WeTouch Technology Inc. Reports First Quarter Fiscal Year 2025 Financial Results: Net Income Surges Over Fourfold, Cash Reaches $8.9 Per Share

Rhea-AI Summary

WeTouch Technology (NASDAQ:WETH) reported FQ1 FY2025 results for quarter ended March 31, 2025. Total revenue was $15.3M (+2.7% YoY). Gross profit reached $5.6M (+69.7% YoY) and gross margin expanded to 36.9% from 22.4% a year earlier. Net income jumped to $2.6M (+316.7% YoY). Cash reserves were $106.4M (≈ $8.9/share), up from $94.8M. Units shipped rose 11.9% to 762,545. Operating cash flow improved to +$2.0M from –$9.2M a year earlier. Shareholders' equity increased to $127.9M. Management cites margin recovery, supply‑chain normalization, customer order growth, and plans for a new production facility with mass production targeted in Q2 2026.

Positive

• Gross margin expanded to 36.9% from 22.4%
• Net income rose 316.7% to $2.6M
• Cash reserves increased to $106.4M (~$8.9/share)
• Operating cash flow turned positive to $2.0M
• Units shipped increased 11.9% to 762,545

Negative

• Total revenue grew only 2.7% YoY to $15.3M
• Overseas revenue declined to $5.0M (32.7% of sales) from prior-year $5.5M
• Mass production for new facility delayed until Q2 2026, extending capex timeline

Insights

Equity Analyst

Strong margin recovery and cash build drive materially improved profitability; monitor customer wins and Q2 2026 mass production.

WeTouch Technology Inc. posted $15.3 million revenue and $2.6 million net income for the quarter, with gross profit rising to $5.6 million and gross margin expanding to 36.9% from 22.4%. Cash reserves increased to $106.4 million (about $8.9 per share), shareholders' equity rose to $127.9 million, and operating cash flow turned positive to $2.0 million, all of which present clear, stated improvements in liquidity and profitability.

Risks and dependencies include the lower proportion of overseas revenue (now 32.7 of sales versus 36.9 prior), reliance on supply‑chain normalization and order increases from major international customers, and the need to sustain the sharp margin gain. Management cites ongoing discussions with Fortune Global 500 customers and completed Form 10‑K filing and Nasdaq compliance efforts; those developments are material to credibility and future revenue but remain conditional.

Watch for confirmation of larger customer contracts, repeatability of the 36.9 gross margin in upcoming quarters, and the start of mass production at the new facility in Q2 2026. These items will determine whether the quarter represents a durable operational inflection or a one‑quarter improvement.

Fiscal Year 2025 First Quarter Revenue Reaches $15.3 Million; Net Income Jumps to $2.6 Million, Up 316.7% Year-over-Year

CHENGDU, CN / ACCESS Newswire / October 7, 2025 / WeTouch Technology Inc. (NASDAQ:WETH) ("WeTouch" or the "Company"), a global leader in touch display solutions, today announced its financial results for the first quarter of fiscal year 2025 ended March 31, 2025.

First Quarter Fiscal Year 2025 Financial Highlights

• Total Revenue: Reached $15.3 million, an increase of 2.7% compared to $14.9 million in the first quarter of fiscal 2024.

• Gross Profit: Reached $5.6 million, representing a 69.7% increase year-over-year.

• Gross Margin: Expanded sharply to 36.9%, compared with 22.4% in the same quarter of 2024.

• Net Income: Surged to $2.6 million, compared with $0.6 million in the first quarter of fiscal 2024, an increase of 316.7%.

• Cash Reserves: $106.4 million as of March 31, 2025 (equivalent to approximately $8.9 per share), up from $94.8 million as of March 31, 2024.

• Overseas Market Revenue: $5.0 million, representing 32.7% of total revenue, compared with $5.5 million, or 36.9% of total revenue, in the first quarter of fiscal 2024.

• Total Volume Shipped: 762,545 units, an increase of 11.9% year-over-year.

• Shareholders' Equity: Increased to $127.9 million as of March 31, 2025, from $120.5 million a year ago.

• Operating Cash Flow: Positive $2.0 million, compared to negative $9.2 million in the same quarter of fiscal 2024.

Management Commentary

"We are highly encouraged by the strong profitability achieved in the first quarter of fiscal 2025," said Zongyi Lian, CEO of WeTouch Technology Inc. "We are pleased to see that our gross margin in fiscal 2025 has already returned to the same level as in 2023, driven by supply chain normalization, increased orders from major international customers, and continued improvements in operational efficiency. Gross margin rose to 36.9% from 22.4% a year ago, demonstrating that the Company has overcome challenges from raw material cost fluctuations, while selling expenses decreased by 80% year-over-year, further underscoring stronger efficiency and profitability. These results clearly reflect the effectiveness of our strategic initiatives and disciplined cost management.

In addition, the Company has completed its Form 10-K filing and is working diligently to remain in full compliance with Nasdaq requirements. We are in discussions with several Fortune Global 500 multinational customers and will disclose key business developments promptly. With shareholder equity steadily rising to $127.9 million, WeTouch's stock continues to trade significantly below its intrinsic value. The Company remains focused on delivering long-term value through disciplined execution and sustained profitability, while management actively explores strategic opportunities to further strengthen competitiveness and enhance shareholder returns."

Market Expansion and Strategic Outlook

WeTouch continues to focus on breakthroughs in curved and ultra-large-size touch display technologies, strengthening its competitive edge in high-end automotive electronics, professional gaming equipment, and commercial display terminals.

The Company is actively expanding collaborations with leading brand customers in Europe, Japan, South Korea, and Taiwan, while solidifying its leadership position in China.

Looking ahead, WeTouch remains committed to:

• Driving sustainable growth through innovation in next-generation touch display technologies.

• Optimizing its product portfolio toward higher-margin categories such as industrial control computer touchscreens, POS systems, and multifunctional printer displays.

• Enhancing financial discipline to support expansion of its new production facility, with mass production expected to commence in the second quarter of 2026.

About WeTouch Technology Inc.

Wetouch Technology Inc. is at the forefront of providing premium touch display solutions, dedicated to reshaping human-machine interaction across diverse industries. With a relentless focus on innovation and customer satisfaction, Wetouch consistently delivers cutting-edge technology and unparalleled performance in touch display solutions globally.

For additional information, please visit: WeTouch Technology Inc. at http://en.usa-wetouch.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact:

Email: JBHUANG1975@163.com

SOURCE: Wetouch Technology Inc.

View the original press release on ACCESS Newswire

FAQ

What were WeTouch (WETH) Q1 FY2025 revenue and net income on Oct 7, 2025?

WeTouch reported $15.3M revenue and $2.6M net income for Q1 FY2025 (quarter ended March 31, 2025).

How did WeTouch's gross margin change in Q1 FY2025 for WETH?

Gross margin expanded to 36.9% in Q1 FY2025 from 22.4% a year earlier.

What is WeTouch's cash per share and total cash as of March 31, 2025 for WETH?

Cash reserves were $106.4M, equivalent to about $8.9 per share as of March 31, 2025.

Did WeTouch (WETH) improve cash flow in Q1 FY2025?

Yes. Operating cash flow was +$2.0M versus –$9.2M in the same quarter last year.

When will WeTouch begin mass production at its new facility for WETH?

Management expects mass production to commence in Q2 2026.

How much did WeTouch ship in Q1 FY2025 and what was the change for WETH?

Total volume shipped was 762,545 units, up 11.9% year‑over‑year.