2024. The overall gross margin was 46.17%. Therefore the net
income attributable to Espressif was CNY 376.76 million which marked an increase of 50.04% year-on-year mainly
due to the increase of revenue.Although Q3 revenue declined by 3.05% quarter-on-quarter it still recorded a solid 23.51% year-on-year increase.This moderation was partly due to China’s Q2 consumption stimulus policies which may have pulled forward some
downstream demand from Q3. Beyond the smart home other sectors—including industrial energy and healthcare—
experienced even faster growth reflecting expanding adoption of our wireless SoC solutions in a wider range of
digitalization scenarios.Revenue by Area Revenue by Sales Top-5 Customer
in the First Three Mode in the First Three Concentration Rate
Quarters of 2025 Quarters of 2025 2020 - Q3 2025
42.2%
29.0%
26.4%28.1%
23.9%22.6%
70.0%71.5%
China's Rest of Direct Indirect 2020 21 22 23 24 25Q1-Q3
Mainland the World
Revenue by Product Category in the First Three Quarters of 2025
Chip Module & DevKits Others
202538.7%60.6%0.7%
202438.5%60.7%0.8%
Key Financial Indicators in the First Three Quarters of 2025
20242025
46.2%
42.8%
22.9%23.3%22.1%
19.0%19.8%17.3%15.9%
12.9%
6.5%6.3%
Overall GM EBITDA SG&A as % of R&D as % of Net Income ROE
Margin sales sales Margin (Q1-Q3)
8MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Management Report
Business Strategy
Espressif Systems’ business strategy emanates from our service/product areas and our engagement with the
developer ecosystem.Our product and service areas include AIoT chips OS-level development environments software tools application
solutions and value-added services such as Cloud and Matter. The above-mentioned products ensure that we are
in the heart of numerous commercial AIoT applications in different markets including smart home consumer
electronics industrial automation healthcare etc.Products Solutions Value-added services
SoCs HMI Smart Audio Cloud
Displays Solutions service
Modules Matter
Solution
Face Low-Power
Recognition Solutions
DevKits
……
OS-level development environments & software tools
Customers
Brands OEM/ODMs Module Houses Solution Providers Makers
9MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Key Products - IoT Chips
Espressif Systems is a global leader in wireless connectivity SoCs and AIoT solutions. Since launching our first Wi-Fi
MCU in 2014 we have continuously expanded our product portfolio and deepened our technology stack. Today
Espressif offers a comprehensive range of self-developed wireless SoCs covering Wi-Fi 4/6/6E Bluetooth LE (up to
BLE 5.4) Thread Zigbee and Matter protocols enabling diverse smart connectivity applications across consumer
industrial and commercial domains.In recent years Espressif has made notable progress in the development of advanced edge computing platforms.Our RISC-V-based SoCs now integrate AI accelerators and multimedia processing capabilities enabling efficient
deployment of voice vision and large language model (LLM)-based applications on cloud.Espressif's competitive edge lies in its end-to-end in-house technology development including RF components
connectivity IPs RISC-V processor cores secure boot and OTA frameworks real-time operating systems AI
toolchains and developer toolkits. This vertical integration enables us to deliver consistent software and hardware
experiences across platforms ensuring seamless development high integration and long-term support for our
customers.To simplify product adoption we also offer a wide range of IoT modules and development kits fully supported by
Espressif’s software ecosystem and global community. This helps customers accelerate time-to-market while
optimizing their supply chain through direct technical and logistical support from Espressif.Key Technologies
Wi-Fi Technologies Other Wireless Technologies
Wi-Fi 7 Fully supports Bluetooth 5.4
Wi-Fi 6E (Qualified against Bluetooth Core 6.0)
Connectivity 2.4GHz & 5GHz Wi-Fi 6 Thread
Wi-Fi 4 Zigbee
RISC-V Cores AI Related
32-bit Single-Core Voice Wake-up
96/120/160/240MHz Offline Voice Commands
32-bit Dual-Core Face and Object Recognition
Computing 96/240/400/500MHz
32-bit Multiple-Core Multimedia
H.264 Encoder & Decoder
Technical Breadth In progress
10
Technical DepthMANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Key Products - Chip Matrix
AI AI
ESP ESP32
32 ESP 32 S3 ESP32 - S3
ESP32
P4 ESP32 - P4
32-bit Xtensa MCU 32-bit Xtensa MCU 32-bit RISC-V MCU
