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Silicon Motion 3Q25 Earnings Highlights NASDAQ: SIMO October 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 3 3Q 2025 Operating Highlights • SSD controller sales increased 20% to 25% Q/Q and decreased 0% to 5% Y/Y • eMMC+UFS controller sales increased 20% to 25% Q/Q and increased 35% to 40% Y/Y • SSD solutions sales increased 15% to 20% Q/Q and decreased 40% to 45% Y/Y • Revenue = $242.0m (+22% QoQ, +14% Y/Y) • Gross Margin = 48.6% (vs. 47.7% prior Qtr) • Operating Exp = $88.5m (vs. $72.4m prior Qtr) • Operating Margin = 12.1% (vs. 11.2% prior Qtr) • EPS (diluted) = $1.16 (vs. $0.49 prior Qtr) Financial (GAAP) Business • Revenue = $242.0m (+22% QoQ, +14% Y/Y) • Gross Margin = 48.7% (vs. 47.7% prior Qtr) • Operating Exp = $79.5m (vs. $69.3m prior Qtr) • Operating Margin = 15.8% (vs. 12.8% prior Qtr) • EPS (diluted) = $1.00 (vs. $0.69 prior Qtr) Financial (Non-GAAP)
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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 • SM2753 – High-performance UFS 3.1 controllers for smartphone, automotive & edge computing • 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 • SM8308 – High Performance 8-Channel PCIe Gen5 SSD Controller
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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 15% of client SSD revenue in 3Q25 • Market-leading power/performance • Mass-market 4-channel PCIe 5.0 controller coming in 4Q 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 • Shipping new UFS 3.1 and UFS 2.2 controllers to the low-to-mid-range smartphone market • Partnered directly with a tier-one handset OEM with QLC UFS solution, launching 2nd smartphone in the current quarter • Sampling new eMMC 5.1 controller with tier- one South Korean automotive customer in the current quarter • Diversifying eMMC and UFS through automotive, industrial and other high growth, high-volume markets including smart-glasses, gaming platforms 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 six customers • Targeting high-capacity, high-performance QLC- based"warm storage" and lower-capacity, high- performance TLC-based "compute" markets • Production qualification ongoing, with volume ramps expected in the second half of 2026 • Entering DPU Server Boot Drive Solutions • Entering production with the leading AI chipmaker in the current quarter 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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($ in millions) 2023 2024 2025 YTD Cash, cash equivalents & restricted cash 369.0 334.3 272.4 Cash flow generated by operating actvities 149.1 77.1 59.9 Buybacks - - 24.3 Dividends 16.7* 67.3 50.5 10 Balance Sheet and Capital Allocation Note: * Dividend discontinued due to merger agreement with Maxlinear
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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 4Q 2025 Guidance • Revenue = $254m to $266m (+5% to 10% Q/Q) (+33% to 39% Y/Y) • Gross margin = 48.5 to 49.5% • Operating margin = 19.0 to 20.0%
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($m) %QoQ %YoY Revenue 212.4 100% 198.7 100% 242.0 100% 22% 14% Cost of sales 113.1 53% 104.0 52% 124.2 51% 19% 10% Gross profit 99.3 47% 94.7 48% 117.8 49% 24% 19% R&D 53.6 25% 58.1 29% 65.6 27% 13% 22% SG&A 11.5 5% 11.2 6% 13.8 6% 23% 20% Operating expense 65.1 31% 69.3 35% 79.5 33% 15% 22% Operating profit 34.2 16% 25.3 13% 38.3 16% 51% 12% Other income/(expense) 3.5 2% 2.7 1% 2.2 1% -20% -39% Pre-tax earnings 37.7 18% 28.1 14% 40.5 17% 44% 7% Tax expense/(benefit) 6.7 3% 5.0 3% 6.6 3% 32% -1% Net income 31.0 15% 23.0 12% 33.8 14% 47% 9% Dilute ADS (in millions) 33.8 33.6 33.7 Earnings per ADS (diluted) 0.92 0.69 1.00 46% 9% Q3 2024 Q2 2025 Q3 2025 12 3Q 2025 Non-GAAP P&L
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($m) Dispute Realized/Unrealized Non-GAAP % of Stock-Based Related Loss (Gain) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 242.0 100% 242.0 100% Cost of sales 124.2 51% 0.1 124.3 51% Gross profit 117.8 49% (0.1) 117.7 49% Research & development 65.6 27% 3.8 69.5 29% Sales & marketing 8.8 4% 0.7 9.5 4% General & administrative 5.0 2% 0.9 3.6 9.5 4% Total operating expenses 79.5 33% 5.4 3.6 88.5 37% Operating income 38.3 16% (5.5) (3.6) 29.2 12% Other income / (expense) 2.2 1% 13.0 0.6 15.7 7% Income before income taxes 40.5 17% (5.5) (3.6) 13.0 0.6 45.0 19% Provision for income taxes 6.6 3% (0.9) 0.0 0.0 0.1 5.9 2% Net income 33.8 14% (4.6) (3.6) 13.0 0.5 39.1 16% Earnings per ADS, diluted 1.00 1.16 Diluted ADS 33.7 33.6 Effective tax rate 16.4% 13.0% 13 3Q 2025 Non-GAAP Reconciliation
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($m) Dispute Realized/Unrealized Non-GAAP % of Stock-Based Related Loss (Gain) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 607.2 100% 607.2 100% Cost of sales 316.3 52% 0.2 316.4 52% Gross profit 290.9 48% (0.2) 290.7 48% Research & development 175.8 29% 6.9 182.6 30% Sales & marketing 22.1 4% 1.6 23.7 4% General & administrative 14.6 2% 1.9 6.7 23.1 4% Total operating expenses 212.4 35% 10.3 6.7 229.4 38% Operating income 78.5 13% (10.5) (6.7) 61.3 10% Other income / (expense) 7.8 1% 15.2 (2.4) 20.7 3% Income before income taxes 86.3 14% (10.5) (6.7) 15.2 (2.4) 82.0 14% Provision for income taxes 9.2 2% (1.6) 0.0 0.0 (0.5) 7.1 1% Net income 77.1 13% (8.9) (6.7) 15.2 (1.9) 74.9 12% Earnings per ADS, diluted 2.29 2.23 Diluted ADS 33.7 33.7 Effective tax rate 10.7% 8.7% 14 2025 YTD Non-GAAP Reconciliation
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