Monolithic Power Systems Inc

paragraph:1: EX-99.1

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paragraph:3: mpwr-20260630xexx991.htm

paragraph:4: EX-99.1

paragraph:5: Document Exhibit 99.1 Monolithic Power Systems Q2'26 Earnings Commentary The highest quality power solutions for Industrial Applications, Telecom Infrastructures, Cloud Computing, Automotive, and Consumer Applications 1 Monolithic Power Systems Reports Second Quarter Results on July 30, 2026 Monolithic Power Systems, Inc. (“MPS”) reported its results after market close on July 30, 2026 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The webinar can be accessed from the Investor Relations section of the MPS website at www.monolithicpower.com . Q2 2026 Financial Summary (Unaudited) GAAP Q2'26 Q1'26 Q2'25 QoQ Change YoY Change Revenue ($M) $ 980.6 $ 804.2 $ 664.6 21.9 % 47.6 % Gross Margin 55.2 % 55.3 % 55.1 % (0.1) pts 0.1 pts Opex ($M) $ 237.2 $ 203.9 $ 201.3 16.3 % 17.8 % Operating Margin 31.0 % 30.0 % 24.8 % 1.0 pts 6.2 pts Net income ($M) $ 257.3 $ 193.2 $ 135.0 33.2 % 90.6 % Diluted EPS $ 5.22 $ 3.92 $ 2.81 33.2 % 85.8 % Non-GAAP Q2'26 Q1'26 Q2'25 QoQ Change YoY Change Revenue ($M) $ 980.6 $ 804.2 $ 664.6 21.9 % 47.6 % Gross Margin 55.6 % 55.5 % 55.5 % 0.1 pts 0.1 pts Opex ($M) $ 177.6 $ 158.3 $ 137.6 12.1 % 29.1 % Operating Margin 37.5 % 35.8 % 34.8 % 1.7 pts 2.7 pts Net income ($M) $ 320.1 $ 251.3 $ 202.2 27.4 % 58.3 % Diluted EPS $ 6.50 $ 5.10 $ 4.21 27.5 % 54.4 % Tax Rate 15.0 % 15.0 % 15.0 % Flat Flat Revenue by End Market Revenue % Change % of Revenue End Market ($M) Q2'26 Q1'26 Q2'25 QoQ YoY Q2'26 Q1'26 Enterprise Data $ 380.6 $ 262.8 $ 144.0 44.8 % 164.3 % 38.8 % 32.7 % Storage & Computing 199.8 174.4 195.3 14.6 % 2.3 % 20.4 21.7 Automotive 157.1 152.4 145.1 3.1 % 8.2 % 16.0 18.9 Communications 131.5 111.5 73.8 18.0 % 78.3 % 13.4 13.9 Consumer 56.8 54.5 59.7 4.2 % (4.8 %) 5.8 6.8 Industrial 54.8 48.6 46.7 12.7 % 17.3 % 5.6 6.0 Total $ 980.6 $ 804.2 $ 664.6 21.9 % 47.6 % 100 % 100 % 2 Ongoing Business Conditions In the second quarter of 2026, MPS achieved record quarterly revenue of $980.6 million, 21.9% higher than the first quarter of 2026 and 47.6% higher than revenue in the second quarter of 2025. Our quarterly performance was the result of our continued innovation, our consistent execution and the resilience of our diversified market and supply chain strategy. Q2 2026 highlights include: • All end markets grew sequentially with Enterprise Data growing 45% as we continued to see strong, broad-based ordering patterns. • We extended our capacity goal significantly beyond $6B to support future revenue growth and our transformation into a full solution provider. • We received initial orders for high-speed DDR5 memory components which we expect to grow our SAM into next year. • We began sampling High Voltage AC to DC products for 800V data center architectures as we expand beyond our current AI and server core power solutions. • In our Automotive market, so far this year, we have shipped products for over 1500 new sockets as we increase our footprint in both ADAS and other applications within the vehicle. We continue to adjust to the fluid geopolitical and macro-economic environment, but our diversified market strategy remains unchanged: • MPS focuses on innovation and solving our customers’ most challenging problems. • We consistently invest in new technologies that open new end markets and applications. • We continuously expand and diversify our global supply chain allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur. “Our results demonstrate the strength of our diversified model and our continued success in transforming from a chip-only, semiconductor supplier to a full service solutions provider,” said Michael Hsing, CEO and founder of MPS. Q2 2026 Revenue Results MPS reported second quarter revenue of $980.6 million, 21.9% higher than the first quarter of 2026 and 47.6% higher than revenue in the second quarter of 2025. Compared with the first quarter of 2026, sales improved sequentially across all end markets. 3 In our Enterprise Data market, second quarter 2026 revenue of $380.6 million increased 44.8% from the first quarter of 2026. The sequential increase was driven by higher sales of our power management solutions for AI and server applications. Second quarter 2026 Enterprise Data revenue was up 164.3% year over year. Enterprise Data revenue represented 38.8% of our total second quarter 2026 revenue compared with 32.7% in the first quarter of 2026. Second quarter 2026 Communications revenue of $131.5 million was up 18.0% from the first quarter of 2026 primarily as a result of higher sales of power solutions for optical modules and switches. Second quarter 2026 Communications revenue was up 78.3% year over year. Communications sales represented 13.4% of our total second quarter 2026 revenue compared with 13.9% the first quarter of 2026. Second quarter 2026 Storage and Computing revenue of $199.8 million increased 14.6% from the first quarter of 2026 on higher sales for memory and storage power management solutions. Second quarter 2026 Storage and Computing revenue was up 2.3% year over year. Storage and Computing revenue represented 20.4% of MPS’s second quarter 2026 revenue compared with 21.7% in the first quarter of 2026. Second quarter 2026 Industrial revenue of $54.8 million increased 12.7% from the first quarter of 2026. Second quarter 2026 Industrial revenue was up 17.3% year over year. Industrial revenue represented 5.6% of our total second quarter 2026 revenue compared with 6.0% in the first quarter of 2026. Second quarter 2026 Consumer revenue of $56.8 million increased 4.2% from the first quarter of 2026. Second quarter 2026 Consumer revenue was down 4.8% year over year. Consumer revenue represented 5.8% of our total second quarter 2026 revenue compared with 6.8% in the first quarter of 2026. Second quarter Automotive revenue of $157.1 million increased 3.1% from the first quarter of 2026 primarily from higher sales of Infotainment and ADAS power solutions. Second quarter 2026 Automotive revenue was up 8.2% year over year. Automotive revenue represented 16.0% of our second quarter 2026 revenue compared with 18.9% in the first quarter of 2026. Q2 2026 Gross Margin & Operating Income GAAP gross margin was 55.2%, 0.1 percentage points lower than the first quarter of 2026. Our GAAP operating income was $303.9 million compared to $241.2 million reported in the first quarter of 2026. Non-GAAP gross margin for the second quarter of 2026 was 55.6%, 0.1 percentage points higher than the first quarter of 2026. Our non-GAAP operating income was $367.7 million compared to $288.0 million reported in the first quarter of 2026. Q2 2026 Operating Expenses GAAP operating expenses were $237.2 million in the second quarter of 2026 compared with $203.9 million in the first quarter of 2026. Non-GAAP operating expenses were $177.6 million, up from $158.3 million in the first quarter of 2026. 4 The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan expense. Total stock-based compensation and related expenses, including approximately $1.8 million charged to cost of goods sold, was $53.5 million in the second quarter of 2026 compared with $48.5 million in the first quarter of 2026. The Bottom Line Second quarter 2026 GAAP net income was $257.3 million or $5.22 per fully diluted share, compared with $193.2 million or $3.92 per fully diluted share in the first quarter of 2026. Second quarter 2026 non-GAAP net income was $320.1 million or $6.50 per fully diluted share, compared with $251.3 million or $5.10 per fully diluted share in the first quarter of 2026. Second quarter 2026 non-GAAP tax rate of 15% was flat to the first quarter of 2026. There were 49.3 million fully diluted shares outstanding at the end of the second quarter of 2026. Balance Sheet and Cash Flow Cash, cash equivalents and short-term investments were $1,413.8 million at the end of the second quarter of 2026 compared to $1,367.1 million at the end of the first quarter of 2026. For the second quarter of 2026, MPS generated operating cash flow of $227.9 million compared with first quarter of 2026 operating cash flow of $250.3 million. Accounts receivable at the end of the second quarter of 2026 were $343.6 million, representing 32 days of sales outstanding, which was 2 days lower than the 34 days reported at the end of the first quarter of 2026. Our internal inventories at the end of the second quarter of 2026 were $675.8 million, up from $619.2 million at the end of the first quarter of 2026. Days of inventory of 140 days at the end of the second quarter of 2026 was 17 days lower than at the end of the first quarter of 2026. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the second quarter of 121 days was 7 days lower than at the end of the first quarter of 2026. 5 Selected Balance Sheet and Inventory Data (Unaudited) Q2'26 Q1'26 Q2'25 Cash, Cash Equivalents, and Short-Term Investments $ 1,413.8 M $ 1,367.1 M $ 1,146.1 M Operating Cash Flow $ 227.9 M $ 250.3 M $ 237.6 M Accounts Receivable $ 343.6 M $ 302.1 M $ 194.8 M Days of Sales Outstanding 32 Days 34 Days 27 Days Internal Inventories $ 675.8 M $ 619.2 M $ 490.6 M Days of Inventory (current quarter revenue) 140 Days 157 Days 150 Days Days of Inventory (next quarter revenue) 121 Days 128 Days 135 Days Q3 2026 Business Outlook For the third quarter of 2026 ending September 30, we are forecasting: • Revenue in the range of $1,140 million to $1,160 million. • GAAP gross margin in the range of 55.2% to 55.8%. • Non-GAAP gross margin in the range of 55.4% to 56.0%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets. • Total stock-based compensation and related expenses in the range of $53.2 million to $55.2 million including approximately $1.7 million that would be charged to cost of goods sold. • GAAP operating expenses between $252.7 million and $258.7 million. • Non-GAAP operating expenses in the range of $201.2 million to $205.2 million. This estimate excludes stock-based compensation and related expenses in the range of $51.5 million to $53.5 million. • Interest and other income in the range from $7.8 million to $8.2 million before foreign exchange gains or losses. • Non-GAAP tax rate of 15% for 2026. • Fully diluted shares outstanding in the range of 49.1 to 49.5 million shares. In addition, our Board of Directors has authorized an additional $500 million for stock repurchases bringing our total current authorization to $1 billion. For further information, contact: Tony Balow Vice President, Finance Monolithic Power Systems, Inc. MPSInvestor.Relations@monolithicpower.com 6 Safe Harbor Statement This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q3 2026 Business Outlook” section herein, our statement regarding our business focus, our statement regarding our capacity growth goal, our statement regarding our expected shipments for the Automotive end market, our statement regarding our expected expansion of our SAM for high-speed DDR5 memory components, our statement regarding the expansion and diversification of our supply chain to allow us to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and our statement regarding the major customer sampling of our first high speed interface products for DDR5, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our goal to expand our capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described above. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer 7 demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential global conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential global conflicts; the Company’s ability to timely and adequately remediate its material weakness; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 27, 2026. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar. Non-GAAP Financial Measures This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, amortization of acquisition-related intangible assets, net deferred compensation plan expense, and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of 8 acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below. About

paragraph:6: Monolithic Power Systems MPS is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world. Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 9 Monolithic Power Systems, Inc. Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value) June 30, December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 1,005,587 $ 1,099,302 Short-term investments 408,174 157,243 Accounts receivable, net 343,620 255,626 Inventories 675,849 564,649 Other current assets 44,156 106,982 Total current assets 2,477,386 2,183,802 Property and equipment, net 774,549 627,689 Acquisition-related intangible assets, net 8,216 8,790 Goodwill 25,944 25,944 Deferred tax assets, net 1,182,833 1,182,883 Other long-term assets 217,279 165,091 Total assets $ 4,686,207 $ 4,194,199 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 182,224 $ 138,272 Accrued compensation and related benefits 93,635 85,963 Other accrued liabilities 222,075 145,130 Total current liabilities 497,934 369,365 Income tax liabilities 75,022 75,022 Deferred tax liabilities 90,316 90,480 Other long-term liabilities 127,511 127,835 Total liabilities 790,783 662,702 Commitments and contingencies Stockholders’ equity: Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 49,142 and 48,709, respectively 1,033,062 936,998 Retained earnings 2,861,853 2,609,651 Accumulated other comprehensive income (loss) 509 (15,152) Total stockholders’ equity 3,895,424 3,531,497 Total liabilities and stockholders’ equity $ 4,686,207 $ 4,194,199 10 Monolithic Power Systems, Inc. Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 980,642 $ 664,574 $ 1,784,827 $ 1,302,128 Cost of revenue 439,572 298,558 798,692 582,882 Gross profit 541,070 366,016 986,135 719,246 Operating expenses: Research and development 118,618 96,266 219,184 188,493 Selling, general and administrative 118,558 104,992 221,905 197,236 Total operating expenses 237,176 201,258 441,089 385,729 Operating income 303,894 164,758 545,046 333,517 Other income, net 17,835 12,220 23,865 17,351 Income before income taxes 321,729 176,978 568,911 350,868 Income tax expense 64,431 41,969 118,387 80,807 Net income $ 257,298 $ 135,009 $ 450,524 $ 270,061

paragraph:7: Net income per share: Basic $ 5.24 $ 2.82 $ 9.17 $ 5.64 Diluted $ 5.22 $ 2.81 $ 9.15 $ 5.62 Weighted-average shares outstanding:

paragraph:8: Basic 49,138 47,887 49,118 47,869 Diluted 49,260 48,019 49,251 48,012 11 RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME (Unaudited, in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 257,298 $ 135,009 $ 450,524 $ 270,061 Adjustments to reconcile net income to non-GAAP net income: Stock-based compensation and related expenses 53,549 60,280 102,087 114,091 Amortization of acquisition-related intangible assets 320 320 640 640 Deferred compensation plan expense, net 963 281 585 275 Tax effect 7,948 6,290 17,554 10,926 Non-GAAP net income $ 320,078 $ 202,180 $ 571,390 $ 395,993 Non-GAAP net income per share: Basic $ 6.51 $ 4.22 $ 11.63 $ 8.27 Diluted $ 6.50 $ 4.21 $ 11.60 $ 8.25 Shares used in the calculation of non-GAAP net income per share: Basic 49,138 47,887 49,118 47,869 Diluted 49,260 48,019 49,251 48,012 12 RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Gross profit $ 541,070 $ 366,016 $ 986,135 $ 719,246 Gross margin 55.2% 55.1% 55.3% 55.2% Adjustments to reconcile gross profit to non-GAAP gross profit: Stock-based compensation and related expenses 1,767 1,915 3,449 3,621 Amortization of acquisition-related intangible assets 287 287 574 574 Deferred compensation plan expense 2,113 605 1,470 442 Non-GAAP gross profit $ 545,237 $ 368,823 $ 991,628 $ 723,883 Non-GAAP gross margin 55.6% 55.5% 55.6% 55.6% RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total operating expenses $ 237,176 $ 201,258 $ 441,089 $ 385,729 Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: Stock-based compensation and related expenses (51,782) (58,365) (98,638) (110,470) Amortization of acquisition-related intangible assets (33) (33) (66) (66) Deferred compensation plan expense (7,781) (5,256) (6,458) (4,063) Non-GAAP operating expenses $ 177,580 $ 137,604 $ 335,927 $ 271,130 13 RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME (Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total operating income $ 303,894 $ 164,758 $ 545,046 $ 333,517 Adjustments to reconcile total operating income to non-GAAP total operating income: Stock-based compensation and related expenses 53,549 60,280 102,087 114,091 Amortization of acquisition-related intangible assets 320 320 640 640 Deferred compensation plan expense 9,894 5,861 7,928 4,505 Non-GAAP operating income $ 367,657 $ 231,219 $ 655,701 $ 452,753 RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET (Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total other income, net $ 17,835 $ 12,220 $ 23,865 $ 17,351 Adjustments to reconcile other income, net to non-GAAP other income, net: Deferred compensation plan income (8,931) (5,580) (7,343) (4,230) Non-GAAP other income, net $ 8,904 $ 6,640 $ 16,522 $ 13,121 RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES (Unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total income before income taxes $ 321,729 $ 176,978 $ 568,911 $ 350,868 Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: Stock-based compensation and related expenses 53,549 60,280 102,087 114,091 Amortization of acquisition-related intangible assets 320 320 640 640 Deferred compensation plan expense, net 963 281 585 275 Non-GAAP income before income taxes $ 376,561 $ 237,859 $ 672,223 $ 465,874 14 2026 THIRD QUARTER OUTLOOK RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN (Unaudited) Three Months Ending September 30, 2026 Low High Gross margin 55.2 % 55.8 % Adjustment to reconcile gross margin to non-GAAP gross margin: Stock-based compensation and other expenses 0.2 0.2 Non-GAAP gross margin 55.4 % 56.0 % RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (Unaudited, in thousands) Three Months Ending September 30, 2026 Low High Operating expenses $ 252,700 $ 258,700 Adjustments to reconcile operating expenses to non-GAAP operating expenses: Stock-based compensation and other expenses (51,500) (53,500) Non-GAAP operating expenses $ 201,200 $ 205,200 15

paragraph:1: EX-99.1

paragraph:2: 2

paragraph:3: ex_929254.htm

paragraph:4: EXHIBIT 99.1

paragraph:5: ex_929254.htm

paragraph:6: Exhibit 99.1

paragraph:7: Monolithic Power Systems

paragraph:8: Q1 ’26 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems Reports First Quarter Results on April 30, 2026

paragraph:13: Monolithic Power Systems, Inc. (“MPS”) reported its results after market close on April 30, 2026 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The webinar can be accessed from the Investor Relations section of the MPS website at www.monolithicpower.com .

