Earnings release
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Silicon Motion Announces Results for the Period Ended September 30, 2025 October 30, 2025 Business Highlights Third quarter of 2025 sales increased 22% Q/Q and increased 14% Y/Y SSD controller sales: 3Q of 2025 increased 20% to 25% Q/Q and decreased 0% to 5% Y/Y eMMC+UFS controller sales: 3Q of 2025 increased 20% to 25% Q/Q and increased 35% to 40% Y/Y SSD solutions sales: 3Q of 2025 increased 15% to 20% Q/Q and decreased 40% to 45% Y/Y Financial Highlights 3Q 2025 GAAP 3Q 2025 Non-GAAP* • Net sales $242.0 million (+22% Q/Q, +14% Y/Y) $242.0 million (+22% Q/Q, +14% Y/Y) • Gross margin 48.6% 48.7% • Operating margin 12.1% 15.8% • Earnings per diluted ADS $1.16 $1.00 * 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. 31, 2025 (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, 2025. For the third quarter of 2025, net sales (GAAP) increased sequentially to $242.0 million from $198.7 million in the second quarter of 2025. Net income (GAAP) also increased sequentially to $39.1 million, or $1.16 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $16.3 million, or $0.49 per diluted ADS (GAAP), in the second quarter of 2025. For the third quarter of 2025, net income (non-GAAP) increased sequentially to $33.8 million, or $1.00 per diluted ADS (non-GAAP), from net income (non-GAAP) of $23.0 million, or $0.69 per diluted ADS (non-GAAP), in the second quarter of 2025. All financial numbers are in U.S. dollars unless otherwise noted. Third Quarter of 2025 Review “We experienced better than projected strength across each of our markets in the third quarter of 2025 and delivered revenue well above our previously provided range,” stated Wallace Kou, President and CEO of Silicon Motion. “Our eMMC and UFS products experienced strong growth during the third quarter, primarily driven by a rebounding smartphone market coupled with market share gains. We also experienced continued growth in our automotive segment primarily driven by increased product diversification and new customer ramps. Our leading PCIe5 client SSD controller sales grew 45% quarter-over-quarter as AI-at-the-edge PCs are gaining traction and as white box AI server makers continue to leverage mainstream hardware components. The investments we have made over the past few years are taking root as we are starting to benefit from increased product and market diversification. We believe we are well positioned to achieve long-term, sustainable growth given our expanding product portfolio of leading consumer, enterprise, automotive and industrial storage solutions.” Key Financial Results (in millions, except percentages and per ADS amounts) GAAP Non-GAAP 3Q 2025 2Q 2025 3Q 2024 3Q 2025 2Q 2025 3Q 2024 Revenue $242.0 $198.7 $212.4 $242.0 $198.7 $212.4 Gross profit Percent of revenue $117.7 48.6% $94.7 47.7% $99.3 46.7% $117.8 48.7% $94.7 47.7% $99.3 46.8% Operating expenses $88.5 $72.4 $74.8 $79.5 $69.3 $65.1 Operating income Percent of revenue $29.2 12.1% $22.3 11.2% $24.5 11.5% $38.3 15.8% $25.3 12.8% $34.2 16.1% Earnings per diluted ADS $1.16 $0.49 $0.62 $1.00 $0.69 $0.92 Other Financial Information
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(in millions) 3Q 2025 2Q 2025 3Q 2024 Cash, cash equivalents and restricted cash—end of period $272.4 $282.3 $368.6 Routine capital expenditures $9.9 $7.4 $7.4 Dividend payments $16.7 $16.7 $16.8 During the third quarter of 2025, we had $20.1 million of capital expenditures, including $9.9 million for the routine purchases of testing equipment, software, design tools and other items, and $10.2 million for building improvements and furniture for our office building in Hsinchu, Taiwan. Returning Value to Shareholders On October 28, 2024, 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 21, 2025, we paid $16.7 million to Silicon Motion shareholders as the fourth installment of the annual cash dividend. On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual dividend to be paid in quarterly installments of $0.50 per ADS. The first installment of our new annual dividend will be paid on November 26, 2025. Business Outlook “Our efforts in product and market diversification are yielding results on both the top and bottom lines. We introduced several new products in 2025 in client SSDs, portable SSDs, eMMC/UFS, enterprise, automotive and expandable cards that