CONTENTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Contents
About Espressif 03 Management Report （Continued）
Facts About Espressif 03 Developer-Centric Platform Strategy 14
Key Technologies 04 Developer Community Content 15
Ownership of Securities 16
Core Competitiveness 05 Risks and Uncertainties 17
Business Highlights 06 Consolidated Financial Statements 18
(Unaudited)
Key Financial Data (Unaudited) 06
Consolidated Balance Sheet 18
Key Financial Indicators (Unaudited) 06
Consolidated Income Statement 20
Financial Analysis 07
Consolidated Cash Flow Statement 21
Management Report 09
Further Information 22
Product Positiong 09
Terms and Conditions of the Report 22
Key Products - Chip Matrix 10
List of abbreviations 23
Product Market Tenure 11
Key Products - M5Stack Development Kits 12
B2D2B Business Model 13
ABOUT ESPRESSIF ESPRESSIF SYSTEMS Q3 2026 REPORT
Facts About Espressif
Espressif Systems (SSE: 688018.SH) is a leading fabless semiconductor company providing wireless connectivity
and edge intelligence solutions for IoT devices. The Company has expanded beyond chip supply to become a
platform enabler for hardware digitalization and intelligent transformation, supported by an integrated combination of
silicon, software, tools, and ecosystem resources.
Built around the ESP32 product family, which has emerged as a preferred and highly recognizable platform among
global developers, Espressif has established strong ecosystem momentum. A large and active developer community,
thousands of third-party software components, and long-term platform continuity drive sustained adoption.
Through this ecosystem-led approach, Espressif enables customers to build, scale, and continuously evolve
intelligent hardware products, positioning the Company to capture durable value as hardware digitalization and
intelligence continue to deepen globally.
Global IoT Chip In Wi-Fi MCU In AIoT Satisfied Active Ecosystem
Shipment Market Technology Customers Developers
(Cumulative) Worldwide
Developer Flywheel Developer Growth More developers join,
learn, and build with
Espressif solutions.
Ecosystem Application
Expansion Innovation
The ecosystem grows with Developers create innovative
more partners, tools, and applications and solutions
integrations, enabling greater across diverse use cases.
possibilities.
Enterprise Adoption
Enterprises adopt Espressif's platform to commercialize and scale these innovations.
ABOUT ESPRESSIF ESPRESSIF SYSTEMS Q3 2026 REPORT
As a global semiconductor innovator, we deliver high-performance RISC-V SoCs and comprehensive solutions with
integrated AI, in-house operating system, robust security, and seamless cloud integration—shaping the future of
smart, connected systems.
Al Agent Edge Al Co-processor Mesh Wi-Fi Sensing HMI Multimedia Cloud & Matter Security
Cloud &
Ecosystem
AI
AI & IoT
ESP-CLAW ESP-VISION ESP-SR
SDK Edge AI Agent Framework Low-Code Edge AI Speech Recognition
ESP-WHO ESP-DL ESP-NN
Computer Vision Deep Learning Neural Network Library
IoT
ESP-Brookesia ESP-GMF ESP-loT-Solution
Al-Powered Ul Framework Audio&Video Processing Peripheral Integration
Operating In-House
System ESP-IDF
Official loT OS
Compilers & Tool Chains
Third-Party
IC Design Connectivity
Wireless Communication
Wi-Fi 7/6E/6 | 2.4/5/6 GHz Tri-band
Bluetooth 6 (LE)｜Bluetooth Classic (BR/EDR)
IEEE 802.15.4
High-Speed Data Transmission
Computing
Core
AI FPU | Instruction Set Extensions
Multimedia ISP | H.264 Encoder | JPEG Codec
High-Speed Interfaces PCle | DDR | USB
CORE COMPETITIVENESS ESPRESSIF SYSTEMS Q3 2026 REPORT
Brand Awareness
The ESP32 and Espressif brands have a strong sense of 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 versatility, which have been proven across various applications and industries. This strong brand
awareness not only fosters customer retention but also attracts new users, thereby solidifying Espressif's position in
the market.
Exceptional IC Design Capability
Espressif independently designs and develops its own chip products, with core IPs being self-developed. These
chips are 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 can innovate rapidly and introduce
unique functionalities that set our products apart from competitors, providing a distinctive edge in the IoT
semiconductor industry.
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.
BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Business Highlights (Unaudited)
Key Financial Data (Unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025
Consolidated Statement of Income Data
Revenue 889,277,202 666,706,221 2,369,988,496 1,912,247,017
Gross profit 454,085,724 319,845,390 1,184,340,680 882,881,140
Selling expenses 27,192,217 21,202,823 75,127,957 59,114,434
General and administrative expenses 25,023,192 24,222,903 72,425,306 62,091,408
Research and development expenses 188,725,772 155,163,791 518,391,823 423,408,329
Net income 220,015,954 116,499,045 555,294,495 379,538,810
Net income attributable to Espressif 218,695,118 115,500,538 552,921,175 376,762,715
Earnings per share:
Basic 2.3673 1.7343
Diluted 2.3673 1.7343
Consolidated Cash Flow Data
Net cash provided by operating activities 245,874,272 195,644,872 318,320,784 310,067,697
Sep 30, 2026 Dec 31, 2025
Consolidated Balance Sheet Data
Working capital 3,393,101,701 3,518,352,994
Total assets 5,258,889,142 5,047,755,518
Long-term obligations 163,620,528 141,345,125
Total shareholders’ equity 4,666,499,279 4,489,877,928
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2026, 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, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025
Gross margin 51.06% 47.97% 49.97% 46.17%
R&D-to-sales ratio 21.22% 23.27% 21.87% 22.14%
Net income margin 24.74% 17.47% 23.43% 19.85%
Weighted ROE 11.84% 15.93%
Number of Espressif employees 995 878
Stock-based compensation 15,668,970 11,339,881 43,735,924 30,130,386
BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Financial Analysis
Revenue Overview: Quarterly Revenue Seasonality
Revenue for the first three quarters reached CNY 2.37 CNY Million FY2021 FY2022 FY2023 FY2024
billion, representing a YoY increase of 23.9%. Third- FY2025 FY2026
quarter revenue came in at CNY 889.28 million, up 1,000
Although global smart home demand moderated to
single-digit growth amid a challenging macroeconomic
environment and ongoing geopolitical uncertainties, 600
Espressif continued to benefit from the diversification of
its application portfolio. Non-smart home segments— 400
including industrial automation, smart agriculture, energy
management, and AI-driven developer and innovation 200
activities—continued to deliver solid growth. Q1 Q2 Q3 Q4
Driven by robust community support and effective technical marketing, our direct sales share has exceeded 71%,
making us unique among semiconductor peers. Furthermore, our customer concentration continues to decline,
reflecting a healthier and more diversified revenue structure.
Revenue by Area:
• China’s Mainland revenue saw a 38.5% YoY growth and a 8.4% QoQ increase for the third quarter, bringing the
first three quarters' cumulative YoY growth to 21.0%.
• Overseas revenue grew 23.1% YoY and a 3.2% QoQ increase for the third quarter, bringing the first three quarters'
cumulative YoY growth to 30.9%.
Revenue by Area Revenue by Sales Mode Top-5 Customer
in the First Three in the First Three Concentration Rate,
Quarters of 2026 Quarters of 2026 2022 - Q3 2026
China's Mailand Rest of the World Direct Indirect 2022 23 24 25 26 Q1-Q3
BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Financial Analysis (Continued)
Revenue by Product Category:
• Chips: Revenue for the first three quarters grew by 10.4% YoY, reflecting steady demand from the customer base
that prefers direct chip-level design and in-house hardware development.
• Modules & Development Kits: Revenue for the first three quarters grew by 32.5% YoY, as the IoT ecosystem
continues to mature. An increasing number of customers are choosing pre-certified module solutions to simplify
hardware development, shorten product development cycles, and concentrate engineering resources on
software, AI, and application innovation.
Revenue by Product Category in the First Three Quarters of 2026
Chip Module & DevKits Others
Profitability & Resilience: Net income attributable to shareholders reached CNY 552.92 million, representing a
continued to demonstrate strong operational resilience through sustained margin expansion, diversified end-market
exposure, and continued execution of its long-term growth strategy.
R&D investment: R&D expenses increased by 22.4% YoY, primarily driven by higher R&D headcount and employee
compensation. The increase reflects the Company's continued investment in expanding its technology capabilities
in response to the industry's evolution from basic IoT connectivity toward intelligent edge computing and Physical AI
applications.
Cash Flow & Inventory: During the reporting period, memory prices increased and procurement lead times
extended. To secure supply and ensure stable production and deliveries, the Company strategically increased
inventory reserves. Consequently, inventory rose by CNY 291.71 million compared with the end of 2025, which was
the primary reason why net cash generated from operating activities stood at CNY 318.32 million, lower than net
profit. This deliberate working capital investment is expected to normalize as supply chain conditions stabilize.
ROE & Capital: The decline in ROE was a result of capital dilution following the new share issuance completed in the
end of September 2025, rather than a shift in underlying profitability.
