MONOLITHIC POWER SYSTEMS INC Q3 FY2025 earnings call

• Achieved record quarterly revenue of $737.2 million, 18.9% higher than Q3 2024.
• Diversified market strategy drove growth in all end markets.
• Expanded automotive customer base with a major Tier 1 supplier adopting MPS for ADAS solution.
• Secured first design win for full BMS solution on robotics platform, supporting transformation to full-service silicon-based solutions provider.
• Continues to invest in new technology, expand into new markets, and diversify end-market applications and global supply chain.

In Q3 2025, MPS achieved record quarterly revenue of $737.2 million, which is 18.9% higher than Q3 of 2024. The diversified market strategy drove year-over-year revenue growth in all end markets. Specific segment revenue contributions weren't detailed numerically, but the overall growth across segments was highlighted.

• Anticipates continued growth in various segments, with layering of additional customers in enterprise data starting in Q4 and providing momentum into early next year.
• New product ramps and solutions, such as BMS in robotics and ADAS in automotive, are expected to contribute to future growth.
• The transformation to more solution-providing models will take time but is expected to improve margins long term.

• Dynamic market conditions with short-term nature of orders limiting capacity to manage mix for gross margin expansion.
• Difficulty in predicting bookings and visibility into future quarters, especially with seasonal considerations and varying market demands.

Q: Congrats on another beat and raise. Can you give puts and takes of which end markets you expect to grow more or less, and updates on enterprise data guidance?

A: Sure, saw better than anticipated performance in enterprise data and industrial markets. Enterprise data has layering of additional customers starting in Q4 with good momentum into next year.

Q: Philosophically, how are you approaching huge AI forecasts and competitive sockets?

A: Business is business, good money is good money. MPS wants to demonstrate best technology and customer service in any segment, engages with large and small AI companies.

Q: Talk about ADAS as a percentage of revenues and its impact on growth.

A: ADAS is less than half of revenues, but seeing significant growth in next few years, especially in EVs and combustion engine cars adopting ADAS.

Q: Thoughts on gross margins moving forward?

A: Forseeable future in mid-55% range due to short-term orders limiting backlog buildup, but long term margins will improve with transition to solution provider models.

Q: Status of enterprise data journey to system-level solutions?

A: Near term goal is multiple million units per month of integrated modules, starting from module power which is less than 1/3 of revenue and growing.

Q: Guide rails on BMS robotics opportunities in auto?

A: BMS revenues for auto and EVs are a few years out, 48-volt and 800-volt solutions are trends with ramps in later years.

Q: Booking trends and seasonal considerations?

A: Difficult to predict bookings, no strong view on Q1 yet, but enterprise data and automotive are well positioned for new revenue ramps.

Q: Competitive landscape in materials like GaN and SiC?

A: MPS is involved in silicon carbide and evaluating materials, broadly indexed across opportunities but early in the process.

Q: Drivers for customers switching to modules in vertical power delivery?

A: MPS provides both chip and module solutions, customers switch based on their existing setups, but higher power density, efficiency, and smaller footprint are potential benefits.