Dual-Core @240 MHz Dual-Core @240 MHz Dual-Core @400 MHz
H.264 encoding
ESP32 ESP32
High- S2 ESP32 - S2 H4 ESP32 - H4
Performance 32-bit Xtensa MCU 32-bit RISC-V MCU
Single-Core @240 MHz Dual-Core @96 MHz
ESP32 ESP32
ESP 8266 C6 ESP32 - C6 C5 ESP32 - C5
32-bit Tensilica MCU 32-bit RISC-V MCU 32-bit RISC-V MCU
Single-Core @160MHz Single-Core @160MHz Single-Core @240MHz
ESP32 ESP32
C3 ESP32 - C3 C61 ESP32 - C61
32-bit RISC-V MCU 32-bit RISC-V MCU
Cost- Single-Core @160MHz Single-Core @160MHz
Effective
ESP32 ESP32
C2 ESP32 - C2 H2 ESP32 - H2
32-bit RISC-V MCU 32-bit RISC-V MCU
Single-Core @120MHz Single-Core @96 MHz
RISC-V
Legacy Growth Emerging
11MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Key Products - M5Stack Development Kits
Espressif acquired a majority stake in M5Stack in 2024 Q2. M5Stack is renowned for its innovative approach to
hardware development and offers a modular open-source platform that simplifies the creation of IoT and embedded
system solutions greatly enhancing deployment efficiency. The M5Stack ecosystem is built around its flagship main
control module powered by Espressif’s all ESP32 series of chips highlighting the deep technical synergy between
the two companies.M5Stack’s product portfolio primarily comprises controllers and other hardware modules needed in IoT application
solutions and is mainly sold to the industrial education and developer markets.M5Stack maintains an impressive pace of launching one new hardware product
every week. A diversified product portfolio with approximately 300 SKUs helps
developers rapidly prototype end products accelerating the design-in process for
Espressif's products with end customers. This ultimately brings more business
opportunities for Espressif's chips and modules.Controller
Voltage & Amperage Air Quality Kit Cardputer Rotary Knob
Meter …
Camera Sensor Module Kits
PoE Camera Weight I2C Unit Lora Unit Stamp-Fly
…
12MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Market
The market for wireless SoCs is truly diverse including applications for smart homes (e.g. smart lights air
conditioners ovens coffee machines etc.) consumer electronics (e.g. smart speakers drones etc.) industrial
automation (e.g. mechanical arms) smart agriculture (e.g. soil PH detector CO2 detector etc.) healthcare (e.g.monitoring devices for diabetes blood pressure etc.) energy control (solar energy devices EV chargers etc.) the
internet of vehicles (OBD devices dashboards etc.) and education (talking pens interactive whiteboards etc.).The smart home sector continues to be our main revenue contributor delivering growth in line with expectations. At
the same time IoT adoption across non-smart-home applications is accelerating with these segments growing at a
significantly faster pace and helping to support our gross margin.Consumer Industrial Smart
Smart Home
Electronics Automation Agriculture
Smart Ovens Smart Speakers Mechanical Arms Soil PH Detector
Energy Internet of
Healthcare Management Vehicles Education
Smart Solar Intelligent
Medical Detectors Talking Pens
Panels instrument panel
13MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Business Model
Business-to-Developer-to-Business (B2D2B)
Espressif has deployed the Business-to-Developer type of marketing not only because it has gained prominence in
recent years but also because it has proven to be more effective since the influence of developers on organizations
of all sizes has gained traction. In other words most developers are R&D employees in various companies and bring
forth business opportunities from the companies they work for.This way the developer ecosystem we have created at Espressif demonstrates how the value of networks can grow
exponentially:
* The more developers we attract as customers the more hardware and software solutions we generate.* The more successful hardware and software solutions we create the more our reputation spreads with positive
feedback from happy customers/developers.* The above-mentioned interaction between people in our network prompts the creation of more content which -in
turn- attracts more users/developers searching for new content.* Likewise other third-party development platforms join our ecosystem and bring in new developers as our
influence continues to grow.Having successfully applied the B2D2B model Espressif can now focus on R&D investments while maintaining a
small business team that supports a large number of customers directly. In fact most of our revenue is gained
through direct sales.
14MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Developer Community Content
Cumulative Number of GitHub
ESP32 Projects 115 K
BOOKS
Global Code Hosting Platform Social Networking Site Developer-written books
166900145100>300
ESP32 and ESP8266 ESP32 Group Members Covering more than 10
Projects languages
2016-122025-09
Daily Increase on GitHub
ESP32 Projects
Chinese Video Sharing Platform Global Video Sharing Platform 152
1.34 M 18.00 M 843 K
Most Viewed ESP32 Most Viewed ESP32 Most Viewed ESP32
Video (2025) Short (2025) Video (2025)
2016-122025-09-30
Always a Hot Topic on Social Media
Posted on 20 Oct 2025 Posted on 15 Oct 2025 Posted on 2 Oct 2025 Posted on 20 Oct 2025
????????????????
GlassUnit (HUDSIGHT) ESP32C3- MeowKit – The Next Flipper Zero 遥控?业电脑绣花机绕线器-多 esp32 ???? ?? ?????
とりあえず基本となるプログラムを Style ESP32 Tool 路微型步进电机?动控制
128*64の透過液晶でテスト。本番は
esp32 Dual core P4 +C6
240*240のLCDになる。 This week I’ve got something fun for
????????????????????????
you — a brand new ESP32 gadget ??? x265 ?? ?????? ????? ??? ??? LCDとレンズ あと?週間もある 待
ちわびるyp called MewKit fresh on Kickstarter.弾道計算はまだだけどなんとかなりそ Back in the day using an ESP32 meantうではある(AI???におまかせ） grabbing a dev board and wiring
everything yourself. Now Devices like
this come with almost everything built
in……
https://www.bilibili.com/video/ https://x.com/_soeil/status/
BV18t4Yz4EAU/ 1980310947488231737
https://x.com/USDJPY2010/status/ Searched on 22 Oct 2025
1980171670133539217
Posted on 22 Oct 2025 https://www.youtube.com/watch
v=FOOzE7EWT_Y
ESP32-S3 智能?表
Posted on 2 Oct 2025
本项?是?个基于 ESP32-S3 微控制器
Build an ESP32 RC Submarine with 的开源智能?表开发项?。使? ESP-FPV Camera (ESP-DIVE) IDF 框架（release/v5.4.2 版本），开 Searched on 22 Oct 2025发板为 LCSC-boards LCKFB-SZPI-This is the ESP-DIVE - a DIY ESP32 ESP32-S3-VA（可从 LCSC 或 SZLCSCSubmarine you can build to explore the 获取）。图形?户界? (GUI) 采?underwater world in first-person view. LVGL 实现平滑渲染和交互。
Watch live video through its bubble
cam adjust buoyancy to dive or
surface like a real sub……
https://gitee.com/survivorh/
esp32s3watchMANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Ownership of Securities
Basic information of securities
Share types Ordinary share
Share capital 156702722 (as of Sep 30 2025)
Listing Shanghai Stock Exchange (SSE)
Ticker 688018.SH
Listing Date 2019-07-22
Shareholder Structure as of Sep 30 2025
Shareholder Share Numbers Percentage (%)
Espressif (Hong Kong) Investment Ltd. 61210572 39.06
Hong Kong Securities Clearing Company Limited 7402325 4.72
Portfolio No. 114 of National Council for Social Security Fund 2759816 1.76
CITIC Securities Co. Ltd. – Harvest SSE STAR Market Chip Tradable 2134023 1.36
Open-ended Index Securities Investment Fund
Shinvest Holding Ltd. 1866500 1.19
Shanghai Letun Enterprise Management Partnership (Limited 1510450 0.96
Partnership)
Shenwan Hongyuan Securities Co. Ltd. 1204277 0.77
Wisdomshire Asset Management Co. Ltd. - Wisdomshire Youfu 1164281 0.74
Private Equity Securities Investment Fund No.1
SDIC Securities Co. Ltd. - Bosera SSE STAR Artificial Intelligence 1097681 0.70
ETF
Wisdomshire Asset Management Co. Ltd. - Wisdomshire Youfu 983866 0.63
Private Equity Securities Investment Fund No.3
Top 10 shareholders 81333791 51.90
Espressif Systems (Shanghai) Co. Ltd. Repurchase Special 944702 0.60
Securities Account
Other public shareholders 74424229 47.50
Total of outstanding shares 156702722 100.00
16MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2025 REPORT
Risks and Uncertainties
Financial Risk
The Company performs periodic credit evaluations of its customers’ financial condition
and generally requires of its customers no collateral. The Company provides an
allowance for expected credit losses based on the net amount expected to be
collected on such receivables. Losses have not been significant for any of the periods
presented in this report.R&D Risk
Espressif’s research and development strategy is focused on leveraging new
technologies for the creation of innovative AIoT products. Any delays or changes in
the development of these technologies by our industry partners or a failure of our
