| Q1 2026 Financial Summary | (Unaudited) |
| GAAP | ||||||||||||
| Q1'26 | Q4'25 | Q1'25 | QoQ Change | YoY Change | ||||||||
| Revenue ($M) | 7.1% | 26.1% | ||||||||||
| Gross Margin | 55.3% | 55.2% | 55.4% | 0.1 pts | (0.1) pts | |||||||
| Opex ($M) | (4.9%) | 10.5% | ||||||||||
| Operating Margin | 30.0% | 26.6% | 26.5% | 3.4 pts | 3.5 pts | |||||||
| Net income ($M) | 12.6% | 43.1% | ||||||||||
| Diluted EPS | 12.3% | 39.5% | ||||||||||
| Non-GAAP | |||||||||||
| Q1'26 | Q4'25 | Q1'25 | QoQ Change | YoY Change | |||||||
| Revenue ($M) | 7.1% | 26.1% | |||||||||
| Gross Margin | 55.5% | 55.5% | 55.7% | Flat | (0.2) pts | ||||||
| Opex ($M) | 7.0% | 18.6% | |||||||||
| Operating Margin | 35.8% | 35.8% | 34.7% | Flat | 1.1 pts | ||||||
| Net income ($M) | 6.8% | 29.7% | |||||||||
| Diluted EPS | 6.5% | 26.2% | |||||||||
| Tax Rate | 15.0% | 15.0% | 15.0% | Flat | Flat | ||||||
| Revenue by End Market | |||||||||||||||||||||||||
| Revenue | % Change | % of Revenue | |||||||||||||||||||||||
| End Market ($M) | Q1'26 | Q4'25 | Q1'25 | QoQ | YoY | Q1'26 | Q4'25 | ||||||||||||||||||
| Enterprise Data | 12.6% | 97.7% | 32.7 | % | 31.1 | % | |||||||||||||||||||
| Storage & Computing | 174.4 | 162.1 | 188.5 | 7.6% | (7.5%) | 21.7 | 21.6 | ||||||||||||||||||
| Automotive | 152.4 | 151.0 | 144.9 | 0.9% | 5.1% | 18.9 | 20.1 | ||||||||||||||||||
| Communications | 111.5 | 83.7 | 71.8 | 33.1% | 55.5% | 13.9 | 11.1 | ||||||||||||||||||
| Consumer | 54.5 | 66.2 | 56.9 | (17.5%) | (4.2%) | 6.8 | 8.8 | ||||||||||||||||||
| Industrial | 48.6 | 54.7 | 42.6 | (11.2%) | 14.2% | 6.0 | 7.3 | ||||||||||||||||||
| Total | 7.1% | 26.1% | 100 | % | 100 | % | |||||||||||||||||||
Ongoing Business Conditions
In the first quarter of 2026, MPS achieved record quarterly revenue of
Our quarterly performance was the result of our continued innovation, our consistent execution and the resilience of our diversified market strategy.
Q1 2026 highlights include:
- Our Communications end market grew 33% sequentially on the strength of our power solutions for optical modules and switches.
- The pipeline for our Automotive and Enterprise Data end markets, including server, continued to accelerate as we won multiple new projects across customers and regions.
- We sampled our first high speed interface products for DDR5 at major customers.
- MPS continued to grow our capacity past our original
$4B plan, with a new goal of reaching$6B in the near future.
We continue to adjust to the fluid geopolitical and macro-economic environment, but our diversified market strategy remains unchanged:
- MPS focuses on innovation and solving our customers’ most challenging problems.
- We consistently invest in new technologies that allow us to expand into new end markets and applications.
- We continue to expand and diversify our global supply chain allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.
“Our results demonstrate the strength of our diversified model and our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said
Q1 2026 Revenue Results
MPS reported first quarter revenue of
First quarter 2026 Communications revenue of
In our Enterprise Data market, first quarter 2026 revenue of
First quarter 2026 Storage and Computing revenue of
First quarter Automotive revenue of
First quarter 2026 Industrial revenue of
First quarter 2026 Consumer revenue of
Q1 2026 Gross Margin & Operating Income
GAAP gross margin was 55.3%, 0.1 percentage points higher than the fourth quarter of 2025. Our GAAP operating income was
Non-GAAP gross margin for the first quarter of 2026 was 55.5%, flat to the fourth quarter of 2025. Our non-GAAP operating income was
Q1 2026 Operating Expenses
Our GAAP operating expenses were
The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income.
Total stock-based compensation and related expenses, including approximately
The Bottom Line
First quarter 2026 GAAP net income was
First quarter 2026 non-GAAP net income was
First quarter 2026 non-GAAP tax rate of 15% was flat to the fourth quarter of 2025.
