Monolithic Power Surpasses Q3 Earnings Estimates on Record Revenues

Monolithic Power Systems, Inc. MPWR 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.

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 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 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 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.

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

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