Slides
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Silicon Motion 4Q25 Earnings Highlights NASDAQ: SIMO February 4, 2026
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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 4Q 2025 Operating Highlights • SSD controller sales increased 25% to 30% Q/Q and increased 35% to 40% Y/Y • eMMC+UFS controller sales increased 0% to 5% Q/Q and increased 50% to 55% Y/Y • SSD solutions sales increased 125% to 130% Q/Q and increased 110% to 115% Y/Y • Revenue = $278.5m (+15% QoQ, +46% Y/Y) • Gross Margin = 49.1% (vs. 48.6% prior Qtr) • Operating Exp = $105.1m (vs. $88.5m prior Qtr) • Operating Margin = 11.4% (vs. 12.1% prior Qtr) • EPS (diluted) = $1.41 (vs. $1.16 prior Qtr) Financial (GAAP) Business • Revenue = $278.5m (+15% QoQ, +46% Y/Y) • Gross Margin = 49.2% (vs. 48.7% prior Qtr) • Operating Exp = $83.2m (vs. $79.5m prior Qtr) • Operating Margin = 19.3% (vs. 15.8% prior Qtr) • EPS (diluted) = $1.26 (vs. $1.00 prior Qtr) Financial (Non-GAAP)
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Agenda • Revenue = $885.6m (+10% Y/Y) • Gross Margin = 48.3% (vs. 45.9% prior Yr) • Operating Exp = $334.5m (vs. $277.9m prior Yr) • Operating Margin = 10.5% (vs. 11.3% prior Yr) • EPS (diluted) = $3.64 (vs. $2.65 prior Yr) • SSD controller sales decreased 0% to 5% Y/Y • eMMC+UFS controller sales increased 20% to 25% Y/Y • SSD solutions sales declined 10% to 15% Y/Y • Announced annual cash dividend of $2.00 per American Depositary Share (“ADS”) 4 FY 2025 Operating Highlights Financial (GAAP) Business • Revenue = $885.6m (+10% Y/Y) • Gross Margin = 48.3% (vs. 46.0% prior Yr) • Operating Exp = $295.6m (vs. $248.1m prior Yr) • Operating Margin = 14.9% (vs. 15.1% prior Yr) • EPS (diluted) = $3.55 (vs. $3.39 prior Yr) 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 • 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 launched 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 • Started sampling new eMMC 5.1 controller with tier-one South Korean automotive customer in the 4Q25 • 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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9 Revenue and Non-GAAP EPS Trends EPSREVENUE
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10 Non-GAAP Gross & Operating Margin Trends Gross Margin Operating Margin
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($ in millions) 2023 2024 2025 Cash, cash equivalents & restricted cash 369.0 334.3 277.1 Cash flow generated by operating actvities 149.1 77.1 61.4 Buybacks - - 24.3 Dividends 16.7* 67.3 67.2 11 Balance Sheet and Capital Allocation Note: * Dividend discontinued due to merger agreement with Maxlinear
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2023 2024 2025 Revenue 639 804 886 %YoY -32% +26% +10% Gross Margin 43% 46% 48% Operating Expenses 199 248 296 Operating Margin 12% 15% 15% Long-Term Model Robust Growth 48% to 50% Disciplined Expansion 25%+ Target Financial Model Note: Non-GAAP results & targets 1Q 2026 Guidance • Revenue = $292m to $306m (+5% to 10% Q/Q) (+76% to 84% Y/Y) • Gross margin = 46.0 to 47.0% • Operating margin = 16.0 to 18.0%
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($m) %QoQ %YoY Revenue 191.2 100% 242.0 100% 278.5 100% 15% 46% Cost of sales 103.2 54% 124.2 51% 141.4 51% 14% 37% Gross profit 87.9 46% 117.8 49% 137.0 49% 16% 56% R&D 47.5 25% 65.6 27% 69.1 25% 5% 45% SG&A 10.8 6% 13.8 6% 14.1 5% 2% 31% Operating expense 58.3 30% 79.5 33% 83.2 30% 5% 43% Operating profit 29.6 16% 38.3 16% 53.8 19% 40% 81% Other income/(expense) 3.8 2% 2.2 1% 1.9 1% -14% -50% Pre-tax earnings 33.4 17% 40.5 17% 55.7 20% 38% 67% Tax expense/(benefit) 4.0 2% 6.6 3% 13.0 5% 95% 225% Net income 29.4 15% 33.8 14% 42.7 15% 26% 45% Dilute ADS (in millions) 34.0 33.7 33.9 Earnings per ADS (diluted) 0.87 1.00 1.26 25% 45% Q4 2024 Q3 2025 Q4 2025 13 4Q 2025 Non-GAAP P&L
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($m) %YoY Total Revenue 803.6 100% 885.6 100% 10% Cost of sales 434.3 54% 457.7 52% 5% Gross profit 369.3 46% 427.9 48% 16% R&D 206.5 26% 244.8 28% 19% SG&A 41.6 5% 50.8 6% 22% Operating expense 248.1 31% 295.6 33% 19% Operating profit 121.2 15% 132.3 15% 9% Other income/(expense) 14.5 2% 9.7 1% -33% Pre-tax earnings 135.7 17% 142.0 16% 5% Tax expense/(benefit) 21.2 3% 22.2 3% 4% Net income 114.5 14% 119.8 14% 5% Dilute ADS (in millions) 33.8 33.8 0% Earnings per ADS (diluted) 3.39 3.55 5% 2024 2025 14 FY 2025 Non-GAAP P&L
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($m) Dispute Realized/Unrealized Non-GAAP % of Stock-Based Related Loss (Gain) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 278.5 100% 278.5 100% Cost of sales 141.4 51% 0.3 141.7 51% Gross profit 137.0 49% (0.3) 136.8 49% Research & development 69.1 25% 11.0 80.1 29% Sales & marketing 8.9 3% 1.8 10.7 4% General & administrative 5.3 2% 2.7 6.3 14.3 5% Total operating expenses 83.2 30% 15.5 6.3 105.1 38% Operating income 53.8 19% (15.8) (6.3) 31.7 11% Other income / (expense) 1.9 1% 24.2 0.3 26.4 9% Income before income taxes 55.7 20% (15.8) (6.3) 24.2 0.3 58.1 21% Provision for income taxes 13.0 5% (2.7) 0.0 0.0 0.1 10.4 4% Net income 42.7 15% (13.1) (6.3) 24.2 0.2 47.7 17% Earnings per ADS, diluted 1.26 1.41 Diluted ADS 33.9 33.8 Effective tax rate 23.3% 17.8% 15 4Q 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 885.6 100% 885.6 100% Cost of sales 457.7 52% 0.4 458.1 52% Gross profit 427.9 48% (0.4) 427.5 48% Research & development 244.8 28% 17.9 262.7 30% Sales & marketing 31.0 3% 3.4 34.4 4% General & administrative 19.8 2% 4.6 13.0 37.4 4% Total operating expenses 295.6 33% 25.9 13.0 334.5 38% Operating income 132.3 15% (26.3) (13.0) 93.0 11% Other income / (expense) 9.7 1% 39.5 (2.1) 47.1 5% Income before income taxes 142.0 16% (26.3) (13.0) 39.5 (2.1) 140.1 16% Provision for income taxes 22.2 3% (4.3) 0.0 0.0 (0.4) 17.5 2% Net income 119.8 14% (22.0) (13.0) 39.5 (1.7) 122.6 14% Earnings per ADS, diluted 3.55 3.64 Diluted ADS 33.8 33.7 Effective tax rate 15.6% 12.5% 16 FY 2025 Non-GAAP Reconciliation
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