Key Financial Indicators in the First Three Quarters of 2026
Overall GM Selling Exp. % G&A % R&D % Net Income ROE
Margin (Q1-Q3)
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
From Connectivity to AI
Espressif’s Product Positioning Across Device Evolution
Passive + System | Connectivity as Infrastructure AI / System-level Devices
From MCU to AI-enabled System Platforms
High
Systematic Connectivity Physical AI & High-Interaction
C / E / H-Series (Connectivity & Gateway) S / P-Series (AI & Computing)
System Integration / Capability
• Gateway / Thread / Matter Node
• AI Hardware (Voice / Vision), Robotics, AI Agent
• Systematic (Stacks / Multi-protocol)
• Multi-modal, High Compute,
• Low Interaction Proactive Interaction Path to
higher Add-on Value
Basic IoT Interactive Devices
ESP8266 ｜ Entry ESP32 ｜ C / H-Series Mainstream ESP32 ｜ S-Series
• Sensor, Basic Connected Device, Low-cost IoT
• Lightweight Voice, Display Device
• Passive, Connectivity-focused • Interaction, Basic System Capability
Low
Interactive Devices
Basic IoT | Connectivity as a Feature Interaction Emerges on top of Connectivity
Passive Active
Interaction
Unified Developer Ecosystem across all segments
The Company's product roadmap is structured around four application-oriented capability layers: Basic IoT,
Systematic Connectivity, Interactive Devices, and Physical AI & High-Interaction. This roadmap reflects the
evolution of connected devices from simple sensing and communication toward intelligent, autonomous, and
interactive systems.
Basic IoT focuses on delivering reliable, cost-effective connectivity for large-scale embedded devices. Products
such as the ESP32-C series provide highly integrated Wi-Fi and Bluetooth connectivity with optimized power
consumption and cost efficiency, enabling broad adoption across smart home devices, consumer electronics,
industrial control, and other mainstream IoT applications.
Building upon basic connectivity, Systematic Connectivity addresses increasingly complex networking
environments where multiple wireless technologies operate together. The Company's portfolio supports Wi-Fi,
Bluetooth LE, Thread, Zigbee, Matter, and Wi-Fi 6/6E, enabling devices to participate in heterogeneous networks
with improved bandwidth, lower latency, stronger reliability, and lower power consumption. This capability allows
customers to build scalable and interoperable connected systems rather than isolated devices.
Interactive Devices combine connectivity with local intelligence to enable richer human-device interaction.
Products including the ESP32-S series integrate AI acceleration, vector instructions, graphics capabilities, and
multimedia processing to support voice interaction, vision processing, display control, and other real-time edge AI
applications, enabling a new generation of intelligent terminals.
Looking further ahead, the Company is expanding toward Physical AI & High-Interaction. Products such as the
ESP32-P series provide significantly higher computing performance, richer peripheral interfaces, multimedia
capabilities, and support for embedded Linux, forming the computing foundation for next-generation intelligent
control systems, robotics, and AI Agent applications. At the software layer, the Company is also investing in
technologies such as MCP integration, ESP-Claw, and AI-native development frameworks to help developers more
easily build intelligent interactive devices and Physical AI applications.
Through this four-layer strategy, the Company is building a unified platform that supports customers from basic IoT
connectivity to intelligent edge computing and future Physical AI applications.
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Key Products - Chip Matrix
AI AI AI
ESP ESP32 ESP32
ESP32
H.264 encoding
Function-
Driven ESP32
ESP32 - S2
ESP32
H4 ESP32 - H4
S2
ESP32
C5 ESP32 - C5
E22 ESP32 - E22
ESP32
C6 ESP32 - C6
ESP 8266 C61 ESP32 - C61
ESP32
C3 ESP32 - C3
Connectivity-
Driven ESP32
H21 ESP32 -H21
ESP32
C2 ESP32 - C2 1x Core @96 MHz
ESP32
H2 ESP32 - H2
Legacy Growth Emerging / Sampling
Wi-Fi 4 Bluetooth
Wi-Fi 6 Thread
N.B.: Wi-Fi 6E Zigbee
All products shown above are 32-bit MCU-based chips.
