Silicon Motion Announces Results for the Quarterly Period Ended September 30, 2026

Fourth-quarter revenue guidance calls for 5% to 10% sequential growth, while the annual dividend rises 15%.

Rhea-AI Summary

Silicon Motion (SIMO) reported third-quarter 2026 revenue of $560.2 million, with higher operating margins but lower sequential GAAP earnings. Sales rose 24% quarter over quarter and 131% year over year. GAAP gross margin reached 53.6%, and operating margin reached 29.0%. Net income fell to $65.3 million from $136.1 million in the second quarter; diluted earnings per American depositary share (ADS) declined to $1.91 from $3.99.

For the fourth quarter, management expects revenue of $588 million to $616 million, GAAP gross margin of 53.8% to 54.8%, and operating margin of 29.9% to 31.4%. The annual dividend increased 15% to $2.30 per ADS, with the first $0.575 installment payable November 19, 2026. The company also completed a $1.15 billion zero-interest convertible senior note offering due in 2031. Quarter-end cash, cash equivalents and restricted cash totaled $953.6 million.

15 points · 1 major

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1 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointConvertible note proceeds of $1,125.9 million added funding during the third quarter. 16% of market cap
• Moderate pointThird-quarter revenue of $560.2 million increased 24% sequentially and 131% year over year.
• Moderate pointGAAP gross margin reached 53.6%, versus 50.2% last quarter and 48.6% a year earlier.
• Moderate pointGAAP operating income reached $162.6 million, versus $101.1 million sequentially and $29.2 million a year earlier.
• Moderate pointGAAP operating margin reached 29.0%, versus 22.4% sequentially and 12.1% a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter revenue guidance of $588 million to $616 million implies 5% to 10% sequential, 111% to 121% annual growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter GAAP margin guidance targets 53.8% to 54.8% gross margin and 29.9% to 31.4% operating margin.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue is expected by management to reach a record, growing more than 100% over 2025.

7 minor points

• Minor pointSSD controller sales increased 20% to 25% sequentially and 55% to 60% year over year.
• Minor pointFerri & Boot Drive sales increased 75% to 80% sequentially and 2,580% to 2,585% year over year.
• Minor pointAnnual dividend increased 15% to $2.30 per ADS, payable in quarterly installments of $0.575.
• Minor pointBank loan repayments totaled $59.2 million in the third quarter.
• Minor pointCash, cash equivalents and restricted cash reached $953.6 million, versus $181.8 million at June-end.
• Minor pointNine-month revenue reached $1,353.323 million, versus $607.166 million in the comparable 2025 period.
• Minor pointNine-month GAAP net income reached $268.220 million, versus $74.886 million in the comparable 2025 period.

Negative

• Major point$1.15 billion of convertible senior notes adds unsecured debt maturing August 15, 2031, without regular interest. 17% of market cap
• Moderate pointGAAP net income fell to $65.3 million from $136.1 million sequentially, but exceeded $39.1 million a year earlier.
• Moderate pointInvestment losses totaled $77.972 million, versus gains of $74.727 million in the second quarter. 1.1% of market cap
• Moderate pointGAAP operating expenses reached $137.9 million, versus $125.1 million sequentially and $88.5 million a year earlier.
• Minor pointGAAP diluted earnings of $1.91 per ADS fell from $3.99 sequentially, but exceeded $1.16 a year earlier.

4 minor points

• Minor pointeMMC+UFS controller sales declined 10% to 15% sequentially, despite increasing 35% to 40% year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Convertible note settlement requires cash principal repayment; excess conversion value may be settled in ADSs, potentially diluting holders.
• Minor pointCapital expenditures totaled $23.0 million, including $20.1 million of routine purchases and $2.9 million of construction.
• Minor pointRising memory costs have created pricing pressure in some consumer device segments, management said.

News Explained

Existing holders’ ownership could be diluted on conversion if the company elects to settle some value above principal in ADSs.

The notes are senior, unsecured obligations due August 15, 2031 unless earlier repurchased, redeemed or converted; at September 30, they were recorded as approximately $1.1 billion of long-term liabilities.

