VeriSilicon's Q3 revenue increased by 78.38% year-on-year, and net profit narrowed to 26.8511 million yuan | Financial Report Insights

Thanks to the continuous conversion of orders on hand and the explosion of demand related to artificial intelligence, the company's operating revenue in the third quarter reached a historical high, while net losses significantly narrowed both year-on-year and quarter-on-quarter. The strong rebound in performance was mainly driven by the volume business and chip design business.

VeriSilicon released its financial report for the third quarter of 2025 on October 27:

• Third quarter revenue was 1.281 billion yuan, a year-on-year increase of 78.38%;
• Net loss attributable to shareholders of the listed company narrowed to 26.8511 million yuan, a decrease of 75.82% compared to the same period last year, and the loss amount also narrowed by 73.02% quarter-on-quarter.

Surge in Orders, AI as the Key Driver

VeriSilicon's revenue for the first three quarters was 2.255 billion yuan, a year-on-year increase of 36.64%; net profit loss was 347 million yuan.

The future revenue growth of VeriSilicon is strongly supported. The financial report shows that the new signed order amount in the third quarter reached 1.593 billion yuan, a substantial year-on-year increase of 145.80%. In the previous three quarters, the cumulative new signed orders reached 3.249 billion yuan, exceeding the total level for the entire year of 2024. AI computing power is the core of this round of order growth. Approximately 65% of the new signed orders in the third quarter were related to AI computing power.

As of the end of the third quarter, the amount of orders on hand rose to 3.286 billion yuan, setting a historical high for eight consecutive quarters. The quality of these orders is quite high, with orders from system manufacturers, large internet companies, cloud service providers, and automotive companies accounting for 83.52%. More importantly, about 80% of these orders are expected to be converted into operating revenue within a year, providing strong support for the company's short-term performance certainty.

Volume Business Doubles, Revenue Structure Changes

From the perspective of revenue composition, in the third quarter, the company's volume business performed particularly well, achieving revenue of 609 million yuan, a year-on-year increase of 157.84% and a quarter-on-quarter growth of 132.77%. The chip design business also performed well, achieving revenue of 428 million yuan, a year-on-year increase of 80.23%. In contrast, revenue from intellectual property licensing fees was 212 million yuan, basically flat year-on-year.

Looking at the first three quarters, the one-stop chip customization business (including chip design and mass production) saw revenue growth of 53.51% year-on-year, far exceeding the 3.86% growth rate of the semiconductor IP licensing business. Among them, the volume business contributed 1.016 billion yuan in revenue in the first three quarters, surpassing the total level for the entire year of last year. This indicates that in the company's dual-driven business model of "IP licensing" and "chip customization," the latter is entering an accelerated harvest period.

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