Matter Ultra-Low Power
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Product Market Tenure
Annual Revenue Trend Legacy Growth Emerging Sampling
ESP32-E22
ESP32-E22
ESP32-H21
ESP32-H21
ESP32-H4
ESP32-H4
ESP32-S31
ESP32-S31 <1 YEAR
ESP32-P4
ESP32-P4 2 YEARS
ESP32-C61
ESP32-C61 2 YEARS
ESP32-C5
ESP32-C5 2 YEARS
ESP32-H2
ESP32-H2 4 YEARS
ESP32-C6
ESP32-C6 4 YEARS
ESP32-C2
ESP32-C2 5 YEARS
ESP32-C3
ESP32-C3 6 YEARS
ESP32-S3
ESP32-S3 6 YEARS
ESP32-S2
ESP32-S2 7 YEARS
ESP32
ESP32 (Original)
(Original) 11 YEARS (SINCE 2016)
ESP8266
ESP8266 13 YEARS (SINCE 2014)
Product Lifecycle Classification
• Sampling: The product has completed development and entered the sampling phase, undergoing customer
design-in and validation.
• Emerging: The product has achieved initial mass production and begun generating revenue, though overall
scale remains limited.
• Growth: The product enters a ramp-up phase, making a significant contribution to revenue growth.
• Legacy: The product has reached a stable shipment scale, with sales trending flat or gradually declining; certain
product may enter the later stage of their lifecycle.
• EOL: End of Life. No products have reached this stage yet.
Market Tenure as a Core Asset
In the IoT industry, a product’s market tenure serves as a critical indicator of credibility. It reflects long-term validation
and stable performance across complex application environments—reliability that cannot be replicated by speed or
short-term iteration alone.
Long-Tail Value
IoT products typically have long lifecycles and prioritize reliability, stability, and long-term supply continuity. Once a
customer's product enters mass production, the end product may remain in the market for 5–10 years or longer.
Throughout this period, the customer continues to require chips/modules for ongoing production, replenishment,
maintenance, and product variants, creating a recurring stream of demand.
This creates a hardware equivalent of SaaS economics: not through subscription fees, but through long product
lifecycles, repeat purchases, and durable customer relationships.
The result is a “Slow Burn, High Retention” model, in which the value of a design win extends well beyond the initial
order, generating a long tail of revenue over the product's lifetime.
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Key Products - M5Stack Development Kits
In addition to the ESP32 chip brand, Espressif also owns the M5Stack development kit brand. 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.
Beyond its hardware prowess, M5Stack has cultivated an exceptionally vibrant global developer community,
commanding high brand mindshare within the ecosystem. With an extensive lineup exceeding 400 products,
M5Stack continues to drive rapid innovation by launching a new product every week. M5Stack enables developers
to rapidly prototype and iterate. This vast community serves as a continuous validation engine, where grassroots
innovation frequently translates into mature, market-ready solutions.
In the first half of 2026, M5Stack successfully debuted two new products through Kickstarter crowdfunding
campaigns. Post-crowdfunding, the products sustained high traction with both new acquisitions and repeat
purchases throughout standard retail, underscoring a robust long-tail effect. M5Stack is progressively becoming an
'Everyday Carry' (EDC) staple for engineers, further reinforcing our Direct-to-Consumer (DTC) market strategy.
AI is stepping out of the screen and into
the real world. As intelligence finds its
way onto our desks, into our pockets,
and into field devices, hardware is
evolving into the essential infrastructure
that bridges digital intelligence with
physical experiences.
Throughout 2026, from the Anthropic
Developer Conference, the Meta Muse
Gadget Board debut, and the Qoder
exhibition at the Alibaba Apsara
Conference, to the Netherlands
cybersecurity conference OrangeCon
and WorkOS’s init() event, M5Stack has
repeatedly been chosen as the
hardware of choice for AI coding at
developer gatherings worldwide. Serving
variously as an interactive badge, an
installation device, a workshop tool, or
simply the very first piece of hardware to
bring an AI concept straight to the
desktop, M5Stack continues to
empower developers in turning
imagination into tangible reality.
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Business Model
Business-to-Developer-to-Business (B2D2B)
We believe developers are the primary drivers of technological innovation. By serving developers first, we enable the
creation of new products, new applications, and ultimately new markets.
Our growth model is built on the global developer ecosystem through two complementary layers: Business-to-
Developer (B2D) and Business-to-Developer-to-Business (B2D2B).
B2D (Business-to-Developer) forms the foundation of our ecosystem. We regard developers as our primary direct
users and continuously invest in a comprehensive development platform, including processors, software
frameworks, operating systems, development tools, development kits, and technical support. Through our open-
source ecosystem, technical community, developer events, and continuous software enhancements, we maintain
long-term engagement with developers worldwide. In this sense, B2D resembles a direct-to-consumer (DTC)
model, where the "consumer" is the global developer community.
B2D2B (Business-to-Developer-to-Business) transforms developer adoption of our platform into enterprise
adoption of our technologies. As developers build innovative products on our platform, they bring our technologies
into their organizations and industries, driving the development and commercialization of intelligent hardware
applications across industrial automation, energy management, smart agriculture, consumer electronics, AI-enabled
devices, and many other markets.
