ESPRESSIF SYSTEMS

2025 Q3 REPORT

Edge-Cloud AI

About Espressif

Core Competitiveness

Business Highlights

Management Report

Business Strategy

Business Model

Contents

CONTENTS

Consolidated Financial Statements(Unaudited)

Consolidated Balance Sheet

Further Information

Terms and Conditions of the Report

Core Technologies

Management Report （Continued）

1.5 Billion+

Global IoT Chip

Shipment

200+ IPsIn AIoTTechnology

GlobalLeader

In Wi-Fi MCUMarket

As a publicly traded, multinational fabless semiconductorcompany (Espressif Systems, SSE: 688018.SH), wedevelop low-power wireless communication chipsetsand AIoT solutions that are green, versatile, and cost-effective. With a closed-loop development cycle, weadvance core technologies, including Wi-Fi, BluetoothLE, IEEE 802.15.4, RF, RISC-V MCUs, AI, operatingsystems, and cloud services. As IoT evolves, ourexpanding software capabilities have transformedEspressif into a comprehensive AIoT technologyecosystem company.

Build Smart with Espressif

ABOUT ESPRESSIF

3 Million+

Active EcosystemDevelopers

10,000+

Satis?edCustomersWorldwide

SHARE CONNECT INNOVATE

Open-sourceCommunities

Conferences & Education

Initiatives

DiverseApplications

ESPRESSIF SYSTEMS Q3 2025 REPORT

CORE COMPETITIVENESS

Full-Stack Engineering Capability

Espressif possesses comprehensive engineering development capabilities that span from IP development tocomplete chip design, operating systems, ?rmware, software frameworks, application solutions, hardware design,edge AI, cloud, and apps. This full-stack engineering expertise allows Espressif to offer highly integrated solutionsthat meet a wide range of customer needs. The ability to control and optimize every layer of the technology stack isunique in the industry and enables Espressif to deliver superior products and services that are seamlessly integratedand highly ef?cient.

The ESP32 and Espressif brands have a strong sense ofrecognition among users. This recognition has become a keyfactor in our competitive advantage and success. Users identifywith the ESP32 brand due to its reliability, performance, andversatility, which have been proven across various applicationsand industries. This strong brand awareness not only fosterscustomer retention but also attracts new users, thereby solidifyingEspressif's position in the market.Exceptional IC Design CapabilityEspressif independently designs and develops its own chipproducts, with core IPs being self-developed. These chips areequipped with rich features, ensuring that Espressif’s productsstand out in the market and avoid the pitfalls of homogenizedcompetition. By controlling the entire design process, Espressifcan innovate rapidly and introduce unique functionalities that setour products apart from competitors, providing a distinctive edgein the IoT semiconductor industry.

2019-07

ESP32 Google Trends

Espressif Google Trends

2019-07

Superior Cost-Effective and Stable SupportEspressif's products are known for their high performance and low cost, making them competitive in the market. Weprovide the cost ef?ciency 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 reliabilitystrengthens customer trust.Extensive Developer Community SupportEspressif has garnered support from a vast community of professional engineers who are familiar with Espressif'sdevelopment platform and actively promote its value proposition. This large and engaged community not only aids inthe rapid adoption and dissemination of Espressif’s technologies but also contributes to continuous improvementthrough feedback and shared knowledge. The robust community support ampli?es Espressif's market presence andenhances our reputation as a trusted and innovative leader in the industry.

Brand Awareness

ESPRESSIF SYSTEMS Q3 2025 REPORT

SoCsAIESP8266, ESP32, ESP32-S, ESP32-C, ESP32-H and ESP32-P SeriesEspressif offers integrated, reliable, andenergy-ef?cient SoCs for Wi-Fi,!Bluetooth Low Energy, Thread and Zigbeeto various segments of the IoT market.

CloudESP RainMaker

A comprehensive, development-free andmaintenance-free AIoT solution for privateCloud deployment.It is an all-inclusive solution that coverseverything from the underlying chip to device?rmware, third-party voice-assistantintegrations, mobile apps and the dashboard.Customers can build their own AIoT devicesand ecosystem, with ESP RainMaker.Software

Matter

One-stop Matter Solution

This is the culmination ofEspressif’s ongoing contribution tothe Matter platform in variousareas, including protocolformulation, core stackimplementation and certi?cationtest events.