paragraph:14: Q1

paragraph:15: 2026 Financial Summary

paragraph:16: (Unaudited)

paragraph:17: GAAP

paragraph:18: Q1'26

paragraph:19: Q4'25

paragraph:20: Q1'25

paragraph:21: QoQ Change

paragraph:22: YoY Change

paragraph:23: Revenue ($M)

paragraph:24: $804.2

paragraph:25: $751.2

paragraph:26: $637.6

paragraph:27: 7.1

paragraph:28: %

paragraph:29: 26.1

paragraph:30: %

paragraph:31: Gross Margin

paragraph:32: 55.3

paragraph:33: %

paragraph:34: 55.2

paragraph:35: %

paragraph:36: 55.4

paragraph:37: %

paragraph:38: 0.1 pts

paragraph:39: (0.1) pts

paragraph:40: Opex ($M)

paragraph:41: $203.9

paragraph:42: $214.3

paragraph:43: $184.5

paragraph:44: (4.9

paragraph:45: %)

paragraph:46: 10.5

paragraph:47: %

paragraph:48: Operating Margin

paragraph:49: 30.0

paragraph:50: %

paragraph:51: 26.6

paragraph:52: %

paragraph:53: 26.5

paragraph:54: %

paragraph:55: 3.4 pts

paragraph:56: 3.5 pts

paragraph:57: Net income ($M)

paragraph:58: $193.2

paragraph:59: $171.7

paragraph:60: $135.1

paragraph:61: 12.6

paragraph:62: %

paragraph:63: 43.1

paragraph:64: %

paragraph:65: Diluted EPS

paragraph:66: $3.92

paragraph:67: $3.49

paragraph:68: $2.81

paragraph:69: 12.3

paragraph:70: %

paragraph:71: 39.5

paragraph:72: %

paragraph:73: Non-GAAP

paragraph:74: Q1'26

paragraph:75: Q4'25

paragraph:76: Q1'25

paragraph:77: QoQ Change

paragraph:78: YoY Change

paragraph:79: Revenue ($M)

paragraph:80: $804.2

paragraph:81: $751.2

paragraph:82: $637.6

paragraph:83: 7.1

paragraph:84: %

paragraph:85: 26.1

paragraph:86: %

paragraph:87: Gross Margin

paragraph:88: 55.5

paragraph:89: %

paragraph:90: 55.5

paragraph:91: %

paragraph:92: 55.7

paragraph:93: %

paragraph:94: Flat

paragraph:95: (0.2) pts

paragraph:96: Opex ($M)

paragraph:97: $158.3

paragraph:98: $148.1

paragraph:99: $133.5

paragraph:100: 7.0

paragraph:101: %

paragraph:102: 18.6

paragraph:103: %

paragraph:104: Operating Margin

paragraph:105: 35.8

paragraph:106: %

paragraph:107: 35.8

paragraph:108: %

paragraph:109: 34.7

paragraph:110: %

paragraph:111: Flat

paragraph:112: 1.1 pts

paragraph:113: Net income ($M)

paragraph:114: $251.3

paragraph:115: $235.3

paragraph:116: $193.8

paragraph:117: 6.8

paragraph:118: %

paragraph:119: 29.7

paragraph:120: %

paragraph:121: Diluted EPS

paragraph:122: $5.10

paragraph:123: $4.79

paragraph:124: $4.04

paragraph:125: 6.5

paragraph:126: %

paragraph:127: 26.2

paragraph:128: %

paragraph:129: Tax Rate

paragraph:130: 15.0

paragraph:131: %

paragraph:132: 15.0

paragraph:133: %

paragraph:134: 15.0

paragraph:135: %

paragraph:136: Flat

paragraph:137: Flat

paragraph:138: Revenue by End Market

paragraph:139: Revenue

paragraph:140: % Change

paragraph:141: % of Revenue

paragraph:142: End Market ($M)

paragraph:143: Q1'26

paragraph:144: Q4'25

paragraph:145: Q1'25

paragraph:146: QoQ

paragraph:147: YoY

paragraph:148: Q1'26

paragraph:149: Q4'25

paragraph:150: Enterprise Data

paragraph:151: $262.8

paragraph:152: $233.5

paragraph:153: $132.9

paragraph:154: 12.6

paragraph:155: %

paragraph:156: 97.7

paragraph:157: %

paragraph:158: 32.7

paragraph:159: %

paragraph:160: 31.1

paragraph:161: %

paragraph:162: Storage & Computing

paragraph:163: 174.4

paragraph:164: 162.1

paragraph:165: 188.5

paragraph:166: 7.6

paragraph:167: %

paragraph:168: (7.5

paragraph:169: %)

paragraph:170: 21.7

paragraph:171: 21.6

paragraph:172: Automotive

paragraph:173: 152.4

paragraph:174: 151.0

paragraph:175: 144.9

paragraph:176: 0.9

paragraph:177: %

paragraph:178: 5.1

paragraph:179: %

paragraph:180: 18.9

paragraph:181: 20.1

paragraph:182: Communications

paragraph:183: 111.5

paragraph:184: 83.7

paragraph:185: 71.8

paragraph:186: 33.1

paragraph:187: %

paragraph:188: 55.5

paragraph:189: %

paragraph:190: 13.9

paragraph:191: 11.1

paragraph:192: Consumer

paragraph:193: 54.5

paragraph:194: 66.2

paragraph:195: 56.9

paragraph:196: (17.5

paragraph:197: %)

paragraph:198: (4.2

paragraph:199: %)

paragraph:200: 6.8

paragraph:201: 8.8

paragraph:202: Industrial

paragraph:203: 48.6

paragraph:204: 54.7

paragraph:205: 42.6

paragraph:206: (11.2

paragraph:207: %)

paragraph:208: 14.2

paragraph:209: %

paragraph:210: 6.0

paragraph:211: 7.3

paragraph:212: Total

paragraph:213: $804.2

paragraph:214: $751.2

paragraph:215: $637.6

paragraph:216: 7.1

paragraph:217: %

paragraph:218: 26.1

paragraph:219: %

paragraph:220: 100

paragraph:221: %

paragraph:222: 100

paragraph:223: %

paragraph:224: 2

paragraph:225: Ongoing Business Conditions

paragraph:226: In the first quarter of 2026 , MPS achieved record quarterly revenue of $804.2 million, 7.1% higher than the fourth quarter of 2025 and 26.1% higher than revenue in the first quarter of 2025 .

paragraph:227: Our quarterly performance was the result of our continued innovation, our consistent execution and the resilience of our diversified market strategy.

paragraph:228: Q1

paragraph:229: 2026 highlights include:

paragraph:230: •

paragraph:231: Our Communications end market grew 33% sequentially on the strength of our power solutions for optical modules and switches.

paragraph:232: •

paragraph:233: The pipeline for our Automotive and Enterprise Data end markets, including server, continued to accelerate as we won multiple new projects across customers and regions.

paragraph:234: •

paragraph:235: We sampled our first high speed interface products for DDR5 at major customers.

paragraph:236: •

paragraph:237: MPS continued to grow our capacity past our original $4B plan, with a new goal of reaching $6B in the near future.

paragraph:238: We continue to adjust to the fluid geopolitical and macro-economic environment, but our diversified market strategy remains unchanged:

paragraph:239: •

paragraph:240: MPS focuses on innovation and solving our customers’ most challenging problems.

paragraph:241: •

paragraph:242: We consistently invest in new technologies that allow us to expand into new end markets and applications.

paragraph:243: •

paragraph:244: We continue to expand and diversify our global supply chain allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.

paragraph:245: “Our results demonstrate the strength of our diversified model and our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:246: Q1

paragraph:247: 2026 Revenue Results

paragraph:248: MPS reported first quarter revenue of $804.2 million, 7.1% higher than the fourth quarter of 2025 and 26.1% higher than the first quarter of 2025 . Compared with the fourth quarter of 2025 , sales in Communications, Enterprise Data, Storage and Computing and Automotive improved sequentially.

paragraph:249: 3

paragraph:250: First quarter 2026 Communications revenue of $ 111.5 million was up 33.1% from the fourth quarter of 2025 primarily as a result of higher sales of power solutions for optical modules and switches. First quarter 2026 Communications revenue was up 55.5% year over year. Communications sales represented 13.9 % of our total first quarter 2026 revenue compared with 11.1 % the fourth quarter of 2025 .

paragraph:251: In our Enterprise Data market, first quarter 2026 revenue of $262.8 million increased 12.6% from the fourth quarter of 2025 . The sequential increase was driven by higher sales of our power management solutions for AI and server applications. First quarter 2026 Enterprise Data revenue was up 97.7% year over year. Enterprise Data revenue represented 32.7% of our total first quarter 2026 revenue compared with 31.1% in the fourth quarter of 2025 .

paragraph:252: First quarter 2026 Storage and Computing revenue of $ 174.4 million increased 7.6% from the fourth quarter of 2025 primarily on higher sales for storage power management solutions. First quarter 2026 Storage and Computing revenue was down 7.5% year over year. Storage and Computing revenue represented 21.7 % of MPS’s first quarter 2026 revenue compared with 21.6 % in the fourth quarter of 2025 .

paragraph:253: First quarter Automotive revenue of $ 152.4 million increased 0.9% from the fourth quarter of 2025 as higher sales for ADAS power solutions were partially offset by lower sales of USB solutions. First quarter 2026 Automotive revenue was up 5.1% year over year. Automotive revenue represented 18.9 % of MPS’s first quarter 2026 revenue compared with 20.1 % in the fourth quarter of 2025 .

paragraph:254: First quarter 2026 Industrial revenue of $ 48.6 million decreased 11.2% from the fourth quarter of 2025 . First quarter 2026 Industrial revenue was up 14.2% year over year. Industrial revenue represented 6.0 % of our total first quarter 2026 revenue compared with 7.3 % in the fourth quarter of 2025 .

paragraph:255: First quarter 2026 Consumer revenue of $ 54.5 million decreased 17.5% from the fourth quarter of 2025 . First quarter 2026 Consumer revenue was down 4.2% year over year. Consumer revenue represented 6.8 % of our total first quarter 2026 revenue compared with 8.8 % in the fourth quarter of 2025 .

paragraph:256: Q1

paragraph:257: 2026 Gross Margin & Operating Income

paragraph:258: GAAP gross margin was 55.3% , 0.1 percentage points higher than the fourth quarter of 2025 . Our GAAP operating income was $241.2 million compared to $199.9 million reported in the fourth quarter of 2025 .

paragraph:259: Non-GAAP gross margin for the first quarter of 2026 was 55.5% , flat to the fourth quarter of 2025 . Our non-GAAP operating income was $288.0 million compared to $269.0 million reported in the fourth quarter of 2025 .

paragraph:260: 4

paragraph:261: Q1

paragraph:262: 2026 Operating Expenses

paragraph:263: Our GAAP operating expenses were $203.9 million in the first quarter of 2026 compared with $214.3 million in the fourth quarter of 2025 . Our Non-GAAP operating expenses were $158.3 million, up from $148.1 million in the fourth quarter of 2025 .

paragraph:264: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income.

paragraph:265: Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $48.5 million compared with $66.9 million recorded in the fourth quarter of 2025 .

paragraph:266: The Bottom Line

paragraph:267: First quarter 2026 GAAP net income was $193.2 million or $3.92 per fully diluted share, compared with $171.7 million or $3.49 per fully diluted share in the fourth quarter of 2025 .

paragraph:268: First quarter 2026 non-GAAP net income was $251.3 million or $5.10 per fully diluted share, compared with $235.3 million or $4.79 per fully diluted share in the fourth quarter of 2025 .

paragraph:269: First quarter 2026 non-GAAP tax rate of 15% was flat to the fourth quarter of 2025 .

paragraph:270: There were 49.2 million fully diluted shares outstanding at the end of the first quarter of 2026 .

paragraph:271: Balance Sheet and Cash Flow

paragraph:272: Cash, cash equivalents and short-term investments were $1,367.1 million at the end of the first quarter of 2026 compared to $1,256.5 million at the end of the fourth quarter of 2025 . For the first quarter of 2026 , MPS generated operating cash flow of $250.3 million compared with fourth quarter of 2025 operating cash flow of $104.9 million.

paragraph:273: Accounts receivable at the end of the first quarter of 2026 were $302.1 million, representing 34 days of sales outstanding, which was 3 days higher than the 31 days reported at the end of the fourth quarter of 2025.

paragraph:274: Our internal inventories at the end of the first quarter of 2026 were $619.2 million, up from $564.6 million at the end of the fourth quarter of 2025. Days of inventory of 157 days at the end of the first quarter of 2026 was 4 days higher than at the end of the fourth quarter of 2025.

paragraph:275: Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the first quarter of 140 days was 3 days lower than at the end of the fourth quarter of 2025.

paragraph:276: 5

paragraph:277: Selected Balance Sheet and Inventory Data

paragraph:278: (Unaudited)

paragraph:279: Q1'26

paragraph:280: Q4'25

paragraph:281: Q1'25

paragraph:282: Cash, Cash Equivalents, and Short-Term Investments

paragraph:283: $ 1,367.1 M

paragraph:284: $ 1,256.5 M

paragraph:285: $ 1,026.7 M

paragraph:286: Operating Cash Flow

paragraph:287: $ 250.3 M

paragraph:288: $ 104.9 M

paragraph:289: $ 256.4 M

paragraph:290: Accounts Receivable

paragraph:291: $ 302.1 M

paragraph:292: $ 255.6 M

paragraph:293: $ 214.9 M

paragraph:294: Days of Sales Outstanding

paragraph:295: 34 Days

paragraph:296: 31 Days

paragraph:297: 31 Days

paragraph:298: Internal Inventories

paragraph:299: $ 619.2 M

paragraph:300: $ 564.6 M

paragraph:301: $ 454.8 M

paragraph:302: Days of Inventory (current quarter revenue)

paragraph:303: 157 Days

paragraph:304: 153 Days

paragraph:305: 146 Days

paragraph:306: Days of Inventory (next quarter revenue)

paragraph:307: 140 Days

paragraph:308: 143 Days

paragraph:309: 139 Days

paragraph:310: Q2

paragraph:311: 2026 Business Outlook

paragraph:312: For the second quarter of 2026 ending June 30, we are forecasting:

paragraph:313: •

paragraph:314: Revenue in the range of $890 million to $910 million.