Together, these two layers form Espressif's Developer Flywheel, where developers create new applications that
drive enterprise adoption, while growing enterprise adoption attracts more developers, reinforcing a self-sustaining
cycle of developer growth, application innovation, enterprise adoption, and ecosystem expansion.
B2D2B Model
Core Chip Software Tools
Smart Home Smart Lighting Industrial Control Charging Pile
Module Branch B
(Product Prototype)
Community
Portable Energy Storage
Branch A
(DIY Enthusiast)
Development Board
(DevKit) Photovoltaic Inverter
Smart Agriculture 3D Printer Smart Internet of Vehicles
Healthcare
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Behind Every Smart Devices is a Developer
Developer-Centric Platform Strategy
CONNECTED DEVICE SMART INTERACTION EDGE AIAIDEVELOPERS
PHYSICAL DEVELOPERS
DEVELOPERS DEVELOPERS
DESCRIPTION DESCRIPTION DESCRIPTION
Build reliable, low-power connected Create devices that interact naturally Develop intelligent physical devices
devices for IoT applications, with a with people through displays, touch, that perceive, interact with, and
focus on wireless connectivity, voice, cameras, and multimodal respond to the physical world through
energy efficiency, and security. interfaces. AI, sensing, connectivity, and control.
TYPICAL FOCUS TYPICAL FOCUS TYPICAL FOCUS
Smart home, Matter, Thread, AI toys, smart displays, HMI, Robotics, AI devices, sensing,
sensors, wearables, industrial IoT education, consumer electronics physical interaction, automation.
HIGH-PERFORMANCE LINUX APPLICATION AI-NATIVE DEVELOPERS
CONNECTIVITY DEVELOPERS DEVELOPERS
DESCRIPTION DESCRIPTION
DESCRIPTION Build sophisticated embedded Build hardware applications with AI as
Design products that require high applications using Linux, leveraging the primary development interface,
bandwidth, low latency, and modern software frameworks and using natural language, AI coding
advanced wireless connectivity. open-source ecosystems. assistants, and low-code workflows.
TYPICAL FOCUS TYPICAL FOCUS TYPICAL FOCUS
Video streaming, industrial gateways, Python, ROS, OpenCV, edge Vibe coding, MCP, AI IDEs, rapid
XR, multimedia, networking computing, robotics, AI terminals prototyping
Espressif's long-term development strategy is centered on continuously expanding the developer ecosystem served
by its technology platform. As intelligent connected devices evolve, the required skill sets and development
workflows continue to diversify. Accordingly, the Company is broadening its technology portfolio to support an
increasingly diverse range of developer communities.
Today, Espressif's platforms are widely adopted by Connected Device Developers, who focus on low-power wireless
IoT applications, and Smart Interaction Developers, who build products featuring displays, voice, cameras, touch
interfaces, and multimodal user experiences. As AI increasingly moves beyond digital applications into the physical
world, the Company is also expanding its engagement with Physical AI Developers building intelligent devices that
combine AI capabilities with sensing, connectivity, interaction, and physical control. Meanwhile, increasing demand
for higher bandwidth and lower latency is creating new opportunities among High-Performance Connectivity
Developers developing multimedia, industrial networking, and advanced wireless applications.
Looking forward, the Company is making strategic investments to support the next generation of embedded
software development. This includes ongoing research and development of Linux-capable platforms and software
frameworks intended to serve Linux Application Developers, enabling more sophisticated embedded computing
applications. In parallel, the Company is exploring AI-native development frameworks and workflows, including AI-
assisted programming, MCP integration, and low-code development tools, with the objective of supporting the
emerging community of AI-Native Developers as artificial intelligence reshapes embedded system development.
By expanding its developer communities, the Company aims to strengthen its software ecosystem, accelerate 14
technology adoption, and support long-term business growth.