OSESP-IDF

Espressif’s of?cial IoT Development Framework.It provides a self-suf?cient SDK for any genericapplication-development on these platforms,using programming languages such as C andC++.ESP-IDF currently powers millions of devices inthe ?eld, and enables building a variety ofnetwork-connected products, ranging fromsimple light bulbs and toys to major appliancesand industrial devices.

With our open-source software,such as Espressif's IoTDevelopment Framework ESP-IDF,Audio Development FrameworkESP-ADF, Mesh DevelopmentFramework ESP-MDF, CloudConnectivity Platform ESPRainMaker, Facial RecognitionDevelopment Framework ESP-WHO, and Voice-ControlledAssistant ESP-Skainet, we havedeveloped a framework for buildingAIoT applications, which is bothcomplete and innovative.

Espressif’s AI solutions enable ef?cient edgeintelligence with ready-to-use frameworks.ESP-DL provides deep-learning inference onresource-constrained SoCs, ESP-WHOsupports image detection, recognition, andvisual applications, while ESP-SR deliversadvanced speech recognition. Together, theyempower developers to build scalable, low-power, and intelligent human–machineinterfaces across a wide range of AIoTproducts.

Core Technologies

CORE TECHNOLOGIES

ESPRESSIF SYSTEMS Q3 2025 REPORTCORE TECHNOLOGIES

Edge-Cloud AI

Leveraging AI and NLP technologies, Espressif’s edge-cloud AI and Human-Machine Interface (HMI) solutionsdeliver a seamless and intuitive interaction experience. ESP32-S3 and ESP32-P4 support localized voiceassistants and graphical touch interaction while integrating with cloud-based LLMs for more accurate semanticunderstanding and contextual engagement.The LLM solution enables natural language processing and on-device voice recognition, which reduces clouddependency, lowers latency, and enhances privacy. Meanwhile, the HMI solution combines voice, touch, andgesture recognition to provide a more intuitive and ef?cient user experience. Backed by a comprehensivesupport system, our solutions unlock the full potential of intelligent interactions at lower costs and higheref?ciency, driving IoT devices to evolve from mere "tools" into "companions."

Audio SolutionsHMI SolutionsHMI Solutions

Key Financial Indicators (Unaudited)

BUSINESS HIGHLIGHTS

Key Financial Data (Unaudited)

Business Highlights (Unaudited)

Earnings per share:

Consolidated Cash Flow Data

Non-GAAP Adjustment

Sep 30, 2025

Three Months Ended

Gross margin

Number of Espressif employees

ESPRESSIF SYSTEMS Q3 2025 REPORT

N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2025, the earnings per share for each reporting period have been recalculatedbased on the adjusted share count.