paragraph:315: •

paragraph:316: GAAP gross margin in the range of 55.1% to 55.7% .

paragraph:317: •

paragraph:318: Non-GAAP gross margin in the range of 55.3% to 55.9% , which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

paragraph:319: •

paragraph:320: Total stock-based compensation and related expenses in the range of $53.8 million to $55.8 million including approximately $1.7 million that would be charged to cost of goods sold.

paragraph:321: •

paragraph:322: GAAP operating expenses between $219.1 million and $225.1 million.

paragraph:323: •

paragraph:324: Non-GAAP operating expenses in the range of $167.0 million to $171.0 million. This estimate excludes stock-based compensation and related expenses in the range of $52.1 million to $54.1 million.

paragraph:325: •

paragraph:326: Interest and other income in the range from $7.4 million to $7.8 million before foreign exchange gains or losses.

paragraph:327: •

paragraph:328: Non-GAAP tax rate of 15% for 2026 .

paragraph:329: •

paragraph:330: Fully diluted shares outstanding in the range of 49.1 to 49.5 million shares.

paragraph:331: For further information, contact:

paragraph:332: Tony Balow

paragraph:333: Vice President, Finance

paragraph:334: Monolithic Power Systems, Inc.

paragraph:335: MPSInvestor.Relations@monolithicpower.com

paragraph:336: 6

paragraph:337: Safe Harbor Statement

paragraph:338: This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q2’26 Business Outlook” section herein, our statement regarding our business focus, our statement regarding our capacity growth goal, our statement regarding our prospects for Automotive and Enterprise Data end markets, our statement regarding the expansion and diversification of our supply chain to allow us to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and our statement regarding the major customer sampling of our first high speed interface products for DDR5, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our goal to expand our capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described above. These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential global conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential global conflicts; the Company’s ability to timely and adequately remediate its material weakness; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 27, 2026. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

paragraph:339: 7

paragraph:340: Non-GAAP Financial Measures

paragraph:341: This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, amortization of acquisition-related intangible assets, net deferred compensation plan income, and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income.

paragraph:342: 8

paragraph:343: Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income. Non-GAAP other income, net excludes the effect of deferred compensation plan expense. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan income. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

paragraph:344: About

paragraph:345: Monolithic Power Systems

paragraph:346: MPS is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

paragraph:347: Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

paragraph:348: 9

paragraph:349: Monolithic Power Systems, Inc.

paragraph:350: Condensed Consolidated Balance Sheets

paragraph:351: (Unaudited, in thousands, except par value)

paragraph:352: March 31,

paragraph:353: December 31,

paragraph:354: 2026

paragraph:355: 2025

paragraph:356: ASSETS

paragraph:357: Current assets:

paragraph:358: Cash and cash equivalents

paragraph:359: $

paragraph:360: 1,062,930

paragraph:361: $

paragraph:362: 1,099,302

paragraph:363: Short-term investments

paragraph:364: 304,179

paragraph:365: 157,243

paragraph:366: Accounts receivable, net

paragraph:367: 302,138

paragraph:368: 255,626

paragraph:369: Inventories

paragraph:370: 619,159

paragraph:371: 564,649

paragraph:372: Other current assets

paragraph:373: 42,689

paragraph:374: 106,982

paragraph:375: Total current assets

paragraph:376: 2,331,095

paragraph:377: 2,183,802

paragraph:378: Property and equipment, net

paragraph:379: 693,864

paragraph:380: 627,689

paragraph:381: Acquisition-related intangible assets, net

paragraph:382: 8,503

paragraph:383: 8,790

paragraph:384: Goodwill

paragraph:385: 25,944

paragraph:386: 25,944

paragraph:387: Deferred tax assets, net

paragraph:388: 1,182,845

paragraph:389: 1,182,883

paragraph:390: Other long-term assets

paragraph:391: 206,615

paragraph:392: 165,091

paragraph:393: Total assets

paragraph:394: $

paragraph:395: 4,448,866

paragraph:396: $

paragraph:397: 4,194,199

paragraph:398: LIABILITIES AND STOCKHOLDERS ’ EQUITY

paragraph:399: Current liabilities:

paragraph:400: Accounts payable

paragraph:401: $

paragraph:402: 174,499

paragraph:403: $

paragraph:404: 138,272

paragraph:405: Accrued compensation and related benefits

paragraph:406: 98,768

paragraph:407: 85,963

paragraph:408: Other accrued liabilities

paragraph:409: 213,691

paragraph:410: 145,130

paragraph:411: Total current liabilities

paragraph:412: 486,958

paragraph:413: 369,365

paragraph:414: Income tax liabilities

paragraph:415: 75,022

paragraph:416: 75,022

paragraph:417: Deferred tax liabilities

paragraph:418: 90,316

paragraph:419: 90,480

paragraph:420: Other long-term liabilities

paragraph:421: 119,160

paragraph:422: 127,835

paragraph:423: Total liabilities

paragraph:424: 771,456

paragraph:425: 662,702

paragraph:426: Commitments and contingencies

paragraph:427: Stockholders’ equity:

paragraph:428: Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 49,129 and 48,709, respectively

paragraph:429: 983,926

paragraph:430: 936,998

paragraph:431: Retained earnings

paragraph:432: 2,703,596

paragraph:433: 2,609,651

paragraph:434: Accumulated other comprehensive loss

paragraph:435: (10,112

paragraph:436: )

paragraph:437: (15,152

paragraph:438: )

paragraph:439: Total stockholders’ equity

paragraph:440: 3,677,410

paragraph:441: 3,531,497

paragraph:442: Total liabilities and stockholders’ equity

paragraph:443: $

paragraph:444: 4,448,866

paragraph:445: $

paragraph:446: 4,194,199

paragraph:447: 10

paragraph:448: Monolithic Power Systems, Inc.

paragraph:449: Condensed Consolidated Statements of Operations

paragraph:450: (Unaudited, in thousands, except per share amounts)

paragraph:451: Three Months Ended March 31,

paragraph:452: 2026

paragraph:453: 2025

paragraph:454: Revenue

paragraph:455: $

paragraph:456: 804,185

paragraph:457: $

paragraph:458: 637,554

paragraph:459: Cost of revenue

paragraph:460: 359,120

paragraph:461: 284,324

paragraph:462: Gross profit

paragraph:463: 445,065

paragraph:464: 353,230

paragraph:465: Operating expenses:

paragraph:466: Research and development

paragraph:467: 100,566

paragraph:468: 92,227

paragraph:469: Selling, general and administrative

paragraph:470: 103,347

paragraph:471: 92,244

paragraph:472: Total operating expenses

paragraph:473: 203,913

paragraph:474: 184,471

paragraph:475: Operating income

paragraph:476: 241,152

paragraph:477: 168,759

paragraph:478: Other income, net

paragraph:479: 6,030

paragraph:480: 5,131

paragraph:481: Income before income taxes

paragraph:482: 247,182

paragraph:483: 173,890

paragraph:484: Income tax expense

paragraph:485: 53,956

paragraph:486: 38,838

paragraph:487: Net income

paragraph:488: $

paragraph:489: 193,226

paragraph:490: $

paragraph:491: 135,052

paragraph:492: Net income per share:

paragraph:493: Basic

paragraph:494: $

paragraph:495: 3.94

paragraph:496: $

paragraph:497: 2.82

paragraph:498: Diluted

paragraph:499: $

paragraph:500: 3.92

paragraph:501: $

paragraph:502: 2.81

paragraph:503: Weighted-average shares outstanding:

paragraph:504: Basic

paragraph:505: 49,097

paragraph:506: 47,851

paragraph:507: Diluted

paragraph:508: 49,242

paragraph:509: 48,006

paragraph:510: 11

paragraph:511: RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

paragraph:512: (Unaudited, in thousands, except per share amounts)

paragraph:513: Three Months Ended March 31,

paragraph:514: 2026

paragraph:515: 2025

paragraph:516: Net income

paragraph:517: $

paragraph:518: 193,226

paragraph:519: $

paragraph:520: 135,052

paragraph:521: Adjustments to reconcile net income to non-GAAP net income:

paragraph:522: Stock-based compensation and related expenses

paragraph:523: 48,538

paragraph:524: 53,811

paragraph:525: Amortization of acquisition-related intangible assets

paragraph:526: 320

paragraph:527: 320

paragraph:528: Deferred compensation plan income, net

paragraph:529: (378

paragraph:530: )

paragraph:531: (6

paragraph:532: )

paragraph:533: Tax effect

paragraph:534: 9,606

paragraph:535: 4,636

paragraph:536: Non-GAAP net income

paragraph:537: $

paragraph:538: 251,312

paragraph:539: $

paragraph:540: 193,813

paragraph:541: Non-GAAP net income per share:

paragraph:542: Basic

paragraph:543: $

paragraph:544: 5.12

paragraph:545: $

paragraph:546: 4.05

paragraph:547: Diluted

paragraph:548: $

paragraph:549: 5.10

paragraph:550: $

paragraph:551: 4.04

paragraph:552: Shares used in the calculation of non-GAAP net income per share:

paragraph:553: Basic

paragraph:554: 49,097

paragraph:555: 47,851

paragraph:556: Diluted

paragraph:557: 49,242

paragraph:558: 48,006

paragraph:559: 12

paragraph:560: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:561: (Unaudited, in thousands)

paragraph:562: Three Months Ended March 31,

paragraph:563: 2026

paragraph:564: 2025

paragraph:565: Gross profit

paragraph:566: $

paragraph:567: 445,065

paragraph:568: $

paragraph:569: 353,230

paragraph:570: Gross margin

paragraph:571: 55.3

paragraph:572: %

paragraph:573: 55.4

paragraph:574: %

paragraph:575: Adjustments to reconcile gross profit to non-GAAP gross profit:

paragraph:576: Stock-based compensation and related expenses

paragraph:577: 1,682

paragraph:578: 1,706

paragraph:579: Amortization of acquisition-related intangible assets

paragraph:580: 287

paragraph:581: 287

paragraph:582: Deferred compensation plan income

paragraph:583: (643

paragraph:584: )

paragraph:585: (163

paragraph:586: )

paragraph:587: Non-GAAP gross profit

paragraph:588: $

paragraph:589: 446,391

paragraph:590: $

paragraph:591: 355,060

paragraph:592: Non-GAAP gross margin

paragraph:593: 55.5

paragraph:594: %

paragraph:595: 55.7

paragraph:596: %

paragraph:597: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:598: (Unaudited, in thousands)

paragraph:599: Three Months Ended March 31,

paragraph:600: 2026

paragraph:601: 2025

paragraph:602: Total operating expenses

paragraph:603: $

paragraph:604: 203,913

paragraph:605: $

paragraph:606: 184,471

paragraph:607: Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

paragraph:608: Stock-based compensation and related expenses

paragraph:609: (46,856

paragraph:610: )

paragraph:611: (52,105

paragraph:612: )

paragraph:613: Amortization of acquisition-related intangible assets

paragraph:614: (33

paragraph:615: )

paragraph:616: (33

paragraph:617: )

paragraph:618: Deferred compensation plan income

paragraph:619: 1,323

paragraph:620: 1,193

paragraph:621: Non-GAAP operating expenses

paragraph:622: $

paragraph:623: 158,347

paragraph:624: $

paragraph:625: 133,526

paragraph:626: 13

paragraph:627: RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

paragraph:628: (Unaudited, in thousands)

paragraph:629: Three Months Ended March 31,

paragraph:630: 2026

paragraph:631: 2025

paragraph:632: Total operating income

paragraph:633: $

paragraph:634: 241,152

paragraph:635: $

paragraph:636: 168,759

paragraph:637: Adjustments to reconcile total operating income to non-GAAP total operating income:

paragraph:638: Stock-based compensation and related expenses

paragraph:639: 48,538

paragraph:640: 53,811

paragraph:641: Amortization of acquisition-related intangible assets

paragraph:642: 320

paragraph:643: 320

paragraph:644: Deferred compensation plan income

paragraph:645: (1,966

paragraph:646: )

paragraph:647: (1,356

paragraph:648: )

paragraph:649: Non-GAAP operating income

paragraph:650: $

paragraph:651: 288,044

paragraph:652: $

paragraph:653: 221,534

paragraph:654: RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

paragraph:655: (Unaudited, in thousands)

paragraph:656: Three Months Ended March 31,

paragraph:657: 2026

paragraph:658: 2025

paragraph:659: Total other income, net

paragraph:660: $

paragraph:661: 6,030

paragraph:662: $

paragraph:663: 5,131

paragraph:664: Adjustments to reconcile other income, net to non-GAAP other income, net:

paragraph:665: Deferred compensation plan expense

paragraph:666: 1,588

paragraph:667: 1,350

paragraph:668: Non-GAAP other income, net

paragraph:669: $

paragraph:670: 7,618

paragraph:671: $

paragraph:672: 6,481

paragraph:673: RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

paragraph:674: (Unaudited, in thousands)

paragraph:675: Three Months Ended March 31,

paragraph:676: 2026

paragraph:677: 2025

paragraph:678: Total income before income taxes

paragraph:679: $

paragraph:680: 247,182

paragraph:681: $

paragraph:682: 173,890

paragraph:683: Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

paragraph:684: Stock-based compensation and related expenses

paragraph:685: 48,538

paragraph:686: 53,811

paragraph:687: Amortization of acquisition-related intangible assets

paragraph:688: 320

paragraph:689: 320

paragraph:690: Deferred compensation plan income, net

paragraph:691: (378

paragraph:692: )

paragraph:693: (6

paragraph:694: )

paragraph:695: Non-GAAP income before income taxes

paragraph:696: $

paragraph:697: 295,662

paragraph:698: $

paragraph:699: 228,015

paragraph:700: 14

paragraph:701: 2026

paragraph:702: SECOND

paragraph:703: QUARTER OUTLOOK

paragraph:704: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:705: (Unaudited)

paragraph:706: Three Months Ending

paragraph:707: June 30, 2026

paragraph:708: Low

paragraph:709: High

paragraph:710: Gross margin

paragraph:711: 55.1

paragraph:712: %

paragraph:713: 55.7

paragraph:714: %

paragraph:715: Adjustment to reconcile gross margin to non-GAAP gross margin:

paragraph:716: Stock-based compensation and other expenses

paragraph:717: 0.2

paragraph:718: %

paragraph:719: 0.2

paragraph:720: %

paragraph:721: Non-GAAP gross margin

paragraph:722: 55.3

paragraph:723: %

paragraph:724: 55.9

paragraph:725: %

paragraph:726: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:727: (Unaudited, in thousands)

paragraph:728: Three Months Ending

paragraph:729: June 30, 2026

paragraph:730: Low

paragraph:731: High

paragraph:732: Operating expenses

paragraph:733: $

paragraph:734: 219,100

paragraph:735: $

paragraph:736: 225,100

paragraph:737: Adjustments to reconcile operating expenses to non-GAAP operating expenses:

paragraph:738: Stock-based compensation and other expenses

paragraph:739: (52,100

paragraph:740: )

paragraph:741: (54,100

paragraph:742: )

paragraph:743: Non-GAAP operating expenses

paragraph:744: $

paragraph:745: 167,000

paragraph:746: $

paragraph:747: 171,000

paragraph:748: 15

paragraph:1: EX-99.2

paragraph:2: 3

paragraph:3: ex_886152.htm

paragraph:4: EXHIBIT 99.2

paragraph:5: ex_886152.htm

paragraph:6: Exhibit 99.2

paragraph:7: Monolithic Power Systems

paragraph:8: Full Year 2025 and Q4’25 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems Reports Fourth Quarter and Full Year 2025 Results on February 5, 2026

paragraph:13: MPS reported its results after market close on February 5, 2026 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The webinar can be accessed at https://mpsic.zoom.us/j/99373894222 .

