WeTouch Technology posts 50% profit surge in Q1 2026 as overseas expansion continues
WeTouch Technology (NASDAQ:WETH) reported its unaudited financial results for the first quarter ended March 31, 2026, delivering significant bottom-line acceleration and stable revenue growth.
The Meishan, China-based company, which specializes in the research, development, and manufacturing of medium-to-large-sized projected capacitive touchscreens, generated quarterly revenue of $16.3 million.
This marks a 6.5% year-over-year increase compared to the $15.3 million recorded in the first quarter of 2025, driven by strong underlying product demand across its automotive, industrial automation, and smart cockpit verticals.
The company achieved massive profitability gains during the period, primarily fueled by a reduction in total operating expenses.
Net income for the first quarter soared 50% year-over-year to $3.9 million, up from $2.6 million in the prior-year period.
Diluted earnings per share (EPS) concurrently jumped 52.4% to reach $0.32 per share, compared to $0.21 per share in Q1 2025.
Gross profit for the quarter rose mildly to $5.82 million, matching a gross margin of 35.7% as WeTouch balanced fluctuating specialized material costs.
Total unit shipping volumes remained flat at 763,325 units, highlighting improved higher-value product blending across its core order book.
Geographically, WeTouch maintained its strong domestic foundation while cultivating international markets.
The People's Republic of China (PRC) generated 67.5% of total quarterly revenue, while overseas shipments accounted for the remaining 32.5%—anchored by recent high-end industrial supply qualifications with premium European partners like Siemens.
WeTouch concluded the quarter with a liquid balance sheet, holding $120.5 million in cash and cash equivalents against minimal total liabilities of $4.1 million.
Total shareholders' equity rose to $143.2 million.
Corporate management highlighted that this position leaves the firm fully capitalized to self-fund its ongoing infrastructure expansion.
Meanwhile, construction is actively progressing on the company’s new $36.7 million advanced production and manufacturing facility in Chengdu, with formal project completion and subsequent cleanroom equipment installation targeted for the first half of 2027.
