Cloud revenue sustains growth with consolidated revenue up 6.8% YoY; single special factor impacts quarterly profitability.
TAIPEI, May 6, 2026 —— Nextlink Technology Co., Ltd. (TPEx: 6997) (“Nextlink” or “the Company”), a leading multi-cloud solution provider in Taiwan, announced its financial results for the first quarter of 2026. Driven by continuous momentum in cloud usage, consolidated revenue increased 6.8% year-over-year (YoY). Guided by prudent management principles, the Company increased its provision for expected high-risk credit losses this quarter, resulting in a quarterly swing from profit to loss.
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Q1 2026 Financial Highlights
- Consolidated Revenue: NT$1.121 billion, up 6.8% YoY and down 9.9% quarter-over-quarter (QoQ).
- Gross Margin: 9.0%
- Net Loss After Tax: NT$51.16 million.
- Earnings Per Share (EPS): Net loss of NT$2.31.
Robust Cloud Demand Sustains Strong Revenue Levels
Consolidated revenue for Q1 2026 reached approximately NT$1.121 billion, a 6.8% increase compared to the same period last year. However, due to fewer working days in February impacted by the Lunar New Year and the 228 Memorial Day holidays, revenue decreased 9.9% sequentially.
Cloud Services accounted for 93% of the Q1 consolidated revenue, while Professional Services accounted for 4%.
Cloud Services remained the primary growth driver, posting Q1 revenue of approximately NT$1.045 billion, representing an 8.1% increase YoY, despite a 10.7% sequential decline.
Professional Services were impacted by project deferrals, with Q1 revenue approximately NT$39.2 million, representing a 15.5% YoY decrease and a 16.4% decline from the prior quarter.
Single-Customer Credit Risk Impacts Quarterly Profitability
In terms of profitability, the gross margin for Q1 2026 stood at 9.9%. However, operating profit was impacted by the one-time recognition of expected credit losses of NT$69.69 million, and a net loss per share of NT$2.31.
Adhering to the principle of prudence and following consultation with auditors, the Board of Directors authorized a one-time, 100% provision for credit impairment regarding accounts receivable from a single customer identified with high credit risk.
The Company has engaged legal counsel to issue formal demands to the customer and has already initiated the recovery of outstanding funds. Management remains committed to negotiating repayment schedules and pursuing all necessary channels to recoup the remaining balance, with write-backs to be recognized upon the actual recovery of funds. This impairment provision pertains to an isolated incident involving a single customer and is not indicative of broader credit trends. Concurrently, the Company has conducted a comprehensive review of its internal controls and implemented heightened risk management protocols, including enhanced credit vetting and real-time monitoring systems. Profitability is projected to normalize within the second quarter.
Q2 2026 Outlook
Heading into the second quarter of 2026, Nextlink’s underlying business fundamentals remain resilient. The Company continues to prioritize the cultivation of a comprehensive, AI-driven multi-cloud ecosystem while aggressively scaling the revenue contribution from its high-margin Professional and Managed Services portfolio. Additionally, the integration of Vietnam Renova Cloud Co., Ltd., completed on April 1, 2026, is poised to serve as a pivotal growth catalyst, unlocking significant operational synergies and accelerating the Company’s expansion across the Southeast Asian market.
About Nextlink Technology Co., Ltd.
Founded in 2006, Nextlink Technology Co., Ltd., a leading cloud technology service provider in Taiwan, currently operates in Taiwan, Hong Kong, Shanghai, and Southeast Asia. With a team of multi-platform certified architects and experienced professionals, the company provides professional, diverse, and globalized cloud and AI solutions and managed services. Together with its subsidiaries, Microfusion and Renova Cloud, Nextlink offers integrated public, private, and hybrid cloud services, including Amazon Web Services (AWS), Google Cloud, Alibaba Cloud, and Microsoft Azure. Nextlink builds complete cloud ecosystems and tailors multi-cloud architectures for over 2,500 clients globally across industries such as high-tech, gaming, media, retail, and e-commerce, helping enterprises maximize operational synergy.
For more information, please visit: https://www.nextlink.cloud/
Safe Harbor Statement
This press release contains forward-looking statements, will not be updated to reflect new information, future events, or other circumstances. Nextlink Technology Co., Ltd. (the “Company”) assumes no responsibility to update or revise the content of this announcement. The information provided herein is not expressed or implied to be accurate, complete, or reliable, nor does it represent a complete discussion of the Company, industry conditions, or subsequent material developments.
Investor Relations Contact
Emily Hao | ir@nextlink.com.tw | +886-2-8501-5055