paragraph:14: 2025 Financial Summary

paragraph:15: (Unaudited)

paragraph:16: GAAP

paragraph:17: 2025

paragraph:18: 2024

paragraph:19: YoY Change

paragraph:20: YoY Change (%)

paragraph:21: Revenue ($k)

paragraph:22: $ 2,790,459

paragraph:23: $ 2,207,100

paragraph:24: $ 583,359

paragraph:25: 26.4%

paragraph:26: Gross Margin

paragraph:27: 55.2%

paragraph:28: 55.3%

paragraph:29: (0.1) pts

paragraph:30: (0.2)%

paragraph:31: Opex ($k)

paragraph:32: $ 811,105

paragraph:33: $ 681,512

paragraph:34: $ 129,593

paragraph:35: 19.0%

paragraph:36: Operating Margin

paragraph:37: 26.1%

paragraph:38: 24.4%

paragraph:39: 1.7 pts

paragraph:40: 7.0%

paragraph:41: Net income ($k)

paragraph:42: $ 615,927

paragraph:43: $ 1,786,700

paragraph:44: $ (1,170,773)

paragraph:45: (65.5)%

paragraph:46: Diluted EPS

paragraph:47: $ 12.75

paragraph:48: $ 36.59

paragraph:49: $ (23.84)

paragraph:50: (65.2)%

paragraph:51: Non-GAAP

paragraph:52: 2025

paragraph:53: 2024

paragraph:54: YoY Change

paragraph:55: YoY Change (%)

paragraph:56: Revenue ($k)

paragraph:57: $ 2,790,459

paragraph:58: $ 2,207,100

paragraph:59: $ 583,359

paragraph:60: 26.4%

paragraph:61: Gross Margin

paragraph:62: 55.5%

paragraph:63: 55.8%

paragraph:64: (0.3) pts

paragraph:65: (0.5)%

paragraph:66: Opex ($k)

paragraph:67: $ 567,519

paragraph:68: $ 466,379

paragraph:69: $ 101,140

paragraph:70: 21.7%

paragraph:71: Operating Margin

paragraph:72: 35.2%

paragraph:73: 34.6%

paragraph:74: 0.6 pts

paragraph:75: 1.7%

paragraph:76: Net income ($k)

paragraph:77: $ 858,434

paragraph:78: $ 689,755

paragraph:79: $ 168,679

paragraph:80: 24.5%

paragraph:81: Diluted EPS

paragraph:82: $ 17.77

paragraph:83: $ 14.12

paragraph:84: $ 3.65

paragraph:85: 25.8%

paragraph:86: Tax Rate

paragraph:87: 15.0%

paragraph:88: 12.5%

paragraph:89: 2.5 pts

paragraph:90: 20.0%

paragraph:91: Revenue by End Market

paragraph:92: Revenue

paragraph:93: YoY Change

paragraph:94: % of Revenue

paragraph:95: End Market ($M)

paragraph:96: 2025

paragraph:97: 2024

paragraph:98: $

paragraph:99: %

paragraph:100: 2025

paragraph:101: 2024

paragraph:102: Storage & Computing

paragraph:103: $ 732.5

paragraph:104: $ 501.6

paragraph:105: $ 230.9

paragraph:106: 46.0%

paragraph:107: 26.3%

paragraph:108: 22.7%

paragraph:109: Enterprise Data

paragraph:110: 701.8

paragraph:111: 716.2

paragraph:112: (14.4)

paragraph:113: (2.0)%

paragraph:114: 25.2

paragraph:115: 32.5

paragraph:116: Automotive

paragraph:117: 592.5

paragraph:118: 414.0

paragraph:119: 178.5

paragraph:120: 43.1%

paragraph:121: 21.2

paragraph:122: 18.8

paragraph:123: Communications

paragraph:124: 309.1

paragraph:125: 225.9

paragraph:126: 83.2

paragraph:127: 36.8%

paragraph:128: 11.1

paragraph:129: 10.2

paragraph:130: Consumer

paragraph:131: 255.2

paragraph:132: 202.0

paragraph:133: 53.2

paragraph:134: 26.3%

paragraph:135: 9.1

paragraph:136: 9.1

paragraph:137: Industrial

paragraph:138: 199.4

paragraph:139: 147.4

paragraph:140: 52.0

paragraph:141: 35.3%

paragraph:142: 7.1

paragraph:143: 6.7

paragraph:144: Total

paragraph:145: $ 2,790.5

paragraph:146: $ 2,207.1

paragraph:147: $ 583.4

paragraph:148: 26.4%

paragraph:149: 100%

paragraph:150: 100%

paragraph:151: 2

paragraph:152: Q4 2025 Financial Summary

paragraph:153: (Unaudited)

paragraph:154: GAAP

paragraph:155: Q4'25

paragraph:156: Q3'25

paragraph:157: Q4'24

paragraph:158: QoQ Change

paragraph:159: YoY Change

paragraph:160: Revenue ($k)

paragraph:161: $ 751,155

paragraph:162: $ 737,176

paragraph:163: $ 621,665

paragraph:164: 1.9%

paragraph:165: 20.8%

paragraph:166: Gross Margin

paragraph:167: 55.2%

paragraph:168: 55.1%

paragraph:169: 55.4%

paragraph:170: 0.1 pts

paragraph:171: (0.2) pts

paragraph:172: Opex ($k)

paragraph:173: $ 214,331

paragraph:174: $ 211,045

paragraph:175: $ 181,101

paragraph:176: 1.6%

paragraph:177: 18.3%

paragraph:178: Operating Margin

paragraph:179: 26.6%

paragraph:180: 26.5%

paragraph:181: 26.3%

paragraph:182: 0.1 pts

paragraph:183: 0.3 pts

paragraph:184: Net income ($k)

paragraph:185: $ 170,136

paragraph:186: $ 178,274

paragraph:187: $ 1,449,363

paragraph:188: (4.6)%

paragraph:189: (88.3)%

paragraph:190: Diluted EPS

paragraph:191: $ 3.46

paragraph:192: $ 3.71

paragraph:193: $ 29.88

paragraph:194: (6.7)%

paragraph:195: (88.4)%

paragraph:196: Non-GAAP

paragraph:197: Q4'25

paragraph:198: Q3'25

paragraph:199: Q4'24

paragraph:200: QoQ Change

paragraph:201: YoY Change

paragraph:202: Revenue ($k)

paragraph:203: $ 751,155

paragraph:204: $ 737,176

paragraph:205: $ 621,665

paragraph:206: 1.9%

paragraph:207: 20.8%

paragraph:208: Gross Margin

paragraph:209: 55.5%

paragraph:210: 55.5%

paragraph:211: 55.8%

paragraph:212: Flat

paragraph:213: (0.3) pts

paragraph:214: Opex ($k)

paragraph:215: $ 148,050

paragraph:216: $ 148,339

paragraph:217: $ 126,117

paragraph:218: (0.2)%

paragraph:219: 17.4%

paragraph:220: Operating Margin

paragraph:221: 35.8%

paragraph:222: 35.4%

paragraph:223: 35.5%

paragraph:224: 0.4 pts

paragraph:225: 0.3 pts

paragraph:226: Net income ($k)

paragraph:227: $ 235,327

paragraph:228: $ 227,114

paragraph:229: $ 198,401

paragraph:230: 3.6%

paragraph:231: 18.6%

paragraph:232: Diluted EPS

paragraph:233: $ 4.79

paragraph:234: $ 4.73

paragraph:235: $ 4.09

paragraph:236: 1.3%

paragraph:237: 17.1%

paragraph:238: Tax Rate

paragraph:239: 15.0%

paragraph:240: 15.0%

paragraph:241: 12.5%

paragraph:242: Flat

paragraph:243: 2.5 pts

paragraph:244: Revenue by End Market

paragraph:245: Revenue

paragraph:246: YoY Change

paragraph:247: % of Revenue

paragraph:248: End Market ($M)

paragraph:249: Q4'25

paragraph:250: Q4'24

paragraph:251: $

paragraph:252: %

paragraph:253: Q4'25

paragraph:254: Q4'24

paragraph:255: Enterprise Data

paragraph:256: $ 233.5

paragraph:257: $ 194.9

paragraph:258: $ 38.6

paragraph:259: 19.8%

paragraph:260: 31.1%

paragraph:261: 31.3%

paragraph:262: Storage & Computing

paragraph:263: 162.1

paragraph:264: 136.5

paragraph:265: 25.6

paragraph:266: 18.8%

paragraph:267: 21.6

paragraph:268: 22.0

paragraph:269: Automotive

paragraph:270: 151.0

paragraph:271: 128.4

paragraph:272: 22.6

paragraph:273: 17.6%

paragraph:274: 20.1

paragraph:275: 20.6

paragraph:276: Communications

paragraph:277: 83.7

paragraph:278: 63.8

paragraph:279: 19.9

paragraph:280: 31.2%

paragraph:281: 11.1

paragraph:282: 10.3

paragraph:283: Consumer

paragraph:284: 66.2

paragraph:285: 57.3

paragraph:286: 8.9

paragraph:287: 15.5%

paragraph:288: 8.8

paragraph:289: 9.2

paragraph:290: Industrial

paragraph:291: 54.7

paragraph:292: 40.8

paragraph:293: 13.9

paragraph:294: 34.1%

paragraph:295: 7.3

paragraph:296: 6.6

paragraph:297: Total

paragraph:298: $ 751.2

paragraph:299: $ 621.7

paragraph:300: $ 129.5

paragraph:301: 20.8%

paragraph:302: 100%

paragraph:303: 100%

paragraph:304: 3

paragraph:305: Ongoing Business Conditions

paragraph:306: In 2025, MPS's revenue grew 26.4% year-over-year and achieved record revenue of $2.8 billion. This is our 14th consecutive year of revenue growth driven by consistent execution, continued innovation, and strong customer focus.

paragraph:307: Highlights from 2025 include:

paragraph:308: 1.

paragraph:309: Our non-Enterprise Data end markets grew by over 40% year-over-year, showcasing the strength of our diversified business model.

paragraph:310: 2.

paragraph:311: We achieved our milestone of securing more than $4B of geographically balanced capacity and continue to add additional supply chain partners to support future growth.

paragraph:312: 3.

paragraph:313: We had record module revenue and positioned for a further shift to solutions by sampling our 800V power solution for data center.

paragraph:314: 4.

paragraph:315: In automotive, we launched solutions for 48V and Zonal architectures including the first fully integrated 48V e-fuse and a kilowatt level zonal controller that will support growth in 2026 and beyond.

paragraph:316: 5.

paragraph:317: We expanded our customer base in Data Center for power solutions across AI, server, memory, optical modules, and switch applications with leading edge current density, power efficiency, and packaging.

paragraph:318: In Q4 2025, MPS achieved record quarterly revenue of $751.2 million, 1.9% higher than revenue in the third quarter of 2025 and 20.8% higher than revenue in the fourth quarter of 2024. Overall, we continued to demonstrate strong diversified growth and our ability to swiftly adapt all aspects of our business to the fluid geopolitical and macro-economic environment.

paragraph:319: Our strategy remains unchanged. MPS continues to focus on innovation and solving our customers’ most challenging problems. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.

paragraph:320: “Our results demonstrate our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:321: 2025 Full Year Revenue Results

paragraph:322: Our full year 2025 revenue by end market was as follows:

paragraph:323: Full year 2025 Storage and Computing revenue grew $230.9 million over the prior year to $732.5 million. This 46.0% increase was driven by higher sales of power solutions for memory, storage, notebooks and graphic cards. Storage and Computing revenue represented 26.3% of MPS’s total revenue in 2025 compared with 22.7% in 2024.

paragraph:324: 4

paragraph:325: Automotive revenue grew $178.5 million year over year to $592.5 million in 2025. This 43.1% gain was driven by higher sales across all categories including applications supporting advanced driver assistance systems and infotainment. Automotive revenue represented 21.2% of MPS’s full year 2025 revenue compared with 18.8% in 2024.

paragraph:326: Communications revenue increased $83.2 million in 2025 to $309.1 million. This 36.8% increase was a result of higher sales of power solutions for optical modules and routers. Communications revenue represented 11.1% of our 2025 revenue compared with 10.2% in 2024.

paragraph:327: Consumer revenue increased $53.2 million to $255.2 million in 2025. This 26.3% year-over-year increase was a result of higher sales in home appliances and gaming solutions. Consumer revenue represented 9.1% of MPS’s full year 2025 and 2024 revenue.

paragraph:328: Industrial revenue grew by $52.0 million to $199.4 million in 2025. This 35.3% increase was driven by higher sales for power sources and instrumentation applications. Industrial revenue represented 7.1% of MPS’s full year 2025 revenue compared with 6.7% in 2024.

paragraph:329: Enterprise Data revenue decreased $14.4 million to $701.8 million in 2025. Enterprise Data revenue represented 25.2% of MPS’s total revenue in 2025 compared with 32.5% in 2024.

paragraph:330: Q4 2025 Revenue Results

paragraph:331: MPS reported fourth quarter revenue of $751.2 million, 1.9% higher than the third quarter of 2025 and 20.8% higher than the fourth quarter of 2024.

paragraph:332: In our Enterprise Data market, fourth quarter 2025 revenue of $233.5 million increased 21.9% from the third quarter of 2025. The sequential increase was primarily driven by stronger sales in power management solutions for AI and server applications. Fourth quarter 2025 Enterprise Data revenue was up 19.8% year over year. Enterprise Data revenue represented 31.1% of MPS's fourth quarter 2025 revenue compared with 31.3% in the fourth quarter of 2024.

paragraph:333: Fourth quarter 2025 Communications revenue of $83.7 million was up 4.9% from the third quarter of 2025 primarily due to higher sales into routers and optical modules. Fourth quarter 2025 Communications revenue was up 31.2% year over year. Communications sales represented 11.1% of our total fourth quarter 2025 revenue compared with 10.3% in the fourth quarter of 2024.

paragraph:334: Fourth quarter Automotive revenue of $151.0 million decreased 0.4% from the third quarter of 2025 as higher sales from power solutions for ADAS and USB applications were offset by lower sales in applications supporting infotainment. Fourth quarter 2025 Automotive revenue was up 17.6% year over year. Automotive revenue represented 20.1% of MPS’s fourth quarter 2025 revenue compared with 20.6% in the fourth quarter of 2024.

paragraph:335: 5

paragraph:336: Fourth quarter 2025 Industrial revenue of $54.7 million decreased 1.1% from the third quarter of 2025 primarily due to lower sales in industrial meter applications. Fourth quarter 2025 Industrial revenue was up 34.1% year over year. Industrial revenue represented 7.3% of our total fourth quarter 2025 revenue compared with 6.6% in the fourth quarter of 2024.

paragraph:337: Fourth quarter 2025 Consumer revenue of $66.2 million decreased 8.6% from the third quarter of 2025 primarily from lower sales in smart TV solutions. Fourth quarter 2025 Consumer revenue was up 15.5% year over year. Consumer revenue represented 8.8% of our total fourth quarter 2025 revenue compared with 9.2% in the fourth quarter of 2024.

