Monolithic Power Systems Announces Results for the Third Quarter Ended September 30, 2025

Rhea-AI Summary

Monolithic Power Systems (Nasdaq: MPWR) reported results for the quarter ended September 30, 2025. Revenue was $737.2M (Q3 2025), up 10.9% sequentially and 18.9% year-over-year; nine‑month revenue was $2,039.3M, up 28.6% year-over-year. GAAP net income for Q3 was $178.3M or $3.71 per diluted share; non‑GAAP net income was $227.1M or $4.73 per diluted share. GAAP gross margin was 55.1% (Q3); non‑GAAP gross margin was 55.5%. Management provided Q4 2025 guidance: revenue $730M–$750M, GAAP gross margin 54.9%–55.5%, and fully diluted shares 48.5M–48.9M. An earnings webinar is scheduled Oct 30, 2025 at 2:00 p.m. PT.

Positive

• Revenue +18.9% YoY to $737.2M in Q3 2025
• Nine‑month revenue +28.6% YoY to $2,039.3M
• Non‑GAAP EPS $4.73 in Q3 2025, up from $4.06 prior year

Negative

• GAAP operating expenses increased to $211.0M in Q3 2025
• Non‑GAAP gross margin modestly down from 55.8% to 55.5% YoY
• Stock‑based compensation remained large: estimated $63.2M–$65.2M for Q4 2025

Insights

Financial results analyst

Revenue and profitability rose year‑over‑year; guidance shows stable near‑term margins and modest revenue growth.

MPS reported quarterly revenue of $737.2 million, up 18.9% versus the year‑ago quarter and up 10.9% sequentially, driving GAAP net income of $178.3 million ($3.71 per diluted share). Non‑GAAP results show higher operating income and EPS after excluding substantial stock‑based compensation; non‑GAAP operating income for the quarter was $260.6 million and non‑GAAP EPS was $4.73.

The business mechanism is clear: revenue expansion across several end markets lifted operating leverage, while gross margin held roughly steady at mid‑50s (55.1% GAAP). The company still records sizeable stock‑based compensation (roughly $60.9 million for the quarter), which creates divergence between GAAP and non‑GAAP metrics and matters for cash vs. accounting profit comparisons.

Key dependencies and risks include continued demand across Storage & Computing and Automotive (both showing quarter and year gains) and management’s ability to control operating expense growth (GAAP OpEx rose versus prior year). Guidance for the fourth quarter expects revenue of $730.0–$750.0 million and GAAP gross margin between 54.9% and 55.5%, suggesting management anticipates stability rather than rapid acceleration.

Concrete items to watch over the next 1–3 quarters: actual fourth‑quarter revenue versus the provided Q4 2025 range, realized GAAP versus non‑GAAP gross margin, and the trajectory of stock‑based compensation expense (projected at about $63.2–$65.2 million total for the quarter). These three metrics will determine whether the reported growth converts into durable profit expansion or remains dependent on non‑cash adjustments.

End‑market revenue analyst

Broad-based end‑market growth drove the quarter; Storage & Computing and Automotive were notable contributors.

Revenue by end market shows strength across multiple segments: Storage and Computing rose to $186.6 million and Automotive to $151.5 million for the quarter, both up versus the prior year quarter. Enterprise Data declined sequentially year‑to‑date comparison for nine months, indicating some mix variability despite total company growth to $2,039.3 million for the nine months.

Operationally, this pattern implies diversification benefits, as several buckets expanded concurrently, reducing single‑market dependence. The dependency to monitor is whether Enterprise Data recovers or continues to lag, which could shift margin mix given different product ASPs and cost structures across markets.

Near‑term monitoring items: quarterly revenue by end market in the upcoming Q4 2025 release, any commentary on product mix shifts, and whether Automotive and Storage maintain growth into the December quarter. These items will clarify if the current growth pace is broad‑based or front‑loaded in select markets.