products to achieve market acceptance could compromise our competitive position.Competitors
As the market for AIoT products grows we face an increasing antagonism from
relatively large competitors such as Realtek MediaTek Infineon NXP Qualcomm and
others. Intense competition from current players as well as new entrants such as
Silicon Labs and Nordic may reduce our product sales and market share.Suppliers
A significant portion of the Company’s products is fabricated by the Taiwan
Semiconductor Manufacturing Company Limited (TSMC). The inability of TSMC to
deliver wafers to the Company in a timely manner could impact the production of the
Company’s products for a certain period of time which could have an adverse effect
on the Company’s business financial condition results of operations and cash flow.Customers
The Company sells directly to end customers distributors solution providers and
contract manufacturers. Our customers are a mix of several big customers and
numerous small customers. The concentration ratio for our top-five customers was
22.6% in the first three quarters of 2025.
17CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Consolidated Financial
Statements
Consolidated Balance Sheet (unaudited)
CNY Sep 30 2025 Dec 31 2024
Assets
Current assets:
Cash and cash equivalents 2674704828 673884162
Held for trading financial assets
Notes receivable 64305691 38605565
Accounts receivable net 328103186 318420157
Accounts receivable financing
Prepayments 22174452 15857596
Other receivables 12590320 19978007
Including: Interest receivable
Inventories 556983230 485620281
Other current assets 485302065 233129885
Total current assets 4144163773 1785495653
Non-current assets:
Debt investment 413542900
Investment in other equity assets 30967840 30967840
Other non-current financial assets 34221626 34221626
Fixed assets 534570626 93949828
Right-of-use assets 15288362 25169744
Intangible assets 27709951 30853579
Goodwill 74654024 74654024
Long-term deferred expenses 18330352 19452629
Deferred income tax assets 104602475 101157536
Other non-current assets 40000000
Total assets 4984509028 2649465358
18CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Consolidated Balance Sheet (unaudited)
CNY Sep 30 2025 Dec 31 2024
Liabilities & Shareholders’ Equity
Current liabilities:
Short-term loan 203275294 500333
Accounts payable 142102604 160741033
Contract liabilities 24731429 20877548
Payroll payable 116200086 129439567
Taxes payable 1770580 16321501
Other payable 14409837 12397576
Including: Interest payable
Non-current liabilities due within one year 4505675 11705721
Other current liabilities 1651983 1156230
Total current liabilities 508647487 353139508
Non-current liabilities:
Lease liabilities 11933378 14802190
Provisions 642938 620582
Deferred income tax liabilities 114009278 101533858
Total liabilities 635233081 470096138
Owners’ equity (or shareholders' equity):
Share capital 167143010 112200431
Capital reserves 3032912092 1351379589
Less: Treasury stock 78118338 208684568
Other comprehensive income 15701007 25620966
Surplus reserves 76858747 76858747
Retained earnings 1102608796 792599518
Total Espressif shareholders’ equity 4317105314 2149974683
Non-controlling interests 32170632 29394537
Total shareholders’ equity 4349275947 2179369221
Total liabilities and shareholders' equity 4984509028 2649465358
19CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Consolidated Income Statement (unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30 2025 Sep 30 2024 Sep 30 2025 Sep 30 2024
Revenue 666706221 539802521 1912247017 1460014787
Cost of Revenue 346860831 312334057 1029365877 835049539
Gross Profit 319845390 227468464 882881140 624965248
Taxes and surcharges 1485439 394501 4784329 1261425
Selling expenses 21202823 15669020 59114434 44584871
General and administrative expenses 24222903 18401225 62091408 50398878
Research and development expenses 155163791 121655135 423408329 340337505
Financial expenses -1441601 -4201716 -8092809 -4610331
Including: Interest expenses 1495598 178973 4576810 622086
Interest income 5855951 4857005 16821219 12030415
Add: Other income 6965515 22532338 38334091 40696951
