Slides
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Silicon Motion 2Q25 Earnings Highlights NASDAQ: SIMO July 31, 2025
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2 Safe Harbor Statement This presentation 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. Such forward-looking statements include, without limitation, statements regarding trends in the consumer electronics and semiconductor industries, any future growth projections or expectations in such markets and our future results of operations, financial condition and business prospects. 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.
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Agenda • SSD controller sales increased 0% to 5% Q/Q and decreased 15% to 20% Y/Y • eMMC+UFS controller sales increased 40% to 45% Q/Q and increased 10% to 15% Y/Y • SSD solutions sales increased 0% to 5% Q/Q and decreased 45% to 50% Y/Y • Revenue = $198.7m (+19% QoQ, -6% Y/Y) • Gross Margin = 47.7% (vs. 47.1% prior Qtr) • Operating Exp = $72.4m (vs. $68.6m prior Qtr) • Operating Margin = 11.2% (vs. 5.9% prior Qtr) • EPS (diluted) = $0.49 (vs. $0.58 prior Qtr) 3 Financial (GAAP) Business • Revenue = $198.7m (+19% QoQ, -6% Y/Y) • Gross Margin = 47.7% (vs. 47.1% prior Qtr) • Operating Exp = $69.3m (vs. $63.6m prior Qtr) • Operating Margin = 12.8% (vs. 8.9% prior Qtr) • EPS (diluted) = $0.69 (vs. $0.60 prior Qtr) Financial (Non-GAAP) 2Q 2025 Operating Highlights
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Significant New Products Ramping Client SSDs • SM2508 – High-performance 6nm 8-channel PCIe Gen5 SSD Controller • 8 NAND channels, 3,600 MT/s, 14GB/s sequential with ultra-low power consumption of 3.5W power consumption • SM2504XT – Mainstream 6nm 4-channel DRAM-less PCIeGen5 SSD Controller • SM2322 – External USB3.2 portable SSD controller with 4K LDPC for QLC for AI smart device & gaming consoles • SM2264XT-AT – PCIe Gen4 SSD controller for Automotive & ADAS with leading ASPICE L3 certification eMMC/UFS • SM2755/SM2756 – High-performance 6nm UFS 4.1 controller for smartphone, automotive & edge computing • 4,300/4,000 MB/s read/write with TLC & QLC NAND support • SM2752P – New UFS 2.2 controller targeting the low-end smartphone market Enterprise/Data Center/AI • SM8366 – High-performance 16-channel PCIe Gen5 SSD Controller • Industry’s 1st QLC-based Zone Namespace SSD • Proprietary MonTitan PerformaShape technology with 2,400 MT/s, 14GB/s sequential read and 3.5M IOPS (4K) Random Read
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SSD Highlights • Shipping to six flash makers and nearly all module makers • New high-performance PCIe 5.0 SSD controller SM2508 – industry’s first merchant 6nm controller • Early shipments began in 3Q24; wins with four flash makers and nearly all module makers • Achieved 10% of client SSD revenue in 2Q25 • Market-leading power/performance • Mass-market 4-channel PCIe 5.0 controller coming in late 2025 for mainstream PCs • Early wins with four flash makers and actively engaged with nearly all module makers • Automotive-Grade PCIe 4.0 Product • Two flash maker wins and expect to ramp with leading electric car platform in 2025 • First PCIe 4.0 automotive SSD with ASPICE Level 3 Certification
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eMMC & UFS Highlights • Shipping to all tier-one Android handset OEMs • Direct relationships with multiple NAND makers, module makers and smartphone OEMs • UFS 4.1 controller – development/qualification is on-going, and expect to ramp in 2026 • 2-channel UFS 4.1 controller has significant advantages over existing 4-channel competitors, generating significant interest • Shipping UFS 3.1 controller to the mid-range smartphone market • Introducing new, low cost UFS 2.2 controller for low-end smartphone solution in 2H2025 • Partnered directly with a tier-one handset OEM with QLC UFS solution • Diversifying eMMC and UFS through automotive, industrial and other high growth, high-volume markets Mobile Devices AR/VR Devices Drones Cameras Applications Specifications Supports HS-Gear-5 x 2-Lane Supports MPHY version 5.0 Supports UniPro standard version 2.0 Compatible with UFS 2.2/3.1/4.1
