We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Monolithic Power Surpasses Q3 Earnings Estimates on Record Revenues
Read MoreHide Full Article
Key Takeaways
Monolithic Power reported record Q3 revenue of $737.2M, up 18.9% year over year.
Strong growth in Automotive, Storage and Computing, and Industrial drove results.
Q4 revenue is projected between $730M and $750M, with stable gross margins expected.
Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong third-quarter 2025 results, with both adjusted earnings and revenues surpassing the respective Zacks Consensus Estimate.
The Kirkland, WA-based company witnessed record revenues, backed by solid momentum in the Automotive, Storage and Computing and Industrial verticals. A strong focus on innovation has enabled it to address customers' most complex challenges while maintaining the highest standards of quality. Continued investment in new technologies, expansion into emerging markets and diversification of end-market applications and the global supply chain are expected to support Monolithic Power’s future growth, enhance supply stability and enable a seamless adoption to evolving market conditions.
Net Income
Net income, on a GAAP basis, was $178.3 million or $3.71 per share compared with $144.4 million or $2.95 per share in the year-ago quarter. The increase in GAAP earnings was primarily attributable to top-line growth.
Non-GAAP net income improved to $227.1 million or $4.73 per share from $198.8 million or $4.06 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 11 cents.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power generated revenues of $737.2 million, up from $620.1 million in the year-ago quarter. The 18.9% year-over-year growth reflected the ongoing strength of the company’s diversified market strategy, diligent execution of operational plans, continued innovation and strong customer focus. The top line beat the Zacks Consensus Estimate of $721 million.
By end markets, Storage and Computing revenues were $186.6 million, up 29.6% year over year. The growth was primarily driven by strong demand for both memory and notebook solutions. Net sales from Enterprise Data increased to $191.5 million from $184.5 million in the year-ago quarter, owing to higher sales of power management solutions for AI applications. In the third quarter, the Automotive end market contributed $151.5 million in revenue, up from $111.3 million due to higher sales of applications supporting infotainment and USB connectors.
Industrial revenues were $55.3 million compared with $44 million in the year-ago quarter, driven by higher sales of power sources. The Communications end market registered $79.9 million in revenue, up from $71.9 million, driven by higher sales of networking solutions. Net sales from the Consumer end market increased to $72.4 million from $64.4 million in the year-ago quarter, led by higher sales of gaming solutions.
Other Details
Non-GAAP gross margin was 55.5% compared with 55.8% in the year-earlier period. Non-GAAP operating expenses were $148.3 million compared with $125.2 million reported a year ago. Non-GAAP operating income was $260.6 million, up from $220.8 million, owing to higher revenues.
Cash Flow & Liquidity
During the September quarter, the company generated an operating cash flow of $239.3 million compared with $231.7 million in the prior-year quarter. As of Sept. 30, 2025, cash and cash equivalents totaled $1.08 billion, with $117.4 million in other long-term liabilities.
Outlook
For the fourth quarter of 2025, the company estimates revenues in the range of $730-$750 million. Non-GAAP gross margin is expected to be between 55.2% and 55.8%, while GAAP gross margin is anticipated to be in the band of 54.9%-55.5%. GAAP operating expenses are projected to be in the $206.8 million to $212.8 million range. Non-GAAP operating expenses are estimated to be between $145.5 million and $149.5 million.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Monolithic Power Surpasses Q3 Earnings Estimates on Record Revenues
Key Takeaways
Monolithic Power Systems, Inc. (MPWR - Free Report) reported strong third-quarter 2025 results, with both adjusted earnings and revenues surpassing the respective Zacks Consensus Estimate.
The Kirkland, WA-based company witnessed record revenues, backed by solid momentum in the Automotive, Storage and Computing and Industrial verticals. A strong focus on innovation has enabled it to address customers' most complex challenges while maintaining the highest standards of quality. Continued investment in new technologies, expansion into emerging markets and diversification of end-market applications and the global supply chain are expected to support Monolithic Power’s future growth, enhance supply stability and enable a seamless adoption to evolving market conditions.
Net Income
Net income, on a GAAP basis, was $178.3 million or $3.71 per share compared with $144.4 million or $2.95 per share in the year-ago quarter. The increase in GAAP earnings was primarily attributable to top-line growth.
Non-GAAP net income improved to $227.1 million or $4.73 per share from $198.8 million or $4.06 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 11 cents.
Monolithic Power Systems, Inc. Price, Consensus and EPS Surprise
Monolithic Power Systems, Inc. price-consensus-eps-surprise-chart | Monolithic Power Systems, Inc. Quote
Revenues
Monolithic Power generated revenues of $737.2 million, up from $620.1 million in the year-ago quarter. The 18.9% year-over-year growth reflected the ongoing strength of the company’s diversified market strategy, diligent execution of operational plans, continued innovation and strong customer focus. The top line beat the Zacks Consensus Estimate of $721 million.
By end markets, Storage and Computing revenues were $186.6 million, up 29.6% year over year. The growth was primarily driven by strong demand for both memory and notebook solutions. Net sales from Enterprise Data increased to $191.5 million from $184.5 million in the year-ago quarter, owing to higher sales of power management solutions for AI applications. In the third quarter, the Automotive end market contributed $151.5 million in revenue, up from $111.3 million due to higher sales of applications supporting infotainment and USB connectors.
Industrial revenues were $55.3 million compared with $44 million in the year-ago quarter, driven by higher sales of power sources. The Communications end market registered $79.9 million in revenue, up from $71.9 million, driven by higher sales of networking solutions. Net sales from the Consumer end market increased to $72.4 million from $64.4 million in the year-ago quarter, led by higher sales of gaming solutions.
Other Details
Non-GAAP gross margin was 55.5% compared with 55.8% in the year-earlier period. Non-GAAP operating expenses were $148.3 million compared with $125.2 million reported a year ago. Non-GAAP operating income was $260.6 million, up from $220.8 million, owing to higher revenues.
Cash Flow & Liquidity
During the September quarter, the company generated an operating cash flow of $239.3 million compared with $231.7 million in the prior-year quarter. As of Sept. 30, 2025, cash and cash equivalents totaled $1.08 billion, with $117.4 million in other long-term liabilities.
Outlook
For the fourth quarter of 2025, the company estimates revenues in the range of $730-$750 million. Non-GAAP gross margin is expected to be between 55.2% and 55.8%, while GAAP gross margin is anticipated to be in the band of 54.9%-55.5%. GAAP operating expenses are projected to be in the $206.8 million to $212.8 million range. Non-GAAP operating expenses are estimated to be between $145.5 million and $149.5 million.
Zacks Rank
Monolithic Power currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.