MPS(US:MPWR)2025-11-05 21:02Revenue Performance - Revenue for Q3 2025 was $737.2 million, an increase of $117.1 million, or 18.9%, from $620.1 million in Q3 2024[108] - Revenue for the nine months ended September 30, 2025, was $2,039.3 million, an increase of $453.9 million, or 28.6%, from $1,585.4 million in the same period of 2024[110] - Revenue from the storage and computing market increased by $42.6 million, or 29.6%, in Q3 2025 compared to Q3 2024, primarily due to higher sales of power solutions for storage applications[109] - Revenue from the automotive market increased by $40.2 million, or 36.1%, in Q3 2025 compared to Q3 2024, driven by higher sales supporting advanced driver assistance systems[109] - Revenue from the enterprise data market decreased by $53.0 million, or 10.2%, for the nine months ended September 30, 2025, compared to the same period in 2024[111] Profitability Metrics - Gross profit margin for Q3 2025 was 55.1%, compared to 55.4% in Q3 2024[107] - Operating income for Q3 2025 was $195.2 million, representing 26.5% of revenue, consistent with Q3 2024[107] - Net income for Q3 2025 was $178.3 million, or 24.2% of revenue, compared to $144.4 million, or 23.3% of revenue in Q3 2024[107] - Gross margin decreased to 55.1% in Q3 2025 from 55.4% in Q3 2024, primarily due to product mix[115] Expenses - Cost of revenue for Q3 2025 was $330.9 million, representing 44.9% of revenue, compared to $276.7 million or 44.6% in Q3 2024, driven by higher shipment volume[114] - R&D expenses for Q3 2025 were $98.2 million, or 13.3% of revenue, up from $85.1 million or 13.7% in Q3 2024, with increases in cash compensation and benefits[118] - SG&A expenses for Q3 2025 were $112.9 million, or 15.3% of revenue, compared to $94.4 million or 15.2% in Q3 2024, driven by higher cash compensation and stock-based compensation[122] Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended September 30, 2025, was $733.3 million, an increase of $112.6 million from the same period in 2024[131] - Total cash, cash equivalents, and short-term investments as of September 30, 2025, were $1,269.5 million, up from $862.9 million as of December 31, 2024[130] Tax and Repatriation - The income tax expense for Q3 2025 was $27.3 million, or 13.3% of pre-tax income, lower than the federal statutory rate of 21% due to tax law changes and foreign tax credits[127] - The company repatriated $275 million of cash from foreign subsidiaries to the U.S. with minimal tax impact during the nine months ended September 30, 2025[130] Future Commitments and Stock Repurchase - As of September 30, 2025, total estimated future unconditional purchase commitments were $499.3 million, with $443.2 million due within a year[138] - The Board of Directors approved a stock repurchase program of up to $500 million, with $495.3 million remaining available for future repurchases as of September 30, 2025[140] Strategic Outlook - The company plans to continue diversifying revenue across regions and product categories to mitigate risks associated with the cyclical nature of the semiconductor industry[102] - The company remains cautious regarding macroeconomic conditions, including rising inflation and global tariffs, which could impact future operations[103]