Core Insights - Monolithic Power Systems (NASDAQ: MPWR) reported a fifth consecutive earnings beat, with adjusted EPS of $4.73 surpassing the estimate of $4.63 [1] - The company achieved revenue of $737.18 million, exceeding the expected $720.92 million [1]

Core Insights - Monolithic Power (MPWR) reported revenue of $737.18 million for the quarter ended September 2025, reflecting an 18.9% increase year-over-year and a 2.25% surprise over the Zacks Consensus Estimate of $720.95 million [1] - The earnings per share (EPS) for the quarter was $4.73, up from $4.06 in the same quarter last year, with a surprise of 2.38% over the consensus estimate of $4.62 [1] Revenue by End Market - Storage and Computing: Revenue of $186.57 million, a 29.6% increase year-over-year, but below the estimated $189.26 million [4] - Communications: Revenue of $79.87 million, an 11.1% year-over-year increase, exceeding the estimated $79.37 million [4] - Automotive: Revenue of $151.54 million, a 36.1% year-over-year increase, below the estimated $156.42 million [4] - Enterprise Data: Revenue of $191.48 million, a 3.8% year-over-year increase, surpassing the estimated $181.07 million [4] - Industrial: Revenue of $55.32 million, a 25.6% year-over-year increase, exceeding the estimated $49.59 million [4] - Consumer: Revenue of $72.4 million, a 12.4% year-over-year increase, above the estimated $65.46 million [4] Stock Performance - Monolithic's shares have returned +19.5% over the past month, significantly outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Monolithic Power (MPWR) reported quarterly earnings of $4.73 per share, exceeding the Zacks Consensus Estimate of $4.62 per share, and showing an increase from $4.06 per share a year ago, resulting in an earnings surprise of +2.38% [1][2] - The company achieved revenues of $737.18 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.25% and up from $620.12 million year-over-year [2] - Monolithic has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Monolithic's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.62 on revenues of $719.78 million, while for the current fiscal year, the estimate is $17.51 on revenues of $2.74 billion [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which Monolithic belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - MPS achieved record quarterly revenue of $737.2 million, which is 10.9% higher than Q2 2025 and 18.9% higher than Q3 2024 [4][5]. Business Line Data and Key Metrics Changes - Revenue growth was observed across all end markets, with a notable expansion in the automotive sector, including a major Tier 1 supplier adopting MPS for its next-generation ADAS solution [4][5]. - The company secured its first design win for a full battery management system solution on a robotics platform, marking a shift from being a chip-only supplier to a full-service solutions provider [4][5]. Market Data and Key Metrics Changes - The enterprise data market is expected to be flat to down 20%, but recent performance has been better than anticipated, with additional customers contributing to momentum [9][10]. - The automotive market is seeing increased adoption of ADAS, with expectations for significant growth in the coming years as more vehicles, including combustion engine cars, integrate these systems [22][23]. Company Strategy and Development Direction - MPS is focused on innovation and solving customer challenges, investing in new technology, and diversifying its market applications and supply chain to capture future growth opportunities [5]. - The transition from a silicon-based supplier to a solutions provider is expected to improve gross margins over time as the company learns and automates its processes [24][43]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the fluid geopolitical and macroeconomic environment but remains confident in their long-term growth strategy [5]. - The company is optimistic about the future, particularly in the automotive sector, where the shift to 48V and zonal electronics is anticipated to drive growth [19][22]. Other Important Information - The company is experiencing a dynamic market with improved predictability in customer orders, although visibility into future quarters remains limited [37][68]. - The enterprise data segment is projected to grow by 30% to 40% in 2026, with significant contributions expected in the second half of the year [74]. Q&A Session Summary Question: Guidance on end market growth expectations - Management noted better-than-anticipated performance in enterprise data and industrial markets, with a layering of additional customers providing momentum [9]. Question: Thoughts on the AI market and competitive landscape - Management expressed a focus on demonstrating superior technology and customer service, regardless of the competitive landscape in the AI sector [12]. Question: Automotive market and ADAS revenue contribution - Management indicated that ADAS currently contributes less than half of automotive revenues but expects significant growth as adoption increases [20][22]. Question: Gross margin outlook - Management expects gross margins to remain stable in the mid-55% range for the foreseeable future, with potential improvements as the company transitions to more solution-based offerings [41][43]. Question: Enterprise data segment growth drivers - Management highlighted the growth of the module business and the importance of high power density products in driving future growth [73][74]. Question: Competitive positioning in new materials - Management confirmed ongoing development in silicon carbide and gallium nitride, while also emphasizing advancements in traditional silicon technologies [81].

