Source: GlobeNewswire (MIL-OSI)
KIRKLAND, Wash., July 31, 2025 (GLOBE NEWSWIRE) — MPS will report its results after the market closes on July 31, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/98147401910.
| Q2 2025 Financial Summary |
|
|
|
|
|
(Unaudited) |
| GAAP |
| |
| |
Q2’25 |
Q1’25 |
Q2’24 |
|
QoQ Change |
YoY Change |
| Revenue ($k) |
$664,574 |
$637,554 |
$507,431 |
|
Up 4.2% |
Up 31.0% |
| Gross Margin |
55.1% |
55.4% |
55.3% |
|
Down 0.3 pts |
Down 0.2 pts |
| Opex ($k) |
$201,258 |
$184,471 |
$164,042 |
|
Up 9.1% |
Up 22.7% |
| Operating Margin |
24.8% |
26.5% |
23.0% |
|
Down 1.7 pts |
Up 1.8 pts |
| Net income ($k) |
$133,726 |
$133,791 |
$100,366 |
|
Flat |
Up 33.2% |
| Diluted EPS |
$2.78 |
$2.79 |
$2.05 |
|
Down 0.4% |
Up 35.6% |
| Non-GAAP |
| |
| |
Q2’25 |
Q1’25 |
Q2’24 |
|
QoQ Change |
YoY Change |
| Revenue ($k) |
$664,574 |
$637,554 |
$507,431 |
|
Up 4.2% |
Up 31.0% |
| Gross Margin |
55.5% |
55.7% |
55.7% |
|
Down 0.2 pts |
Down 0.2 pts |
| Opex ($k) |
$137,604 |
$133,526 |
$111,667 |
|
Up 3.1% |
Up 23.2% |
| Operating Margin |
34.8% |
34.7% |
33.7% |
|
Up 0.1 pts |
Up 1.1 pts |
| Net income ($k) |
$202,180 |
$193,813 |
$155,076 |
|
Up 4.3% |
Up 30.4% |
| Diluted EPS |
$4.21 |
$4.04 |
$3.17 |
|
Up 4.2% |
Up 32.8% |
| Tax Rate |
15.0% |
15.0% |
12.5% |
|
Flat |
Up 2.5 pts |
| Revenue by End Market |
| |
| |
|
Revenue |
|
YoY Change |
% of Revenue |
| End Market ($M) |
|
Q2’25 |
Q2’24 |
|
$ |
|
% |
Q2’25 |
|
Q2’24 |
|
| Storage & Computing |
|
|
$195.3 |
|
$114.9 |
|
|
$80.4 |
|
70.0 |
% |
29.4 |
% |
22.7 |
% |
| Automotive |
|
|
145.1 |
|
87.2 |
|
|
57.9 |
|
66.4 |
% |
21.8 |
|
17.2 |
|
| Enterprise Data |
|
|
144.0 |
|
187.2 |
|
|
(43.2 |
) |
(23.1 |
%) |
21.7 |
|
36.9 |
|
| Communications |
|
|
73.8 |
|
43.6 |
|
|
30.2 |
|
69.3 |
% |
11.1 |
|
8.5 |
|
| Consumer |
|
|
59.7 |
|
42.2 |
|
|
17.5 |
|
41.5 |
% |
9.0 |
|
8.3 |
|
| Industrial |
|
|
46.7 |
|
32.3 |
|
|
14.4 |
|
44.6 |
% |
7.0 |
|
6.4 |
|
| Total |
|
|
$664.6 |
|
$507.4 |
|
|
$157.2 |
|
31.0 |
% |
100 |
% |
100 |
% |
Ongoing Business Conditions
In Q2 2025, MPS achieved record quarterly revenue of $664.6 million, 4.2% higher than revenue in the first quarter of 2025 and 31.0% higher than revenue in the second quarter of 2024.
Our performance during the quarter reflected the resilience of our diversified market strategy as we continued to see strong broad-based ordering patterns.
Q2 2025 highlights include:
- We continued to see diversified revenue growth across all our end markets.
- We began initial shipments of our power solutions to support our customers new ASIC based AI products.
- Storage and Compute revenue grew sequentially off a strong Q1 as we continued to see demand for both memory and notebook power solutions.
MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.
“Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.
Q2’25 Revenue Results
MPS reported second quarter revenue of $664.6 million, 4.2% higher than the first quarter of 2025 and 31.0% higher than the second quarter of 2024. Compared with the first quarter of 2025, sales improved sequentially across all end markets.