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Developer Community Content
Cumulative Number of GitHub
ESP32 Projects
BOOKS
Global Code Hosting Platform Social Networking Site Developer-written books
ESP32 and ESP8266 ESP32 Group Members Covering more than 10
Projects languages
Daily Increase on GitHub
ESP32 Projects
Chinese Video Sharing Platform Global Video Sharing Platform 402
Most Viewed ESP32 Most Viewed ESP32 Most Viewed ESP32
Video (2026) Short (2026) Video (2026)
Always a on Social Media
Posted on 15 Oct 2026 Posted on 20 Sep 2026 Posted on 5 Oct 2026 Posted on 16 Oct 2026
An ESP32-S3 with a 3.97-inch e-paper 成本百元！??代码不会，如何做个? Building a Tiny OLED Keychain | ESP32 ESP32-S3の?作スマートウォッチで
display. What would you build? ?的桌??设备？【?包?作】 project with free code 画?スワイプが効かなくなった時の話
です。
This Waveshare board combines an 从 ESP32 开发板出发，借助 AI 编程制 DIY electronics keychains are
ESP32-S3 with a 800 × 480 e-paper 作个?桌?设备，将想法变成可以使? everywhere right now, so I decided to タップもスクロールも動くのに、横ス
screen, making it useful for low-power 的??具。 make my own! ワイプだけ通らない。タッチパネルを
projects that need to display 疑っていました。
information without constantly I built a tiny OLED keychain using a
refreshing a backlit display XIAO ESP32-S3, a 1.3-inch OLED
display, and a small LiPo battery…
Think desk dashboards…
https://www.bilibili.com/video/ https://x.com/maruhanax6lq/status/
BV1M6eq6gEqg 2111037956425466113
https://x.com/Alacritic_Super/status/ https://www.youtube.com/watch?
Posted on 16 Oct 2026 Searched on 16 Oct 2026
Wearable ESP32 cyberdeck I
designed
Posted on 6 Oct 2026 Posted on 14 Oct 2026
ESP32 par Chalaya ArduPilot Drone! Thought this group might appreciate ?"?? ESP32 LVGL level1 %??'?)????
this project I just finished! -??? Touchscreen ?0???34?56?
! #rcproject#shorts
??????? ?"??@???B??C?E?
http://reddit.com/r/masterhacker/ 15
https://www.youtube.com/shorts/ comments/1×76yfb/
qDi1kduxsE8 wearable_esp32_cyberdeck_i_design
ed/
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
Ownership of Securities
Basic information of securities
Share types Ordinary share
Share capital 234,384,311 (as of Sep 30, 2026)
Listing Shanghai Stock Exchange (SSE)
Ticker 688018.SH
Listing Date 2019-07-22
Shareholder Structure as of Sep 30, 2026
Shareholder Share Numbers Percentage (%)
Espressif (Hong Kong) Investment Ltd. 85,694,801 36.56
Hong Kong Securities Clearing Company Limited 8,739,244 3.73
NSSF Portfolio 114 5,826,557 2.49
Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu
Private Equity Securities Investment Fund No.1
Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu
Private Equity Securities Investment Fund No.3
China Construction Bank Corporation – Guotai Haitong Innovation
Growth Mixed Asset Initiated Securities Investment Fund
Shinvest Holding Ltd. 2,601,600 1.11
CITIC Securities Co., Ltd. – Harvest SSE STAR Market Chip Tradable
Open-ended Index Securities Investment Fund
Shanghai Letun Enterprise Management Partnership (Limited
Partnership)
Shenwan Hongyuan Securities Co. Ltd. 1,996,834 0.85
Top 10 shareholders 118,054,679 50.37
Espressif Systems (Shanghai) Co., Ltd. Repurchase Special
Securities Account
Other public shareholders 113,600,429 48.47
Total of outstanding shares 234,384,311 100.00
MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT
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,
Nordic, Silicon Labs, and others. Intense competition from current players 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
CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Consolidated Financial
Statements
Consolidated Balance Sheet (unaudited)
CNY Sep 30, 2026 Dec 31, 2025
Assets
Current assets:
Cash and cash equivalents 1,292,099,654 1,024,792,840
Held for trading financial assets 883,540,105 876,009,608
Notes receivable 82,599,517 65,534,507
Accounts receivable, net 382,490,392 298,106,030
Accounts receivable financing
Prepayments 21,545,397 19,427,100
Other receivables 13,101,136 11,439,963
Including: Interest receivable
Inventories 919,347,083 627,637,513
Other current assets 227,147,753 1,011,937,898
Total current assets 3,821,871,036 3,934,885,459
Non-current assets:
Debt investment 495,941,300 210,430,400
Investment in other equity assets 42,036,070 42,036,070
Other non-current financial assets 41,937,416 41,937,416
Fixed assets 577,614,152 556,813,866
Right-of-use assets 32,747,534 29,091,243
Intangible assets 24,499,504 26,662,076
Goodwill 74,654,024 74,654,024
Long-term deferred expenses 40,118,690 22,753,695
Deferred income tax assets 107,469,417 108,491,271
Other non-current assets