BUSINESS HIGHLIGHTS

Financial Analysis

15.9%

15.9%

19.8%

19.8%

22.1%

22.1%

6.3%

6.3%

22.9%

22.9%

46.2%

46.2%

12.9%

12.9%

17.3%

17.3%

23.3%

23.3%

6.5%

6.5%

19.0%

19.0%

42.8%

20242025

Revenue by Areain the First ThreeQuarters of 2025

Revenue by SalesMode in the First ThreeQuarters of 2025

Top-5 CustomerConcentration Rate,2020 - Q3 2025

Revenue by Product Category in the First Three Quarters of 2025

Key Financial Indicators in the First Three Quarters of 2025

42.8%

2025

20252024

60.6%

60.6%

38.5%

38.5%

38.7%

ChipModule & DevKitsOthers

0.7%

0.8%

38.7%

2020

22.6%

22.6%

23.9%

23.9%

28.1%

28.1%

26.4%

26.4%

29.0%

29.0%

42.2%

42.2%

70.0%

70.0%

China'sMainland

Rest ofthe World

China'sMainland

Rest ofthe World 71.5%

71.5%

DirectIndirect

Espressif’s total revenue in the ?rst three quarters of 2025 was CNY 1,912.25 million, marking an increase of 30.97%from CNY 1,460.01 million in the ?rst three quarters of 2024. The overall gross margin was 46.17%. Therefore, the netincome attributable to Espressif was CNY 376.76 million, which marked an increase of 50.04% year-on-year, mainlydue to the increase of revenue.Although Q3 revenue declined by 3.05% quarter-on-quarter, it still recorded a solid 23.51% year-on-year increase.This moderation was partly due to China’s Q2 consumption stimulus policies, which may have pulled forward somedownstream demand from Q3. Beyond the smart home, other sectors—including industrial, energy, and healthcare—experienced even faster growth, re?ecting expanding adoption of our wireless SoC solutions in a wider range ofdigitalization scenarios.

ESPRESSIF SYSTEMS Q3 2025 REPORT

Products

Cloud

Matter

serviceSolution

OS-level development environments & software tools

CustomersBrands OEM/ODMsSolution Providers Makers Module Houses

SolutionSoCs

SoCsModules

ModulesDevKits

Solutions

…

HMI Smart

DevKitsDisplays

Audio

Face

Low-Power

…

MANAGEMENT REPORT

Espressif Systems’ business strategy emanates from our service/product areas and our engagement with thedeveloper ecosystem.Our product and service areas include AIoT chips, OS-level development environments, software tools, applicationsolutions, and value-added services, such as Cloud and Matter. The above-mentioned products ensure that we arein the heart of numerous commercial AIoT applications in different markets, including smart home, consumerelectronics, industrial automation, healthcare, etc.

Business Strategy

Management Report

Value-added services

ESPRESSIF SYSTEMS Q3 2025 REPORT

Key Products - IoT Chips

Espressif Systems is a global leader in wireless connectivity SoCs and AIoT solutions. Since launching our ?rst Wi-FiMCU in 2014, we have continuously expanded our product portfolio and deepened our technology stack. Today,Espressif offers a comprehensive range of self-developed wireless SoCs, covering Wi-Fi 4/6/6E, Bluetooth LE (up toBLE 5.4), Thread, Zigbee, and Matter protocols, enabling diverse smart connectivity applications across consumer,industrial, and commercial domains.In recent years, Espressif has made notable progress in the development of advanced edge computing platforms.Our RISC-V-based SoCs now integrate AI accelerators, and multimedia processing capabilities, enabling ef?cientdeployment of voice, vision, and large language model (LLM)-based applications on cloud.Espressif's competitive edge lies in its end-to-end in-house technology development, including RF components,connectivity IPs, RISC-V processor cores, secure boot and OTA frameworks, real-time operating systems, AItoolchains, and developer toolkits. This vertical integration enables us to deliver consistent software and hardwareexperiences across platforms, ensuring seamless development, high integration, and long-term support for ourcustomers.To simplify product adoption, we also offer a wide range of IoT modules and development kits, fully supported byEspressif’s software ecosystem and global community. This helps customers accelerate time-to-market whileoptimizing their supply chain through direct technical and logistical support from Espressif.

MANAGEMENT REPORT

ESPRESSIF SYSTEMS Q3 2025 REPORT

Key TechnologiesTechnical Depth

Technical DepthConnectivity

ConnectivityWi-Fi 6E

Wi-Fi 4

Wi-Fi 4Wi-Fi 7

Wi-Fi 7Wi-Fi Technologies

Wi-Fi Technologies

Thread

Other Wireless Technologies

Other Wireless TechnologiesTechnical Breadth

Computing

ComputingRISC-V Cores

RISC-V Cores

AI Related

AI RelatedVoice Wake-up

H.264 Encoder & Decoder

H.264 Encoder & DecoderMultimedia

MultimediaFully supports Bluetooth 5.4(Quali?ed against Bluetooth Core 6.0)

Fully supports Bluetooth 5.4(Quali?ed against Bluetooth Core 6.0)32-bit Single-Core

