Monolithic Power Systems (MPWR) Q4 2025 Financial Results Summary
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Monolithic Power Systems (MPWR) Q4 2025 Financial Results Summary
Monolithic Power Systems, Inc. (“MPS”) announced its financial results for the fourth quarter and year ended December 31, 2025, on February 5, 2026. In this report, MPS also declared an increase in its quarterly cash dividend from $1.56 per share to $2.00 per share, to be paid on April 15, 2026.
Key Financial Highlights for Q4 2025
- Revenue:
- $751.2 million for Q4 2025, a 1.9% increase from $737.2 million in Q3 2025.
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20.8% increase from $621.7 million in Q4 2024.
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Gross Margin:
- GAAP gross margin: 55.2% for Q4 2025, slightly down from 55.4% in Q4 2024.
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Non-GAAP gross margin: 55.5% for Q4 2025, down from 55.8% in Q4 2024.
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Operating Expenses:
- GAAP operating expenses: $214.3 million for Q4 2025, up from $181.1 million in Q4 2024.
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Non-GAAP operating expenses: $148.1 million for Q4 2025, an increase from $126.1 million in Q4 2024.
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Operating Income:
- GAAP operating income: $199.9 million for Q4 2025, compared to $163.3 million in Q4 2024.
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Non-GAAP operating income: $269.0 million for Q4 2025, an increase from $220.7 million in Q4 2024.
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Other Income:
- GAAP other income, net: $9.8 million for Q4 2025, up from $6.2 million in Q4 2024.
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Non-GAAP other income, net: $7.8 million for Q4 2025, compared to $6.0 million in Q4 2024.
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Income Before Income Taxes:
- GAAP: $209.8 million for Q4 2025, compared to $169.5 million in Q4 2024.
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Non-GAAP: $276.9 million for Q4 2025, increased from $226.7 million in Q4 2024.
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Net Income:
- GAAP net income: $170.1 million, or $3.46 per diluted share, for Q4 2025. In comparison, the GAAP net income for Q4 2024 was $1,449.4 million or $29.88 per diluted share, which included a significant tax benefit.
- Non-GAAP net income: $235.3 million, or $4.79 per diluted share, for Q4 2025, compared to $198.4 million, or $4.09 per diluted share, in Q4 2024.
Financial Performance for the Year Ended December 31, 2025
- Revenue:
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$2.8 billion for the year, representing a 26.4% increase from $2.2 billion in 2024.
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Gross Margin:
- GAAP gross margin: 55.2%, a slight decrease from 55.3% in 2024.
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Non-GAAP gross margin: 55.5%, down from 55.8% in 2024.
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Operating Expenses:
- GAAP: $811.1 million for the year, compared to $681.5 million in 2024.
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Non-GAAP: $567.5 million for 2025, an increase from $466.4 million in 2024.
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Operating Income:
- GAAP: $728.6 million for the year, compared to $539.4 million in 2024.
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Non-GAAP: $982.4 million, versus $764.1 million in 2024.
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Other Income:
- GAAP: $37.6 million for 2025, up from $33.6 million in 2024.
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Non-GAAP: $27.5 million, compared to $24.2 million in 2024.
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Income Before Income Taxes:
- GAAP: $766.2 million for 2025 versus $572.9 million in 2024.
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Non-GAAP: $1,009.9 million, an increase from $788.3 million in 2024.
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Net Income:
- GAAP net income: $615.9 million, or $12.75 per diluted share for the year, compared to $1,786.7 million, or $36.59 per diluted share, in 2024.
- Non-GAAP net income: $858.4 million, or $17.77 per diluted share, compared to $689.8 million, or $14.12 per diluted share, in 2024.
Dividend Declaration
- MPS declared a quarterly cash dividend increase from $1.56 to $2.00 per share.
- The new dividend will be paid on April 15, 2026 to stockholders recorded by March 31, 2026.
Monolithic Power Systems continues to demonstrate growth in both quarterly and yearly metrics, while also enhancing shareholder value through increased dividends.
| Three Months Ended December 31, | Year Ended December 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue | $751,155 | $621,665 | $2,790,459 | $2,207,100 |
| Cost of revenue | 336,888 | 277,257 | 1,250,718 | 986,230 |
| Gross profit | 414,267 | 344,408 | 1,539,741 | 1,220,870 |
| Operating expenses: | ||||
| Research and development | 95,597 | 85,762 | 382,263 | 324,748 |
| Selling, general and administrative | 118,734 | 95,339 | 428,842 | 356,764 |
| Total operating expenses | 214,331 | 181,101 | 811,105 | 681,512 |
| Operating income | 199,936 | 163,307 | 728,636 | 539,358 |
| Other income, net | 9,837 | 6,224 | 37,580 | 33,554 |
| Income before income taxes | 209,773 | 169,531 | 766,216 | 572,912 |
| Income tax expense (benefit), net | 39,637 | (1,279,832) | 150,289 | (1,213,788) |
| Net income | $170,136 | $1,449,363 | $615,927 | $1,786,700 |
| Net income per share: | ||||
| Basic | $3.51 | $30.00 | $12.82 | $36.76 |
| Diluted | $3.46 | $29.88 | $12.75 | $36.59 |
| Weighted-average shares outstanding: | ||||
| Basic | 48,502 | 48,317 | 48,035 | 48,599 |
| Diluted | 49,168 | 48,506 | 48,309 | 48,835 |
| ASSETS | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $1,099,302 | $691,816 |
| Short-term investments | 157,243 | 171,130 |
| Accounts receivable, net | 255,626 | 172,518 |
| Inventories | 564,649 | 419,611 |
| Other current assets | 106,982 | 109,978 |
| Total current assets | 2,183,802 | 1,565,053 |
| Property and equipment, net | 627,689 | 494,945 |
| Acquisition-related intangible assets, net | 8,790 | 9,938 |
| Goodwill | 25,944 | 25,944 |
| Deferred tax assets, net | 1,281,488 | 1,326,840 |
| Other long-term assets | 165,091 | 194,377 |
| Total assets | $4,292,804 | $3,617,097 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $138,272 | $102,526 |
| Accrued compensation and related benefits | 85,963 | 63,918 |
| Other accrued liabilities | 145,130 | 128,123 |
| Total current liabilities | 369,365 | 294,567 |
| Income tax liabilities | 75,022 | 65,193 |
| Other long-term liabilities | 127,835 | 111,570 |
| Total liabilities | 572,222 | 471,330 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Common stock and additional paid-in capital: | ||
| $0.001 par value; shares authorized: | 936,998 | 706,817 |
| 150,000; shares issued and outstanding: | 48,709 | 47,823 |
| Retained earnings | 2,798,736 | 2,487,461 |
| Accumulated other comprehensive loss | (15,152) | (48,511) |
| Total stockholders’ equity | 3,720,582 | 3,145,767 |
| Total liabilities and stockholders’ equity | $4,292,804 | $3,617,097 |