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• MonTitan SM8366 based development platform has sampled over a dozen target customers including: • Tier-1 Datacenter and Enterprise Storage Customers • NAND Flash Manufactures • Module Makers/Ecosystem Partners • Achieved Design wins with two Tier-1 customers in early 2024, ramping in the second-half of this year • Won an additional four customers in the December quarter • Entering BlueField DPU Server Boot Drive Solutions • Won two designs and expected to enter production in late 2025 Enterprise, Datacenter & AI Infrastructure Highlights
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8 Revenue and Non-GAAP EPS Trends EPSREVENUE
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9 Non-GAAP Gross & Operating Margin Trends Gross Margin Operating Margin
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10 Balance Sheet and Capital Allocation Note: * Dividend discontinued due to merger agreement with Maxlinear ($ in millions) 2023 2024 2025 YTD Cash, cash equivalents & restricted cash 369.0 334.3 282.3 Cash flow generated by operating actvities 149.1 77.1 33.0 Buybacks - - 24.3 Dividends 16.7* 67.3 33.7
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Target Financial Model 2022 2023 2024 Revenue 946 639 804 %YoY +3% -32% +26% Gross Margin 50% 43% 46% Operating Expenses 216 199 248 Operating Margin 27% 12% 15% Long-Term Model Robust Growth 48% to 50% Disciplined Expansion 25%+ Note: Non-GAAP results & targets 3Q 2025 Guidance • Revenue = $219m to $228m (+10% to 15% Q/Q) • Gross margin = 48.0 to 49.0% • Operating margin = 12.3 to 14.3%
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($m) %QoQ %YoY Revenue 210.7 100% 166.5 100% 198.7 100% 19% -6% Cost of sales 113.8 54% 88.1 53% 104.0 52% 18% -9% Gross profit 96.8 46% 78.4 47% 94.7 48% 21% -2% R&D 50.7 24% 52.0 31% 58.1 29% 12% 15% SG&A 11.4 5% 11.6 7% 11.2 6% -3% -2% Operating expense 62.1 29% 63.6 38% 69.3 35% 9% 12% Operating profit 34.7 16% 14.9 9% 25.3 13% 71% -27% Other income/(expense) 4.2 2% 2.9 2% 2.7 1% -8% -35% Pre-tax earnings 38.9 18% 17.8 11% 28.1 14% 58% -28% Tax expense/(benefit) 6.4 3% (2.5) -1% 5.0 3% -303% -21% Net income 32.5 15% 20.3 12% 23.0 12% 14% -29% Dilute ADS (in millions) 33.7 33.8 33.6 Earnings per ADS (diluted) 0.96 0.60 0.69 14% -29% Q2 2024 Q1 2025 Q2 2025 12 2Q 2025 Non-GAAP P&L
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Dispute Unrealized ($m) Non-GAAP % of Stock-Based Related Gain(loss) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 198.7 100% 198.7 100% Cost of sales 104.0 52% 0.0 104.0 52% Gross profit 94.7 48% 0.0 94.7 48% Research & development 58.1 29% 0.1 58.1 29% Sales & marketing 7.0 4% 0.1 7.1 4% General & administrative 4.2 2% 0.0 2.8 7.1 4% Total operating expenses 69.3 35% 0.2 2.8 72.4 36% Operating income 25.3 13% (0.2) (2.8) 22.3 11% Other income / (expense) 2.7 1% (1.1) (3.3) (1.6) -1% Income before income taxes 28.1 14% (0.2) (2.8) (1.1) (3.3) 20.7 10% Provision for income taxes 5.0 3% (0.0) 0.0 0.0 (0.7) 4.4 2% Net income 23.0 12% (0.2) (2.8) (1.1) (2.6) 16.3 8% Earnings per ADS, diluted 0.69 0.49 Diluted ADS 33.6 33.6 Effective tax rate 18.0% 21.1% 13 2Q 2025 Non-GAAP Reconciliation
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14 1H 2025 Non-GAAP Reconciliation Dispute Realized/Unrealized ($m) Non-GAAP % of Stock-Based Related Gain(loss) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 365.2 100% 365.2 100% Cost of sales 192.0 53% 0.1 192.1 53% Gross profit 173.1 47% (0.1) 173.1 47% Research & development 110.1 30% 3.1 113.2 31% Sales & marketing 13.3 4% 0.9 14.2 4% General & administrative 9.5 3% 0.9 3.1 13.6 4% Total operating expenses 132.9 36% 4.9 3.1 141.0 39% Operating income 40.2 11% (5.0) (3.1) 32.1 9% Other income / (expense) 5.6 2% 2.2 (2.9) 5.0 1% Income before income taxes 45.8 13% (5.0) (3.1) 2.2 (2.9) 37.0 10% Provision for income taxes 2.6 1% (0.7) 0.0 0.0 (0.6) 1.3 0% Net income 43.3 12% (4.3) (3.1) 2.2 (2.4) 35.8 10% Earnings per ADS, diluted 1.28 1.06 Diluted ADS 33.7 33.7 Effective tax rate 5.6% 3.4%
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