MONOLITHIC POWER SYSTEMS INC Q4 FY2025 earnings call

• 2025 marked the 14th consecutive year of growth with full-year revenue of $2.8 billion.
• Q4 2025 had a record quarterly revenue of $751.2 million.
• Non-enterprise data end markets grew by over 40% YOY, demonstrating a diversified business model.
• Secured over $4 billion of geographically balanced capacity and added supply chain partners.
• Record module revenue and sampled an 800-volt power solution for data centers.
• In automotive, launched solutions for 48-volt and zonal architectures, including a fully integrated 48-volt e-fuse.
• Expanded customer base in data centers for power solutions across various applications.
• Quarterly dividend increased 28% to $2 per share; over 72% of free cash flow returned to stockholders in the three years ending December 2025.

In 2025, Monolithic Power Systems, Inc. posted its fourteenth consecutive year of growth with a full-year revenue of $2.8 billion, up 26.4% from 2024. For Q4 2025, the company achieved a record quarterly revenue of $751.2 million, which was 1.9% above Q3 2025 and 20.8% higher than Q4 2024. Non-enterprise data end markets grew by over 40% year-over-year. The company secured more than $4 billion of geographically balanced capacity, and in automotive, it launched solutions for 48-volt and zonal architectures, including the first fully integrated 48-volt e-fuse.

• Tony Balow suggested a floor of 50% growth for enterprise data in 2026, up from prior outlooks.
• The company continues to expand capacity to support future growth and diversify its supply chain.
• Confidence in maintaining growth through innovation, new market expansion, and customer focus.

• Supply chain uncertainties that could impact production and growth.
• Market competition in the semiconductor and power management segments.
• Macroeconomic factors such as memory shortages and demand destruction affecting automotive and PC markets.

Q: Chris Caso of Wolfe Research asks about market segments in March and enterprise data outlook.

A: Tony Balow and Michael Hsing discuss Q4 ordering patterns, book-to-bill ratio, enterprise data growth outlook, and seasonality.

Q: Joe Quatrochi of Wells Fargo asks about enterprise data growth related to CPU demand and PC memory constraints.

A: Michael Hsing and Tony Balow talk about blurred lines between CPU, GPU, and server power supplies, and uncertainty around PC memory impact.

Q: Joshua Buchalter of Cowen asks about enterprise data visibility and non-enterprise data growth.

A: Bernie Blegen and Michael Hsing discuss longer ordering patterns due to capacity concerns and non-enterprise data growth outlook.

Q: Quinn Bolton of Needham asks about gaining shares in AI power segment and 800-volt solutions.

A: Michael Hsing and Tony Balow talk about product portfolio and adaptability to GaN/SiC solutions.

Q: Rick Schafer of Oppenheimer asks about Michael Hsing's retirement and product evolution.

A: Michael Hsing discusses company evolution into new semiconductor areas and enjoyment of the business.

Q: Gary Mobley of Loop Capital asks about outperformance and module mix.

A: Bernie Blegen and Gary Mobley talk about strategic execution and visibility into enterprise data growth.

Q: Tore Svanberg of Stifel asks about storage SSD power and capacity expansion.

A: Michael Hsing and Tony Balow discuss storage business and capacity expansion efforts.

Q: Kelsey Chia of Citi Research asks about enterprise data guidance and gross margin.

A: Bernie Blegen and Michael Hsing talk about market positioning and gross margin targets.

Q: Jack Egan of Charter Research asks about packaging innovation and OpEx impact.

A: Michael Hsing and Tony Balow discuss packaging innovation timeline and OpEx efficiency.

Q: Sebastian Naj of William Blair asks about vertical power solutions and optical modules.

A: Michael Hsing and Bernie Blegen talk about vertical power adoption and optical module opportunities.