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 - 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]