Total assets 5,258,889,142 5,047,755,518
CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Consolidated Balance Sheet (unaudited)
CNY Sep 30, 2026 Dec 31, 2025
Liabilities & Shareholders’ Equity
Current liabilities:
Short-term loan
Accounts payable 214,239,053 187,528,762
Contract liabilities 43,308,469 23,381,055
Payroll payable 134,252,056 157,619,024
Taxes payable 9,213,239 2,581,791
Other payable 16,709,388 37,303,747
Including: Interest payable
Non-current liabilities due within one year 8,895,925 6,944,668
Other current liabilities 2,151,205 1,173,418
Total current liabilities 428,769,335 416,532,465
Non-current liabilities:
Lease liabilities 25,955,034 23,701,708
Provisions 613,503 636,582
Deferred income tax liabilities 137,051,991 117,006,835
Total liabilities 592,389,863 557,877,590
Owners’ equity (or shareholders' equity):
Share capital 234,384,311 167,143,010
Capital reserves 2,947,030,609 3,040,623,359
Less: Treasury stock 302,427,630 67,433,448
Other comprehensive income -15,988,536 17,636,423
Surplus reserves 123,024,049 123,024,049
Retained earnings 1,646,739,543 1,177,520,921
Total Espressif shareholders’ equity 4,632,762,346 4,458,514,314
Non-controlling interests 33,736,933 31,363,613
Total shareholders’ equity 4,666,499,279 4,489,877,928
Total liabilities and shareholders' equity 5,258,889,142 5,047,755,518
CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Consolidated Income Statement (unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025
Revenue 889,277,202 666,706,221 2,369,988,496 1,912,247,017
Cost of Revenue 435,191,478 346,860,831 1,185,647,816 1,029,365,877
Gross Profit 454,085,724 319,845,390 1,184,340,680 882,881,140
Taxes and surcharges 3,562,984 1,485,439 9,898,731 4,784,329
Selling expenses 27,192,217 21,202,823 75,127,957 59,114,434
General and administrative expenses 25,023,192 24,222,903 72,425,306 62,091,408
Research and development expenses 188,725,772 155,163,791 518,391,823 423,408,329
Financial expenses 305,717 -1,441,601 -2,833,484 -8,092,809
Including: Interest expenses 298,969 1,495,598 862,320 4,576,810
Interest income 6,000,764 5,855,951 17,110,669 16,821,219
Add: Other income 16,674,834 6,965,515 40,925,483 38,334,091
Investment income (mark"-" for loss) 7,213,830 3,427,000 24,044,782 11,860,933
Income from changes in fair value (mark"-" for loss) 316,679 1,848,163
Credit impairment losses (mark"-" for loss) 528 46,120 -350,123
Assets impairment losses (mark"-" for loss) -46,886 -353,452 -2,393,307 -1,591,282
Assets disposal income (mark"-" for loss) -125 -22,982 3,645 -52,581
Operating Income 233,434,702 129,228,116 575,805,232 389,776,488
Add: Non-operating revenue -470 27,544 2,120,000 357,744
Less: Non-operating expenses 153,380 293,841 212,852 362,447
Income before income taxes 233,280,852 128,961,819 577,712,381 389,771,785
Provision (benefit) for income taxes 13,264,898 12,462,773 22,417,886 10,232,975
Net Income 220,015,954 116,499,045 555,294,495 379,538,810
Net Income attributable to non-controlling interests 1,320,836 998,507 2,373,319 2,776,095
Net Income attributable to Espressif 218,695,118 115,500,538 552,921,175 376,762,715
Earnings per share
Basic 2.3673 1.7343
Diluted 2.3673 1.7343
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2026, 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, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025
Net Income 220,015,954 116,499,045 555,294,495 379,538,810
Other comprehensive income (loss), after tax
Changes to the fair value of investment in other equity
instruments
Currency translation reserves -7,123,532 -6,743,598 -33,624,959 -9,919,960
Other comprehensive income (loss) -7,123,532 -6,743,598 -33,624,959 -9,919,960
Other comprehensive income (loss) attributable to
non-controlling interests
Comprehensive income 212,892,422 109,755,447 521,669,536 369,618,851
Comprehensive income attributable to non-controlling interests 1,320,836 998,507 2,373,319 2,776,095
Comprehensive income attributable to Espressif 211,571,587 108,756,940 519,296,216 366,842,756
CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2026 REPORT
Consolidated Cash Flow Statement (unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025
Operating Activities
Cash from sales of merchandise and provision of services 984,275,536 759,768,187 2,518,668,956 2,059,551,601
Tax refund 34,545,758 22,222,797 102,121,801 50,238,157
Other received cash related to operational activities 13,115,604 11,545,285 28,713,728 45,010,201
Subtotal of cash inflow from operational activities 1,031,936,898 793,536,268 2,649,504,485 2,154,799,959