Second quarter 2025 Industrial revenue of $46.7 million increased 9.6% from the first quarter of 2025 primarily due to higher sales for instrumentation and security applications. Second quarter 2025 Industrial revenue was up 44.6% year over year. Industrial revenue represented 7.0% of our total second quarter 2025 revenue compared with 6.7% in the first quarter of 2025.
In our Enterprise Data market, second quarter 2025 revenue of $144.0 million increased 8.4% from the first quarter of 2025 from higher sales of our power management solutions for AI and server applications. Second quarter 2025 Enterprise Data revenue was down 23.1% year over year. Enterprise Data revenue represented 21.7% of our total second quarter 2025 revenue compared with 20.8% in the first quarter of 2025. Second quarter 2025 Consumer revenue of $59.7 million increased 4.9% from the first quarter of 2025 primarily from higher sales in monitors and gaming solutions. Second quarter 2025 Consumer revenue was up 41.5% year over year. Consumer revenue represented 9.0% of our total second quarter 2025 revenue compared with 8.9% in the first quarter of 2025.
Second quarter 2025 Storage and Computing revenue of $195.3 million increased 3.6% from the first quarter of 2025. The sequential increase was primarily driven by higher sales of power solutions for notebooks as well as memory. Second quarter 2025 Storage and Computing revenue was up 70.0% year over year. Storage and Computing revenue represented 29.4% of MPS’s second quarter 2025 revenue compared with 29.6% in the first quarter of 2025.
Second quarter 2025 Communications revenue of $73.8 million was up 2.8% from the first quarter of 2025 primarily on higher sales of power solutions for optical modules and routers. Second quarter 2025 Communications revenue was up 69.3% year over year. Communications sales represented 11.1% of our total second quarter 2025 revenue compared with 11.3% the first quarter of 2025.
Second quarter Automotive revenue of $145.1 million increased 0.1% from the from the first quarter of 2025. Second quarter 2025 Automotive revenue was up 66.4% year over year. Automotive revenue represented 21.8% of MPS’s second quarter 2025 revenue compared with 22.7% in the first quarter of 2025.
Q2’25 Gross Margin & Operating Income
GAAP gross margin was 55.1%, down 0.3 percentage points compared to the first quarter of 2025. Our GAAP operating income was $164.8 million compared to $168.8 million reported in the first quarter of 2025.
Non-GAAP gross margin for the second quarter of 2025 was 55.5%, down 0.2 percentage points compared to the first quarter of 2025. Our non-GAAP operating income was $231.2 million compared to $221.5 million reported in the first quarter of 2025.
Q2’25 Operating Expenses
Our GAAP operating expenses were $201.3 million in the second quarter of 2025 compared with $184.5 million in the first quarter of 2025.
Our Non-GAAP operating expenses were $137.6 million, up from $133.5 million in the first quarter of 2025.
The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan expense.
Total stock-based compensation and related expenses, including approximately $1.9 million charged to cost of goods sold, was $60.3 million compared with $53.8 million recorded in the first quarter of 2025.
The Bottom Line
Second quarter 2025 GAAP net income was $133.7 million or $2.78 per fully diluted share, compared with $133.8 million or $2.79 per share in the first quarter of 2025.
Second quarter 2025 non-GAAP net income was $202.2 million or $4.21 per fully diluted share, compared with $193.8 million or $4.04 per fully diluted share in the first quarter of 2025.
Second quarter 2025 non-GAAP tax rate of 15% was flat to the first quarter of 2025.
There were 48 million fully diluted shares outstanding at the end of the second quarter of 2025.
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments were $1,146.1 million at the end of the second quarter of 2025 compared to $1,026.7 million at the end of the first quarter of 2025. For the second quarter of 2025, MPS generated operating cash flow of $237.6 million compared with the first quarter of 2025 operating cash flow of $256.4 million.
Accounts receivable at the end of the second quarter of 2025 were $194.8 million, representing 27 days of sales outstanding, which was 4 days lower than the 31 days reported at the end of the first quarter of 2025.
Our internal inventories at the end of the second quarter of 2025 were $490.6 million, up from $454.8 million at the end of the first quarter of 2025. Days of inventory of 150 days at the end of the second quarter of 2025 was 4 days higher than at the end of the first quarter of 2025.