Financial Data and Key Metrics Changes - MPS achieved record quarterly revenue of $737.2 million, which is 10.9% higher than Q2 2025 and 18.9% higher than Q3 2024 [4][5]. Business Line Data and Key Metrics Changes - Revenue growth was observed across all end markets, with a notable expansion in the automotive customer base, including a major Tier 1 supplier adopting MPS for its next-generation ADAS solution [4][5]. - The company secured its first design win for a full battery management system solution on a robotics platform, marking a shift from being a chip-only supplier to a full-service solutions provider [4][5]. Market Data and Key Metrics Changes - The enterprise data segment is expected to be flat to down 20%, but recent performance has been better than anticipated, with additional customers contributing to momentum [9][10]. - The automotive market is seeing increased adoption of ADAS, with expectations for significant growth in the coming years as more vehicles, including combustion engine cars, adopt these technologies [22][23]. Company Strategy and Development Direction - MPS is focused on innovation and solving customer challenges, investing in new technology, and diversifying end market applications and global supply chains to capture future growth opportunities [5]. - The transition from a silicon-based supplier to a solutions provider is expected to improve gross margins over time, although the process may be gradual [24][43]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the fluid geopolitical and macroeconomic environment, maintaining a long-term growth strategy [5]. - The company anticipates continued growth in the enterprise data segment, projecting a 30%-40% increase in 2026, primarily in the second half of the year [74]. Other Important Information - The company is currently experiencing a dynamic market with improved predictability in customer orders, although visibility into future quarters remains limited [37][68]. - MPS is actively engaging in the robotics sector, predicting a rise in battery management system solutions as the market for robotics expands [30][32]. Q&A Session Summary Question: Guidance on end market growth expectations - Management noted better-than-expected performance in enterprise data and industrial markets, with a layering of additional customers providing momentum [9]. Question: Thoughts on the AI market and competitive landscape - Management expressed a cautious approach to the AI market, focusing on demonstrating superior technology and customer service rather than chasing trends [12]. Question: Automotive market and ADAS revenue contribution - Management indicated that ADAS currently contributes less than half of automotive revenues but expects significant growth as more vehicles adopt these technologies [20][22]. Question: Gross margin outlook - Management expects gross margins to remain stable in the mid-55% range for the foreseeable future, with potential improvements as the company transitions to more solution-based offerings [41][43]. Question: Enterprise data segment growth drivers - Management highlighted the growth in module business and the high power density products as key drivers for future growth in the enterprise data segment [73][74]. Question: Competitive positioning in new materials - Management confirmed ongoing development in silicon carbide and gallium nitride, while also emphasizing the advancements in traditional silicon technologies [81]. Question: Revenue ramp for new solutions - Management indicated that the revenue ramp for new solutions, particularly in the automotive sector, is expected to begin in 2026, with significant growth anticipated thereafter [31][60].