paragraph:338: Fourth quarter 2025 Storage and Computing revenue of $162.1 million decreased 13.1% from the third quarter of 2025 as lower sales of power solutions for notebooks offset higher sales for memory and storage solutions. Fourth quarter 2025 Storage and Computing revenue was up 18.8% year over year. Storage and Computing revenue represented 21.6% of MPS’s fourth quarter 2025 revenue compared with 22.0% in the fourth quarter of 2024.

paragraph:339: Q4 2025 Gross Margin & Operating Income

paragraph:340: GAAP gross margin was 55.2%, 0.1 percentage points higher than the third quarter of 2025. Our GAAP operating income was $199.9 million compared to $195.2 million reported in the third quarter of 2025.

paragraph:341: Non-GAAP gross margin for the fourth quarter of 2025 was 55.5%, flat to the third quarter of 2025. Our non-GAAP operating income was $269.0 million compared to $260.6 million reported in the third quarter of 2025.

paragraph:342: Q4 2025 Operating Expenses

paragraph:343: Our GAAP operating expenses were $214.3 million in the fourth quarter of 2025 compared with $211.0 million in the third quarter of 2025. Our Non-GAAP operating expenses were $148.1 million, down from $148.3 million in the third quarter of 2025.

paragraph:344: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan expense.

paragraph:345: Total stock-based compensation and related expenses, including approximately $2.1 million charged to cost of goods sold, was $66.9 million compared with $60.9 million recorded in the third quarter of 2025.

paragraph:346: 6

paragraph:347: The Bottom Line

paragraph:348: Fourth quarter 2025 GAAP net income was $170.1 million or $3.46 per fully diluted share, compared with $178.3 million or $3.71 per share in the third quarter of 2025.

paragraph:349: Fourth quarter 2025 non-GAAP net income was $235.3 million or $4.79 per fully diluted share, compared with $227.1 million or $4.73 per fully diluted share in the third quarter of 2025.

paragraph:350: Fourth quarter 2025 non-GAAP tax rate of 15% was flat to the third quarter of 2025.

paragraph:351: There were 49.2 million fully diluted shares outstanding at the end of the fourth quarter of 2025.

paragraph:352: Balance Sheet and Cash Flow

paragraph:353: Cash, cash equivalents and short-term investments were $1.26 billion at the end of the fourth quarter of 2025 compared to $1.27 billion at the end of the third quarter of 2025. For the fourth quarter of 2025, MPS generated operating cash flow of $104.9 million compared with the third quarter of 2025 operating cash flow of $239.3 million.

paragraph:354: Accounts receivable at the end of the fourth quarter of 2025 were $255.6 million, representing 31 days of sales outstanding, which was 1 day higher than the 30 days reported at the end of the third quarter of 2025.

paragraph:355: Our internal inventories at the end of the fourth quarter of 2025 were $564.6 million, up from $505.7 million at the end of the third quarter of 2025. Days of inventory of 153 days at the end of the fourth quarter of 2025 was 14 days higher than at the end of the third quarter of 2025.

paragraph:356: We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the fourth quarter of 147 days was 10 days higher than at the end of the third quarter of 2025.

paragraph:357: Selected Balance Sheet and Inventory Data

paragraph:358: (Unaudited)

paragraph:359: Q4'25

paragraph:360: Q3'25

paragraph:361: Q4'24

paragraph:362: Cash, Cash Equivalents, and Short-Term Investments

paragraph:363: $ 1,256.5 M

paragraph:364: $ 1,269.5 M

paragraph:365: $ 862.9 M

paragraph:366: Operating Cash Flow

paragraph:367: $ 104.9 M

paragraph:368: $ 239.3 M

paragraph:369: $ 167.7 M

paragraph:370: Accounts Receivable

paragraph:371: $ 255.6 M

paragraph:372: $ 241.6 M

paragraph:373: $ 172.5 M

paragraph:374: Days of Sales Outstanding

paragraph:375: 31 Days

paragraph:376: 30 Days

paragraph:377: 25 Days

paragraph:378: Internal Inventories

paragraph:379: $ 564.6 M

paragraph:380: $ 505.7 M

paragraph:381: $ 419.6 M

paragraph:382: Days of Inventory (current quarter revenue)

paragraph:383: 153 Days

paragraph:384: 139 Days

paragraph:385: 138 Days

paragraph:386: Days of Inventory (next quarter revenue)

paragraph:387: 147 Days

paragraph:388: 137 Days

paragraph:389: 134 Days

paragraph:390: 7

paragraph:391: Q1 2026 Business Outlook

paragraph:392: For the first quarter of 2026 ending March 31, we are forecasting:

paragraph:393: •

paragraph:394: Revenue in the range of $770 million to $790 million.

paragraph:395: •

paragraph:396: GAAP gross margin in the range of 54.9% to 55.5%

paragraph:397: •

paragraph:398: Non-GAAP gross margin in the range of 55.2% to 55.8% which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

paragraph:399: •

paragraph:400: Total stock-based compensation and related expenses in the range of $52.8 million to $54.8 million including approximately $1.7 million that would be charged to cost of goods sold.

paragraph:401: •

paragraph:402: GAAP operating expenses between $207.1 million and $213.1 million.

paragraph:403: •

paragraph:404: Non-GAAP operating expenses in the range of $156.0 million to $160.0 million. This estimate excludes stock-based compensation and related expenses in the range of $51.1 million to $53.1 million.

paragraph:405: •

paragraph:406: Interest and other income in the range from $7.4 million to $7.8 million before foreign exchange gains or losses.

paragraph:407: •

paragraph:408: Non-GAAP tax rate of 15% for 2026.

paragraph:409: •

paragraph:410: Fully diluted shares outstanding in the range of 49.0 to 49.4 million shares.

paragraph:411: Our quarterly dividend will increase 28% to $2.00 per share from $1.56 per share for stockholders of record as of March 31, 2026.

paragraph:412: For further information, contact:

paragraph:413: Tony Balow

paragraph:414: Vice President, Finance

paragraph:415: Monolithic Power Systems, Inc.

paragraph:416: MPSInvestor.Relations@monolithicpower.com

paragraph:417: 8

paragraph:418: Safe Harbor Statement

paragraph:419: This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q1’26 Business Outlook” section herein, our statement regarding our business focus, our statement regarding our ability to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and the drivers for our projected future growth in the automotive end market, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the first quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our end markets, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), or (iv). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

paragraph:420: 9

paragraph:421: Non-GAAP Financial Measures

paragraph:422: This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP net income and non-GAAP net income per share in the prior year also exclude the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

paragraph:423: 10

paragraph:424: RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

paragraph:425: (Unaudited, in thousands, except per share amounts)

paragraph:426: Three Months Ended December 31,

paragraph:427: Year Ended December 31,

paragraph:428: 2025

paragraph:429: 2024

paragraph:430: 2025

paragraph:431: 2024

paragraph:432: Net income

paragraph:433: $

paragraph:434: 170,136

paragraph:435: $

paragraph:436: 1,449,363

paragraph:437: $

paragraph:438: 615,927

paragraph:439: $

paragraph:440: 1,786,700

paragraph:441: Adjustments to reconcile net income to non-GAAP net income:

paragraph:442: Stock-based compensation and related expenses

paragraph:443: 66,875

paragraph:444: 56,320

paragraph:445: 241,841

paragraph:446: 213,209

paragraph:447: Amortization of acquisition-related intangible assets

paragraph:448: 320

paragraph:449: 320

paragraph:450: 1,280

paragraph:451: 1,303

paragraph:452: Deferred compensation plan expense (income), net

paragraph:453: (113

paragraph:454: )

paragraph:455: 573

paragraph:456: 585

paragraph:457: 867

paragraph:458: Tax effect of non-GAAP adjustments

paragraph:459: (1,891

paragraph:460: )

paragraph:461: (22,773

paragraph:462: )

paragraph:463: (1,199

paragraph:464: )

paragraph:465: (26,922

paragraph:466: )

paragraph:467: Recognition of a tax benefit granted to a foreign subsidiary

paragraph:468: -

paragraph:469: (1,285,402

paragraph:470: )

paragraph:471: -

paragraph:472: (1,285,402

paragraph:473: )

paragraph:474: Non-GAAP net income

paragraph:475: $

paragraph:476: 235,327

paragraph:477: $

paragraph:478: 198,401

paragraph:479: $

paragraph:480: 858,434

paragraph:481: $

paragraph:482: 689,755

paragraph:483: Non-GAAP net income per share:

paragraph:484: Basic

paragraph:485: $

paragraph:486: 4.85

paragraph:487: $

paragraph:488: 4.11

paragraph:489: $

paragraph:490: 17.87

paragraph:491: $

paragraph:492: 14.19

paragraph:493: Diluted

paragraph:494: $

paragraph:495: 4.79

paragraph:496: $

paragraph:497: 4.09

paragraph:498: $

paragraph:499: 17.77

paragraph:500: $

paragraph:501: 14.12

paragraph:502: Shares used in the calculation of non-GAAP net income per share:

paragraph:503: Basic

paragraph:504: 48,502

paragraph:505: 48,317

paragraph:506: 48,035

paragraph:507: 48,599

paragraph:508: Diluted

paragraph:509: 49,168

paragraph:510: 48,506

paragraph:511: 48,309

paragraph:512: 48,835

paragraph:513: 11

paragraph:514: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:515: (Unaudited, in thousands)

paragraph:516: Three Months Ended December 31,

paragraph:517: Year Ended December 31,

paragraph:518: 2025

paragraph:519: 2024

paragraph:520: 2025

paragraph:521: 2024

paragraph:522: Gross profit

paragraph:523: $

paragraph:524: 414,267

paragraph:525: $

paragraph:526: 344,408

paragraph:527: $

paragraph:528: 1,539,741

paragraph:529: $

paragraph:530: 1,220,870

paragraph:531: Gross margin

paragraph:532: 55.2

paragraph:533: %

paragraph:534: 55.4

paragraph:535: %

paragraph:536: 55.2

paragraph:537: %

paragraph:538: 55.3

paragraph:539: %

paragraph:540: Adjustments to reconcile gross profit to non-GAAP gross profit:

paragraph:541: Stock-based compensation and related expenses

paragraph:542: 2,137

paragraph:543: 1,745

paragraph:544: 7,675

paragraph:545: 6,975

paragraph:546: Amortization of acquisition-related intangible assets

paragraph:547: 287

paragraph:548: 287

paragraph:549: 1,148

paragraph:550: 1,171

paragraph:551: Deferred compensation plan expense

paragraph:552: 387

paragraph:553: 417

paragraph:554: 1,329

paragraph:555: 1,500

paragraph:556: Non-GAAP gross profit

paragraph:557: $

paragraph:558: 417,078

paragraph:559: $

paragraph:560: 346,857

paragraph:561: $

paragraph:562: 1,549,893

paragraph:563: $

paragraph:564: 1,230,516

paragraph:565: Non-GAAP gross margin

paragraph:566: 55.5

paragraph:567: %

paragraph:568: 55.8

paragraph:569: %

paragraph:570: 55.5

paragraph:571: %

paragraph:572: 55.8

paragraph:573: %

paragraph:574: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:575: (Unaudited, in thousands)

paragraph:576: Three Months Ended December 31,

paragraph:577: Year Ended December 31,

paragraph:578: 2025

paragraph:579: 2024

paragraph:580: 2025

paragraph:581: 2024

paragraph:582: Total operating expenses

paragraph:583: $

paragraph:584: 214,331

paragraph:585: $

paragraph:586: 181,101

paragraph:587: $

paragraph:588: 811,105

paragraph:589: $

paragraph:590: 681,512

paragraph:591: Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

paragraph:592: Stock-based compensation and related expenses

paragraph:593: (64,738

paragraph:594: )

paragraph:595: (54,575

paragraph:596: )

paragraph:597: (234,166

paragraph:598: )

paragraph:599: (206,234

paragraph:600: )

paragraph:601: Amortization of acquisition-related intangible assets

paragraph:602: (33

paragraph:603: )

paragraph:604: (33

paragraph:605: )

paragraph:606: (132

paragraph:607: )

paragraph:608: (132

paragraph:609: )

paragraph:610: Deferred compensation plan expense

paragraph:611: (1,510

paragraph:612: )

paragraph:613: (376

paragraph:614: )

paragraph:615: (9,288

paragraph:616: )

paragraph:617: (8,767

paragraph:618: )

paragraph:619: Non-GAAP operating expenses

paragraph:620: $

paragraph:621: 148,050

paragraph:622: $

paragraph:623: 126,117

paragraph:624: $

paragraph:625: 567,519

paragraph:626: $

paragraph:627: 466,379

paragraph:628: 12

paragraph:629: RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

paragraph:630: (Unaudited, in thousands)

paragraph:631: Three Months Ended December 31,

paragraph:632: Year Ended December 31,

paragraph:633: 2025

paragraph:634: 2024

paragraph:635: 2025

paragraph:636: 2024

paragraph:637: Total operating income

paragraph:638: $

paragraph:639: 199,936

paragraph:640: $

paragraph:641: 163,307

paragraph:642: $

paragraph:643: 728,636

paragraph:644: $

paragraph:645: 539,358

paragraph:646: Adjustments to reconcile total operating income to non-GAAP total operating income:

paragraph:647: Stock-based compensation and related expenses

paragraph:648: 66,875

paragraph:649: 56,320

paragraph:650: 241,841

paragraph:651: 213,209

paragraph:652: Amortization of acquisition-related intangible assets

paragraph:653: 320

paragraph:654: 320

paragraph:655: 1,280

paragraph:656: 1,303

paragraph:657: Deferred compensation plan expense

paragraph:658: 1,897

paragraph:659: 793

paragraph:660: 10,617

paragraph:661: 10,267

paragraph:662: Non-GAAP operating income

paragraph:663: $

paragraph:664: 269,028

paragraph:665: $

paragraph:666: 220,740

paragraph:667: $

paragraph:668: 982,374

paragraph:669: $

paragraph:670: 764,137

paragraph:671: RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

paragraph:672: (Unaudited, in thousands)

paragraph:673: Three Months Ended December 31,

paragraph:674: Year Ended December 31,

paragraph:675: 2025

paragraph:676: 2024

paragraph:677: 2025

paragraph:678: 2024

paragraph:679: Total other income, net

paragraph:680: $

paragraph:681: 9,837

paragraph:682: $

paragraph:683: 6,224

paragraph:684: $

paragraph:685: 37,580

paragraph:686: $

paragraph:687: 33,554

paragraph:688: Adjustments to reconcile other income, net to non-GAAP other income, net:

paragraph:689: Deferred compensation plan income

paragraph:690: (2,010

paragraph:691: )

paragraph:692: (220

paragraph:693: )

paragraph:694: (10,032

paragraph:695: )

paragraph:696: (9,400

paragraph:697: )

paragraph:698: Non-GAAP other income, net

paragraph:699: $

paragraph:700: 7,827

paragraph:701: $

paragraph:702: 6,004

paragraph:703: $

paragraph:704: 27,548

paragraph:705: $

paragraph:706: 24,154

paragraph:707: RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

paragraph:708: (Unaudited, in thousands)