will ramp and scale in 2026, driving higher share across our markets and benefiting from higher ASPs and strong margins. We expect continued top and bottom line growth in the current quarter, exceeding our previously announced full-year revenue run rate target of $1 billion exiting the quarter, and look forward to capitalizing on these new products and further expanding our product portfolio and target markets next year,” stated Mr. Kou. For the fourth quarter of 2025, management expects: ($ in millions, except percentages) GAAP Non-GAAP Adjustment Non-GAAP Revenue $254 to $266 +5% to 10% Q/Q +33% to 39% Y/Y -- $254 to $266 +5% to 10% Q/Q +33% to 39% Y/Y Gross margin 48.4% to 49.4% Approximately $0.3* 48.5% to 49.5% Operating margin 11.5% to 13.2% Approximately $18.1 to $19.1** 19.0% to 20.0% * Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation. ** Projected operating margin (non-GAAP) excludes $18.1 million to $19.1 million of stock-based compensation and dispute related expenses. Conference Call & Webcast: The Company’s management team will conduct a conference call at 8:00 am Eastern Time on October 31, 2025. Conference Call Details Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration. Participant Online Registration: https://register-conf.media-server.com/register/BI5a424c717da840efac90cdf19c8ac036 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;
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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. Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments. Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute. Foreign exchange loss (gain) consists of translation 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$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures. Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments. Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited) For the Three Months Ended For the Nine Months Ended Sep. 30, Jun. 30, Sep. 30, Sep. 30, Sep. 30, 2024 2025 2025 2024 2025 ($) ($) ($) ($) ($) Net sales 212,412 198,675 241,999 612,392 607,166 Cost of sales 113,142 103,988 124,311 331,227 316,424 Gross profit 99,270 94,687 117,688 281,165 290,742 Operating expenses Research & development 58,486 58,147 69,461 163,666 182,634 Sales & marketing 7,009 7,093 9,492 20,090 23,701 General & administrative 9,315 7,118 9,503 23,003 23,081 Loss from settlement of litigation - - - 1,250 - Operating income 24,460 22,329 29,232 73,156 61,326 Non-operating income (expense) Interest income, net 3,518 2,706 2,160 10,760 7,796 Foreign exchange gain (loss), net (488) (3,302) 574 345 (2,355) Realized/Unrealized gain(loss) on investments (602) (1,051) 13,002 (355) 15,246 Others, net - 1 - - 1 Subtotal 2,428 (1,646) 15,736 10,750 20,688 Income before income tax 26,888 20,683 44,968 83,906 82,014 Income tax expense 6,045 4,372 5,856 16,226 7,128 Net income 20,843 16,311 39,112 67,680 74,886 Earnings per basic ADS 0.62 0.49 1.17 2.01 2.23 Earnings per diluted ADS 0.62 0.49 1.16 2.01 2.23 Margin Analysis: Gross margin 46.7% 47.7% 48.6% 45.9% 47.9% Operating margin 11.5% 11.2% 12.1% 11.9% 10.1% Net margin 9.8% 8.2% 16.2% 11.1% 12.3% Additional Data: Weighted avg. ADS equivalents 33,687 33,557 33,560 33,627 33,584 Diluted ADS equivalents 33,700 33,562 33,592 33,691 33,651
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Silicon Motion Technology Corporation Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited) For the Three Months Ended For the Nine Months Ended Sep. 30, Jun. 30, Sep. 30, Sep. 30, Sep. 30, 2024 2025 2025 2024 2025 ($) ($) ($) ($) ($) Gross profit (GAAP) 99,270 94,687 117,688 281,165 290,742 Gross margin (GAAP) 46.7% 47.7% 48.6% 45.9% 47.9% Stock-based compensation (A) 63 - 86 149 160 Restructuring charges - - - 46 - Gross profit (non-GAAP) 99,333 94,687 117,774 281,360 290,902 Gross margin (non-GAAP) 46.8% 47.7% 48.7% 45.9% 47.9% Operating expenses (GAAP) 74,810 72,358 88,456 208,009 229,416 Stock-based compensation (A) (3,595) (175) (5,435) (7,059) (10,346) Dispute related expenses (6,076) (2,841) (3,556) (11,135) (6,675) Operating expenses (non-GAAP) 65,139 69,342 79,465 189,815 212,395 Operating profit (GAAP) 24,460 22,329 29,232 73,156 61,326 Operating margin (GAAP) 11.5% 11.2% 12.1% 11.9% 10.1% Total adjustments to operating profit 9,734 3,016 9,077 18,389 17,181 Operating profit (non-GAAP) 34,194 25,345 38,309 