We continue to manage our internal inventories, balancing the uncertainty in the market with being prepared to capture market upturns as they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the second quarter of 139 days was flat to the end of the first quarter of 2025.
| Selected Balance Sheet and Inventory Data |
(Unaudited) |
| |
|
|
|
| |
Q2’25 |
Q1’25 |
Q2’24 |
| Cash, Cash Equivalents, and Short-Term Investments |
$ 1,146.1 M |
$ 1,026.7 M |
$ 1,307.2 M |
| Operating Cash Flow |
$ 237.6 M |
$ 256.4 M |
$ 141.0 M |
| Accounts Receivable |
$ 194.8 M |
$ 214.9 M |
$ 157.9 M |
| Days of Sales Outstanding |
27 Days |
31 Days |
28 Days |
| Internal Inventories |
$ 490.6 M |
$ 454.8 M |
$ 426.8 M |
| Days of Inventory (current quarter revenue) |
150 Days |
146 Days |
171 Days |
| Days of Inventory (next quarter revenue) |
139 Days |
139 Days |
140 Days |
Q3’25 Business Outlook
For the third quarter of 2025 ending September 30, we are forecasting:
- Revenue in the range of $710 million to $730 million.
- GAAP gross margin in the range of 54.9% to 55.5%.
- Non-GAAP gross margin in the range of 55.2% to 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.
- Total stock-based compensation and related expenses in the range of $60.1 million to $62.1 million including approximately $1.8 million that would be charged to cost of goods sold.
- GAAP operating expenses between $201.3 million and $207.3 million.
- Non-GAAP operating expenses in the range of $143.0 million to $147.0 million. This estimate excludes stock-based compensation and related expenses in the range of $58.3 million to $60.3 million.
- Interest and other income in the range from $6.4 million to $6.8 million before foreign exchange gains or losses.
- Non-GAAP tax rate of 15% for 2025.
- Fully diluted shares outstanding in the range of 47.9 to 48.3 million shares.
For further information, contact:
Bernie Blegen
Executive Vice President and Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
MPSInvestor.Relations@monolithicpower.com
Safe Harbor Statement
This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q3’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain, our statement regarding the expected ramping of ASIC AI power products, our statement regarding geographically balanced capacity, our statement regarding our ability to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and the quote from our CEO and founder, 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 third 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) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). 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 earnings commentary and listeners to the accompanying conference call 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 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 recent 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 its 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 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 earnings commentary or in the accompanying webinar.
Non-GAAP Financial Measures
This earnings commentary contains references to certain non-GAAP financial measures. 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, other income, net, operating income 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.
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Net income |
|
$ |
133,726 |
|
|
$ |
100,366 |
|
|
$ |
267,517 |
|
|
$ |
192,907 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation and related expenses |
|
|
60,280 |
|
|
|
52,704 |
|
|
|
114,091 |
|
|
|
104,473 |
|
| Amortization of acquisition-related intangible assets |
|
|
320 |
|
|
|
372 |
|
|
|
640 |
|
|
|
663 |
|
| Deferred compensation plan expense, net |
|
|
281 |
|
|
|
106 |
|
|
|
275 |
|
|
|
153 |
|
| Tax effect |
|
|
7,573 |
|
|
|
1,528 |
|
|
|
13,470 |
|
|
|
(5,628 |
) |
| Non-GAAP net income |
|
$ |
202,180 |
|
|
$ |
155,076 |
|
|
$ |
395,993 |
|
|
$ |
292,568 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
4.22 |
|
|
$ |
3.19 |
|
|
$ |
8.27 |
|
|
$ |
6.01 |
|
| Diluted |
|
$ |
4.21 |
|
|
$ |
3.17 |
|
|
$ |
8.25 |
|
|
$ |