There were 49.2 million fully diluted shares outstanding at the end of the first quarter of 2026.
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments were
Accounts receivable at the end of the first quarter of 2026 were
Our internal inventories at the end of the first quarter of 2026 were
Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the first quarter of 140 days was 3 days lower than at the end of the fourth quarter of 2025.
| Selected Balance Sheet and Inventory Data | (Unaudited) | ||||||||
| Q1'26 | Q4'25 | Q1'25 | |||||||
| Cash, Cash Equivalents, and Short-Term Investments | |||||||||
| Operating Cash Flow | |||||||||
| Accounts Receivable | |||||||||
| Days of Sales Outstanding | 34 Days | 31 Days | 31 Days | ||||||
| Internal Inventories | |||||||||
| Days of Inventory (current quarter revenue) | 157 Days | 153 Days | 146 Days | ||||||
| Days of Inventory (next quarter revenue) | 140 Days | 143 Days | 139 Days | ||||||
Q2 2026 Business Outlook
For the second quarter of 2026 ending
- Revenue in the range of
$890 million to$910 million . - GAAP gross margin in the range of 55.1% to 55.7%.
- Non-GAAP gross margin in the range of 55.3% to 55.9%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
- Total stock-based compensation and related expenses in the range of
$53.8 million to$55.8 million including approximately$1.7 million that would be charged to cost of goods sold. - GAAP operating expenses between
$219.1 million and$225.1 million . - Non-GAAP operating expenses in the range of
$167.0 million to$171.0 million . This estimate excludes stock-based compensation and related expenses in the range of$52.1 million to$54.1 million . - Interest and other income in the range from
$7.4 million to$7.8 million before foreign exchange gains or losses. - Non-GAAP tax rate of 15% for 2026.
- Fully diluted shares outstanding in the range of 49.1 to 49.5 million shares.
For further information, contact:
Vice President, Finance
MPSInvestor.Relations@monolithicpower.com
Safe Harbor Statement
This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q2’26 Business Outlook” section herein, our statement regarding our business focus, our statement regarding our capacity growth goal, our statement regarding our prospects for Automotive and Enterprise Data end markets, our statement regarding the expansion and diversification of our supply chain to allow us to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and our statement regarding the major customer sampling of our first high speed interface products for DDR5, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our goal to expand our capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described above. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in
Non-GAAP Financial Measures
This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with
Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income. Non-GAAP other income, net excludes the effect of deferred compensation plan expense. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan income. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.
About
MPS is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO
Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value) | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,062,930 | $ | 1,099,302 | ||||
| Short-term investments | 304,179 | 157,243 | ||||||
| Accounts receivable, net | 302,138 | 255,626 | ||||||
| Inventories | 619,159 | 564,649 | ||||||
| Other current assets | 42,689 | 106,982 | ||||||
| Total current assets | 2,331,095 | 2,183,802 | ||||||
| Property and equipment, net | 693,864 | 627,689 | ||||||
| Acquisition-related intangible assets, net | 8,503 | 8,790 | ||||||
| 25,944 | 25,944 | |||||||
| Deferred tax assets, net | 1,182,845 | 1,182,883 | ||||||
| Other long-term assets | 206,615 | 165,091 | ||||||
| Total assets | $ | 4,448,866 | $ | 4,194,199 | ||||
| LIABILITIES AND STOCKHOLDERS’EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 174,499 | $ | 138,272 | ||||
| Accrued compensation and related benefits | 98,768 | 85,963 | ||||||
| Other accrued liabilities | 213,691 | 145,130 | ||||||
| Total current liabilities | 486,958 | 369,365 | ||||||
| Income tax liabilities | 75,022 | 75,022 | ||||||
| Deferred tax liabilities | 90,316 | 90,480 | ||||||
| Other long-term liabilities | 119,160 | 127,835 | ||||||
| Total liabilities | 771,456 | 662,702 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital: | 983,926 | 936,998 | ||||||
| Retained earnings | 2,703,596 | 2,609,651 | ||||||
| Accumulated other comprehensive loss | (10,112 | ) | (15,152 | ) | ||||
| Total stockholders’ equity | 3,677,410 | 3,531,497 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,448,866 | $ | 4,194,199 | ||||
Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 804,185 | $ | 637,554 | ||||
| Cost of revenue | 359,120 | 284,324 | ||||||
| Gross profit | 445,065 | 353,230 | ||||||
| Operating expenses: | ||||||||