paragraph:709: Three Months Ended December 31,

paragraph:710: Year Ended December 31,

paragraph:711: 2025

paragraph:712: 2024

paragraph:713: 2025

paragraph:714: 2024

paragraph:715: Total income before income taxes

paragraph:716: $

paragraph:717: 209,773

paragraph:718: $

paragraph:719: 169,531

paragraph:720: $

paragraph:721: 766,216

paragraph:722: $

paragraph:723: 572,912

paragraph:724: Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

paragraph:725: Stock-based compensation and related expenses

paragraph:726: 66,875

paragraph:727: 56,320

paragraph:728: 241,841

paragraph:729: 213,209

paragraph:730: Amortization of acquisition-related intangible assets

paragraph:731: 320

paragraph:732: 320

paragraph:733: 1,280

paragraph:734: 1,303

paragraph:735: Deferred compensation plan expense (income), net

paragraph:736: (113

paragraph:737: )

paragraph:738: 573

paragraph:739: 585

paragraph:740: 867

paragraph:741: Non-GAAP income before income taxes

paragraph:742: $

paragraph:743: 276,855

paragraph:744: $

paragraph:745: 226,744

paragraph:746: $

paragraph:747: 1,009,922

paragraph:748: $

paragraph:749: 788,291

paragraph:750: 13

paragraph:751: 2026

paragraph:752: FIRST

paragraph:753: QUARTER OUTLOOK

paragraph:754: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:755: (Unaudited)

paragraph:756: Three Months Ending

paragraph:757: March 31, 2026

paragraph:758: Low

paragraph:759: High

paragraph:760: Gross margin

paragraph:761: 54.9

paragraph:762: %

paragraph:763: 55.5

paragraph:764: %

paragraph:765: Adjustment to reconcile gross margin to non-GAAP gross margin:

paragraph:766: Stock-based compensation and other expenses

paragraph:767: 0.3

paragraph:768: %

paragraph:769: 0.3

paragraph:770: %

paragraph:771: Non-GAAP gross margin

paragraph:772: 55.2

paragraph:773: %

paragraph:774: 55.8

paragraph:775: %

paragraph:776: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:777: (Unaudited, in thousands)

paragraph:778: Three Months Ending

paragraph:779: March 31, 2026

paragraph:780: Low

paragraph:781: High

paragraph:782: Operating expenses

paragraph:783: $

paragraph:784: 207,100

paragraph:785: $

paragraph:786: 213,100

paragraph:787: Adjustments to reconcile operating expenses to non-GAAP operating expenses:

paragraph:788: Stock-based compensation and other expenses

paragraph:789: (51,100

paragraph:790: )

paragraph:791: (53,100

paragraph:792: )

paragraph:793: Non-GAAP operating expenses

paragraph:794: $

paragraph:795: 156,000

paragraph:796: $

paragraph:797: 160,000

paragraph:798: 14

paragraph:1: EX-99.2

paragraph:2: 3

paragraph:3: ex_854757.htm

paragraph:4: EXHIBIT 99.2

paragraph:5: ex_854757.htm

paragraph:6: Exhibit 99.2

paragraph:7: Monolithic Power Systems

paragraph:8: Q3’25 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems Reports Third Quarter Results on October 30, 2025

paragraph:13: MPS reported its results after market close on October 30, 2025 and will host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/95600837087 .

paragraph:14: Q3 2025 Financial Summary

paragraph:15: (Unaudited)

paragraph:16: GAAP

paragraph:17: Q3'25

paragraph:18: Q2'25

paragraph:19: Q3'24

paragraph:20: QoQ Change

paragraph:21: YoY Change

paragraph:22: Revenue ($k)

paragraph:23: $ 737,176

paragraph:24: $ 664,574

paragraph:25: $ 620,119

paragraph:26: Up 10.9%

paragraph:27: Up 18.9%

paragraph:28: Gross Margin

paragraph:29: 55.1%

paragraph:30: 55.1%

paragraph:31: 55.4%

paragraph:32: Flat

paragraph:33: Down 0.3 pts

paragraph:34: Opex ($k)

paragraph:35: $ 211,045

paragraph:36: $ 201,258

paragraph:37: $ 179,415

paragraph:38: Up 4.9%

paragraph:39: Up 17.6%

paragraph:40: Operating Margin

paragraph:41: 26.5%

paragraph:42: 24.8%

paragraph:43: 26.5%

paragraph:44: Up 1.7 pts

paragraph:45: Flat

paragraph:46: Net income ($k)

paragraph:47: $ 178,274

paragraph:48: $ 133,726

paragraph:49: $ 144,430

paragraph:50: Up 33.3%

paragraph:51: Up 23.4%

paragraph:52: Diluted EPS

paragraph:53: $ 3.71

paragraph:54: $ 2.78

paragraph:55: $ 2.95

paragraph:56: Up 33.5%

paragraph:57: Up 25.8%

paragraph:58: Non-GAAP

paragraph:59: Q3'25

paragraph:60: Q2'25

paragraph:61: Q3'24

paragraph:62: QoQ Change

paragraph:63: YoY Change

paragraph:64: Revenue ($k)

paragraph:65: $ 737,176

paragraph:66: $ 664,574

paragraph:67: $ 620,119

paragraph:68: Up 10.9%

paragraph:69: Up 18.9%

paragraph:70: Gross Margin

paragraph:71: 55.5%

paragraph:72: 55.5%

paragraph:73: 55.8%

paragraph:74: Flat

paragraph:75: Down 0.3 pts

paragraph:76: Opex ($k)

paragraph:77: $ 148,339

paragraph:78: $ 137,604

paragraph:79: $ 125,169

paragraph:80: Up 7.8%

paragraph:81: Up 18.5%

paragraph:82: Operating Margin

paragraph:83: 35.4%

paragraph:84: 34.8%

paragraph:85: 35.6%

paragraph:86: Up 0.6 pts

paragraph:87: Down 0.2 pts

paragraph:88: Net income ($k)

paragraph:89: $ 227,114

paragraph:90: $ 202,180

paragraph:91: $ 198,786

paragraph:92: Up 12.3%

paragraph:93: Up 14.3%

paragraph:94: Diluted EPS

paragraph:95: $ 4.73

paragraph:96: $ 4.21

paragraph:97: $ 4.06

paragraph:98: Up 12.4%

paragraph:99: Up 16.5%

paragraph:100: Tax Rate

paragraph:101: 15.0%

paragraph:102: 15.0%

paragraph:103: 12.5%

paragraph:104: Flat

paragraph:105: Up 2.5 pts

paragraph:106: Revenue by End Market

paragraph:107: Revenue

paragraph:108: YoY Change

paragraph:109: % of Revenue

paragraph:110: End Market ($M)

paragraph:111: Q3'25

paragraph:112: Q3'24

paragraph:113: $

paragraph:114: %

paragraph:115: Q3'25

paragraph:116: Q3'24

paragraph:117: Enterprise Data

paragraph:118: $ 191.5

paragraph:119: $ 184.5

paragraph:120: $ 7.0

paragraph:121: 3.8

paragraph:122: %

paragraph:123: 26.0

paragraph:124: %

paragraph:125: 29.7

paragraph:126: %

paragraph:127: Storage & Computing

paragraph:128: 186.6

paragraph:129: 144.0

paragraph:130: 42.6

paragraph:131: 29.6

paragraph:132: %

paragraph:133: 25.3

paragraph:134: 23.2

paragraph:135: Automotive

paragraph:136: 151.5

paragraph:137: 111.3

paragraph:138: 40.2

paragraph:139: 36.1

paragraph:140: %

paragraph:141: 20.6

paragraph:142: 18.0

paragraph:143: Communications

paragraph:144: 79.9

paragraph:145: 71.9

paragraph:146: 8.0

paragraph:147: 11.1

paragraph:148: %

paragraph:149: 10.8

paragraph:150: 11.6

paragraph:151: Consumer

paragraph:152: 72.4

paragraph:153: 64.4

paragraph:154: 8.0

paragraph:155: 12.4

paragraph:156: %

paragraph:157: 9.8

paragraph:158: 10.4

paragraph:159: Industrial

paragraph:160: 55.3

paragraph:161: 44.0

paragraph:162: 11.3

paragraph:163: 25.7

paragraph:164: %

paragraph:165: 7.5

paragraph:166: 7.1

paragraph:167: Total

paragraph:168: $ 737.2

paragraph:169: $ 620.1

paragraph:170: $ 117.1

paragraph:171: 18.9

paragraph:172: %

paragraph:173: 100

paragraph:174: %

paragraph:175: 100

paragraph:176: %

paragraph:177: 2

paragraph:178: Ongoing Business Conditions

paragraph:179: In the third quarter of 2025, MPS achieved record quarterly revenue of $737.2 million, 10.9% higher than revenue in the second quarter of 2025 and 18.9% higher than revenue in the third quarter of 2024.

paragraph:180: Our quarterly performance reflected the continued strength of our product portfolio, the resilience of our diversified market strategy, and our relentless customer focus.

paragraph:181: Q3 2025 highlights include:

paragraph:182: ●

paragraph:183: Our diversified market strategy drove year-over-year revenue growth in all our end markets.

paragraph:184: ●

paragraph:185: We continued to expand our automotive customer base with another major Tier 1 supplier adopting MPS for its next generation ADAS solution.

paragraph:186: ●

paragraph:187: We had our first design win for a full BMS solution on a robotics platform continuing our shift from chips to solutions.

paragraph:188: Overall, we continued to demonstrate our ability to grow and swiftly adapt all aspects of our business to the fluid geopolitical and macro-economic environment.

paragraph:189: Our strategy remains unchanged. MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.

paragraph:190: “Our results demonstrate our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:191: Q3 2025 Revenue Results

paragraph:192: MPS reported third quarter revenue of $737.2 million, 10.9% higher than the second quarter of 2025 and 18.9% higher than the third quarter of 2024. Compared with the second quarter of 2025, sales in Enterprise Data, Automotive, Communications, Consumer and Industrial improved sequentially.

paragraph:193: In our Enterprise Data market, third quarter 2025 revenue of $191.5 million increased 33% from the second quarter of 2025. The sequential increase was primarily driven by higher sales of our power management solutions for AI applications. Third quarter 2025 Enterprise Data revenue was up 3.8% year over year. Enterprise Data revenue represented 26.0% of our total third quarter 2025 revenue compared with 21.7% in the second quarter of 2025.

paragraph:194: 3

paragraph:195: Third quarter 2025 Consumer revenue of $72.4 million increased 21.3% from the second quarter of 2025 primarily from higher sales in gaming solutions. Third quarter 2025 Consumer revenue was up 12.4% year over year. Consumer revenue represented 9.8% of our total third quarter 2025 revenue compared with 9.0% in the second quarter of 2025.

paragraph:196: Third quarter 2025 Industrial revenue of $55.3 million increased 18.4% from the second quarter of 2025 primarily due to higher sales for power sources. Third quarter 2025 Industrial revenue was up 25.7% year over year. Industrial revenue represented 7.5% of our total third quarter 2025 revenue compared with 7.0% in the second quarter of 2025.

paragraph:197: Third quarter 2025 Communications revenue of $79.9 million was up 8.3% from the second quarter of 2025 primarily on higher sales into networking solutions. Third quarter 2025 Communications revenue was up 11.1% year over year. Communications sales represented 10.8% of our total third quarter 2025 revenue compared with 11.1% in the second quarter of 2025.

paragraph:198: Third quarter Automotive revenue of $151.5 million increased 4.4% from the second quarter of 2025 primarily from higher sales in applications supporting infotainment and USB connectors. Third quarter 2025 Automotive revenue was up 36.1% year over year. Automotive revenue represented 20.6% of MPS’s third quarter 2025 revenue compared with 21.8% in the second quarter of 2025.

paragraph:199: Third quarter 2025 Storage and Computing revenue of $186.6 million decreased 4.5% from the second quarter of 2025 due to lower sales of power solutions for notebooks. Third quarter 2025 Storage and Computing revenue was up 29.6% year over year. Storage and Computing revenue represented 25.3% of MPS’s third quarter 2025 revenue compared with 29.4% in the second quarter of 2025.

paragraph:200: Q3 2025 Gross Margin & Operating Income

paragraph:201: GAAP gross margin was 55.1%, flat to the second quarter of 2025. Our GAAP operating income was $195.2 million compared to $164.8 million reported in the second quarter of 2025.

paragraph:202: Non-GAAP gross margin for the third quarter of 2025 was 55.5%, flat to the second quarter of 2025. Our non-GAAP operating income was $260.6 million compared to $231.2 million reported in the second quarter of 2025.

paragraph:203: Q3 2025 Operating Expenses

paragraph:204: Our GAAP operating expenses were $211.0 million in the third quarter of 2025 compared with $201.3 million in the second quarter of 2025. Our non-GAAP operating expenses were $148.3 million, up from $137.6 million in the second quarter of 2025.

paragraph:205: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan expense.

paragraph:206: 4

paragraph:207: Total stock-based compensation and related expenses, including approximately $1.9 million charged to cost of goods sold, was $60.9 million compared with $60.3 million recorded in the second quarter of 2025.

paragraph:208: The Bottom Line

paragraph:209: Third quarter 2025 GAAP net income was $178.3 million or $3.71 per fully diluted share, compared with $133.7 million or $2.78 per fully diluted share in the second quarter of 2025.

paragraph:210: Third quarter 2025 non-GAAP net income was $227.1 million or $4.73 per fully diluted share, compared with $202.2 million or $4.21 per fully diluted share in the second quarter of 2025.

paragraph:211: The third quarter 2025 non-GAAP tax rate of 15% was flat to the second quarter of 2025.

paragraph:212: There were 48 million fully diluted shares outstanding at the end of the third quarter of 2025.

paragraph:213: Balance Sheet and Cash Flow

paragraph:214: Cash, cash equivalents and short-term investments were $1,269.5 million at the end of the third quarter of 2025 compared to $1,146.1 million at the end of the second quarter of 2025. For the third quarter of 2025, MPS generated operating cash flow of $239.3 million compared to operating cash flow of $237.6 million for the second quarter of 2025.

paragraph:215: Accounts receivable at the end of the third quarter of 2025 were $241.6 million, representing 30 days of sales outstanding, which was 3 days higher than the 27 days reported at the end of the second quarter of 2025.

paragraph:216: Our internal inventories at the end of the third quarter of 2025 were $505.7 million, up from $490.6 million at the end of the second quarter of 2025. Days of inventory of 139 days at the end of the third quarter of 2025 was 11 days lower than at the end of the second quarter of 2025.

paragraph:217: We continue to manage our internal inventories, balancing the uncertainty in the market with being prepared to capture market upturns as they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the third quarter of 139 days is 4 days higher than at the end of the second quarter of 2025.

paragraph:218: 5

paragraph:219: Selected Balance Sheet and Inventory Data

paragraph:220: (Unaudited)

paragraph:221: Q3'25

paragraph:222: Q2'25

paragraph:223: Q3'24

paragraph:224: Cash, Cash Equivalents, and Short-Term Investments

paragraph:225: $ 1,269.5 M

paragraph:226: $ 1,146.1 M

paragraph:227: $ 1,462.4 M

paragraph:228: Operating Cash Flow

paragraph:229: $ 239.3 M

paragraph:230: $ 237.6 M

paragraph:231: $ 231.7 M

paragraph:232: Accounts Receivable

paragraph:233: $ 241.6 M

paragraph:234: $ 194.8 M

paragraph:235: $ 164.7 M

paragraph:236: Days of Sales Outstanding

paragraph:237: 30 Days

paragraph:238: 27 Days

paragraph:239: 24 Days

paragraph:240: Internal Inventories

paragraph:241: $ 505.7 M

paragraph:242: $ 490.6 M

paragraph:243: $ 424.9 M

paragraph:244: Days of Inventory (current quarter revenue)

paragraph:245: 139 Days

paragraph:246: 150 Days

paragraph:247: 140 Days

paragraph:248: Days of Inventory (next quarter revenue)

paragraph:249: 139 Days

paragraph:250: 135 Days

paragraph:251: 139 Days

paragraph:252: Q4 2025 Business Outlook

paragraph:253: For the fourth quarter of 2025 ending December 31, we are forecasting:

paragraph:254: •

paragraph:255: Revenue in the range of $730 million to $750 million.

