Super Micro Computer(SMCI) - 2026 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 FY 2026 reached $12.7 billion, a significant increase from $5.0 billion in Q1 FY 2026 and $5.7 billion in Q2 FY 2025[4] - Gross margin for Q2 FY 2026 was 6.3%, down from 9.3% in Q1 FY 2026 and 11.8% in Q2 FY 2025[4] - Net income for Q2 FY 2026 was $401 million, compared to $168 million in Q1 FY 2026 and $321 million in Q2 FY 2025[4] - The company expects net sales of at least $12.3 billion for Q3 FY 2026, with GAAP net income per diluted share projected to be at least $0.52[5] - For the full fiscal year 2026, the company anticipates net sales of at least $40.0 billion[6] Cash and Debt Management - Total cash and cash equivalents as of December 31, 2025, were $4.1 billion, while total bank debt and convertible notes amounted to $4.9 billion[3] - The company reported cash flow used in operations of $24 million for Q2 FY 2026[4] - Cash paid for interest increased to $40,470 for the six months ended December 31, 2025, compared to $19,006 in the same period of 2024[19] - Net cash used in operating activities was $(941,421) for the six months ended December 31, 2025, compared to $169,147 in the prior year[19] - Cash, cash equivalents, and restricted cash at the end of the period were $4,193,725, down from $5,172,301 at the beginning of the period[19] Research and Development - Research and development expenses for Q2 FY 2026 were $180.8 million, compared to $158.2 million in Q2 FY 2025[16] Asset Management - Total assets as of December 31, 2025, were $28.0 billion, up from $14.0 billion as of June 30, 2025[14] Income and Earnings Adjustments - Net income for the six months ended December 31, 2025, was $568,849, a decrease of 23.6% compared to $744,923 for the same period in 2024[19] - Adjusted EBITDA for the six months ended December 31, 2025, was $963,428, representing a decrease of 9.6% from $1,065,206 in the prior year[28] - GAAP gross profit for the six months ended December 31, 2025, was $1,265,940, down 12.4% from $1,445,602 in 2024[29] - Non-GAAP net income for the six months ended December 31, 2025, was $706,813, a decrease of 17.5% from $856,050 in 2024[32] - Non-GAAP operating expenses for the six months ended December 31, 2025, were $443,640, an increase from $432,296 in the prior year[30] Taxation - The GAAP effective tax rate for Q4 2025 was 19.8%, up from 15.2% in Q4 2024, reflecting an increase of 3.6 percentage points[35] - Non-GAAP effective tax rate for the six months ended December 31, 2025, was 20.4%, compared to 16.3% in the same period of 2024, showing an increase of 4.1 percentage points[35] - Total adjustments to GAAP provision for income tax for Q4 2025 were 0.8%, compared to 1.4% in Q4 2024[35] Stock-Based Compensation - Total adjustments to GAAP income before income tax provision related to stock-based compensation were $90,485 for the three months ended December 31, 2025[32] - Stock-based compensation adjustment for GAAP to Non-GAAP for Q4 2025 was $0.15 per share, slightly higher than $0.14 in Q4 2024[33] - The total adjustments to GAAP for the six months ended December 31, 2025, included stock-based compensation of $0.30, up from $0.25 in the same period of 2024[33] Earnings Per Share - GAAP net income per common share - basic for Q4 2025 was $0.67, an increase from $0.54 in Q4 2024, representing a growth of 24.1%[33] - Non-GAAP net income per common share - diluted for the six months ended December 31, 2025, was $1.04, compared to $1.33 for the same period in 2024, indicating a decrease of 21.8%[33] - Non-GAAP net income per common share - basic for Q4 2025 was $0.78, an increase from $0.65 in Q4 2024, representing a growth of 20%[33] - GAAP net income per common share - diluted for Q4 2025 was $0.60, up from $0.51 in Q4 2024, indicating a growth of 17.6%[33] - Income tax adjustment for GAAP to Non-GAAP for the six months ended December 31, 2025, was $(0.07), compared to $(0.06) in the same period of 2024[33] Market Position - The company is well-positioned to capture the growing demand for AI and IT infrastructure, supported by its DCBBS technology[3]