Mon, May 5, 8:04 PM (17 days ago)
### Monolithic Power Systems, Inc. (MPWR) Q1 2025 Financial Summary **Company Overview:** Monolithic Power Systems, Inc. (MPWR) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. The company operates in the cyclical semiconductor industry and focuses on reducing energy and material consumption to improve quality of life and create a sustainable future. **Financial Performance:** - **Revenue:** $637.6 million for Q1 2025, up 39.2% from $457.9 million in Q1 2024. - **Gross Profit:** $353.2 million (55.4% margin) for Q1 2025, compared to $252.4 million (55.1% margin) in Q1 2024. - **Operating Income:** $168.8 million (26.5% margin) for Q1 2025, up from $95.5 million (20.8% margin) in Q1 2024. - **Net Income:** $133.8 million (21.0% margin) for Q1 2025, up from $92.5 million (20.2% margin) in Q1 2024. - **Earnings per Share (EPS):** Basic $2.80, Diluted $2.79 for Q1 2025, compared to Basic $1.90, Diluted $1.89 in Q1 2024. **Cash Flow:** - **Operating Activities:** $256.4 million for Q1 2025, up from $248.1 million in Q1 2024. - **Investing Activities:** $(257.5) million for Q1 2025, compared to $(266.0) million in Q1 2024. - **Financing Activities:** $(55.9) million for Q1 2025, compared to $(50.0) million in Q1 2024. - **Net Decrease in Cash:** $(54.5) million for Q1 2025, compared to $(72.8) million in Q1 2024. **Balance Sheet Highlights:** - **Cash and Cash Equivalents:** $637.4 million as of March 31, 2025, down from $691.8 million as of December 31, 2024. - **Short-Term Investments:** $389.3 million as of March 31, 2025, up from $171.1 million as of December 31, 2024. - **Total Assets:** $3.81 billion as of March 31, 2025, up from $3.62 billion as of December 31, 2024. - **Total Liabilities:** $538.8 million as of March 31, 2025, up from $471.3 million as of December 31, 2024. - **Stockholders' Equity:** $3.27 billion as of March 31, 2025, up from $3.15 billion as of December 31, 2024. **Segment Performance:** - **Storage and Computing:** $188.5 million (29.6% of revenue) for Q1 2025, up from $106.1 million (23.2% of revenue) in Q1 2024. - **Automotive:** $144.9 million (22.7% of revenue) for Q1 2025, up from $87.1 million (19.0% of revenue) in Q1 2024. - **Enterprise Data:** $132.9 million (20.8% of revenue) for Q1 2025, down from $149.7 million (32.7% of revenue) in Q1 2024. - **Communications:** $71.7 million (11.3% of revenue) for Q1 2025, up from $46.6 million (10.2% of revenue) in Q1 2024. - **Consumer:** $56.9 million (8.9% of revenue) for Q1 2025, up from $38.1 million (8.3% of revenue) in Q1 2024. - **Industrial:** $42.6 million (6.7% of revenue) for Q1 2025, up from $30.2 million (6.6% of revenue) in Q1 2024. **Geographic Revenue:** - **China:** $363.7 million (57.0% of revenue) for Q1 2025, up from $263.0 million (57.5% of revenue) in Q1 2024. - **Taiwan:** $116.3 million (18.2% of revenue) for Q1 2025, up from $100.5 million (21.9% of revenue) in Q1 2024. - **South Korea:** $64.4 million (10.1% of revenue) for Q1 2025, up from $35.5 million (7.8% of revenue) in Q1 2024. - **Southeast Asia:** $32.7 million (5.1% of revenue) for Q1 2025, up from $13.2 million (2.9% of revenue) in Q1 2024. - **Europe:** $25.0 million (3.9% of revenue) for Q1 2025, up from $17.7 million (3.9% of revenue) in Q1 2024. - **Japan:** $20.1 million (3.2% of revenue) for Q1 2025, up from $12.9 million (2.8% of revenue) in Q1 2024. - **U.S.:** $15.2 million (2.4% of revenue) for Q1 2025, up from $14.8 million (3.2% of revenue) in Q1 2024. **Key Metrics:** - **Gross Margin:** 55.4% for Q1 2025, up from 55.1% in Q1 2024. - **Operating Margin:** 26.5% for Q1 2025, up from 20.8% in Q1 2024. - **Net Margin:** 21.0% for Q1 2025, up from 20.2% in Q1 2024. - **Effective Tax Rate:** 23.1% for Q1 2025, up from 11.9% in Q1 2024. **Outlook and Uncertainties:** - **Macroeconomic Factors:** The company remains cautious due to continued challenging macroeconomic conditions, including fluctuations in consumer spending, rising inflation, and geopolitical tensions. - **Supply Chain:** MPWR has a diverse, agile, and resilient supply chain to minimize the impact of tariffs and trade regulations. - **Future Operations:** The company plans to continue investing in R&D, expand its product portfolio, and explore strategic acquisitions to drive growth. **Stock Repurchase and Dividends:** - **Stock Repurchase Program:** In February 2025, the Board of Directors approved a stock repurchase program authorizing the repurchase of up to $500.0 million of common stock through February 2028. - **Dividends:** The company declared a cash dividend of $1.56 per share for Q1 2025, totaling $74.7 million. **Legal and Regulatory:** - **Legal Proceedings:** As of March 31, 2025, there were no material pending legal proceedings. - **Regulatory Compliance:** The company is committed to complying with all applicable trade laws, regulations, and other requirements. **Conclusion:** Monolithic Power Systems, Inc. demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved margins, and robust cash flow. The company's strategic investments in R&D, product diversification, and supply chain management position it well for future growth despite macroeconomic uncertainties.