Interim report
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Consolidated Financial Results for the 9 Months Ended December 31, 2025 (Based on Japanese GAAP) January 30, 202 6 Company name: Socionext Inc. Stock exchange listing: Tokyo Code number: 6526 URL: https://www.socionext.com/en / Representative: Masahiro Koezuka, Representative Director, Chairman and CEO Contact person: Hiromasa Nakajima, General Manager, Public Relations & Investor Relations Office Tel: +81-45-568-1000 Scheduled dividend payment date: - Supplementary material: Yes Financial results presentation: Yes (for institutional investors and analysts) (Monetary amounts are rounded to the nearest millions of yen) 1. Consolidated financial results for the 9 months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) (1) Consolidated financial results (Percentage represents change from the same period of the previous fiscal year) Net sales Operating income Ordinary income Profit attributable to owners of parent 9 months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % December 31, 2025 142,140 (2.2) 7,204 (65.1) 6,634 (68.6) 4,782 (71.0) December 31, 2024 145,264 (14.4) 20,660 (26.1) 21,103 (28.0) 16,474 (18.8) Note: Comprehensive income: 9 months ended December 31, 2025: 5,548 million yen [(67.1) %] 9 months ended December 31, 2024: 16,870 million yen [(19.4) %] (2) Consolidated financial position Total assets Net assets Shareholders’ equity ratio As of Millions of yen Millions of yen % December 31, 2025 163,337 128,925 78.9 March 31, 2025 170,312 137,046 80.5 Reference: Shareholder’s equity: As of December 31, 2025: 128,925 million yen As of March 31, 2025: 137,046 million yen 2. Dividends per share Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Year ended/ending Yen Yen Yen Yen Yen March 31, 2025 - 25.00 - 25.00 50.00 March 31, 2026 - 25.00 March 31, 2026 (Forecast) - 25.00 50.00 Note: Revision of the latest dividends forecast: No Basic earnings per share Diluted earnings per share 9 months ended Yen Yen December 31, 2025 27.22 27.06 December 31, 2024 92.10 91.17 Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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3. Consolidated earnings forecast for the fiscal year ending March 31, 2026 (From April 1, 2025 to March 31, 2026) (Percentage represents change from the same period of the previous fiscal year) Net sales Operating income Ordinary income Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Year ending March 31, 2026 190,000 0.8 10,000 (60.0) 9,000 (64.2) 6,700 (65.8) 38.16 Note: Revision of the latest consolidated earnings forecast: No ※ Notes (1) Significant changes in the scope of consolidation during the current reporting period: No (2) Application of special accounting methods for quarterly consolidated financial statements: No (3) Changes in accounting policies, accounting estimates and retrospective restatements for consolidated financial statements ① Changes in accounting policies due to revisions of the accounting standards and other regulations: No ② Changes arising from factors other than ①: No ③ Changes in accounting estimates: No ④ Retrospective restatements: No (4) Number of issued shares (Common stock) ① Number of shares issued at the end of the period (including treasury stock) As of December 31, 2025 179,954,005 As of March 31, 2025 179,756,405 ② Number of treasury stock held at the end of the period As of December 31, 2025 4,688,869 As of March 31, 2025 2,017,427 ③ Average number of shares during the period 9 months ended December 31, 2025 175,655,068 9 months ended December 31, 2024 178,861,550 (Note) The Company has introduced the stock compensation plans, the officer compensation BIP Trust and the stock grant ESOP Trust during the 9 months ended December 31, 2025. The number of treasury stock at the end of the period includes 506,300 shares held by the officer compensation BIP trust account and 705,700 shares held by the stock grant ESOP trust account. Treasury stock held by the officer compensation BIP Trust account and the stock grant ESOP Trust account are included in treasury stock deducted from the calculation of the average number of shares during the period (191,473 shares of the officer compensation BIP Trust account and 266,883 shares of the stock grant ESOP Trust account). ※ Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary) ※ Explanation of the proper use of earnings forecast and other special notes These materials may contain forward-looking statements that are based on management’s current information, actual results may differ materially from these forward-looking statements for various reasons. For information regarding the assumptions used to prepare the forecast and cautionary note of the forecast, please refer to “1. Overview of operating results (3) Consolidated earnings forecast and other forward-looking information” on page 3 for more details.