Investment income (mark"-" for loss) 3427000 4703944 11860933 16340024
Income from changes in fair value (mark"-" for loss)
Credit impairment losses (mark"-" for loss) 58086 -350123 7242
Assets impairment losses (mark"-" for loss) -353452 -1444239 -1591282 -1654000
Assets disposal income (mark"-" for loss) -22982 -3797 -52581 -4355
Operating Income 129228116 101396631 389776488 248378762
Add: Non-operating revenue 27544 -1425 357744 164
Less: Non-operating expenses 293841 -140675 362447 4559054
Income before income taxes 128961819 101535882 389771785 243819873
Provision (benefit) for income taxes 12462773 2352140 10232975 -8076938
Net Income 116499045 99183742 379538810 251896811
Net Income attributable to non-controlling interests 998507 -288586 2776095 782020
Net Income attributable to Espressif 115500538 99472328 376762715 251114792
Earnings per share
Basic 2.4280 1.9405
Diluted 2.4280 1.9405
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2025 the earnings per share for each reporting period have been recalculated
based on the adjusted share count.Three Months Ended Nine Months Ended
CNY Sep 30 2025 Sep 30 2024 Sep 30 2025 Sep 30 2024
Net Income 116499045 99183742 379538810 251896811
Other comprehensive income (loss) after tax
Changes to the fair value of investment in other equity
instruments 9486000
Currency translation reserves -6743598 -6186213 -9919960 -6959229
Other comprehensive income (loss) -6743598 -6186213 -9919960 2526771
Other comprehensive income (loss) attributable to
non-controlling interests
Comprehensive income 109755447 92997529 369618851 254423582
Comprehensive income attributable to non-controlling interests 998507 -288586 2776095 782020
Comprehensive income attributable to Espressif 108756940 93286115 366842756 253641563
20CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2025 REPORT
Consolidated Cash Flow Statement (unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30 2025 Sep 30 2024 Sep 30 2025 Sep 30 2024
Operating Activities
Cash from sales of merchandise and provision of services 759768187 583005002 2059551601 1562991646
Tax refund 22222797 11908778 50238157 33947865
Other received cash related to operational activities 11545285 15615885 45010201 28682804
Subtotal of cash inflow from operational activities 793536268 610529665 2154799959 1625622315
Cash paid for merchandise and services 446443968 348433064 1269850584 1092775372
Cash paid to and for employees 109983101 97196982 409505162 333162080
Cash paid for taxes and surcharges 2347759 1521638 53671180 8904104
Other paid cash related to operational activities 39116568 46051282 111705337 99130896
Subtotal of cash outflow from operational activities 597891396 493202967 1844732262 1533972452
Net cash provided by operating activities 195644872 117326698 310067697 91649864
Investing activities
Cash arising from the disposal of investments 50000000 20657721 190000000 476534893
Cash arising from investment income 4815000 751644 17782233 4986872
Net cash arising from the disposal of fixed assets intangible 10193 7252 25098 16916
assets and other long-term assets
Other received cash relating to investment activities 148050 178050 1648150 1917050
Subtotal of cash inflow from investment activities 54973243 21594667 209455481 483455731
Cash paid for the purchase and construction of fixed assets 25448013 26869568 469618632 52069649
intangible assets and other long-term assets
Cash paid for investments -77175231 145000000
Net cash paid for acquisition of subsidiaries and other 61809836 61809836
business units
Other paid cash relating to investment activities 900000 1200000 2500000
Subtotal of cash outflow from investment activities 25448013 12404173 470818632 261379484
Net cash provided by investment activities 29525230 9190494 -261363151 222076246
Financing activities
Cash arising from the issuance of common stock 1766553723 671756 1837645360 11621711
Including: Cash arising from subsidiaries absorbing
investments by minority shareholders
Cash received from borrowings 21000000 383350000
Subtotal of cash inflow from financing activities 1787553723 671756 2220995360 11621711