91,545 78,507 Operating margin (non-GAAP) 16.1% 12.8% 15.8% 14.9% 12.9% Non-operating income (expense) (GAAP) 2,428 (1,646) 15,736 10,750 20,688 Foreign exchange loss (gain), net 488 3,302 (574) (345) 2,355 Realized/Unrealized loss (gain) on investments 602 1,051 (13,002) 355 (15,246) Non-operating income (expense) (non-GAAP) 3,518 2,707 2,160 10,760 7,797 Net income (GAAP) 20,843 16,311 39,112 67,680 74,886 Total pre-tax impact of non-GAAP adjustments 10,824 7,369 (4,499) 18,399 4,290 Income tax impact of non-GAAP adjustments (649) (670) (789) (1,014) (2,070) Net income (non-GAAP) 31,018 23,010 33,824 85,065 77,106 Earnings per diluted ADS (GAAP) $ 0.62 $ 0.49 $ 1.16 $ 2.01 $ 2.23 Earnings per diluted ADS (non-GAAP) $ 0.92 $ 0.69 $ 1.00 $ 2.52 $ 2.29 Shares used in computing earnings per diluted ADS (GAAP) 33,700 33,562 33,592 33,691 33,651 Non-GAAP adjustments 109 18 110 52 59 Shares used in computing earnings per diluted ADS (non-GAAP) 33,809 33,580 33,702 33,743 33,710 (A)Excludes stock-based compensation as follows: Cost of sales 63 - 86 149 160 Research & development 2,377 55 3,820 4,614 6,877 Sales & marketing 455 79 677 975 1,618 General & administrative 763 41 938 1,470 1,851 Silicon Motion Technology Corporation Consolidated Balance Sheets (In thousands, unaudited)
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Sep. 30, Jun. 30, Sep. 30, 2024 2025 2025 ($) ($) ($) Cash and cash equivalents 313,924 208,043 198,581 Accounts receivable (net) 202,726 220,924 201,576 Inventories 214,574 208,005 337,967 Refundable deposits – current 51,102 70,308 70,227 Prepaid expenses and other current assets 38,246 68,040 57,043 Total current assets 820,572 775,320 865,394 Long-term investments 16,878 19,620 32,705 Property and equipment (net) 181,983 208,826 211,080 Other assets 29,304 29,997 27,846 Total assets 1,048,737 1,033,763 1,137,025 Accounts payable 30,888 37,455 74,981 Income tax payable 14,444 17,370 19,231 Accrued expenses and other current liabilities 131,143 134,377 157,504 Total current liabilities 176,475 189,202 251,716 Other liabilities 62,673 55,620 51,506 Total liabilities 239,148 244,822 303,222 Shareholders’ equity 809,589 788,941 833,803 Total liabilities & shareholders’ equity 1,048,737 1,033,763 1,137,025 Silicon Motion Technology Corporation Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) For the Three Months Ended For the Nine Months Ended Sep. 30, Jun. 30, Sep. 30, Sep. 30, Sep. 30, 2024 2025 2025 2024 2025 ($) ($) ($) ($) ($) Net income 20,843 16,311 39,112 67,680 74,886 Depreciation & amortization 6,664 7,445 8,039 18,075 22,709 Stock-based compensation 3,658 175 5,521 7,208 10,506 Investment losses (gain) & disposals 602 1,053 (12,886) 355 (15,142) Changes in operating assets and liabilities 22,280 (42,258) (12,905) (9,967) (33,080) Net cash provided by (used in) operating activities 54,047 (17,274) 26,881 83,351 59,879 Purchase of property & equipment (12,436) (15,551) (20,113) (33,612) (47,325) Others - - 73 - 86 Net cash used in investing activities (12,436) (15,551) (20,040) (33,612) (47,239) Dividend payments (16,812) (16,746) (16,749) (50,441) (50,451) Share repurchases - (21) - - (24,312) Net cash used in financing activities (16,812) (16,767) (16,749) (50,441) (74,763) Net increase (decrease) in cash, cash equivalents & restricted cash 24,799 (49,592) (9,908) (702) (62,123) Effect of foreign exchange changes 186 124 17 308 178 Cash, cash equivalents & restricted cash—beginning of period 343,611 331,747 282,279 368,990 334,333 Cash, cash equivalents & restricted cash—end of period 368,596 282,279 272,388 368,596 272,388 About Silicon Motion:
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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 center 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 customer’s 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 customer’s business taking into account the ongoing U.S.-China tariffs and trade disputes; the uncertainties associated with any future global or regional pandemic; 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; changes in our cost of finished goods; 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; 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, 2025. 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 Senior Director of IR & Strategy Investor Relations tsepenzis@siliconmotion.com ir@siliconmotion.com