Schaffhausen, Switzerland, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended September 30, 2025.

The financial results for the quarter ended September 30, 2025 were as follows:

• Revenue was $737.2 million for the quarter ended September 30, 2025, a 10.9% increase from $664.6 million for the quarter ended June 30, 2025 and an 18.9% increase from $620.1 million for the quarter ended September 30, 2024.
• GAAP gross margin was 55.1% for the quarter ended September 30, 2025, compared with 55.4% for the quarter ended September 30, 2024.
• Non-GAAP gross margin (1) was 55.5% for the quarter ended September 30, 2025, excluding the impact of $1.9 million for stock-based compensation and related expenses, $0.5 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with 55.8% for the quarter ended September 30, 2024, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.5 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
• GAAP operating expenses were $211.0 million for the quarter ended September 30, 2025, compared with $179.4 million for the quarter ended September 30, 2024.
• Non-GAAP operating expenses (1) were $148.3 million for the quarter ended September 30, 2025, excluding $59.0 million for stock-based compensation and related expenses and $3.7 million for deferred compensation plan expense, compared with $125.2 million for the quarter ended September 30, 2024, excluding $50.7 million for stock-based compensation and related expenses and $3.5 million for deferred compensation plan expense.
• GAAP operating income was $195.2 million for the quarter ended September 30, 2025, compared with $164.0 million for the quarter ended September 30, 2024.
• Non-GAAP operating income (1) was $260.6 million for the quarter ended September 30, 2025, excluding $60.9 million for stock-based compensation and related expenses, $4.2 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with $220.8 million for the quarter ended September 30, 2024, excluding $52.4 million for stock-based compensation and related expenses, $4.0 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
• GAAP other income, net was $10.4 million for the quarter ended September 30, 2025, compared with $10.3 million for the quarter ended September 30, 2024.
• Non-GAAP other income, net (1) was $6.6 million for the quarter ended September 30, 2025, excluding $3.8 million for deferred compensation plan income, compared with $6.4 million for the quarter ended September 30, 2024, excluding $3.9 million for deferred compensation plan income.
• GAAP income before income taxes was $205.6 million for the quarter ended September 30, 2025, compared with $174.3 million for the quarter ended September 30, 2024.
• Non-GAAP income before income taxes (1) was $267.2 million for the quarter ended September 30, 2025, excluding $60.9 million for stock-based compensation and related expenses, $0.4 million for net deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with $227.2 million for the quarter ended September 30, 2024, excluding $52.4 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.1 million for net deferred compensation plan expense.
• GAAP net income was $178.3 million and $3.71 per diluted share for the quarter ended September 30, 2025. Comparatively, GAAP net income was $144.4 million and $2.95 per diluted share for the quarter ended September 30, 2024.
• Non-GAAP net income (1) was $227.1 million and $4.73 per diluted share for the quarter ended September 30, 2025, excluding $60.9 million for stock-based compensation and related expenses, $0.4 million for net deferred compensation plan expense, $0.3 million for amortization of acquisition-related intangible assets and $12.8 million for related tax effects, compared with $198.8 million and $4.06 per diluted share for the quarter ended September 30, 2024, excluding $52.4 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets, $0.1 million for net deferred compensation plan expense and $1.5 million for related tax effects.

The financial results for the nine months ended September 30, 2025 were as follows:

• Revenue was $2,039.3 million for the nine months ended September 30, 2025, a 28.6% increase from $1,585.4 million for the nine months ended September 30, 2024.
• GAAP gross margin was 55.2% for the nine months ended September 30, 2025, compared with 55.3% for the nine months ended September 30, 2024.
• Non-GAAP gross margin (1) was 55.5% for the nine months ended September 30, 2025, excluding the impact of $5.5 million for stock-based compensation and related expenses, $0.9 million for deferred compensation plan expense and $0.9 million for amortization of acquisition-related intangible assets, compared with 55.7% for the nine months ended September 30, 2024, excluding the impact of $5.2 million for stock-based compensation and related expenses, $1.1 million for deferred compensation plan expense and $0.9 million for amortization of acquisition-related intangible assets.
• GAAP operating expenses were $596.8 million for the nine months ended September 30, 2025, compared with $500.4 million for the nine months ended September 30, 2024.
• Non-GAAP operating expenses (1) were $419.5 million for the nine months ended September 30, 2025, excluding $169.4 million for stock-based compensation and related expenses, $7.8 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets, compared with $340.3 million for the nine months ended September 30, 2024, excluding $151.7 million for stock-based compensation and related expenses, $8.4 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.
• GAAP operating income was $528.7 million for the nine months ended September 30, 2025, compared with $376.1 million for the nine months ended September 30, 2024.
• Non-GAAP operating income (1) was $713.3 million for the nine months ended September 30, 2025, excluding $175.0 million for stock-based compensation and related expenses, $8.7 million for deferred compensation plan expense and $1.0 million for amortization of acquisition-related intangible assets, compared with $543.4 million for the nine months ended September 30, 2024, excluding $156.9 million for stock-based compensation and related expenses, $9.5 million for deferred compensation plan expense and $1.0 million for amortization of acquisition-related intangible assets.
• GAAP other income, net was $27.7 million for the nine months ended September 30, 2025, compared with $27.3 million for the nine months ended September 30, 2024.
• Non-GAAP other income, net (1) was $19.7 million for the nine months ended September 30, 2025, excluding $8.0 million for deferred compensation plan income, compared with $18.2 million for the nine months ended September 30, 2024, excluding $9.2 million for deferred compensation plan income.
• GAAP income before income taxes was $556.4 million for the nine months ended September 30, 2025, compared with $403.4 million for the nine months ended September 30, 2024.
• Non-GAAP income before income taxes (1) was $733.1 million for the nine months ended September 30, 2025, excluding $175.0 million for stock-based compensation and related expenses, $1.0 million for amortization of acquisition-related intangible assets and $0.7 million for net deferred compensation plan expense, compared with $561.5 million for the nine months ended September 30, 2024, excluding $156.9 million for stock-based compensation and related expenses, $1.0 million for amortization of acquisition-related intangible assets and $0.3 million for net deferred compensation plan expense.
• GAAP net income was $445.8 million and $9.28 per diluted share for the nine months ended September 30, 2025. Comparatively, GAAP net income was $337.3 million and $6.89 per diluted share for the nine months ended September 30, 2024.
• Non-GAAP net income (1) was $623.1 million and $12.98 per diluted share for the nine months ended September 30, 2025, excluding $175.0 million for stock-based compensation and related expenses, $1.0 million for amortization of acquisition-related intangible assets, $0.7 million for net deferred compensation plan expense and $0.7 million for related tax effects, compared with $491.4 million and $10.04 per diluted share for the nine months ended September 30, 2024, excluding $156.9 million for stock-based compensation and related expenses, $1.0 million for amortization of acquisition-related intangible assets, $0.3 million for net deferred compensation plan expense and $4.1 million for related tax effects.

The following is a summary of revenue by end market (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
End Market		2025				2024				2025				2024
Storage and Computing		$	186,572			$	143,993			$	570,403			$	365,069
Enterprise Data			191,482				184,459				468,370				521,397
Automotive			151,540				111,344				441,576				285,629
Communications			79,868				71,884				225,322				162,095
Consumer			72,399				64,401				189,009				144,704
Industrial			55,315				44,038				144,624				106,541
Total		$	737,176			$	620,119			$	2,039,304			$	1,585,435

“Our results demonstrate our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’s financial targets for the fourth quarter ending December 31, 2025:

• Revenue in the range of $730.0 million to $750.0 million.
• GAAP gross margin between 54.9% and 55.5%. Non-GAAP gross margin (1) between 55.2% and 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
• GAAP operating expenses between $206.8 million and $212.8 million. Non-GAAP operating expenses (1) between $145.5 million and $149.5 million, which excludes estimated stock-based compensation and related expenses in the range of $61.3 million to $63.3 million.
• Total stock-based compensation and related expenses of $63.2 million to $65.2 million including approximately $1.9 million that would be charged to cost of goods sold.
• Interest and other income in the range of $7.4 million to $7.8 million before foreign exchange gains or losses.
• Non-GAAP tax rate of 15% for 2025.
• Fully diluted shares outstanding between 48.5 million and 48.9 million.

(1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

Earnings Commentary
Earnings commentary on the results of operations for the quarter ended September 30, 2025 is available under the Investor Relations page on the MPS website.

Earnings Webinar
MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, October 30, 2025. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/95600837087. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 95600837087. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the fourth quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our end markets, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (v) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), or (iv). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if our tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar.

About Monolithic Power Systems

Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

Contact:
Bernie Blegen
Executive Vice President and Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
MPSInvestor.Relations@monolithicpower.com 

Monolithic Power Systems, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value)
		September 30,				December 31,
		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	1,081,251			$	691,816
Short-term investments			188,233				171,130
Accounts receivable, net			241,560				172,518
Inventories			505,680				419,611
Other current assets			96,021				109,978
Total current assets			2,112,745				1,565,053
Property and equipment, net			597,311				494,945
Acquisition-related intangible assets, net			9,077				9,938
Goodwill			25,944				25,944
Deferred tax assets, net			1,300,260				1,326,840
Other long-term assets			161,055				194,377
Total assets		$	4,206,392			$	3,617,097
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	141,689			$	102,526
Accrued compensation and related benefits			99,602				63,918
Other accrued liabilities			201,513				128,123
Total current liabilities			442,804				294,567
Income tax liabilities			78,261				65,193
Other long-term liabilities			117,380				111,570
Total liabilities			638,445				471,330
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,905 and 47,823, respectively			885,123				706,817
Retained earnings			2,705,527				2,487,461
Accumulated other comprehensive loss			(22,703	)			(48,511	)
Total stockholders’ equity			3,567,947				3,145,767
Total liabilities and stockholders’ equity		$	4,206,392			$	3,617,097

Monolithic Power Systems, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Revenue		$	737,176			$	620,119			$	2,039,304			$	1,585,435
Cost of revenue			330,948				276,676				913,830				708,973
Gross profit			406,228				343,443				1,125,474				876,462
Operating expenses:
Research and development			98,173				85,051				286,666				238,986
Selling, general and administrative			112,872				94,364				310,108				261,425
Total operating expenses			211,045				179,415				596,774				500,411
Operating income			195,183				164,028				528,700				376,051
Other income, net			10,392				10,278				27,743				27,330
Income before income taxes			205,575				174,306				556,443				403,381
Income tax expense			27,301				29,876				110,652				66,044
Net income		$	178,274			$	144,430			$	445,791			$	337,337
Net income per share:
Basic		$	3.72			$	2.96			$	9.31			$	6.93
Diluted		$	3.71			$	2.95			$	9.28			$	6.89
Weighted-average shares outstanding:
Basic			47,898				48,757				47,879				48,692
Diluted			48,042				48,964				48,022				48,945

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

(Unaudited, in thousands, except per share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net income		$	178,274			$	144,430			$	445,791			$	337,337
Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation and related expenses			60,875				52,416				174,966				156,889
Amortization of acquisition-related intangible assets			320				320				960				983
Deferred compensation plan expense, net			423				141				698				294
Tax effect			(12,778	)			1,479				692				(4,149	)
Non-GAAP net income		$	227,114			$	198,786			$	623,107			$	491,354
Non-GAAP net income per share:
Basic		$	4.74			$	4.08			$	13.01			$	10.09
Diluted		$	4.73			$	4.06			$	12.98			$	10.04
Shares used in the calculation of non-GAAP net income per share:
Basic			47,898				48,757				47,879				48,692
Diluted			48,042				48,964				48,022				48,945