Silicon Motion says it intends to use the net proceeds for general corporate purposes and repayment of borrowings under its CTBC Bank credit agreement.

On conversion, principal is paid in cash, while value above principal may be settled in cash, ADSs or both, at the company’s election; an ADS component would increase the share count and reduce existing holders’ percentage ownership.

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Market Reaction – SIMO

$206.61 – $232.99 Day Range

$7.66B Mkt Cap at Last Price

On Oct 28, the day this news came out, the latest delayed price for SIMO is 2.91% above the previous close. Our momentum scanner has recorded 52 alerts for this stock so far that day. The latest delayed price is $226.00. Relative volume is elevated at 2.3x the average.

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Key Figures

Net sales: $560.2 million (+24% Q/Q, +131% Y/Y) GAAP earnings per diluted ADS: $1.91 Non-GAAP earnings per diluted ADS: $4.35 +5 more

Net sales

$560.2 million (+24% Q/Q, +131% Y/Y)

3Q 2026

GAAP earnings per diluted ADS

$1.91

3Q 2026; down from $3.99 in 2Q 2026

Non-GAAP earnings per diluted ADS

$4.35

3Q 2026; up from $2.43 in 2Q 2026

Revenue guidance

$588 million to $616 million (+5% to 10% Q/Q; +111% to 121% Y/Y)

4Q 2026

Gross margin guidance

53.8% to 54.8%

4Q 2026 GAAP

Operating margin guidance

29.9% to 31.4%

4Q 2026 GAAP

Annual dividend

$2.30 per ADS, a 15% increase

Declared October 16, 2026

Convertible-note proceeds

$1,125.9 million

3Q 2026

Key Terms

gaap, non-gaap, ads, convertible senior notes, +1 more

5 terms

gaap financial

"3Q 2026 GAAP | 3Q 2026 Non-GAAP"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"3Q 2026 GAAP | 3Q 2026 Non-GAAP"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

ads financial

"per diluted American depositary share (“ADS”)"

Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.

convertible senior notes financial

"$1,150,000,000 aggregate principal amount of 0.00% Convertible Senior Notes due 2031"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

rule 144a regulatory

"pursuant to Rule 144A under the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Business Highlights

• Third quarter of 2026 sales increased 24% Q/Q and increased 131% Y/Y
  • SSD controller sales: 3Q of 2026 increased 20% to 25% Q/Q and increased 55% to 60% Y/Y
  • eMMC+UFS controller sales: 3Q of 2026 decreased 10% to 15% Q/Q and increased 35% to 40% Y/Y
  • Ferri & Boot Drive solutions sales: 3Q of 2026 increased 75% to 80% Q/Q and increased 2,580% to 2,585% Y/Y 
    
    

Financial Highlights

	3Q 2026 GAAP	3Q 2026 Non-GAAP*
•  Net sales	$560.2 million (+24% Q/Q, +131% Y/Y)	$560.2 million (+24% Q/Q, +131% Y/Y)
•  Gross margin	53.6%	53.7%
•  Operating margin	29.0%	32.1%
•  Earnings per diluted ADS	$1.91	$4.35

* Please see reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company,” “we” or similar terms) today announced its financial results for the quarter ended September 30, 2026.  For the third quarter of 2026, net sales (GAAP) increased sequentially to $560.2 million from $451.0 million in the second quarter of 2026. Net income (GAAP) decreased sequentially to $65.3 million, or $1.91 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $136.1 million, or $3.99 per diluted ADS (GAAP), in the second quarter of 2026.

For the third quarter of 2026, net income (non-GAAP) increased sequentially to $149.2 million, or $4.35 per diluted ADS (non-GAAP), from net income (non-GAAP) of $83.1 million, or $2.43 per diluted ADS (non-GAAP), in the second quarter of 2026.

All financial numbers are in U.S. dollars unless otherwise noted.