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- 1 - Attachment contents 1. Overview of operating results………………………………………………………………………………………………… 2 (1) Overview of operating results for the 9 months ended December 31, 2025……………………………………………... 2 (2) Overview of financial position for the 9 months ended December 31, 2025…………………………………………… 2 (3) Consolidated earnings forecast and other forward-looking information…………………………………………………. 3 2. Quarterly consolidated financial statements and principal notes...…………………………………………………………… 4 (1) Quarterly consolidated balance sheets …………………………………………………………………………………… 4 (2) Quarterly consolidated statements of income and comprehensive income ……………………………………………… 6 Quarterly consolidated statements of income………………………………………………………………………… 6 Quarterly consolidated statements of comprehensive income ……………………………………………………… 7 (3) Quarterly consolidated statements of cash flows ………………………………………………………………………… 8 (4) Notes to quarterly consolidated financial statements……………………………………………………………….……. 9 Segment information………………………………………………….………………………….……………………… 9 Significant changes in shareholders’ equity ………………………………………………………….………………… 9 Assumptions of a going concern………………………………………………………………………………………… 9 Subsequent Events………………………………………………….………………………….………………………... 9
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- 2 - 1. Overview of operating results The Group (“the Group”, “the Company”, “we” and “our” refer to Socionext Inc., and its consolidated subsidiaries, or Socionext Inc. on a non-consolidated basis, as the context may require) has been acquiring more design wins in its focus areas including data center & networking, automotive and smart devices. This success is due to the transformation of the business model, shift of focus areas to high-growth and cutting-edge business areas where more global large-scale businesses are expected, as well as structural reform including bold transformation in business structure. The acquired design wins have been progressing smoothly, contributing to NRE revenue, and are gradually entering the mass production stage, steadily leading to product revenue. To utilize the latest advanced technologies in the evolving semiconductor ecosystem, we closely collaborate with partners including Arm and TSMC and continue cooperative research with imec. Following these initiatives, we are actively investing in advanced technologies including 2nm and finer process nodes, chiplet, advanced packaging technologies, application of latest EDA tools, as well as building of development platform. Furthermore, we have built an advanced chiplet development platform and began offering customizable chiplet design library at the RTL level. The Group has a single segment primarily of SoC developed with the “Solution SoC” business model. (1) Overview of operating results for the 9 months ended December 31, 2025 The global economy has continued to experience uncertainty during the 9 months ended December 31, 2025, due to geopolitical risks including the military conflicts in Ukraine and the Middle East, increasing unpredictability surrounding U.S. tariffs and economic policy, as well as stagnant domestic demand in China. On the other hand, investment in data center infrastructure expanded against the backdrop of growing demand for AI. Foreign exchange market exhibited an appreciation of the Japanese yen during the 3 months ended June 30, 2025, and shifted to the depreciation of the Japanese yen since then. The consolidated net sales for the 9 months ended December 31, 2025 were 142,140 million yen, decreased by 2.2% from the 9 months ended December 31, 2024. Our net sales consist primarily of product revenue from the applicable products which entered the mass production stage and NRE revenue received from customers based on costs incurred in scheduled milestones during the design and development process. Product revenue bottomed out during the 3 months ended June 30, 2025, and turned upward since then, driven by full-scale shipments of newly mass-produced automotive products for Chinese market. However, due to factors such as the decline in demand related to telecommunications in Chinese market of data center & networking area, for the 9 months ended December 31, 2025, product revenue was 114,668 million yen, decreased by 0.3% compared to the 9 months ended December 31, 2024. NRE revenue was 26,862 million yen, decreased by 9.2% from the 9 months ended December 31, 2024. [Net sales] (Millions of yen) 9 months ended December 31, 2024 9 months ended December 31, 2025 Semiconductor products (product revenue) 115,000 114,668 Non-recurring engineering (NRE revenue) 29,593 26,862 Others 671 610 Total 145,264 142,140 Cost of sales was 76,380 million yen. Selling, general and administrative expenses were 58,556 million yen. Operating income was 7,204 million yen, decreased by 65.1% from the 9 months ended December 31, 2024. This is mainly due to the increase in the cost of sales resulting from the start of mass production of a new product with relatively low product gross margin, as well as continued investment in advance development. Including foreign exchange losses and other factors, ordinary income was 6,634 million yen, decreased by 68.6% from the 9 months ended