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Tag: revenue decline

  • The Morning After: Xbox console revenue fell off a cliff this year

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    Microsoft’s latest earnings report for the quarter ending on September 30 revealed that revenue from the Xbox hardware fell 30 percent year over year.

    Worse, in a way, this revenue decline doesn’t reflect any dip in sales caused by the console’s $20 to $70 price hike, since that took effect on October 3 — after this earnings report. (Oh, and Microsoft raised the price for its Game Pass Ultimate subscription from $20 to $30 in October.)

    Fortunately, revenue from Xbox content and services, specifically, remained relatively unchanged from the same period last year. That’s the Game Pass component of Microsoft’s gaming business.

    When Microsoft started cutting down its global workforce earlier this year, Xbox was hit hard, with the company canceling games, like a modern reimagining of Perfect Dark, and even shutting the Xbox studio working on it.

    More broadly, Microsoft’s revenue is up, with CEO Satya Nadella posting a few highlights about the company’s earnings call on X, which mostly focused on AI. He said the company will increase its AI capacity by 80 percent this year.

    — Mat Smith

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    Not nightmare fuel at all.

    1X

    Just in time for your Halloween nightmares, here comes Neo. From California-based AI and robotics company 1X, it’s designed to deal with everyday chores and tasks.

    But not out of the box. At launch, it’ll be able to open doors, fetch items and turn lights on and off. More complicated tasks will require a human teleoperator to control the robot remotely, training the Neo to repeat the task. Horror movie premise? Tick.

    1X CEO Bernt Børnich explained that the AI neural network inside the Neo has to learn from more real-world experiences. To do so, buyers will have to agree to a human operator seeing their houses through the robot’s camera, judging their cleanliness levels and interior decor decisions. (Probably.)

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    Questions!

    TMA

    Netflix

    Three and a half years since season four of Stranger Things premiered, we get a true trailer for the fifth and final season. As Lawrence Bonk notes, it appears that the conclusion of the series will be an action-packed affair, heavy on emotion and light on the type of ’80s humor the show became known for. Poor Will, he’s getting some of the worst of it, again.

    Watch here.

    The highest-rated devices we reviewed this year in a variety of categories.

    Halloween is almost over, so it’s time to assess the entire year, buy holiday presents and generally pretend there aren’t two whole months before the end of 2025. So we have compiled a list of the best gear we reviewed this year based on the highest review scores in each category. From Pixel to iPad and Switch 2 to Sony WH-1000XM6, our reviews team has spent thousands of hours testing new products this year to discover the best of the best. These are those! I ended up buying five of them — is that enough to keep my job?

    Continue reading.

    A year for $50.

    If you’re a former Mint user (RIP), Monarch Money is a great alternative. Monarch has a steeper learning curve than some other budget trackers, but it offers a great deal of customization and granularity, which outweighs the complexity. If you use the code MONARCHVIP at checkout, you can get an annual plan for 50 percent off. Some caveats, though: The discount is only for new users, and you can’t combine it with other offers. The code only works when you sign up through the web.

    Continue reading.

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    Mat Smith

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  • Xbox console revenue fell 30 percent year-over-year this summer

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    It hasn’t been a good year for Xbox so far. Microsoft has released its earnings report for the quarter ending on September 30, and it has revealed that its revenue from the Xbox hardware fell by 30 percent year-over-year. Take note that the revenue decline doesn’t reflect any dip in sales caused by the console’s $20-to-$70 price hike, since that took effect on October 3. Similarly, Microsoft only raised the price for its Game Pass Ultimate subscription from $20 to $30 in October.

    Meanwhile, revenue from Xbox content and services remained relatively unchanged from the same period last year. Microsoft says it saw growth from Xbox subscriptions and third-party content, but it was “partially offset” by the decline in first-party gaming content.

    The Xbox division was one of the most affected teams when Microsoft started cutting down its global workforce earlier this year, with the company cancelling games that were being developed for the console. Microsoft scrapped the modern reimagining of Perfect Dark, a first-person shooter from the year 2000, and even closed down the Xbox studio working on it. The company also cancelled Everwild, a project that had long been in development by Xbox studio Rare, also in the midst of its mass layoffs.

    Overall, Microsoft’s $77.7 billion revenue was 17 percent higher compared to the same period last year, and its operating income was up by 22 percent. Microsoft CEO Satya Nadella posted a few highlights about the company’s earnings call on X, mostly focusing on its AI efforts. He said that the company will increase its AI capacity by 80 percent this year and will double its data center footprint over the next two.

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    Mariella Moon

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  • Nexperia parent Wingtech warns of ‘cash flow risk’ despite 280% surge in quarterly profit

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    Amid a geopolitical storm over its Dutch chip unit Nexperia, Wingtech Technology delivered stellar third-quarter earnings while warning of potential future disruptions.

    The impact of the power struggle at Nexperia, the biggest revenue earner for Wingtech, was “difficult to quantify precisely”, the Chinese company said in its filing to the Shanghai Stock Exchange outside trading hours on Friday evening.