Third Quarter of 2026 Review
“Silicon Motion is rapidly evolving from a consumer-focused NAND flash controller supplier into a diversified leader in controllers and storage solutions, serving markets from AI infrastructure to the edge,” said Wallace Kou, President and CEO of Silicon Motion. “In the third quarter, revenue, gross margin and operating margin all grew meaningfully. This was driven by our Ferri product family for automotive and edge AI and enterprise boot drive solutions, and by our SSD controller businesses, including edge and enterprise SSD controllers, with our new MonTitan enterprise and AI controllers beginning to scale. Building on the strong results we have delivered this year, we expect continued momentum in the fourth quarter as we broaden our product portfolio and expand into new markets, providing a foundation for sustainable, long-term growth in revenue and profitability.”

Key Financial Results

(in millions, except percentages and per ADS amounts)	GAAP			Non-GAAP
	3Q 2026	2Q 2026	3Q 2025	3Q 2026	2Q 2026	3Q 2025
Revenue	$560.2	$451.0	$242.0	$560.2	$451.0	$242.0
Gross profit	$300.4	$226.2	$117.7	$300.7	$226.3	$117.8
Percent of revenue	53.6%	50.2%	48.6%	53.7%	50.2%	48.7%
Operating expenses	$137.9	$125.1	$88.5	$120.7	$122.1	$79.5
Operating income	$162.6	$101.1	$29.2	$180.0	$104.2	$38.3
Percent of revenue	29.0%	22.4%	12.1%	32.1%	23.1%	15.8%
Earnings per diluted ADS	$1.91	$3.99	$1.16	$4.35	$2.43	$1.00

Other Financial Information

(in millions)	3Q 2026	2Q 2026	3Q 2025
Cash, cash equivalents and restricted cash—end of period	$953.6	$181.8	$272.4
Routine capital expenditures	$20.1	$5.8	$9.9
Dividend payments	$16.9	$16.9	$16.7
Proceeds from (Repayment of) bank loans	($59.2)	$59.2	-
Proceeds from convertible notes	$1,125.9	-	-

During the third quarter of 2026, we had $23.0 million of capital expenditures, including $20.1 million for the routine purchases of testing equipment, software, design tools and other items, and $2.9 million for building construction.

Returning Value to Shareholders
On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On August 20, 2026, we paid $16.9 million to Silicon Motion shareholders as the fourth installment of the annual cash dividend. On October 16, 2026, our Board of Directors declared a $2.30 per ADS annual dividend, representing an annual increase of 15%, to be paid in quarterly installments of $0.575 per ADS. The first installment of our annual dividend will be paid on November 19, 2026 to all Silicon Motion shareholders of record as of the close of business on November 5, 2026.

Business Outlook
“The NAND industry is undergoing significant change. Growing demand for enterprise and AI storage is absorbing a larger share of industry supply and pushing NAND flash prices higher. In response, NAND manufacturers are increasingly prioritizing high-capacity enterprise SSDs and pulling back from certain consumer-oriented segments, including PCs, mobile devices, IoT, automotive and enterprise boot drives. We believe this shift creates a meaningful opportunity for our products in these segments. Our proprietary controller technology and nearly two decades of NAND ecosystem relationships, together with our investments in eMMC and UFS solutions, 6nm PCIe Gen 5 edge SSD controllers, 4nm PCIe Gen 6 MonTitan enterprise and AI SSD controllers, and our Ferri and boot drive product families, position us to address demand across AI data center, AI server, edge AI and physical AI applications.”

“While rising memory costs have created pricing pressure in some consumer device segments, our enterprise and Ferri customers have generally prioritized supply assurance over price. As our revenue mix continues to shift toward enterprise and AI applications, our backlog and customer forecasts support our expectation of continued growth. Based on results to date and current visibility, we believe we are on track to deliver record annual revenue in 2026, representing more than 100% growth over the prior year, with our enterprise and AI product families still in the early stages of revenue contribution,” said Mr. Kou.

For the fourth quarter of 2026, management expects:

($ in millions, except percentages)	GAAP	Non-GAAP Adjustment	Non-GAAP
Revenue	$588 to $616 +5% to 10% Q/Q +111% to 121% Y/Y	--	$588 to $616 +5% to 10% Q/Q +111% to 121% Y/Y
Gross margin	53.8% to 54.8%	Approximately $1.0*	54.0% to 55.0%
Operating margin	29.9% to 31.4%	Approximately $34.6 to $35.6**	36.0% to 37.0%

* Projected gross margin (non-GAAP) excludes $1.0 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $34.6 million to $35.6 million of stock-based compensation and dispute-related expenses.