December 31, 2024. Profit attributable to owners of parent was 4,782 million yen, decreased by 71.0% from the 9 months ended December 31, 2024. The Japanese yen/U.S. dollar average exchange rate for the 9 months ended December 31, 2025 was 148.7 yen to the U.S. dollar, an appreciation of 3.9 yen compared to the 9 months ended December 31, 2024. (2) Overview of financial position for the 9 months ended December 31, 2025 ①Assets, liabilities and net assets (Assets) Current assets as of December 31, 2025 was 117,633 million yen, decreased by 8,657 million yen from the end of the previous fiscal year ended March 31, 2025. This is mainly due to the increase in inventories procurement related to the start of mass production of new products, as well as the decrease in cash and cash equivalents due to the purchases of treasury stock and the payment of
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- 3 - dividends. Non-current assets as of December 31, 2025 was 45,704 million yen, increased by 1,682 million yen from the end of the previous fiscal year. This is mainly due to the capital investment in connection with product development of acquired design wins, including the acquisition of reticles and test boards, the enhancement of evaluation equipment, as well as the acquisition of IP, etc. As a result, total assets as of December 31, 2025 was 163,337 million yen, decreased by 6,975 million yen from the end of the previous fiscal year. (Liabilities) Current liabilities as of December 31, 2025 was 32,254 million yen, increased by 983 million yen from the end of the previous fiscal year. This is mainly due to the increase of accounts payable-trade related to manufacturing procurement of newly mass-produced products. As a result, total liabilities as of December 31, 2025 was 34,412 million yen, increased by 1,146 million yen from the end of the previous fiscal year. (Net assets) Net assets as of December 31, 2025 was 128,925 million yen, decreased by 8,121 million yen from the end of the previous fiscal year. This is mainly due to 4,782 million yen in profit attributable to owners of parent for the 9 months ended December 31, 2025, purchase of treasury stock of 5,000 million yen (sum of 2,722,400 shares) and the payment of dividends of 8,854 million yen. As a result, the shareholders’ equity ratio has been 78.9%, decreased by 1.6 percent points from the end of the previous fiscal year. ② Cash flows Cash and cash equivalents as of December 31, 2025 was 43,791 million yen, decreased by 29,046 million yen from the end of the previous fiscal year. Net cash provided by operating activities was 2,789 million yen for the 9 months ended December 31, 2025, compared to 23,486 million yen provided for the 9 months ended December 31, 2024. This is mainly due to profit before income taxes of 6,634 million yen, depreciation of 12,328 million yen, and increase in inventories of 15,721 million yen. Net cash used in investing activities was 18,529 million yen for the 9 months ended December 31, 2025, compared to 9,722 million yen used for the 9 months ended December 31, 2024. This is mainly due to the purchases for product development of acquired design wins, consisted of 10,787 million yen of property, plant and equipment including reticles and test boards as well as the enhancement of evaluation equipment, and 7,763 million yen of intangible assets primarily IP. Net cash used in financing activities was 14,139 million yen, compared to 13,882 million yen used for the 9 months ended December 31, 2024. This is due to purchases of treasury stock of 5,000 million yen and payment of the dividends of 8,854 million yen. (3) Consolidated earnings forecast and other forward-looking information The forecast for the consolidated earnings for the current fiscal year ending March 31, 2026 remains the same as the announcement in “Consolidated Financial Results for the 6 Months Ended September 30, 2025” on October 31, 2025.
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- 4 - 2. Quarterly consolidated financial statements and principal notes (1) Quarterly consolidated balance sheets (Millions of yen) As of March 31, 2025 As of December 31, 2025 Assets Current assets Cash on hand and in banks 72,837 38,791 Accounts receivable-trade, net 31,609 32,591 Securities - 5,000 Finished goods 6,388 9,897 Work in process 10,650 22,862 Accounts receivable-other 866 3,011 Advance payments to suppliers 2,108 2,245 Prepaid expenses 1,800 2,418 Other current assets 32 818 Total current assets 126,290 117,633 Non-current assets Property, plant and equipment Buildings and structures, net 2,462 2,360 Machinery, equipment and vehicles, net 65 103 Tools, furniture and fixtures, net 19,667 20,856 Construction in progress 144 289 Total property, plant and equipment 22,338 23,608 Intangible assets Technology assets 12,373 14,220 Other intangible assets 2,035 2,054 Total intangible assets 14,408 16,274 Investments and other assets Investment securities 0 0 Deferred tax assets 6,124 4,671 Other assets 1,152 1,151 Total investments and other assets 7,276 5,822 Total non-current assets 44,022 45,704 Total assets 170,312 163,337