96/120/160/240MHz

32-bit Multiple-Core

Key Products - Chip Matrix

High-Performance

Cost-Effective

EmergingGrowthLegacy

32-bit RISC-V MCUSingle-Core @120MHzESP32 -

ESP32 -

C2

MANAGEMENT REPORT

32-bit RISC-V MCUSingle-Core @160MHz

ESP32 -

ESP32 -

C3

32-bit Xtensa MCUSingle-Core @240 MHz

32-bit Xtensa MCUSingle-Core @240 MHz

ESP32 -

ESP32 -

S2

32-bit Xtensa MCUDual-Core @240 MHz

32-bit Xtensa MCUDual-Core @240 MHzESP

ESP

AI

AI

32-bit Xtensa MCUDual-Core @240 MHz

32-bit Xtensa MCUDual-Core @240 MHz

ESP32 -

ESP32 -S3

AI

AI32-bit RISC-V MCUDual-Core @400 MHz

ESP32 -

ESP32 -

P4

32-bit RISC-V MCUDual-Core @96 MHz

32-bit RISC-V MCUDual-Core @96 MHz

ESP32 -

ESP32 -H4

32-bit RISC-V MCUSingle-Core @160MHz

32-bit RISC-V MCUSingle-Core @160MHz

ESP32 -

ESP32 -

C6

32-bit RISC-V MCUSingle-Core @96 MHz

32-bit RISC-V MCUSingle-Core @96 MHz

ESP32 -

ESP32 -

H2

ESP32 -

ESP32 -

C61

32-bit RISC-V MCUSingle-Core @160MHz

32-bit RISC-V MCUSingle-Core @160MHz32-bit Tensilica MCUSingle-Core @160MHz

32-bit Tensilica MCUSingle-Core @160MHzESP

ESP8266

8266

32-bit RISC-V MCUSingle-Core @240MHz

32-bit RISC-V MCUSingle-Core @240MHz

ESP32 -

ESP32 -

C5

RISC-V

ESPRESSIF SYSTEMS Q3 2025 REPORT

Key Products - M5Stack Development Kits

Controller

Voltage & Amperage

Meter

Air Quality KitCardputer

Camera

PoE CameraLora UnitStamp-Fly

Rotary Knob

ModuleSensorKits

Weight I2C Unit

…

…

MANAGEMENT REPORT

Espressif acquired a majority stake in M5Stack in 2024 Q2. M5Stackis renowned for its innovative approach tohardware development and offers a modular, open-source platform that simpli?es the creation of IoT and embeddedsystem solutions, greatly enhancing deployment ef?ciency. The M5Stack ecosystem is built around its ?agship maincontrol module, powered by Espressif’s all ESP32 series of chips, highlighting the deep technical synergy betweenthe two companies.M5Stack’s product portfolio primarily comprises controllers and other hardware modules needed in IoT applicationsolutions and is mainly sold to the industrial, education, and developer markets.M5Stack maintains an impressive pace of launching one new hardware productevery week. A diversi?ed product portfolio with approximately 300 SKUs helpsdevelopers rapidly prototype end products, accelerating the design-in process forEspressif's products with end customers. This ultimately brings more businessopportunities for Espressif's chips and modules.

Market

MANAGEMENT REPORT

HealthcareMedical Detectors

Education

EducationEnergyManagement

EnergyManagement

Smart Solar

Panels

Smart Solar

PanelsSmart Home

Smart HomeSmart Ovens

Smart Ovens

IndustrialAutomation

IndustrialAutomationMechanical Arms

Mechanical ArmsSmartAgriculture

SmartAgricultureSoil PH Detector

Soil PH DetectorConsumerElectronics

ConsumerElectronicsSmart Speakers

Smart SpeakersIntelligentinstrument panel

Intelligentinstrument panelInternet of

Vehicles

The market for wireless SoCs is truly diverse, including applications for smart homes (e.g., smart lights, airconditioners, ovens, coffee machines, etc.), consumer electronics (e.g., smart speakers, drones, etc.), industrialautomation (e.g., mechanical arms), smart agriculture (e.g., soil PH detector, CO

detector, etc.), healthcare (e.g.,monitoring devices for diabetes, blood pressure, etc.), energy control (solar energy devices, EV chargers, etc.), theinternet of vehicles (OBD devices, dashboards, etc.), and education (talking pens, interactive whiteboards, etc.).The smart home sector continues to be our main revenue contributor, delivering growth in line with expectations. Atthe same time, IoT adoption across non-smart-home applications is accelerating, with these segments growing at asigni?cantly faster pace and helping to support our gross margin.

