Espressif Systems' net profit last year increased by 46.72% year-on-year, with new potential customers gradually expanding.

On the evening of March 20, Espressif Technology released its annual report for 2025.

According to the report, the company achieved an annual operating revenue of 2.565 billion yuan, a year-on-year increase of 27.82%; during the same period, the net profit attributable to shareholders was 498 million yuan, a year-on-year increase of 46.72%; the net profit after deducting non-recurring items was 455 million yuan, a year-on-year increase of 47.62%. Meanwhile, the company’s R&D investment increased by 23.1% year-on-year.

Espressif Technology is a technology ecosystem enterprise focused on the Internet of Things (IoT) field, with full-stack engineering capabilities ranging from chips, hardware, operating systems, software solutions to cloud and AI, providing one-stop AIoT products and services for global enterprises and developers.

Regarding performance growth, the company explained that the increase in revenue is mainly attributed to the continuous improvement in the digitalization and intelligence penetration rates across various downstream industries, as well as the gradual ramp-up of new potential customers in recent years. In terms of applications, smart home remains the main source of income for the company, but the non-smart home sector has shown higher growth rates and driven overall growth. Espressif’s products are applied in the broader IoT field, focusing on long-term digital upgrades rather than relying on short-term explosive growth from a specific industry or customer.

From an industry perspective, Espressif Technology’s Chairman Zhang Ruian stated in the greeting section of the annual report that the development logic of the IoT industry is becoming increasingly clear: the industry is transitioning from a stage centered on connection scale to a stage centered on device capability. In the past, the industrial value was more reflected in the number of connected devices; today, the value increasingly depends on what kind of calculations and functions devices can accomplish after connecting, and whether these capabilities can be continuously evolved and upgraded through software.

He introduced that artificial intelligence is the key driving force behind this transformation. As intelligent capabilities continuously migrate towards the edge, the market demands higher requirements for terminal devices — devices not only need to have connectivity capabilities but also must complete perception, understanding, and response locally, while ensuring low latency and data privacy. In this trend, the company continues to advance its “Processing + Connectivity” product strategy: in terms of connectivity, the company further expands into next-generation wireless technologies such as Wi-Fi 6E; in terms of processing, the company is advancing a new generation of products aimed at edge AI applications and is continuously enhancing the computing power and energy efficiency of its chips based on its increasingly mature self-developed RISC-V architecture.

“At the same time, we also recognize the current global geopolitical environment’s uncertainty regarding the supply chain and international trade, and the company places great importance on this. Given that the company’s products are mainly applied in long lifecycle scenarios such as industrial and smart home, we have taken proactive measures to establish a more adequate strategic inventory to minimize the impact of potential supply chain fluctuations and provide stable and reliable supply assurance for customers’ long-term product planning,” he said.

Looking ahead, Espressif Technology expects AI technology to further accelerate the popularization and upgrading of IoT applications. The company will continue to invest steadily in key areas such as low-power computing architecture, advanced wireless connectivity technology, and edge AI capabilities. At the same time, the company is also actively introducing AI tools in its internal R&D and operational processes to enhance R&D efficiency and engineering collaboration capabilities, speeding up product iteration and deployment.