Cash paid for merchandise and services 571,478,021 446,443,968 1,623,204,864 1,269,850,584
Cash paid to and for employees 131,243,306 109,983,101 485,440,149 409,505,162
Cash paid for taxes and surcharges 30,667,885 2,347,759 62,742,754 53,671,180
Other paid cash related to operational activities 52,673,415 39,116,568 159,795,933 111,705,337
Subtotal of cash outflow from operational activities 786,062,626 597,891,396 2,331,183,701 1,844,732,262
Net cash provided by operating activities 245,874,272 195,644,872 318,320,784 310,067,697
Investing activities
Cash arising from the disposal of investments 1,682,789,170 50,000,000 4,008,657,588 190,000,000
Cash arising from investment income 25,233,260 4,815,000 38,561,760 17,782,233
Net cash arising from the disposal of fixed assets, intangible 2,986 10,193 18,756 25,098
assets and other long-term assets
Other received cash relating to investment activities 306,050 148,050 2,637,153 1,648,150
Subtotal of cash inflow from investment activities 1,708,331,466 54,973,243 4,049,875,257 209,455,481
Cash paid for the purchase and construction of fixed assets, 27,588,189 25,448,013 106,914,264 469,618,632
intangible assets and other long-term assets
Cash paid for investments 1,367,000,000 3,560,000,000
Net cash paid for acquisition of subsidiaries and other
business units
Other paid cash relating to investment activities 1,000,000 1,000,000 1,200,000
Subtotal of cash outflow from investment activities 1,395,588,189 25,448,013 3,667,914,264 470,818,632
Net cash provided by investment activities 312,743,277 29,525,230 381,960,993 -261,363,151
Financing activities
Cash arising from the issuance of common stock 1,766,553,723 93,024,211 1,837,645,360
Including: Cash arising from subsidiaries absorbing
investments by minority shareholders
Cash received from borrowings 21,000,000 383,350,000
Subtotal of cash inflow from financing activities 1,787,553,723 93,024,211 2,220,995,360
Cash paid to repay debt 170,288,327 180,688,327
Cash paid for the distribution of dividends and profits, or 1,404,251 83,702,554 70,604,145
payment of interests
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other paid cash relating to financing activities 302,991,524 4,059,697 406,100,259 11,380,912
Subtotal of cash outflow from financing activities 302,991,524 175,752,275 489,802,813 262,673,384
Net cash provided by financing activities -302,991,524 1,611,801,449 -396,778,601 1,958,321,976
Impact of fluctuation in exchange rates on cash and cash -9,320,364 -7,169,924 -40,062,074 -6,148,767
equivalents
Net increase in cash and cash equivalents 246,305,661 1,829,801,627 263,441,102 2,000,877,755
Add: Cash and cash equivalent at the commencement 1,035,159,212 838,708,434 1,018,023,771 667,632,307
of the period
Cash and cash equivalents at the end of the period 1,281,464,873 2,668,510,061 1,281,464,873 2,668,510,061
FURTHER INFORMATION ESPRESSIF SYSTEMS Q3 2026 REPORT
Further Information
Terms and Conditions of the Report
Responsibility Statement
The Board of Directors, 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, 23 October 2026
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 Board Secretary
Wang Jue Shao Jingbo
Board Secretary Financial Director
Teo Teck Leong
Shareholder-elected
Chen Myn
Independent Director
Lee Kian Soon
Independent Director
Leong Foo Leng PRESSIF
ES
Independent Director
Declaration
Forward-looking Statements
SY
STE MS
This report contains forward-looking statements and/or assessments about the business,
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.
FURTHER INFORMATION ESPRESSIF SYSTEMS Q3 2026 REPORT
List of abbreviations
AI Artificial Intelligence
AIoT Artificial Intelligence and Internet of Things
Bluetooth LE Bluetooth Low Energy
CEO Chief Executive Officer
Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.
G&A General and Administrative
GM Gross Margin
HMI Human-Machine Interaction
IC Integrated Circuit
IoT Internet of Things
LLM Large Language Model
MCU Microcontroller Unit
MCP Model Context Protocol
QoQ Quarter-on-Quarter
R&D Research and Development
RF Radio Frequency
RISC-V Reduced Instruction Set Computer-V
ROE Return on Earnings
G&A General and Administrative
SH Shanghai
SoCs System on Chips
YoY Year-on-Year
ESPRESSIF SYSTEMS Q3 2026 REPORT
Investor Relations Social Media
ir@espressif.com x.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 xhslink.espressif.com
Copyright 2026 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.
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