ESPRESSIF SYSTEMS Q3 2025 REPORT

ESPRESSIF SYSTEMS Q3 2025 REPORTMANAGEMENT REPORT

Business Model

Espressif has deployed the Business-to-Developer type of marketing, not only because it has gained prominence inrecent years, but also because it has proven to be more effective since the in?uence of developers on organizationsof all sizes has gained traction. In other words, most developers are R&D employees in various companies and bringforth business opportunities from the companies they work for.This way, the developer ecosystem we have created at Espressif demonstrates how the value of networks can growexponentially:

?The more developers we attract as customers, the more hardware and software solutions we generate.?The more successful hardware and software solutions we create, the more our reputation spreads with positivefeedback from happy customers/developers.

?The above-mentioned interaction between people in our network prompts the creation of more content, which -inturn- attracts more users/developers searching for new content.

?Likewise, other third-party development platforms join our ecosystem and bring in new developers, as ourin?uence continues to grow.Having successfully applied the B2D2B model, Espressif can now focus on R&D investments, while maintaining asmall business team that supports a large number of customers directly. In fact, most of our revenue is gainedthrough direct sales.

Business-to-Developer-to-Business (B2D2B)

Developer Community Content

MANAGEMENT REPORT

BOOKS

Always a Hot Topic on Social Media

GlassUnit (HUDSIGHT)とりあえず基本となるプログラムを128*64の透過液晶でテスト。本番は240*240のLCDになる。LCDとレンズ　あと?週間もある　待ちわびるyp弾道計算はまだだけどなんとかなりそうではある(AI???におまかせ）

MeowKit – The Next Flipper ZeroStyle ESP32 Tool?

This week I’ve got something fun foryou — a brand new ESP32 gadgetcalled MewKit, fresh on Kickstarter.Back in the day, using an ESP32 meantgrabbing a dev board and wiringeverything yourself. Now? Devices likethis come with almost everything builtin……

Posted on 2 Oct 2025

https://.youtube.com/watch?v=FOOzE7EWT_Y

Posted on 20 Oct 2025????? ??? ?? ?? ????????? ?? ???? esp32esp32 Dual core P4 +C6???? ???? ?? ??? ??? ????? ?????? x265 ??? ??? ????? ?????? ??

https://x.com/USDJPY2010/status/1980171670133539217

Posted on 20 Oct 2025Posted on 15 Oct 2025

Posted on 22 Oct 2025

Searched on 22 Oct 2025

ESP32C3-遥控?业电脑绣花机绕线器-多路微型步进电机?动控制

https://.bilibili.com/video/BV18t4Yz4EAU/

ESP32-S3 智能?表

本项?是?个基于 ESP32-S3 微控制器的开源智能?表开发项?。使? ESP-IDF 框架（release/v5.4.2 版本），开发板为 LCSC-boards LCKFB-SZPI-ESP32-S3-VA（可从 LCSC 或 SZLCSC获取）。图形?户界? (GUI) 采?LVGL 实现平滑渲染和交互。

https://x.com/_soeil/status/1980310947488231737

Build an ESP32 RC Submarine withFPV Camera (ESP-DIVE)This is the ESP-DIVE - a DIY ESP32Submarine you can build to explore theunderwater world in ?rst-person view.Watch live video through its bubblecam, adjust buoyancy to dive orsurface like a real sub……

Posted on 2 Oct 2025

Searched on 22 Oct 2025

Daily Increase on GitHubESP32 Projects2016-12

Cumulative Number of GitHubESP32 Projects

Cumulative Number of GitHubESP32 Projects2016-12

115 K

https://gitee.com/survivorh/esp32s3watch

Shareholder Structure as of Sep 30, 2025

Basic information of securities

MANAGEMENT REPORT

Ownership of Securities

Espressif (Hong Kong) Investment Ltd.