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- 5 - (Millions of yen) As of March 31, 2025 As of December 31, 2025 Liabilities Current liabilities Accounts payable-trade 11,936 15,752 Accounts payable-other 4,597 3,492 Accrued expenses 7,412 5,944 Income taxes payable 3,361 560 Other current liabilities 3,965 6,506 Total current liabilities 31,271 32,254 Long-term liabilities Asset retirement obligations 350 354 Lease liabilities 1,298 1,242 Other long-term liabilities 347 562 Total long-term liabilities 1,995 2,158 Total liabilities 33,266 34,412 Net assets Shareholders' equity Common stock 32,971 33,016 Deposits for subscriptions of shares 46 1 Capital surplus 32,971 33,926 Retained earnings 74,252 70,180 Treasury stock (5,003) (10,773) Total shareholders' equity 135,237 126,350 Accumulated other comprehensive income Foreign currency translation adjustments 1,809 2,575 Total accumulated other comprehensive income 1,809 2,575 Total net assets 137,046 128,925 Total liabilities and net assets 170,312 163,337
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- 6 - (2) Quarterly consolidated statements of income and comprehensive income Quarterly consolidated statements of income (Millions of yen) 9 months ended December 31, 2024 9 months ended December 31, 2025 Net sales 145,264 142,140 Cost of sales 65,801 76,380 Gross profit 79,463 65,760 Selling, general and administrative expenses 58,803 58,556 Operating income 20,660 7,204 Non-operating income Interest income 318 285 Foreign exchange gain 161 - Other income 31 17 Total non-operating income 510 302 Non-operating expenses Foreign exchange losses - 784 Other expenses 67 88 Total non-operating expenses 67 872 Ordinary income 21,103 6,634 Extraordinary income Gain on sale of non-current assets 1,790 - Total extraordinary income 1,790 - Profit before income taxes 22,893 6,634 Income taxes-current 4,538 391 Income taxes-deferred 1,881 1,461 Total income taxes 6,419 1,852 Profit 16,474 4,782 Profit attributable to owners of parent 16,474 4,782
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- 7 - Quarterly consolidated statements of comprehensive income (Millions of yen) 9 months ended December 31, 2024 9 months ended December 31, 2025 Profit 16,474 4,782 Other comprehensive income Foreign currency translation adjustments 396 766 Total other comprehensive income 396 766 Comprehensive income 16,870 5,548 Comprehensive income attributable to: Owners of parent 16,870 5,548
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- 8 - (3) Quarterly consolidated statements of cash flows (Millions of yen) 9 months ended December 31, 2024 9 months ended December 31, 2025 Cash flows from operating activities Profit before income taxes 22,893 6,634 Depreciation and amortization 11,771 12,328 Interest and dividend income (318) (285) Loss on retirement of non-current assets 1,246 832 Loss (gain) on sale of non-current assets (1,790) - Decrease (increase) in accounts receivable 5,969 512 Decrease (increase) in inventories 9,900 (15,721) Increase (decrease) in accounts payable (5,039) 2,449 Decrease (increase) in other assets 368 (3,638) Increase (decrease) in other liabilities (13,970) 123 Other 73 2,352 Subtotal 31,103 5,586 Interest and dividends received 318 285 Income taxes paid (7,935) (3,082) Net cash provided by (used in) operating activities 23,486 2,789 Cash flows from investing activities Purchases of property, plant and equipment (8,582) (10,787) Purchases of intangible assets (3,345) (7,763) Proceeds from sales of non-current assets 2,363 - Other (158) 21 Net cash used in investing activities (9,722) (18,529) Cash flows from financing activities Repayments of lease obligations (366) (331) Proceeds from exercise of stock options 254 45 Deposits for subscriptions of shares 23 1 Proceeds from exercise of share award rights 159 - Purchases of treasury stock (5,000) (5,000) Dividends paid (8,952) (8,854) Net cash used in financing activities (13,882) (14,139) Effect of exchange rate changes on cash and cash equivalents 306 833 Increase (decrease) in cash and cash equivalents 188 (29,046) Cash and cash equivalents at the beginning of the fiscal year 69,738 72,837 Cash and cash equivalents at the end of the period 69,926 43,791
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- 9 - (4) Notes to quarterly consolidated financial statements Segment information 1. 9 months ended December 31, 2024 (From April 1, 2024 to December 31, 2024) The Group has a single segment primarily of SoC developed with the “Solution SoC” business model. 2. 9 months ended December 31, 2025 (From April 1, 2025 to December 31, 2025) The Group has a single segment primarily of SoC developed with the “Solution SoC” business model. Significant changes in shareholders’ equity Based on the resolution of the Board of Directors held on April 28, 2025, the Company acquired 2,722,400 shares of treasury stock, based on the resolution of the Board of Directors held on August 28, 2025, the Company disposed of 1,212,000 shares of treasury stock related with the introduction of an officer compensation BIP Trust and a stock grant ESOP Trust, among other factors. As a result, capital surplus increased by 955 million yen to 33,926 million yen, and treasury stock increased by 5,770 million yen to 10,773 million yen as of December 31, 2025. Assumptions of a going concern None. Subsequent Events None.