paragraph:256: •

paragraph:257: GAAP gross margin in the range of 54.9% to 55.5%

paragraph:258: •

paragraph:259: Non-GAAP gross margin in the range of 55.2% to 55.8% which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

paragraph:260: •

paragraph:261: Total stock-based compensation and related expenses in the range of $63.2 million to $65.2 million including approximately $1.9 million that would be charged to cost of goods sold.

paragraph:262: •

paragraph:263: GAAP operating expenses between $206.8 million and $212.8 million.

paragraph:264: •

paragraph:265: Non-GAAP operating expenses in the range of $145.5 million to $149.5 million. This estimate excludes stock-based compensation and related expenses in the range of $61.3 million to $63.3 million.

paragraph:266: •

paragraph:267: Interest and other income in the range from $7.4 million to $7.8 million before foreign exchange gains or losses.

paragraph:268: •

paragraph:269: Non-GAAP tax rate of 15% for 2025.

paragraph:270: •

paragraph:271: Fully diluted shares outstanding in the range of 48.5 to 48.9 million shares.

paragraph:272: 6

paragraph:273: For further information, contact:

paragraph:274: Bernie Blegen

paragraph:275: Executive Vice President and Chief Financial Officer

paragraph:276: Monolithic Power Systems, Inc.

paragraph:277: 408-826-0777

paragraph:278: MPSInvestor.Relations@monolithicpower.com

paragraph:279: Safe Harbor Statement

paragraph:280: This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, that should not be unduly relied upon, including under the “Q4’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain, our statement regarding our ability to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, our statements regarding our inventory management to capture market upturns and our days of inventory compared to our Q4 2025 projected revenue, and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the fourth quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our end markets, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), or (iv). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

paragraph:281: 7

paragraph:282: Non-GAAP Financial Measures

paragraph:283: This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net, and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

paragraph:284: 8

paragraph:285: RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

paragraph:286: (Unaudited, in thousands, except per share amounts)

paragraph:287: Three Months Ended

paragraph:288: September 30,

paragraph:289: Nine Months Ended

paragraph:290: September 30,

paragraph:291: 2025

paragraph:292: 2024

paragraph:293: 2025

paragraph:294: 2024

paragraph:295: Net income

paragraph:296: $

paragraph:297: 178,274

paragraph:298: $

paragraph:299: 144,430

paragraph:300: $

paragraph:301: 445,791

paragraph:302: $

paragraph:303: 337,337

paragraph:304: Adjustments to reconcile net income to non-GAAP net income:

paragraph:305: Stock-based compensation and related expenses

paragraph:306: 60,875

paragraph:307: 52,416

paragraph:308: 174,966

paragraph:309: 156,889

paragraph:310: Amortization of acquisition-related intangible assets

paragraph:311: 320

paragraph:312: 320

paragraph:313: 960

paragraph:314: 983

paragraph:315: Deferred compensation plan expense, net

paragraph:316: 423

paragraph:317: 141

paragraph:318: 698

paragraph:319: 294

paragraph:320: Tax effect

paragraph:321: (12,778

paragraph:322: )

paragraph:323: 1,479

paragraph:324: 692

paragraph:325: (4,149

paragraph:326: )

paragraph:327: Non-GAAP net income

paragraph:328: $

paragraph:329: 227,114

paragraph:330: $

paragraph:331: 198,786

paragraph:332: $

paragraph:333: 623,107

paragraph:334: $

paragraph:335: 491,354

paragraph:336: Non-GAAP net income per share:

paragraph:337: Basic

paragraph:338: $

paragraph:339: 4.74

paragraph:340: $

paragraph:341: 4.08

paragraph:342: $

paragraph:343: 13.01

paragraph:344: $

paragraph:345: 10.09

paragraph:346: Diluted

paragraph:347: $

paragraph:348: 4.73

paragraph:349: $

paragraph:350: 4.06

paragraph:351: $

paragraph:352: 12.98

paragraph:353: $

paragraph:354: 10.04

paragraph:355: Shares used in the calculation of non-GAAP net income per share:

paragraph:356: Basic

paragraph:357: 47,898

paragraph:358: 48,757

paragraph:359: 47,879

paragraph:360: 48,692

paragraph:361: Diluted

paragraph:362: 48,042

paragraph:363: 48,964

paragraph:364: 48,022

paragraph:365: 48,945

paragraph:366: 9

paragraph:367: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:368: (Unaudited, in thousands)

paragraph:369: Three Months Ended

paragraph:370: September 30,

paragraph:371: Nine Months Ended

paragraph:372: September 30,

paragraph:373: 2025

paragraph:374: 2024

paragraph:375: 2025

paragraph:376: 2024

paragraph:377: Gross profit

paragraph:378: $

paragraph:379: 406,228

paragraph:380: $

paragraph:381: 343,443

paragraph:382: $

paragraph:383: 1,125,474

paragraph:384: $

paragraph:385: 876,462

paragraph:386: Gross margin

paragraph:387: 55.1

paragraph:388: %

paragraph:389: 55.4

paragraph:390: %

paragraph:391: 55.2

paragraph:392: %

paragraph:393: 55.3

paragraph:394: %

paragraph:395: Adjustments to reconcile gross profit to non-GAAP gross profit:

paragraph:396: Stock-based compensation and related expenses

paragraph:397: 1,917

paragraph:398: 1,695

paragraph:399: 5,538

paragraph:400: 5,230

paragraph:401: Amortization of acquisition-related intangible assets

paragraph:402: 287

paragraph:403: 287

paragraph:404: 861

paragraph:405: 884

paragraph:406: Deferred compensation plan expense

paragraph:407: 500

paragraph:408: 543

paragraph:409: 942

paragraph:410: 1,083

paragraph:411: Non-GAAP gross profit

paragraph:412: $

paragraph:413: 408,932

paragraph:414: $

paragraph:415: 345,968

paragraph:416: $

paragraph:417: 1,132,815

paragraph:418: $

paragraph:419: 883,659

paragraph:420: Non-GAAP gross margin

paragraph:421: 55.5

paragraph:422: %

paragraph:423: 55.8

paragraph:424: %

paragraph:425: 55.5

paragraph:426: %

paragraph:427: 55.7

paragraph:428: %

paragraph:429: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:430: (Unaudited, in thousands)

paragraph:431: Three Months Ended

paragraph:432: September 30,

paragraph:433: Nine Months Ended

paragraph:434: September 30,

paragraph:435: 2025

paragraph:436: 2024

paragraph:437: 2025

paragraph:438: 2024

paragraph:439: Total operating expenses

paragraph:440: $

paragraph:441: 211,045

paragraph:442: $

paragraph:443: 179,415

paragraph:444: $

paragraph:445: 596,774

paragraph:446: $

paragraph:447: 500,411

paragraph:448: Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

paragraph:449: Stock-based compensation and related expenses

paragraph:450: (58,958

paragraph:451: )

paragraph:452: (50,721

paragraph:453: )

paragraph:454: (169,428

paragraph:455: )

paragraph:456: (151,659

paragraph:457: )

paragraph:458: Amortization of acquisition-related intangible assets

paragraph:459: (33

paragraph:460: )

paragraph:461: (33

paragraph:462: )

paragraph:463: (99

paragraph:464: )

paragraph:465: (99

paragraph:466: )

paragraph:467: Deferred compensation plan expense

paragraph:468: (3,715

paragraph:469: )

paragraph:470: (3,492

paragraph:471: )

paragraph:472: (7,778

paragraph:473: )

paragraph:474: (8,391

paragraph:475: )

paragraph:476: Non-GAAP operating expenses

paragraph:477: $

paragraph:478: 148,339

paragraph:479: $

paragraph:480: 125,169

paragraph:481: $

paragraph:482: 419,469

paragraph:483: $

paragraph:484: 340,262

paragraph:485: 10

paragraph:486: RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

paragraph:487: (Unaudited, in thousands)

paragraph:488: Three Months Ended

paragraph:489: September 30,

paragraph:490: Nine Months Ended

paragraph:491: September 30,

paragraph:492: 2025

paragraph:493: 2024

paragraph:494: 2025

paragraph:495: 2024

paragraph:496: Total operating income

paragraph:497: $

paragraph:498: 195,183

paragraph:499: $

paragraph:500: 164,028

paragraph:501: $

paragraph:502: 528,700

paragraph:503: $

paragraph:504: 376,051

paragraph:505: Adjustments to reconcile total operating income to non-GAAP total operating income:

paragraph:506: Stock-based compensation and related expenses

paragraph:507: 60,875

paragraph:508: 52,416

paragraph:509: 174,966

paragraph:510: 156,889

paragraph:511: Amortization of acquisition-related intangible assets

paragraph:512: 320

paragraph:513: 320

paragraph:514: 960

paragraph:515: 983

paragraph:516: Deferred compensation plan expense

paragraph:517: 4,215

paragraph:518: 4,035

paragraph:519: 8,720

paragraph:520: 9,474

paragraph:521: Non-GAAP operating income

paragraph:522: $

paragraph:523: 260,593

paragraph:524: $

paragraph:525: 220,799

paragraph:526: $

paragraph:527: 713,346

paragraph:528: $

paragraph:529: 543,397

paragraph:530: RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

paragraph:531: (Unaudited, in thousands)

paragraph:532: Three Months Ended

paragraph:533: September 30,

paragraph:534: Nine Months Ended

paragraph:535: September 30,

paragraph:536: 2025

paragraph:537: 2024

paragraph:538: 2025

paragraph:539: 2024

paragraph:540: Total other income, net

paragraph:541: $

paragraph:542: 10,392

paragraph:543: $

paragraph:544: 10,278

paragraph:545: $

paragraph:546: 27,743

paragraph:547: $

paragraph:548: 27,330

paragraph:549: Adjustments to reconcile other income, net to non-GAAP other income, net:

paragraph:550: Deferred compensation plan income

paragraph:551: (3,792

paragraph:552: )

paragraph:553: (3,895

paragraph:554: )

paragraph:555: (8,022

paragraph:556: )

paragraph:557: (9,180

paragraph:558: )

paragraph:559: Non-GAAP other income, net

paragraph:560: $

paragraph:561: 6,600

paragraph:562: $

paragraph:563: 6,383

paragraph:564: $

paragraph:565: 19,721

paragraph:566: $

paragraph:567: 18,150

paragraph:568: RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

paragraph:569: (Unaudited, in thousands)

paragraph:570: Three Months Ended

paragraph:571: September 30,

paragraph:572: Nine Months Ended

paragraph:573: September 30,

paragraph:574: 2025

paragraph:575: 2024

paragraph:576: 2025

paragraph:577: 2024

paragraph:578: Total income before income taxes

paragraph:579: $

paragraph:580: 205,575

paragraph:581: $

paragraph:582: 174,306

paragraph:583: $

paragraph:584: 556,443

paragraph:585: $

paragraph:586: 403,381

paragraph:587: Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

paragraph:588: Stock-based compensation and related expenses

paragraph:589: 60,875

paragraph:590: 52,416

paragraph:591: 174,966

paragraph:592: 156,889

paragraph:593: Amortization of acquisition-related intangible assets

paragraph:594: 320

paragraph:595: 320

paragraph:596: 960

paragraph:597: 983

paragraph:598: Deferred compensation plan expense, net

paragraph:599: 423

paragraph:600: 141

paragraph:601: 698

paragraph:602: 294

paragraph:603: Non-GAAP income before income taxes

paragraph:604: $

paragraph:605: 267,193

paragraph:606: $

paragraph:607: 227,183

paragraph:608: $

paragraph:609: 733,067

paragraph:610: $

paragraph:611: 561,547

paragraph:612: 11

paragraph:613: 2025

paragraph:614: FOURTH

paragraph:615: QUARTER OUTLOOK

paragraph:616: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:617: (Unaudited)

paragraph:618: Three Months Ending

paragraph:619: December 31, 2025

paragraph:620: Low

paragraph:621: High

paragraph:622: Gross margin

paragraph:623: 54.9

paragraph:624: %

paragraph:625: 55.5

paragraph:626: %

paragraph:627: Adjustment to reconcile gross margin to non-GAAP gross margin:

paragraph:628: Stock-based compensation and other expenses

paragraph:629: 0.3

paragraph:630: %

paragraph:631: 0.3

paragraph:632: %

paragraph:633: Non-GAAP gross margin

paragraph:634: 55.2

paragraph:635: %

paragraph:636: 55.8

paragraph:637: %

paragraph:638: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:639: (Unaudited, in thousands)

paragraph:640: Three Months Ending

paragraph:641: December 31, 2025

paragraph:642: Low

paragraph:643: High

paragraph:644: Operating expenses

paragraph:645: $

paragraph:646: 206,800

paragraph:647: $

paragraph:648: 212,800

paragraph:649: Adjustments to reconcile operating expenses to non-GAAP operating expenses:

paragraph:650: Stock-based compensation and other expenses

paragraph:651: (61,300

paragraph:652: )

paragraph:653: (63,300

paragraph:654: )

paragraph:655: Non-GAAP operating expenses

paragraph:656: $

paragraph:657: 145,500

paragraph:658: $

paragraph:659: 149,500

paragraph:660: 12

paragraph:1: EX-99.2

paragraph:2: 3

paragraph:3: ex_815329.htm

paragraph:4: EXHIBIT 99.2

paragraph:5: ex_815329.htm

paragraph:6: Exhibit 99.2

paragraph:7: Monolithic Power Systems

paragraph:8: Q2’25 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems to Report Second Quarter Results on July 31, 2025

paragraph:13: MPS will report its results after the market closes on July 31, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/98147401910

paragraph:14: .

