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DSWL

Deswell Industries, Inc.

DSWL

Deswell Industries, Inc. • NASDAQ
$3.64 ▼ -0.55% (-0.02)
Market Cap $58.00 M
52w High $4.48
52w Low $1.93
Dividend Yield 0.20%
P/E 4.67
Volume 43
Outstanding Shares 15.94M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2025 $32.434M ▼ $5.285M ▲ $4.953M ▼ 15.271% ▼ $0.31 ▼ $1.366M ▼
Q2-2025 $35.176M ▲ $5.044M ▼ $6.185M ▲ 17.583% ▲ $0.38 ▲ $2.583M ▲
Q4-2024 $31.638M ▼ $5.058M ▼ $4.152M ▲ 13.123% ▲ $0.26 ▲ $2.322M ▼
Q2-2024 $37.73M ▲ $5.26M ▲ $3.557M ▲ 9.428% ▲ $0.22 ▲ $4.497M ▲
Q4-2023 $33.105M $5.215M $2.619M 7.911% $0.16 $1.393M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2025 $75.5M ▲ $120.208M ▼ $18.088M ▼ $102.12M ▲
Q2-2025 $65.757M ▲ $120.476M ▲ $21.715M ▲ $98.761M ▲
Q4-2024 $57.912M ▲ $111.076M ▼ $16.906M ▼ $94.17M ▲
Q2-2024 $50.57M ▲ $111.616M ▲ $20.004M ▼ $91.612M ▲
Q4-2023 $46.982M $110.379M $20.73M $89.649M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2025 $4.953M ▼ $9.825M ▲ $6.465M ▲ $-1.594M ▲ $14.695M ▲ $6.042M ▼
Q2-2025 $6.185M ▲ $7.418M ▼ $-8.856M ▼ $-3.188M ▼ $-2.312M ▼ $7.16M ▼
Q4-2024 $4.152M ▲ $8.244M ▲ $-8.281M ▼ $-1.594M $-815.5K ▲ $8.004M ▲
Q2-2024 $3.557M ▲ $4.964M ▼ $-8.149M ▼ $-1.594M $-4.779M ▼ $4.823M ▼
Q4-2023 $2.619M $9.025M $-848K $-1.594M $6.583M $8.551M

Revenue by Products

Product Q3-2024
Segment Total Member
Segment Total Member
 $70.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Deswell’s sales have been fairly steady in recent years, with only modest ups and downs. Profitability looks thin but generally positive, suggesting the company runs on tight margins yet still manages to earn a profit most years. Earnings per share have improved recently after a softer period, which hints at better mix, cost control, or more efficient operations. Overall, this looks like a small, niche manufacturer that is profitable but does not have a lot of room for error in its cost structure.

Balance Sheet

Balance Sheet The company carries no debt, which is a major sign of financial conservatism and reduces financial risk. Its asset base has been stable, and shareholder equity represents most of its funding, pointing to a solid capital structure. Cash on hand has improved compared with earlier years, giving Deswell a bit more flexibility for investments or to handle downturns. The balance sheet overall looks cautious and steady rather than aggressive or highly leveraged.

Cash Flow

Cash Flow Deswell consistently generates cash from its day‑to‑day operations, and this cash largely flows through as free cash flow because capital spending has been very low. This means the business is not currently consuming much cash to maintain or expand its production base, which supports near‑term financial stability. The flip side is that very low investment in equipment or facilities, if it continues, could eventually limit growth or competitiveness in a technology‑driven industry. For now, cash flows appear healthy, predictable, and comfortably aligned with the company’s modest scale.

Competitive Edge

Competitive Edge Deswell operates in a specialized corner of the electronics and plastics manufacturing world, focusing on complex, lower‑to‑medium volume work that larger mass manufacturers may not want. It competes by offering tailored production, quality execution, and end‑to‑end services rather than by being the lowest‑cost, highest‑volume producer. Long experience, established facilities in China, and a debt‑free balance sheet support its stability and help it weather industry cycles. The main competitive risks are its relatively small size, exposure to competition from larger contract manufacturers, and the need to keep its capabilities differentiated enough to justify its niche.

Innovation and R&D

Innovation and R&D Innovation at Deswell is mainly about process improvements and equipment upgrades, not headline‑grabbing new products. The company has invested in modern electronics assembly technologies and more advanced injection molding, and it positions itself as a one‑stop solution from design support through final assembly and shipping. Its strategy appears to focus on moving into higher‑margin, more complex projects and adding value‑added services rather than simply chasing volume. Formal R&D disclosure is limited, so much of the innovation story seems to be incremental modernization and automation, which can be powerful but less visible from the outside.

Summary

Deswell looks like a cautious, niche manufacturing business that earns modest but consistent profits, backed by a clean, debt‑free balance sheet and solid cash generation. Its strength lies in specialized production, integrated services, and operational discipline rather than in scale or brand power. The company appears to be gradually upgrading its technology and shifting toward higher‑margin, complex work, which could support profitability if it executes well. Key uncertainties include its relatively low investment levels, exposure to competitive pressure in China‑centric manufacturing, and the usual volatility that can come with serving a concentrated base of OEM customers. Overall, it presents as a steady, niche operator with limited financial risk but also limited obvious growth drivers without continued innovation and customer diversification.

NEWS

November 13, 2025 · 9:10 AM UTC

Deswell Announces First Half 2026 Results

Read more