Monolithic Power's Q4 Earnings Surpass Estimates on Record Revenues

Monolithic Power Systems MPWR reported strong fourth-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, Communications, 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 $170.1 million or $3.46 per share compared with $178.3 million or $3.71 per share in the year-ago quarter. Higher operating expenses impacted top-line growth.

Non-GAAP net income improved to $235.3 million or $4.79 per share from $227.1 million or $4.73 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 6 cents.

For 2025, the company reported a net income of $615.9 million or $12.75 per share compared to $1.78 billion or $36.59 per share in 2024. Non-GAAP net income of $858.43 million or $17.77 per share compared to $689.75 million or $14.12 per share in 2024.

Revenues

Monolithic Power generated revenues of $751.15 million, up from $621.5 million in the year-ago quarter. The 20.8% 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 $741 million.

For 2025, the company reported revenues of $2.79 billion, up from $2.2 billion in 2024.

By end markets, Storage and Computing revenues were $162.1 million, up 18.8% year over year. The growth was primarily driven by strong demand for both memory and notebook solutions. Net sales from Enterprise Data increased to $233.5 million from $194.9 million in the year-ago quarter, owing to higher sales of power management solutions for AI applications. In the fourth quarter, the Automotive end market contributed $151.5 million in revenues, up 17.6% year over year due to higher sales of ADAS and USB applications.

Industrial revenues were $54.7 million compared with $40.8 million in the year-ago quarter, driven by higher sales of power sources. The Communications end market registered $83.7 million in revenues, up from $63.8 million, driven by higher sales of power solutions for optical modules and routers. Net sales from the Consumer end market increased to $66.2 million from $57.3 million in the year-ago quarter.

Other Details

Non-GAAP gross margin was 55.5% compared with 55.8% in the year-earlier period. Non-GAAP operating expenses were $148.05 million compared with $126.2 million reported a year ago. Non-GAAP operating income was $148 million, up from $126.2 million, owing to higher revenues.

Cash Flow & Liquidity

During the December quarter, the company generated an operating cash flow of $104.9 million compared with $239.3 million in the prior-year quarter. As of Dec. 31, 2025, cash and cash equivalents and short-term investments totaled $1.25 billion with other long term liabilities of $127.8 million.

Zacks Rank

MPWR currently carries a Zacks Rank #3 (Hold). 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 fourth-quarter 2025 earnings on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.

Lyft, Inc. LYFT is scheduled to release fourth-quarter 2025 earnings on Feb. 10. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, suggesting growth of 6.67% from the year-ago reported figure.

Lyft has a long-term earnings growth expectation of 24.41%. The company delivered an average earnings surprise of 1.17% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release fourth-quarter 2025 earnings on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.42% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.

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

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