Financial Data and Key Metrics Changes - In Q3 2025, Monolithic Power Systems (MPS) achieved record quarterly revenue of $737.2 million, which is 10.9% higher than Q2 2025 and 18.9% higher than Q3 2024 [3][4] - The company continues to demonstrate its ability to grow and adapt to the geopolitical and macroeconomic environment [4] Business Line Data and Key Metrics Changes - MPS reported year-over-year revenue growth in all end markets, driven by a diversified market strategy [3] - The automotive segment saw expansion with a major Tier 1 supplier adopting MPS for its next-generation ADAS solution [3] - The company secured its first design win for a full battery management system solution on a robotics platform, marking a shift from being a chip-only supplier to a full-service solutions provider [3][4] Market Data and Key Metrics Changes - The enterprise data market is expected to be flat to down 20%, but there is improved performance anticipated in Q4 due to additional customer layering [6][7] - The automotive market is transitioning towards 48V and zonal electronics, which is expected to drive significant growth in the coming years [16][20] Company Strategy and Development Direction - MPS is focused on innovation and solving customer challenges, investing in new technology, and expanding into new markets [4] - The company aims to transition from a silicon-based supplier to a solutions provider, which is expected to improve gross margins over time [21][41] - MPS is also exploring the use of silicon carbide and gallium nitride in its products, indicating a commitment to evolving technology [78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term growth strategy and ability to adapt to market changes [4] - The company anticipates continued growth in the automotive sector, particularly with the adoption of ADAS and battery management systems [20][56] - Management noted that while the enterprise data segment is dynamic, they expect to see growth driven by new product offerings and market demand [72] Other Important Information - MPS is experiencing a stable margin environment, with gross margins expected to remain in the mid-55% range for the foreseeable future [39][41] - The company is focused on building a robust supply chain to support its growth initiatives [4] Q&A Session Summary Question: Guidance on end market growth expectations - Management noted better-than-anticipated performance in enterprise data and industrial markets, with a layering of additional customers providing momentum [7] Question: Thoughts on the AI market and competitive landscape - Management expressed that while the AI market is a distraction, MPS aims to demonstrate its technology and customer service across all segments [11] Question: Insights on the automotive segment and ADAS - Management indicated that ADAS is currently less than half of automotive revenues but expects significant growth as more vehicles adopt ADAS technology [20] Question: Gross margin outlook and implications of moving to solutions - Management believes that transitioning to a solutions provider will not negatively impact gross margins and expects improvements as volumes increase [21][41] Question: Revenue opportunities from the battery management system for robotics - Management highlighted excitement over the first design win for a battery management system, with revenue ramping expected to start in 2026 [29] Question: Competitive positioning regarding new materials - Management confirmed that MPS is actively developing silicon carbide solutions and evaluating new materials for future products [78]

Core Insights - Monolithic Power Systems forecasts fourth-quarter revenue above estimates, driven by strong demand for power control products and semiconductors due to the artificial intelligence boom [1] Company Summary - The company expects robust performance in its product lines, particularly in the context of increasing AI-related applications [1] Industry Summary - The artificial intelligence sector is significantly influencing demand for semiconductors and power control products, indicating a broader trend in technology adoption [1]