Espressif Systems (Shanghai) Co., Ltd. Repurchase SpecialSecurities Account

Risks and Uncertainties

MANAGEMENT REPORT

R&D Risk

Competitors

Suppliers

Customers

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheet (unaudited)

Consolidated FinancialStatements

Assets

AssetsCurrent assets:

Total current assets

Non-current assets:

Non-current assets:

Debt investment

Total assets

ESPRESSIF SYSTEMS Q3 2025 REPORT

Consolidated Balance Sheet (unaudited)

CONSOLIDATED FINANCIAL STATEMENTS

Liabilities & Shareholders’ Equity

Liabilities & Shareholders’ EquityCurrent liabilities:

Total current liabilities

Non-current liabilities:

Total liabilities

Owners’ equity (or shareholders' equity):

Total Espressif shareholders’ equity

Total shareholders’ equity

Total liabilities and shareholders' equity

ESPRESSIF SYSTEMS Q3 2025 REPORT

Consolidated Income Statement (unaudited)

CONSOLIDATED FINANCIAL STATEMENTS

ESPRESSIF SYSTEMS Q3 2025 REPORT

N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2025, the earnings per share for each reporting period have been recalculatedbased on the adjusted share count.

Net Income

Three Months Ended

Revenue

Taxes and surcharges

Net Income

Earnings per share

Consolidated Cash Flow Statement (unaudited)

CONSOLIDATED FINANCIAL STATEMENTS

ESPRESSIF SYSTEMS Q3 2025 REPORT

Operating Activities

Cash paid for merchandise and services

Investing activities

Financing activities

Cash paid to repay debt

Impact of ?uctuation in exchange rates on cash and cashequivalents

Cash and cash equivalents at the end of the period

Forward-looking StatementsThis report contains forward-looking statements and/or assessments about the business,?nancial condition, performance and strategy of the Espressif Group. These statements and/orassessments are based on assumptions and management expectations resting upon currentlyavailable information and current estimates. These are subject to a multitude of uncertaintiesand risks, many of which are partially or entirely beyond Espressif’s control. Espressif’s actualbusiness development, ?nancial condition, performance and strategy may, therefore, differ fromwhat is discussed in this report.

ES

PRESS

IF

Declaration

SYSTEMSBoard of Directors

Board of DirectorsTeo Swee Ann

Ng Pei Chi

Wang Jue

Teo Teck Leong

Chen Myn

Lee Kian Soon

Leong Foo Leng

FURTHER INFORMATION

Terms and Conditions of the Report

The Board of Directors, the Board of Supervisors and the executive management of the Company warrant that thecontents of this report are true, accurate and complete, and do not contain any false information, misleadingstatements or material omissions, severally and jointly accepting any legal responsibility thereof.Shanghai, 27 October 2025Espressif Systems

Further Information

Responsibility Statement

ESPRESSIF SYSTEMS Q3 2025 REPORT

Executive Management

Teo Swee Ann

Wang Jue

Shao Jingbo

FURTHER INFORMATION

List of abbreviations

Copyright ? 2025 Espressif Systems (Shanghai) Co., Ltd. All rightsreserved. All trade names, trademarks and registered trademarksmentioned in this document are the property of their respectiveowners, and are hereby acknowledged. The term “Espressif” refers toEspressif Systems (Shanghai) Co., Ltd. and/or its subsidiaries. Thisreport is written in both Chinese and English. In case of anydiscrepancies between Chinese and foreign interpretations, theChinese version shall prevail.All amounts presented in these condensed Consolidated FinancialStatements are shown in CNY unless stated otherwise. Slightdiscrepancies between the amounts presented may occur due torounding.

Investor Relations

ir@espressif.com

Of?cial Platforms.espressif.comblog.espressif.comgithub.com/espressif

esp32.comSocial Media

Social Media

twitter.com/EspressifSystemfacebook.com/espressiflinkedin.com/company/espressif-systemsyoutube.com/EspressifSystemsinstagram.com/espressif_systems_of?cialbilibili.espressif.com