VTech FY26 profit drops 14.5% to US$134.1 million; revenue falls 6.9% to US$2.03 billion

• VTech revenue fell 6.9% to US$2.03 billion for the year ended March 31, 2026, while profit attributable to shareholders dropped 14.5% to US$134.1 million.
• Basic earnings per share declined 14.7% to US52.9 cents, while gross margin rose 1.2 percentage points to 32.7%.
• Operating profit decreased 9.4% to US$171 million, while the effective tax rate widened to 19.6% from 15.4%.
• Final dividend was set at US36 cents per share, taking the full-year dividend to US53 cents with a 100% payout ratio.
• Management cited changes in US tariff policies and weaker consumer sentiment as revenue fell across electronic learning products, telecommunication products, and contract manufacturing services, while forecasting revenue growth in financial 2027 with a lower gross margin on higher material costs.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Vtech Holdings Limited published the original content used to generate this news brief via IIS, the regulatory disclosure system operated by the Hong Kong Stock Exchange (HKex) (Ref. ID: HKEX-EPS-20260521-12166279), on May 21, 2026, and is solely responsible for the information contained therein.