Cash paid to repay debt 170288327 180688327
Cash paid for the distribution of dividends and profits or 1404251 70604145 78261241
payment of interests
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other paid cash relating to financing activities 4059697 3994857 11380912 100833636
Subtotal of cash outflow from financing activities 175752275 3994857 262673384 179094877
Net cash provided by financing activities 1611801449 -3323102 1958321976 -167473166
Impact of fluctuation in exchange rates on cash and cash -7169924 1619370 -6148767 -12134088
equivalents
Net increase in cash and cash equivalents 1829801627 124813460 2000877755 134118857
Add: Cash and cash equivalent at the commencement 838708434 468871123 667632307 459565727
of the period
Cash and cash equivalents at the end of the period 2668510061 593684583 2668510061 593684583
21FURTHER INFORMATION ESPRESSIF SYSTEMS Q3 2025 REPORT
Further Information
Terms and Conditions of the Report
Responsibility Statement
The Board of Directors the Board of Supervisors and the executive management of the Company warrant that the
contents of this report are true accurate and complete and do not contain any false information misleading
statements or material omissions severally and jointly accepting any legal responsibility thereof.Shanghai 27 October 2025
Espressif Systems
Board of Directors Executive Management
Teo Swee Ann Teo Swee Ann
Founder and Chairman Founder and CEO
Ng Pei Chi Wang Jue
Information Technology Officer Deputy General Manager
Wang Jue Shao Jingbo
Deputy General Manager Financial Director
Teo Teck Leong
Shareholder-elected
Chen Myn
Independent Director
Lee Kian Soon
Independent Director
Leong Foo Leng RESESP SIF
Independent Director
Declaration
Forward-looking Statements SYS MS
This report contains forward-looking statements and/or assessments about the business TE
financial condition performance and strategy of the Espressif Group. These statements and/or
assessments are based on assumptions and management expectations resting upon currently
available information and current estimates. These are subject to a multitude of uncertainties
and risks many of which are partially or entirely beyond Espressif’s control. Espressif’s actual
business development financial condition performance and strategy may therefore differ from
what is discussed in this report.
22FURTHER INFORMATION ESPRESSIF SYSTEMS Q3 2025 REPORT
List of abbreviations
AI Artificial Intelligence
AIoT Artificial Intelligence and Internet of Things
Bluetooth LE Bluetooth Low Energy
CEO Chief Executive Officer
EBITDA Earnings Before Interest Taxes Depreciation and Amortization
Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO. LTD.GM Gross Margin
HMI Human-Machine Interaction
IC Integrated Circuit
IoT Internet of Things
LLM Large Language Model
MCU Microcontroller Unit
OBD On-Board Diagnostics
R&D Research and Development
RF Radio Frequency
RISC-V Reduced Instruction Set Computer-V
ROE Return on Earnings
SG&A Selling General and Administrative
SH Shanghai
SoCs System on Chips
YoY Year-on-Year
23Investor Relations Social Media
ir@espressif.com twitter.com/EspressifSystem
facebook.com/espressif
Official Platforms linkedin.com/company/espressif-systems
www.espressif.com youtube.com/EspressifSystems
blog.espressif.com instagram.com/espressif_systems_official
github.com/espressif bilibili.espressif.com
esp32.com
Copyright ? 2025 Espressif Systems (Shanghai) Co. Ltd. All rights
reserved. All trade names trademarks and registered trademarks
mentioned in this document are the property of their respective
owners and are hereby acknowledged. The term “Espressif” refers to
Espressif Systems (Shanghai) Co. Ltd. and/or its subsidiaries. This
report is written in both Chinese and English. In case of any
discrepancies between Chinese and foreign interpretations the
Chinese version shall prevail.All amounts presented in these condensed Consolidated Financial
Statements are shown in CNY unless stated otherwise. Slight
discrepancies between the amounts presented may occur due to
rounding.
24
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