Monolithic Power's Q1 Earnings Beat Estimates, Revenues Rise Y/Y

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

The Kirkland, WA-based company witnessed healthy revenue growth year over year, 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 swift adaptation to changing market conditions.

Net Income

Net income, on a GAAP basis, was $133.8 million or $2.79 per share compared with $92.5 million or $1.89 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 $193.8 million or $4.04 per share from $137.5 million or $2.81 per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 4 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

Revenues

Monolithic Power generated revenues of $637.6 million, up from $457.9 million in the year-ago quarter. The 39.2% growth reflected the ongoing strength of the company’s diversified market strategy, consistent execution, 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 $188.5 million, up 77.7% year over year. Growth was primarily driven by strong demand for both memory and notebook solutions. Revenues exceeded the Zacks Consensus Estimate of $177.57 million.

Net sales from Enterprise Data declined to $132.9 million from $149.7 million in the year-ago quarter. However, revenues surpassed the Zacks Consensus Estimate of $131.33 million.

In the first quarter, the Automotive end market  contributed $144.9 million in revenues compared with $87.1 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $148.34 million.

Industrial revenues were $42.6 million compared with $30.2 million in the year-ago quarter. The top line slightly beat the Zacks Consensus Estimate of $42.16 million.

The Communications end market  registered $71.7 million in revenues compared with $46.7 million in the year-ago quarter. Revenues fell short of the Zacks Consensus Estimate of $73.27 million.

Net sales from the Consumer end market  improved to $56.9 million from $38.1 million in the year-ago quarter. Lower gaming revenues impacted the top line. Net sales missed the Zacks Consensus Estimate of $58.92 million.

Other Details

Non-GAAP gross margin remained unchanged at 55.7% . Non-GAAP operating expenses were $133.5 million compared with $103.4 million reported in the prior-year period. Non-GAAP operating income was $221.5 million, up from $151.6 million in the year-earlier quarter.

Cash Flow & Liquidity

During the March quarter, the company generated an operating cash flow of $256.4 million compared with $248 million in the prior-year quarter. As of March 31, 2025, cash and cash equivalents totaled $637.4 million, with $105.8 million in other long-term liabilities.

Outlook

For the second quarter of 2025, the company estimates revenues in the range of $640-$660 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 between $189.0 million and $195.0 million. Non-GAAP operating expenses are projected to be between $132.6 million and $136.6 million. 

MPWR’s Zacks Rank

Monolithic 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

Altice USA, Inc. ATUS is scheduled to release first-quarter 2025 earnings on May 8. The Zacks Consensus Estimate for earnings is pegged at a loss of 9 cents per share, indicating a decline of 80% from the year-ago figure. 

Bandwidth Inc. BAND is scheduled to release first-quarter 2025 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at 29 cents per share, indicating an improvement of 7.41% from the year-ago figure. 

Light and Wonder LNW is scheduled to release first-quarter 2025 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $1.17 per share, indicating an improvement of 25.81% from the year-ago figure.

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