Convertible Notes Offering
On August 13, 2026, the Company completed the issuance of $1,150,000,000 aggregate principal amount of 0.00% Convertible Senior Notes due 2031 (the "Convertible Notes"), including the exercise in full of the initial purchasers' option to purchase an additional $150,000,000 aggregate principal amount. The Convertible Notes are senior, unsecured obligations of the Company, do not bear regular interest, and will mature on August 15, 2031, unless earlier repurchased, redeemed, or converted. The Company will settle conversions by paying the principal amount in cash, with any conversion value in excess of the principal amount settled in cash, ADSs, or a combination thereof, at the Company's election. The Company may redeem the Convertible Notes on or after August 20, 2029 if the last reported sale price of the ADSs equals or exceeds 130% of the conversion price for a specified period. The Convertible Notes were issued in a private offering to persons reasonably believed to be "qualified institutional buyers" pursuant to Rule 144A under the Securities Act of 1933, as amended. The Company intends to use the net proceeds for general corporate purposes and the repayment of outstanding borrowings under our credit agreement with CTBC Bank Co., Ltd. The Convertible Notes are reflected as a long-term liability of approximately $1.1 billion on the Company's consolidated balance sheet as of September 30, 2026.

Conference Call & Webcast:
The Company’s management team will host a conference call at 8:00 a.m. Eastern Time on October 29, 2026. 

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access details, including dial-in information and a unique access PIN, will be provided in the confirmation email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BI5a2f2137ff5446e59f001272500c5465

A webcast of the call will be available on the Company's website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results calculated in accordance with GAAP, the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly titled non-GAAP measures used by other companies.  We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure.  We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company.  We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors.  Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation.  Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results.  We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

• the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
• the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
• a better understanding of how management plans and measures the Company’s underlying business; and
• an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.
  
  

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Dispute related expenses consist of legal, consulting, and other fees and resolution costs related to the dispute.

Foreign exchange loss (gain) consists of remeasurement gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited)
		For Three Months Ended									For Nine Months Ended
		Sep. 30,			Jun. 30,			Sep. 30,			Sep. 30,			Sep. 30,
		2025			2026			2026			2025			2026
		($)			($)			($)			($)			($)
Net sales		241,999			451,001			560,216			607,166			1,353,323
Cost of sales		124,311			224,784			259,797			316,424			665,426
Gross profit		117,688			226,217			300,419			290,742			687,897
Operating expenses
Research & development		69,461			104,654			115,812			182,634			306,706
Sales & marketing		9,492			13,064			13,235			23,701			39,588
General & administrative		9,503			7,385			8,821			23,081			25,734
Operating income		29,232			101,114			162,551			61,326			315,869
Non-operating income (expense)
Interest income, net		2,160			1,390			2,919			7,796			5,926
Foreign exchange gain (loss), net		574			(381)			(63)			(2,355)			(428)
Realized/Unrealized gain (loss) on investments, net		13,002			74,727			(77,972)			15,246			18,514
Others, net		-			-			-			1			-
Subtotal		15,736			75,736			(75,116)			20,688			24,012
Income before income tax		44,968			176,850			87,435			82,014			339,881
Income tax expense		5,856			40,738			22,127			7,128			71,661
Net income		39,112			136,112			65,308			74,886			268,220
Earnings per basic ADS		1.17			4.01			1.93			2.23			7.93
Earnings per diluted ADS		1.16			3.99			1.91			2.23			7.88
Margin Analysis:
Gross margin		48.6%			50.2%			53.6%			47.9%			50.8%
Operating margin		12.1%			22.4%			29.0%			10.1%			23.3%
Net margin		16.2%			30.2%			11.7%			12.3%			19.8%
Additional Data:
Weighted avg. ADS equivalents		33,560			33,908			33,908			33,584			33,831
Diluted ADS equivalents		33,592			34,097			34,135			33,651			34,049

Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited)
	For Three Months Ended									For Nine Months Ended
	Sep. 30,			Jun. 30,			Sep. 30,			Sep. 30,			Sep. 30,
	2025			2026			2026			2025			2026
	($)			($)			($)			($)			($)
Gross profit (GAAP)	117,688			226,217			300,419			290,742			687,897
Gross margin (GAAP)	48.6%			50.2%			53.6%			47.9%			50.8%
Stock-based compensation (A)	86			74			267			160			475
Gross profit (non-GAAP)	117,774			226,291			300,686			290,902			688,372
Gross margin (non-GAAP)	48.7%			50.2%			53.7%			47.9%			50.9%
Operating expenses (GAAP)	88,456			125,103			137,868			229,416			372,028
Stock-based compensation (A)	(5,435)			(3,344)			(17,080)			(10,346)			(28,664)
Dispute related expenses	(3,556)			320			(82)			(6,675)			(1,366)
Operating expenses (non-GAAP)	79,465			122,079			120,706			212,395			341,998
Operating profit (GAAP)	29,232			101,114			162,551			61,326			315,869
Operating margin (GAAP)	12.1%			22.4%			29.0%			10.1%			23.3%
Total adjustments to operating profit	9,077			3,098			17,429			17,181			30,505
Operating profit (non-GAAP)	38,309			104,212			179,980			78,507			346,374
Operating margin (non-GAAP)	15.8%			23.1%			32.1%			12.9%			25.6%
Non-operating income (expense) (GAAP)	15,736			75,736			(75,116)			20,688			24,012
Foreign exchange loss (gain), net	(574)			381			63			2,355			428
Realized/Unrealized gain (loss) on investments, net	(13,002)			(74,727)			77,972			(15,246)			(18,514)
Non-operating income (expense) (non-GAAP)	2,160			1,390			2,919			7,797			5,926
Net income (GAAP)	39,112			136,112			65,308			74,886			268,220
Total pre-tax impact of non-GAAP adjustments	(4,499)			(71,248)			95,464			4,290			12,419
Income tax impact of non-GAAP adjustments	(789)			18,281			(11,614)			(2,070)			5,513
Net income (non-GAAP)	33,824			83,145			149,158			77,106			286,152
Earnings per diluted ADS (GAAP)	$1.16			$3.99			$1.91			$2.23			$7.88
Earnings per diluted ADS (non-GAAP)	$1.00			$2.43			$4.35			$2.29			$8.36
Shares used in computing earnings per diluted ADS (GAAP)	33,592			34,097			34,135			33,651			34,049
Non-GAAP adjustments	110			154			191			59			189
Shares used in computing earnings per diluted ADS (non-GAAP)	33,702			34,251			34,326			33,710			34,238
(A) Excludes stock-based compensation as follows:
Cost of sales	86			74			267			160			475
Research & development	3,820			1,630			12,317			6,877			18,735
Sales & marketing	677			863			1,808			1,618			4,678
General & administrative	938			851			2,955			1,851			5,251

Silicon Motion Technology Corporation Consolidated Balance Sheets (In thousands, unaudited)
		Sep. 30,			Jun. 30,			Sep. 30,
		2025			2026			2026
		($)			($)			($)
Cash and cash equivalents		198,581			74,367			845,926
Accounts receivable, net		201,576			323,638			443,470
Inventories		337,967			673,042			870,916
Restricted assets – current		70,227			103,918			103,918
Prepaid expenses and other current assets		57,043			41,526			169,399
Total current assets		865,393			1,216,491			2,433,629
Long-term investments		32,705			127,403			49,490
Property and equipment, net		211,080			232,805			236,321
Other assets		27,846			28,532			34,904
Total assets		1,137,025			1,605,231			2,754,344
Accounts payable		74,981			103,338			63,455
Loans		-			59,183			-
Income tax payable		19,231			37,969			71,123
Accrued expenses and other current liabilities		157,504			281,716			293,675
Total current liabilities		251,716			482,206			428,253
Convertible notes		-			-			1,126,514
Other long-term liabilities		51,506			76,177			68,820
Total liabilities		303,222			558,383			1,623,587
Shareholders’ equity		833,803			1,046,848			1,130,757
Total liabilities & shareholders’ equity		1,137,025			1,605,231			2,754,344

Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)
	For Three Months Ended									For Nine Months Ended
	Sep. 30,			Jun. 30,			Sep. 30,			Sep. 30,			Sep. 30,
	2025			2026			2026			2025			2026
	($)			($)			($)			($)			($)
Net income	39,112			136,112			65,308			74,886			268,220
Depreciation & amortization	8,039			9,273			9,578			22,709			27,806
Stock-based compensation	5,521			3,418			17,348			10,506			29,140
Amortization of convertible notes issuance cost	-			-			597			-			597
Investment loss (gain) & disposals	(12,886)			(74,684)			78,026			(15,142)			(18,391)
Changes in operating assets and liabilities	(12,905)			(137,899)			(426,967)			(33,080)			(658,486)
Net cash provided by (used in) operating activities	26,881			(63,780)			(256,110)			59,879			(351,114)
Purchase of property & equipment	(20,113)			(7,733)			(22,957)			(47,325)			(48,911)
Purchase of long-term investments	-			-			(4,000)			-			(4,000)
Proceeds from long-term investments	-			-			4,965			-			4,965
Proceeds from disposal properties	-			-			-			-			87
Others	73			-			-			86			-
Net cash provided by (used in) investing activities	(20,040)			(7,733)			(21,992)			(47,239)			(47,859)
Proceeds from convertible notes	-			-			1,125,917			-			1,125,917
Dividend payments	(16,749)			(16,922)			(16,922)			(50,451)			(50,762)
Share repurchases	-			-			-			(24,312)			-
Proceeds from (Repayment of) bank loans	-			59,183			(59,183)			-			-
Net cash provided by (used in) financing activities	(16,749)			42,261			1,049,812			(74,763)			1,075,155
Net increase (decrease) in cash, cash equivalents & restricted cash	(9,908)			(29,252)			771,710			(62,123)			676,182
Effect of foreign exchange changes	17			170			76			178			325
Cash, cash equivalents & restricted cash—beginning of period	282,279			210,884			181,802			334,333			277,081
Cash, cash equivalents & restricted cash—end of period	272,388			181,802			953,588			272,388			953,588

About Silicon Motion:
We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data centers and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customers’ businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customers’ business taking into account the ongoing U.S.-China tariffs and trade disputes; other factors beyond our control such as natural disasters, terrorism, civil unrest, war, including conflicts in the Middle East, threats to the Strait of Hormuz and global energy supply routes, and the ongoing Russia-Ukraine War, and pandemics, epidemics and other health emergencies; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; the risk that the anticipated benefits from our PCIe Gen 5 controller products, including higher average selling prices, may not be maintained or may be less than expected; the risk that our anticipated market share gains across our product lines and penetration of enterprise end markets may not materialize as expected or on the anticipated timeline; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

Silicon Motion Investor Contacts:
Tom Sepenzis	Selina Hsieh
Vice President of Investor Relations & Strategy	Investor Relations
tsepenzis@siliconmotion.com	ir@siliconmotion.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Silicon Motion's fourth-quarter 2026 revenue outlook?

Silicon Motion expects fourth-quarter revenue of $588 million to $616 million, representing 5% to 10% growth quarter over quarter and 111% to 121% growth year over year. Management also expects GAAP gross margin of 53.8% to 54.8% and GAAP operating margin of 29.9% to 31.4%.

How much is Silicon Motion's increased dividend and when is it paid?

Silicon Motion increased its annual dividend 15% to $2.30 per ADS, payable in quarterly installments of $0.575 per ADS. The first installment is payable November 19, 2026, to shareholders of record at the close of business on November 5, 2026.

How will Silicon Motion settle conversions of its 2031 convertible notes?

Silicon Motion will pay the principal amount in cash upon conversion and may settle any excess conversion value in cash, ADSs, or a combination at its election. The notes may be redeemed on or after August 20, 2029, if the ADS sale price equals or exceeds 130% of the conversion price for a specified period.

What does Silicon Motion plan to do with its convertible note proceeds?

Silicon Motion intends to use the net proceeds for general corporate purposes and repayment of outstanding borrowings under its credit agreement with CTBC Bank. The offering closed on August 13, 2026, and included full exercise of the initial purchasers' option for an additional $150,000,000 principal amount.