    “Should control over Nexperia fail to be restored by the end of 2025, the company may face the risk of a temporary reduction in revenue, profits and cash flow,” it warned.

    Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

    The remarks came as the company, which has divested most of its other businesses to focus on semiconductors, posted a 280 per cent surge in net profit in the third quarter to 1 billion yuan (US$149 million), although revenue declined 77 per cent to 4.4 billion yuan.

    It attributed the decrease in revenue to the drop in “product integration” – its other revenue pillar – after Wingtech was added to the US export control list in December. The company said another reason for the revenue decline was that it divested four subsidiaries in that business, “resulting in a further year-on-year decrease in revenue”.

    Exterior view of the building that houses Nexperia’s headquarters in Nijmegen, the Netherlands, October 13, 2025. Photo: EPA alt=Exterior view of the building that houses Nexperia’s headquarters in Nijmegen, the Netherlands, October 13, 2025. Photo: EPA>

    Wingtech’s semiconductor operations posted revenue of 4.3 billion yuan in the quarter that ended September, accounting for 97 per cent of the total. Last month, the company’s management had assured shareholders of its commitment to the chip sector.

    That was just before its Netherlands-based chip unit Nexperia was taken over by the Dutch government on national security grounds. The move resulted in the ousting of Nexperia CEO Zhang Xuezheng, who also founded Wingtech.

    “There remains uncertainty as to whether the semiconductor business can sustain the favourable momentum observed in the first three quarters,” Wingtech said in the filing on Friday.

    The saga escalated after Beijing imposed export controls that banned Nexperia China from selling products overseas. Auto industry groups in the European Union, Japan and the US have voiced concern over potential supply chain disruptions and called for a quick resolution of the issue.

    Nexperia’s China unit, which is responsible for 70 per cent of the firm’s total output, has repeatedly said that operations remain independent and were operating in a “normal manner”.

    Shares of Wingtech have fallen 12 per cent so far this month.

    Government officials on both sides have intervened. In a phone call on Tuesday, Chinese Minister of Commerce Wang Wentao asked Dutch Minister for Economic Affairs Vincent Karremans to “promptly and properly” resolve the issue.

    Meanwhile, Wang has accepted an “urgent” invitation to visit Brussels in the coming days to resolve the matter, the EU’s trade chief Maros Sefcovic said on Tuesday.

    This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

    Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

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  • OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

    OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

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    OneWater (NASDAQ:ONEW) Misses Q2 Revenue Estimates, Stock Drops 14.6%

    Boat and marine products retailer OneWater Marine (NASDAQ:ONEW) missed analysts’ expectations in Q2 CY2024, with revenue down 8.7% year on year to $542.4 million. It made a non-GAAP profit of $1.05 per share, down from its profit of $1.95 per share in the same quarter last year.

    Is now the time to buy OneWater? Find out in our full research report.

    OneWater (ONEW) Q2 CY2024 Highlights:

    • Revenue: $542.4 million vs analyst estimates of $611 million (11.2% miss)

    • EPS (non-GAAP): $1.05 vs analyst estimates of $2.17 (51.6% miss)

    • Gross Margin (GAAP): 24.4%, down from 26.8% in the same quarter last year

    • Locations: 98 at quarter end, down from 99.5 in the same quarter last year

    • Market Capitalization: $444.5 million

    “In the third quarter, our strategic inventory management and operational execution drove outperformance against the industry. However, our performance for the quarter was below our expectations due to a progressively weaker market environment and a negative impact from weather in Texas,” commented Austin Singleton, Chief Executive Officer at OneWater.

    A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.

    Boat & Marine Retailer

    Retailers that sell boats and marine products sell products, sure, but they also sell an image and lifestyle to an often wealthier customer. Unlike a car–which many use daily to get to/from work and to run personal and family errands–a boat or yacht is certainly a discretionary, luxury, nice-to-have purchase. While there is online competition, especially for research and discovery, the boat and yacht market is still very brick-and-mortar based given the magnitude of the purchase and the logistical costs associated with moving these products over long distances.

    Sales Growth

    OneWater is a small retailer, which sometimes brings disadvantages compared to larger competitors that benefit from economies of scale. On the other hand, one advantage is that its growth rates can be higher because it’s growing off a small base.

    As you can see below, the company’s annualized revenue growth rate of 20.8% over the last five years was exceptional as it added more brick-and-mortar locations and increased sales at existing, established stores.

    OneWater Total RevenueOneWater Total Revenue

    OneWater Total Revenue

    This quarter, OneWater missed Wall Street’s estimates and reported a rather uninspiring 8.7% year-on-year revenue decline, generating $542.4 million in revenue. Looking ahead, Wall Street expects sales to grow 7.1% over the next 12 months, an acceleration from this quarter.

    When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

    Key Takeaways from OneWater’s Q2 Results

    We struggled to find many strong positives in these results. Its revenue and EPS missed analysts’ expectations and its full-year earnings forecast fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 14.6% to $25.89 immediately after reporting.

    OneWater may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

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