5.98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in the calculation of non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
47,887 |
|
|
|
48,687 |
|
|
|
47,869 |
|
|
|
48,660 |
|
| Diluted |
|
|
48,019 |
|
|
|
48,945 |
|
|
|
48,012 |
|
|
|
48,935 |
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Gross profit |
|
$ |
366,016 |
|
|
$ |
280,578 |
|
|
$ |
719,246 |
|
|
$ |
533,019 |
|
| Gross margin |
|
|
55.1 |
% |
|
|
55.3 |
% |
|
|
55.2 |
% |
|
|
55.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile gross profit to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation and related expenses |
|
|
1,915 |
|
|
|
1,635 |
|
|
|
3,621 |
|
|
|
3,535 |
|
| Amortization of acquisition-related intangible assets |
|
|
287 |
|
|
|
339 |
|
|
|
574 |
|
|
|
597 |
|
| Deferred compensation plan expense |
|
|
605 |
|
|
|
100 |
|
|
|
442 |
|
|
|
540 |
|
| Non-GAAP gross profit |
|
$ |
368,823 |
|
|
$ |
282,652 |
|
|
$ |
723,883 |
|
|
$ |
537,691 |
|
| Non-GAAP gross margin |
|
|
55.5 |
% |
|
|
55.7 |
% |
|
|
55.6 |
% |
|
|
55.7 |
% |
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Total operating expenses |
|
$ |
201,258 |
|
|
$ |
164,042 |
|
|
$ |
385,729 |
|
|
$ |
320,996 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation and related expenses |
|
|
(58,365 |
) |
|
|
(51,069 |
) |
|
|
(110,470 |
) |
|
|
(100,938 |
) |
| Amortization of acquisition-related intangible assets |
|
|
(33 |
) |
|
|
(33 |
) |
|
|
(66 |
) |
|
|
(66 |
) |
| Deferred compensation plan expense |
|
|
(5,256 |
) |
|
|
(1,273 |
) |
|
|
(4,063 |
) |
|
|
(4,899 |
) |
| Non-GAAP operating expenses |
|
$ |
137,604 |
|
|
$ |
111,667 |
|
|
$ |
271,130 |
|
|
$ |
215,093 |
|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Total operating income |
|
$ |
164,758 |
|
|
$ |
116,536 |
|
|
$ |
333,517 |
|
|
$ |
212,023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile total operating income to non-GAAP total operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation and related expenses |
|
|
60,280 |
|
|
|
52,704 |
|
|
|
114,091 |
|
|
|
104,473 |
|
| Amortization of acquisition-related intangible assets |
|
|
320 |
|
|
|
372 |
|
|
|
640 |
|
|
|
663 |
|
| Deferred compensation plan expense |
|
|
5,861 |
|
|
|
1,373 |
|
|
|
4,505 |
|
|
|
5,439 |
|
| Non-GAAP operating income |
|
$ |
231,219 |
|
|
$ |
170,985 |
|
|
$ |
452,753 |
|
|
$ |
322,598 |
|
RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
(Unaudited, in thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Total other income, net |
|
$ |
12,220 |
|
|
$ |
7,512 |
|
|
$ |
17,351 |
|
|
$ |
17,052 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile other income, net to non-GAAP other income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred compensation plan income |
|
|
(5,580 |
) |
|
|
(1,266 |
) |
|
|
(4,230 |
) |
|
|
(5,285 |
) |
| Non-GAAP other income, net |
|
$ |
6,640 |
|
|
$ |
6,246 |
|
|
$ |
13,121 |
|
|
$ |
11,767 |
|
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands) |
| |
| |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| Total income before income taxes |
|
$ |
176,978 |
|
|
$ |
124,048 |
|
|
$ |
350,868 |
|
|
$ |
229,075 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation and related expenses |
|
|
60,280 |
|
|
|
52,704 |
|
|
|
114,091 |
|
|
|
104,473 |
|
| Amortization of acquisition-related intangible assets |
|
|
320 |
|
|
|
372 |
|
|
|
640 |
|
|
|
663 |
|
| Deferred compensation plan expense, net |
|
|
281 |
|
|
|
106 |
|
|
|
275 |
|
|
|
153 |
|
| Non-GAAP income before income taxes |
|
$ |
237,859 |
|
|
$ |
177,230 |
|
|
$ |
465,874 |
|
|
$ |
334,364 |
|
2025 THIRD QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited) |
| |
|
|
|
| |
|
Three Months Ending |
|
| |
|
September 30, 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 |
| |
|
September 30, 2025 |
| |
|
Low |
|
High |
| Operating expenses |
|
$ |
201,300 |
|
|
$ |
207,300 |
|
| Adjustments to reconcile operating expenses to non-GAAP operating expenses: |
|
|
|
|
|
|
|
|
| Stock-based compensation and other expenses |
|
|
(58,300 |
) |
|
|
(60,300 |
) |
| Non-GAAP operating expenses |
|
$ |
143,000 |
|
|
$ |
147,000 |
|
The MIL Network –