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited, in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Gross profit		$	406,228			$	343,443			$	1,125,474			$	876,462
Gross margin			55.1	%			55.4	%			55.2	%			55.3	%
Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation and related expenses			1,917				1,695				5,538				5,230
Amortization of acquisition-related intangible assets			287				287				861				884
Deferred compensation plan expense			500				543				942				1,083
Non-GAAP gross profit		$	408,932			$	345,968			$	1,132,815			$	883,659
Non-GAAP gross margin			55.5	%			55.8	%			55.5	%			55.7	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Total operating expenses		$	211,045			$	179,415			$	596,774			$	500,411
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation and related expenses			(58,958	)			(50,721	)			(169,428	)			(151,659	)
Amortization of acquisition-related intangible assets			(33	)			(33	)			(99	)			(99	)
Deferred compensation plan expense			(3,715	)			(3,492	)			(7,778	)			(8,391	)
Non-GAAP operating expenses		$	148,339			$	125,169			$	419,469			$	340,262

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Total operating income		$	195,183			$	164,028			$	528,700			$	376,051
Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation and related expenses			60,875				52,416				174,966				156,889
Amortization of acquisition-related intangible assets			320				320				960				983
Deferred compensation plan expense			4,215				4,035				8,720				9,474
Non-GAAP operating income		$	260,593			$	220,799			$	713,346			$	543,397

RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET (Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Total other income, net		$	10,392			$	10,278			$	27,743			$	27,330
Adjustments to reconcile other income, net to non-GAAP other income, net:
Deferred compensation plan income			(3,792	)			(3,895	)			(8,022	)			(9,180	)
Non-GAAP other income, net		$	6,600			$	6,383			$	19,721			$	18,150

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES (Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Total income before income taxes		$	205,575			$	174,306			$	556,443			$	403,381
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation and related expenses			60,875				52,416				174,966				156,889
Amortization of acquisition-related intangible assets			320				320				960				983
Deferred compensation plan expense, net			423				141				698				294
Non-GAAP income before income taxes		$	267,193			$	227,183			$	733,067			$	561,547

2025 FOURTH QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)
		Three Months Ending
		December 31, 2025
		Low				High
Gross margin			54.9	%			55.5	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation and other expenses			0.3	%			0.3	%
Non-GAAP gross margin			55.2	%			55.8	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
		Three Months Ending
		December 31, 2025
		Low				High
Operating expenses		$	206,800			$	212,800
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation and other expenses			(61,300	)			(63,300	)
Non-GAAP operating expenses		$	145,500			$	149,500

FAQ

What were Monolithic Power Systems (MPWR) Q3 2025 revenue and YoY change?

MPWR reported Q3 2025 revenue of $737.2M, up 18.9% year‑over‑year.

What did MPWR report for Q3 2025 GAAP and non‑GAAP net income per share?

GAAP net income was $3.71 per diluted share and non‑GAAP was $4.73 per diluted share for Q3 2025.

What guidance did MPWR give for Q4 2025 revenue and margins?

MPWR guided Q4 2025 revenue to $730M–$750M and GAAP gross margin to 54.9%–55.5%.

How did MPWR’s nine‑month 2025 revenue compare to prior year?

Nine‑month 2025 revenue was $2,039.3M, an increase of 28.6% versus the prior year.

What is MPWR’s expected diluted share count for Q4 2025?

MPWR projects fully diluted shares outstanding between 48.5M and 48.9M for Q4 2025.

When and how can investors access MPWR’s Q3 2025 earnings webcast?

The earnings webinar is scheduled Oct 30, 2025 at 2:00 p.m. PT via a Zoom webcast with a replay available on the investor relations site.