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Silicon Motion 2Q26 Earnings Highlights NASDAQ: SIMO July 30, 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 2Q 2026 Operating Highlights • SSD controller sales increased 5% to 10% Q/Q and increased 50% to 55% Y/Y • eMMC+UFS controller sales increased 15% to 20% Q/Q and increased 95% to 100% Y/Y • Ferri & Boot Drive sales increased 110% to 115% Q/Q and increased 1,690% to 1,695% Y/Y • Revenue = $451.0m (+32% QoQ, +127% Y/Y) • Gross Margin = 50.2% (vs. 47.1% prior Qtr) • Operating Exp = $125.1m (vs. $109.1m prior Qtr) • Operating Margin = 22.4% (vs. 15.3% prior Qtr) • EPS (diluted) = $3.99 (vs. $1.97 prior Qtr) Financial (GAAP) Business • Revenue = $451.0 (+32% QoQ, +127% Y/Y) • Gross Margin = 50.2% (vs. 47.2% prior Qtr) • Operating Exp = $122.1m (vs. $99.2m prior Qtr) • Operating Margin = 23.1% (vs. 18.2% prior Qtr) • EPS (diluted) = $2.43 (vs. $1.58 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 • SM8308 – High Performance 8-Channel PCIe Gen5 SSD Controller • SM8008 – Power efficient PCIe5 NVMe enterprise SSD controller for boot drives
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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 two tier-one handset OEMs 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 • Targeting high-capacity, high-performance QLC- based “warm storage” and lower- capacity, high-performance TLC-based "compute" markets • Volume production ramps to begin in 2Q26 with multiple customers • Sales begin in 2nd half of CY26 with three Asian tier-1 customers and two US tier-1 customers Enterprise, Datacenter & AI Infrastructure Controllers
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• Entered production with the leading AI chipmaker for DPU product in 4Q25 • Expanding relationship with customer in the second half of 2026 with next generation platform • Boot drives for DPU’s, ethernet switches and NV-Link switches • Successfully secured NAND supply with multiple manufacturers • Engaged with leading telecommunications infrastructure maker for boot drive solutions, with expected ramp in late 2026 • Sampling boot drive solutions with the leading search engine company for inclusion in next generation architecture Enterprise & AI Boot Drive Solutions
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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) 2024 2025 2026 YTD Cash, cash equivalents & restricted cash 334.3 277.1 181.8 Cash flow generated by (used in) operating actvities 77.1 61.4 (95.0) Buybacks - 24.3 - Bank loans - - 59.2 Dividends 67.3 67.2 33.8 11 Balance Sheet and Capital Allocation
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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 3Q 2026 Guidance • Revenue = $519m to $541m (+15% to 20% Q/Q) (+114% to 124% Y/Y) • Gross margin = 50.0 to 51.0% • Operating margin = 27.5 to 28.5%
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13 2Q 2026 Non-GAAP P&L ($m) %QoQ %YoY Revenue 198.7 100% 342.1 100% 451.0 100% 32% 127% Cost of sales 104.0 52% 180.7 53% 224.7 50% 24% 116% Gross profit 94.7 48% 161.4 47% 226.3 50% 40% 139% R&D 58.1 29% 81.5 24% 103.0 23% 26% 77% SG&A 11.2 6% 17.8 5% 19.1 4% 7% 69% Operating expense 69.3 35% 99.2 29% 122.1 27% 23% 76% Operating profit 25.3 13% 62.2 18% 104.2 23% 68% 311% Other income/(expense) 2.7 1% 1.6 0% 1.4 0% -14% -49% Pre-tax earnings 28.1 14% 63.8 19% 105.6 23% 66% 276% Tax expense/(benefit) 5.0 3% 10.0 3% 22.5 5% 126% 345% Net income 23.0 12% 53.8 16% 83.1 18% 54% 261% Dilute ADS (in millions) 33.6 34.1 34.3 Earnings per ADS (diluted) 0.69 1.58 2.43 54% 254% Q2 2025 Q1 2026 Q2 2026
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14 2Q 2026 Non-GAAP Reconciliation ($m) Dispute Realized/Unrealized Non-GAAP % of Stock-Based Related Loss (Gain) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 451.0 100% 451.0 100% Cost of sales 224.7 50% 0.1 224.8 50% Gross profit 226.3 50% (0.1) 226.2 50% Research & development 103.0 23% 1.6 104.7 23% Sales & marketing 12.2 3% 0.9 13.1 3% General & administrative 6.9 2% 0.9 (0.3) 7.4 2% Total operating expenses 122.1 27% 3.3 (0.3) 125.1 28% Operating income 104.2 23% (3.4) 0.3 101.1 22% Other income / (expense) 1.4 0% 74.7 (0.4) 75.7 17% Income before income taxes 105.6 23% (3.4) 0.3 74.7 (0.4) 176.8 39% Provision for income taxes 22.5 5% (0.4) 0.0 18.7 (0.0) 40.7 9% Net income 83.1 18% (3.1) 0.3 56.1 (0.4) 136.1 30% Earnings per ADS, diluted 2.43 3.99 Diluted ADS 34.3 34.1 Effective tax rate 21.3% 23.0%
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15 1H 2026 Non-GAAP Reconciliation ($m) Dispute Realized/Unrealized Non-GAAP % of Stock-Based Related Loss (Gain) on FX Gain GAAP % of Revenue Comp. Expenses Investments / (Loss) Revenue Revenue 793.1 100% 793.1 100% Cost of sales 405.4 51% 0.2 405.6 51% Gross profit 387.7 49% (0.2) 387.5 49% Research & development 184.5 23% 6.4 190.9 24% Sales & marketing 23.5 3% 2.9 26.4 3% General & administrative 13.3 2% 2.3 1.3 16.9 2% Total operating expenses 221.3 28% 11.6 1.3 234.2 30% Operating income 166.4 21% (11.8) (1.3) 153.3 19% Other income / (expense) 3.0 0% 96.5 (0.4) 99.1 12% Income before income taxes 169.4 21% (11.8) (1.3) 96.5 (0.4) 252.4 32% Provision for income taxes 32.4 4% (1.6) 0.0 18.7 0.0 49.5 6% Net income 137.0 17% (10.2) (1.3) 77.8 (0.4) 202.9 26% Earnings per ADS, diluted 4.01 5.97 Diluted ADS 34.2 34.0 Effective tax rate 19.1% 19.6%
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