Monolithic Power Beats Q2 Earnings Estimates on Record Revenues

Monolithic Power Systems, Inc. MPWR reported strong second-quarter 2025 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.

The Kirkland, WA-based company witnessed record revenues, backed by solid momentum in the Automotive, Storage and Computing and Communication 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 $133.7 million or $2.78 per share compared with $100.4 million or $2.05 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 $202.2 million or $4.21 per share from $155.1 million or $3.17 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 9 cents.

Revenues

Monolithic Power generated revenues of $664.6 million, up from $507.4 million in the year-ago quarter. The 31% 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 $635 million. 

By end markets, Storage and Computing revenues were $195.3 million, up 70% year over year. Growth was primarily driven by strong demand for both memory and notebook solutions. Net sales from Enterprise Data declined to $144 million from $187.2 million in the year-ago quarter, owing to challenging macroeconomic conditions. In the second quarter, the Automotive end market contributed $145.1 million in revenues compared with $87.2 million in the year-ago quarter. 

Industrial revenues were $46.7 million compared with $32.3 million in the year-ago quarter. The Communications end market registered $73.8 million in revenues compared with $43.6 million in the year-ago quarter on higher sales of power solutions for optical modules and routers. Net sales from the Consumer end market increased to $59.7 million from $42.2 million in the year-ago quarter, driven by higher sales in monitors and gaming solutions.

Other Details

Non-GAAP gross margin was 55.5% compared with 55.7% in the year-earlier period. Non-GAAP operating expenses were $137.6 million compared with $111.7 million reported in the prior-year period. Non-GAAP operating income was $231.2 million, up from $171 million in the year-earlier quarter.

Cash Flow & Liquidity

During the June quarter, the company generated an operating cash flow of $237.6 million compared with $141 million in the prior-year quarter. As of June 30, 2025, cash and cash equivalents totaled $787.4 million, with $113.4 million in other long-term liabilities.

Outlook

For the third quarter of 2025, the company estimates revenues in the range of $710-$730 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 $201.3 million to $207.3 million range. Non-GAAP operating expenses are estimated to be between $143 million and $147 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 is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, suggesting a growth of 25% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 14.8%. Arista delivered an average earnings surprise of 11.8% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters.

Pinterest, Inc. PINS is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure.

Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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