Revenue and Income - Revenue for Q3 2025 was $737.2 million, a 10.9% increase from $664.6 million in Q2 2025 and an 18.9% increase from $620.1 million in Q3 2024[2] - Revenue for the nine months ended September 30, 2025, was $2,039.3 million, a 28.6% increase from $1,585.4 million in the same period of 2024[4] - Revenue for Q3 2025 was $737.2 million, a 19% increase from $620.1 million in Q3 2024[18] - Gross profit for Q3 2025 was $406.2 million, with a gross margin of 55.1%, compared to $343.4 million and 55.4% in Q3 2024[22] - GAAP net income for Q3 2025 was $178.3 million, or $3.71 per diluted share, compared to $144.4 million, or $2.95 per diluted share in Q3 2024[3] - Non-GAAP net income for Q3 2025 was $227.1 million, or $4.73 per diluted share, compared to $198.8 million, or $4.06 per diluted share in Q3 2024[3] - Net income for Q3 2025 reached $178.3 million, up 23.5% from $144.4 million in Q3 2024[18] - Non-GAAP net income for Q3 2025 was $227.1 million, compared to $198.8 million in Q3 2024, reflecting a 14.2% increase[20] Operating Performance - GAAP operating income for Q3 2025 was $195.2 million, compared to $164.0 million in Q3 2024[2] - Non-GAAP operating income for Q3 2025 was $260.6 million, compared to $220.8 million in Q3 2024[2] - Total operating expenses for Q3 2025 were $211,045,000, up from $179,415,000 in Q3 2024, representing a 17.6% increase[24] - Non-GAAP operating expenses for Q3 2025 were $148,339,000, up from $125,169,000 in Q3 2024, indicating a 19% increase[24] - Total income before income taxes for Q3 2025 reached $205,575,000, an increase from $174,306,000 in Q3 2024, marking a 17.9% rise[29] - Non-GAAP income before income taxes for Q3 2025 was $267,193,000, up from $227,183,000 in Q3 2024, representing a 17.6% growth[29] Future Projections - Projected revenue for Q4 2025 is expected to be between $730.0 million and $750.0 million[7] - Projected GAAP gross margin for Q4 2025 is expected to be between 54.9% and 55.5%[7] - Non-GAAP gross margin for Q4 2025 is projected to be between 55.2% and 55.8%[31] - Operating expenses for Q4 2025 are expected to be between $206,800,000 and $212,800,000[33] - Total stock-based compensation and related expenses for Q4 2025 are estimated to be between $63.2 million and $65.2 million[7] Research and Development - Research and development expenses for Q3 2025 were $98.2 million, a 15.4% increase from $85.1 million in Q3 2024[18] - The company continues to invest in R&D, with a total of $286.7 million spent in the first nine months of 2025, up from $239.0 million in the same period of 2024[18] Balance Sheet and Cash Flow - Total current assets increased to $2.1 billion as of September 30, 2025, from $1.6 billion at the end of 2024[16] - Cash and cash equivalents rose to $1.1 billion, up from $691.8 million at the end of 2024[16] - Total liabilities increased to $638.4 million from $471.3 million at the end of 2024[16] Stock-Based Compensation - Stock-based compensation and related expenses for Q3 2025 amounted to $60,875,000, compared to $52,416,000 in Q3 2024, a 16.5% increase[26] - Total other income, net for Q3 2025 was $10,392,000, compared to $10,278,000 in Q3 2024, reflecting a 1.1% increase[28] - Non-GAAP other income, net for Q3 2025 was $6,600,000, slightly up from $6,383,000 in Q3 2024, showing a 3.4% increase[28] Company Strategy - MPS continues to transition from a chip-only supplier to a full-service, silicon-based solutions provider[5]

Schaffhausen, Switzerland, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended September 30, 2025. The financial results for the quarter ended September 30, 2025 were as follows: Revenue was $737.2 million for the quarter ended September 30, 2025, a 10.9% increase from $664.6 million for the quarter ended June 3 ...

Core Insights - MPS reported record quarterly revenue of $737.2 million for Q3 2025, reflecting a 10.9% increase from Q2 2025 and an 18.9% increase year-over-year from Q3 2024 [3][8][13] - The company's diversified market strategy contributed to revenue growth across all end markets, showcasing resilience in its product portfolio and customer focus [8][12] Financial Performance - Revenue for Q3 2025 was $737,176,000, with a gross margin of 55.1%, flat compared to Q2 2025 [3][20] - Operating expenses increased to $211,045,000, up 4.9% quarter-over-quarter and 17.6% year-over-year [3][23] - Net income for Q3 2025 was $178,274,000, representing a 33.3% increase from Q2 2025 and a 23.4% increase year-over-year [3][25] Non-GAAP Metrics - Non-GAAP net income for Q3 2025 was $227,114,000, with a diluted EPS of $4.73, up 12.4% from Q2 2025 [5][25] - Non-GAAP gross margin was reported at 55.5%, consistent with Q2 2025 [22][36] Revenue by End Market - Enterprise Data revenue reached $191.5 million, up 33% from Q2 2025, driven by sales of power management solutions for AI applications [14] - Automotive revenue was $151.5 million, a 4.4% increase from Q2 2025, with a year-over-year growth of 36.1% [18] - Storage and Computing revenue decreased by 4.5% from Q2 2025 to $186.6 million, but showed a year-over-year increase of 29.6% [19] Cash Flow and Balance Sheet - Cash, cash equivalents, and short-term investments totaled $1,269.5 million at the end of Q3 2025, up from $1,146.1 million in Q2 2025 [27][31] - Operating cash flow for Q3 2025 was $239.3 million, slightly higher than $237.6 million in Q2 2025 [27][31] Business Outlook - For Q4 2025, MPS forecasts revenue in the range of $730 million to $750 million, with a GAAP gross margin between 54.9% and 55.5% [33][48]