| Research and development | 100,566 | 92,227 | ||||||
| Selling, general and administrative | 103,347 | 92,244 | ||||||
| Total operating expenses | 203,913 | 184,471 | ||||||
| Operating income | 241,152 | 168,759 | ||||||
| Other income, net | 6,030 | 5,131 | ||||||
| Income before income taxes | 247,182 | 173,890 | ||||||
| Income tax expense | 53,956 | 38,838 | ||||||
| Net income | $ | 193,226 | $ | 135,052 | ||||
| Net income per share: | ||||||||
| Basic | $ | 3.94 | $ | 2.82 | ||||
| Diluted | $ | 3.92 | $ | 2.81 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 49,097 | 47,851 | ||||||
| Diluted | 49,242 | 48,006 | ||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME |
| (Unaudited, in thousands, except per share amounts) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 193,226 | $ | 135,052 | ||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||
| Stock-based compensation and related expenses | 48,538 | 53,811 | ||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | ||||||
| Deferred compensation plan income, net | (378 | ) | (6 | ) | ||||
| Tax effect | 9,606 | 4,636 | ||||||
| Non-GAAP net income | $ | 251,312 | $ | 193,813 | ||||
| Non-GAAP net income per share: | ||||||||
| Basic | $ | 5.12 | $ | 4.05 | ||||
| Diluted | $ | 5.10 | $ | 4.04 | ||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||
| Basic | 49,097 | 47,851 | ||||||
| Diluted | 49,242 | 48,006 | ||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN |
| (Unaudited, in thousands) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Gross profit | $ | 445,065 | $ | 353,230 | ||||
| Gross margin | 55.3 | % | 55.4 | % | ||||
| Adjustments to reconcile gross profit to non-GAAP gross profit: | ||||||||
| Stock-based compensation and related expenses | 1,682 | 1,706 | ||||||
| Amortization of acquisition-related intangible assets | 287 | 287 | ||||||
| Deferred compensation plan income | (643 | ) | (163 | ) | ||||
| Non-GAAP gross profit | $ | 446,391 | $ | 355,060 | ||||
| Non-GAAP gross margin | 55.5 | % | 55.7 | % | ||||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES |
| (Unaudited, in thousands) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Total operating expenses | $ | 203,913 | $ | 184,471 | ||||
| Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: | ||||||||
| Stock-based compensation and related expenses | (46,856 | ) | (52,105 | ) | ||||
| Amortization of acquisition-related intangible assets | (33 | ) | (33 | ) | ||||
| Deferred compensation plan income | 1,323 | 1,193 | ||||||
| Non-GAAP operating expenses | $ | 158,347 | $ | 133,526 | ||||
| RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME |
| (Unaudited, in thousands) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Total operating income | $ | 241,152 | $ | 168,759 | ||||
| Adjustments to reconcile total operating income to non-GAAP total operating income: | ||||||||
| Stock-based compensation and related expenses | 48,538 | 53,811 | ||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | ||||||
| Deferred compensation plan income | (1,966 | ) | (1,356 | ) | ||||
| Non-GAAP operating income | $ | 288,044 | $ | 221,534 | ||||
| RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET |
| (Unaudited, in thousands) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Total other income, net | $ | 6,030 | $ | 5,131 | ||||
| Adjustments to reconcile other income, net to non-GAAP other income, net: | ||||||||
| Deferred compensation plan expense | 1,588 | 1,350 | ||||||
| Non-GAAP other income, net | $ | 7,618 | $ | 6,481 | ||||
| RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES |
| (Unaudited, in thousands) |
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Total income before income taxes | $ | 247,182 | $ | 173,890 | ||||
| Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: | ||||||||
| Stock-based compensation and related expenses | 48,538 | 53,811 | ||||||
| Amortization of acquisition-related intangible assets | 320 | 320 | ||||||
| Deferred compensation plan income, net | (378 | ) | (6 | ) | ||||
| Non-GAAP income before income taxes | $ | 295,662 | $ | 228,015 | ||||
| 2026 SECOND QUARTER OUTLOOK |
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN |
| (Unaudited) |
| Three Months Ending | ||||||||
| Low | High | |||||||
| Gross margin | 55.1 | % | 55.7 | % | ||||
| Adjustment to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation and other expenses | 0.2 | % | 0.2 | % | ||||
| Non-GAAP gross margin | 55.3 | % | 55.9 | % | ||||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES |
| (Unaudited, in thousands) |
| Three Months Ending | ||||||||
| Low | High | |||||||
| Operating expenses | $ | 219,100 | $ | 225,100 | ||||
| Adjustments to reconcile operating expenses to non-GAAP operating expenses: | ||||||||
| Stock-based compensation and other expenses | (52,100 | ) | (54,100 | ) | ||||
| Non-GAAP operating expenses | $ | 167,000 | $ | 171,000 | ||||
