Silicon Motion Announces Results for the Fourth Quarter and Year Ended December 31, 2025

Core Insights - Silicon Motion Technology Corporation reported strong financial results for Q4 2025, with net sales reaching $278.5 million, a 15% increase quarter-over-quarter (Q/Q) and a 46% increase year-over-year (Y/Y) [2][5] - The company experienced significant growth across all business lines, particularly in SSD controllers and eMMC/UFS products, contributing to an overall positive outlook for 2026 [4][9] Financial Highlights - Q4 2025 GAAP net income was $47.7 million, or $1.41 per diluted ADS, up from $39.1 million, or $1.16 per diluted ADS in Q3 2025 [2][3] - For the full year 2025, net sales totaled $885.6 million, reflecting a 10% increase Y/Y [6] - Gross margin for Q4 2025 was 49.1% (GAAP) and 49.2% (Non-GAAP), while operating margin was 11.4% (GAAP) and 19.3% (Non-GAAP) [6] Business Performance - SSD controller sales grew by 25% to 30% Q/Q and 35% to 40% Y/Y in Q4 2025 [5] - eMMC and UFS controller sales increased by 0% to 5% Q/Q and 50% to 55% Y/Y [5] - SSD solutions sales surged by 125% to 130% Q/Q and 110% to 115% Y/Y [5] Shareholder Returns - The company announced an annual cash dividend of $2.00 per ADS, with the first installment of $16.7 million paid on November 26, 2025 [8][9] Future Outlook - Management anticipates a significantly stronger-than-seasonal start to 2026, with revenue and profitability growth expected to continue throughout the year [9][10]