Mon, May 12, 8:23 PM (35 days ago)
**Super Micro Computer, Inc. (SMCI) Q3 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $4,599.9 million for Q3 2025, up 19.5% YoY. - **Gross Profit Margin:** 9.6% for Q3 2025, down from 15.5% in Q3 2024. - **Net Income:** $108.8 million for Q3 2025, down from $402.5 million in Q3 2024. - **Cash Flow:** Positive operating cash flow of $795.9 million for the nine months ended March 31, 2025. **Key Metrics:** - **Operating Expenses:** Increased by 33.9% YoY for Q3 2025. - **Effective Tax Rate:** 5.1% for Q3 2025, up from (5.2)% in Q3 2024. - **Cash and Cash Equivalents:** $2,536.1 million as of March 31, 2025. **Earnings Changes:** - **Q3 2025 vs. Q3 2024:** Net income decreased significantly due to higher operating expenses and lower gross margins. - **Nine Months Ended March 31, 2025:** Net income of $853.7 million, slightly down from $855.4 million in the same period of 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by increased demand for GPU servers, HPC, and rack-scale solutions. - **Gross Margin Decline:** Due to competitive pricing, increased competition, and a shift in product focus. - **Operating Expenses:** Increased due to strategic hiring, research and development, and general administrative costs. **Trends and Uncertainties:** - **Market Trends:** Growing demand for AI and data center solutions. - **Macroeconomic Factors:** Challenges include labor shortages, supply chain disruptions, and geopolitical developments. - **Future Operations Impact:** Continued investment in R&D, strategic hiring, and expansion of sales and marketing activities. **Future Outlook:** - **Capital Expenditures:** Estimated to be between $45.0 million and $55.0 million for the remainder of fiscal year 2025. - **Liquidity:** Sufficient cash, cash equivalents, and borrowing capacity to support operations and debt payments. **Ticker:** SMCI