paragraph:15: Q2 2025 Financial Summary

paragraph:16: (Unaudited)

paragraph:17: GAAP

paragraph:18: Q2'25

paragraph:19: Q1'25

paragraph:20: Q2'24

paragraph:21: QoQ Change

paragraph:22: YoY Change

paragraph:23: Revenue ($k)

paragraph:24: $ 664,574

paragraph:25: $ 637,554

paragraph:26: $ 507,431

paragraph:27: Up 4.2%

paragraph:28: Up 31.0%

paragraph:29: Gross Margin

paragraph:30: 55.1

paragraph:31: %

paragraph:32: 55.4

paragraph:33: %

paragraph:34: 55.3

paragraph:35: %

paragraph:36: Down 0.3 pts

paragraph:37: Down 0.2 pts

paragraph:38: Opex ($k)

paragraph:39: $ 201,258

paragraph:40: $ 184,471

paragraph:41: $ 164,042

paragraph:42: Up 9.1%

paragraph:43: Up 22.7%

paragraph:44: Operating Margin

paragraph:45: 24.8

paragraph:46: %

paragraph:47: 26.5

paragraph:48: %

paragraph:49: 23.0

paragraph:50: %

paragraph:51: Down 1.7 pts

paragraph:52: Up 1.8 pts

paragraph:53: Net income ($k)

paragraph:54: $ 133,726

paragraph:55: $ 133,791

paragraph:56: $ 100,366

paragraph:57: Flat

paragraph:58: Up 33.2%

paragraph:59: Diluted EPS

paragraph:60: $ 2.78

paragraph:61: $ 2.79

paragraph:62: $ 2.05

paragraph:63: Down 0.4%

paragraph:64: Up 35.6%

paragraph:65: Non-GAAP

paragraph:66: Q2'25

paragraph:67: Q1'25

paragraph:68: Q2'24

paragraph:69: QoQ Change

paragraph:70: YoY Change

paragraph:71: Revenue ($k)

paragraph:72: $ 664,574

paragraph:73: $ 637,554

paragraph:74: $ 507,431

paragraph:75: Up 4.2%

paragraph:76: Up 31.0%

paragraph:77: Gross Margin

paragraph:78: 55.5

paragraph:79: %

paragraph:80: 55.7

paragraph:81: %

paragraph:82: 55.7

paragraph:83: %

paragraph:84: Down 0.2 pts

paragraph:85: Down 0.2 pts

paragraph:86: Opex ($k)

paragraph:87: $ 137,604

paragraph:88: $ 133,526

paragraph:89: $ 111,667

paragraph:90: Up 3.1%

paragraph:91: Up 23.2%

paragraph:92: Operating Margin

paragraph:93: 34.8

paragraph:94: %

paragraph:95: 34.7

paragraph:96: %

paragraph:97: 33.7

paragraph:98: %

paragraph:99: Up 0.1 pts

paragraph:100: Up 1.1 pts

paragraph:101: Net income ($k)

paragraph:102: $ 202,180

paragraph:103: $ 193,813

paragraph:104: $ 155,076

paragraph:105: Up 4.3%

paragraph:106: Up 30.4%

paragraph:107: Diluted EPS

paragraph:108: $ 4.21

paragraph:109: $ 4.04

paragraph:110: $ 3.17

paragraph:111: Up 4.2%

paragraph:112: Up 32.8%

paragraph:113: Tax Rate

paragraph:114: 15.0

paragraph:115: %

paragraph:116: 15.0

paragraph:117: %

paragraph:118: 12.5

paragraph:119: %

paragraph:120: Flat

paragraph:121: Up 2.5 pts

paragraph:122: Revenue by End Market

paragraph:123: Revenue

paragraph:124: YoY Change

paragraph:125: % of Revenue

paragraph:126: End Market ($M)

paragraph:127: Q2'25

paragraph:128: Q2'24

paragraph:129: $

paragraph:130: %

paragraph:131: Q2'25

paragraph:132: Q2'24

paragraph:133: Storage & Computing

paragraph:134: $ 195.3

paragraph:135: $ 114.9

paragraph:136: $ 80.4

paragraph:137: 70.0

paragraph:138: %

paragraph:139: 29.4

paragraph:140: %

paragraph:141: 22.7

paragraph:142: %

paragraph:143: Automotive

paragraph:144: 145.1

paragraph:145: 87.2

paragraph:146: 57.9

paragraph:147: 66.4

paragraph:148: %

paragraph:149: 21.8

paragraph:150: 17.2

paragraph:151: Enterprise Data

paragraph:152: 144.0

paragraph:153: 187.2

paragraph:154: (43.2

paragraph:155: )

paragraph:156: (23.1

paragraph:157: %)

paragraph:158: 21.7

paragraph:159: 36.9

paragraph:160: Communications

paragraph:161: 73.8

paragraph:162: 43.6

paragraph:163: 30.2

paragraph:164: 69.3

paragraph:165: %

paragraph:166: 11.1

paragraph:167: 8.5

paragraph:168: Consumer

paragraph:169: 59.7

paragraph:170: 42.2

paragraph:171: 17.5

paragraph:172: 41.5

paragraph:173: %

paragraph:174: 9.0

paragraph:175: 8.3

paragraph:176: Industrial

paragraph:177: 46.7

paragraph:178: 32.3

paragraph:179: 14.4

paragraph:180: 44.6

paragraph:181: %

paragraph:182: 7.0

paragraph:183: 6.4

paragraph:184: Total

paragraph:185: $ 664.6

paragraph:186: $ 507.4

paragraph:187: $ 157.2

paragraph:188: 31.0

paragraph:189: %

paragraph:190: 100

paragraph:191: %

paragraph:192: 100

paragraph:193: %

paragraph:194: 2

paragraph:195: Ongoing Business Conditions

paragraph:196: In Q2 2025, MPS achieved record quarterly revenue of $664.6 million, 4.2% higher than revenue in the first quarter of 2025 and 31.0% higher than revenue in the second quarter of 2024.

paragraph:197: Our performance during the quarter reflected the resilience of our diversified market strategy as we continued to see strong broad-based ordering patterns.

paragraph:198: Q2 2025 highlights include:

paragraph:199: ●

paragraph:200: We continued to see diversified revenue growth across all our end markets.

paragraph:201: ●

paragraph:202: We began initial shipments of our power solutions to support our customers new ASIC based AI products.

paragraph:203: ●

paragraph:204: Storage and Compute revenue grew sequentially off a strong Q1 as we continued to see demand for both memory and notebook power solutions.

paragraph:205: MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

paragraph:206: “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:207: Q2’25 Revenue Results

paragraph:208: MPS reported second quarter revenue of $664.6 million, 4.2% higher than the first quarter of 2025 and 31.0% higher than the second quarter of 2024. Compared with the first quarter of 2025, sales improved sequentially across all end markets.

paragraph:209: Second quarter 2025 Industrial revenue of $46.7 million increased 9.6% from the first quarter of 2025 primarily due to higher sales for instrumentation and security applications. Second quarter 2025 Industrial revenue was up 44.6% year over year. Industrial revenue represented 7.0% of our total second quarter 2025 revenue compared with 6.7% in the first quarter of 2025.

paragraph:210: In our Enterprise Data market, second quarter 2025 revenue of $144.0 million increased 8.4% from the first quarter of 2025 from higher sales of our power management solutions for AI and server applications. Second quarter 2025 Enterprise Data revenue was down 23.1% year over year. Enterprise Data revenue represented 21.7% of our total second quarter 2025 revenue compared with 20.8% in the first quarter of 2025.

paragraph:211: Second quarter 2025 Consumer revenue of $59.7 million increased 4.9% from the first quarter of 2025 primarily from higher sales in monitors and gaming solutions. Second quarter 2025 Consumer revenue was up 41.5% year over year. Consumer revenue represented 9.0% of our total second quarter 2025 revenue compared with 8.9% in the first quarter of 2025.

paragraph:212: 3

paragraph:213: Second quarter 2025 Storage and Computing revenue of $195.3 million increased 3.6% from the first quarter of 2025. The sequential increase was primarily driven by higher sales of power solutions for notebooks as well as memory. Second quarter 2025 Storage and Computing revenue was up 70.0% year over year. Storage and Computing revenue represented 29.4% of MPS’s second quarter 2025 revenue compared with 29.6% in the first quarter of 2025.

paragraph:214: Second quarter 2025 Communications revenue of $73.8 million was up 2.8% from the first quarter of 2025 primarily on higher sales of power solutions for optical modules and routers. Second quarter 2025 Communications revenue was up 69.3% year over year. Communications sales represented 11.1% of our total second quarter 2025 revenue compared with 11.3% the first quarter of 2025.

paragraph:215: Second quarter Automotive revenue of $145.1 million increased 0.1% from the from the first quarter of 2025. Second quarter 2025 Automotive revenue was up 66.4% year over year. Automotive revenue represented 21.8% of MPS’s second quarter 2025 revenue compared with 22.7% in the first quarter of 2025.

paragraph:216: Q2'25 Gross Margin & Operating Income

paragraph:217: GAAP gross margin was 55.1%, down 0.3 percentage points compared to the first quarter of 2025. Our GAAP operating income was $164.8 million compared to $168.8 million reported in the first quarter of 2025.

paragraph:218: Non-GAAP gross margin for the second quarter of 2025 was 55.5%, down 0.2 percentage points compared to the first quarter of 2025. Our non-GAAP operating income was $231.2 million compared to $221.5 million reported in the first quarter of 2025.

paragraph:219: Q2'25 Operating Expenses

paragraph:220: Our GAAP operating expenses were $201.3 million in the second quarter of 2025 compared with $184.5 million in the first quarter of 2025.

paragraph:221: Our Non-GAAP operating expenses were $137.6 million, up from $133.5 million in the first quarter of 2025.

paragraph:222: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan expense.

paragraph:223: Total stock-based compensation and related expenses, including approximately $1.9 million charged to cost of goods sold, was $60.3 million compared with $53.8 million recorded in the first quarter of 2025.

paragraph:224: 4

paragraph:225: The Bottom Line

paragraph:226: Second quarter 2025 GAAP net income was $133.7 million or $2.78 per fully diluted share, compared with $133.8 million or $2.79 per share in the first quarter of 2025.

paragraph:227: Second quarter 2025 non-GAAP net income was $202.2 million or $4.21 per fully diluted share, compared with $193.8 million or $4.04 per fully diluted share in the first quarter of 2025.

paragraph:228: Second quarter 2025 non-GAAP tax rate of 15% was flat to the first quarter of 2025.

paragraph:229: There were 48 million fully diluted shares outstanding at the end of the second quarter of 2025.

paragraph:230: Balance Sheet and Cash Flow

paragraph:231: Cash, cash equivalents and short-term investments were $1,146.1 million at the end of the second quarter of 2025 compared to $1,026.7 million at the end of the first quarter of 2025. For the second quarter of 2025, MPS generated operating cash flow of $237.6 million compared with the first quarter of 2025 operating cash flow of $256.4 million.

paragraph:232: Accounts receivable at the end of the second quarter of 2025 were $194.8 million, representing 27 days of sales outstanding, which was 4 days lower than the 31 days reported at the end of the first quarter of 2025.

paragraph:233: Our internal inventories at the end of the second quarter of 2025 were $490.6 million, up from $454.8 million at the end of the first quarter of 2025. Days of inventory of 150 days at the end of the second quarter of 2025 was 4 days higher than at the end of the first quarter of 2025.

paragraph:234: We continue to manage our internal inventories, balancing the uncertainty in the market with being prepared to capture market upturns as they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the second quarter of 139 days was flat to the end of the first quarter of 2025.

paragraph:235: 5

paragraph:236: Selected Balance Sheet and Inventory Data

paragraph:237: (Unaudited)

paragraph:238: Q2'25

paragraph:239: Q1'25

paragraph:240: Q2'24

paragraph:241: Cash, Cash Equivalents, and Short-Term Investments

paragraph:242: $ 1,146.1 M

paragraph:243: $ 1,026.7 M

paragraph:244: $ 1,307.2 M

paragraph:245: Operating Cash Flow

paragraph:246: $ 237.6 M

paragraph:247: $ 256.4 M

paragraph:248: $ 141.0 M

paragraph:249: Accounts Receivable

paragraph:250: $ 194.8 M

paragraph:251: $ 214.9 M

paragraph:252: $ 157.9 M

paragraph:253: Days of Sales Outstanding

paragraph:254: 27 Days

paragraph:255: 31 Days

paragraph:256: 28 Days

paragraph:257: Internal Inventories

paragraph:258: $ 490.6 M

paragraph:259: $ 454.8 M

paragraph:260: $ 426.8 M

paragraph:261: Days of Inventory (current quarter revenue)

paragraph:262: 150 Days

paragraph:263: 146 Days

paragraph:264: 171 Days

paragraph:265: Days of Inventory (next quarter revenue)

paragraph:266: 139 Days

paragraph:267: 139 Days

paragraph:268: 140 Days

paragraph:269: Q3 ’ 25 Business Outlook

paragraph:270: For the third quarter of 2025 ending September 30, we are forecasting:

paragraph:271: •

paragraph:272: Revenue in the range of $710 million to $730 million.

paragraph:273: •

paragraph:274: GAAP gross margin in the range of 54.9% to 55.5%.

paragraph:275: •

paragraph:276: Non-GAAP gross margin in the range of 55.2% to 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

paragraph:277: •

paragraph:278: Total stock-based compensation and related expenses in the range of $60.1 million to $62.1 million including approximately $1.8 million that would be charged to cost of goods sold.

paragraph:279: •

paragraph:280: GAAP operating expenses between $201.3 million and $207.3 million.

paragraph:281: •

paragraph:282: Non-GAAP operating expenses in the range of $143.0 million to $147.0 million. This estimate excludes stock-based compensation and related expenses in the range of $58.3 million to $60.3 million.

paragraph:283: •

paragraph:284: Interest and other income in the range from $6.4 million to $6.8 million before foreign exchange gains or losses.

paragraph:285: •

paragraph:286: Non-GAAP tax rate of 15% for 2025.

paragraph:287: •

paragraph:288: Fully diluted shares outstanding in the range of 47.9 to 48.3 million shares.

paragraph:289: 6

paragraph:290: For further information, contact:

paragraph:291: Bernie Blegen

paragraph:292: Executive Vice President and Chief Financial Officer

paragraph:293: Monolithic Power Systems, Inc.

paragraph:294: 408-826-0777

paragraph:295: MPSInvestor.Relations@monolithicpower.com

paragraph:296: Safe Harbor Statement

paragraph:297: This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q3’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain, our statement regarding the expected ramping of ASIC AI power products, our statement regarding geographically balanced capacity, our statement regarding our ability to capture future growth opportunities, maintain supply stability and swiftly adapt to market changes as they occur, and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our end markets, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the recent H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

paragraph:298: 7

paragraph:299: Non-GAAP Financial Measures

paragraph:300: This earnings commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net, and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

paragraph:301: 8

paragraph:302: RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

paragraph:303: (Unaudited, in thousands, except per share amounts)

paragraph:304: Three Months Ended June 30,

paragraph:305: Six Months Ended June 30,

paragraph:306: 2025

paragraph:307: 2024

paragraph:308: 2025

paragraph:309: 2024

paragraph:310: Net income

paragraph:311: $

paragraph:312: 133,726

paragraph:313: $

paragraph:314: 100,366

paragraph:315: $

paragraph:316: 267,517

paragraph:317: $

paragraph:318: 192,907

paragraph:319: Adjustments to reconcile net income to non-GAAP net income:

paragraph:320: Stock-based compensation and related expenses

paragraph:321: 60,280

paragraph:322: 52,704

paragraph:323: 114,091

paragraph:324: 104,473

paragraph:325: Amortization of acquisition-related intangible assets

paragraph:326: 320

paragraph:327: 372

paragraph:328: 640

paragraph:329: 663

paragraph:330: Deferred compensation plan expense, net

paragraph:331: 281

paragraph:332: 106

paragraph:333: 275

paragraph:334: 153

paragraph:335: Tax effect

paragraph:336: 7,573

paragraph:337: 1,528

paragraph:338: 13,470

paragraph:339: (5,628

paragraph:340: )

paragraph:341: Non-GAAP net income

paragraph:342: $

paragraph:343: 202,180

paragraph:344: $

paragraph:345: 155,076

paragraph:346: $

paragraph:347: 395,993

paragraph:348: $

paragraph:349: 292,568

paragraph:350: Non-GAAP net income per share:

paragraph:351: Basic

paragraph:352: $

paragraph:353: 4.22

paragraph:354: $

paragraph:355: 3.19

paragraph:356: $

paragraph:357: 8.27

paragraph:358: $

paragraph:359: 6.01

paragraph:360: Diluted

paragraph:361: $

paragraph:362: 4.21

paragraph:363: $

paragraph:364: 3.17

paragraph:365: $

paragraph:366: 8.25

paragraph:367: $

paragraph:368: 5.98

paragraph:369: Shares used in the calculation of non-GAAP net income per share:

paragraph:370: Basic

paragraph:371: 47,887

paragraph:372: 48,687

paragraph:373: 47,869

paragraph:374: 48,660

paragraph:375: Diluted

paragraph:376: 48,019

paragraph:377: 48,945

paragraph:378: 48,012

paragraph:379: 48,935

paragraph:380: 9

paragraph:381: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:382: (Unaudited, in thousands)

paragraph:383: Three Months Ended June 30,

paragraph:384: Six Months Ended June 30,

paragraph:385: 2025

paragraph:386: 2024

paragraph:387: 2025

paragraph:388: 2024

paragraph:389: Gross profit

paragraph:390: $

paragraph:391: 366,016

paragraph:392: $

paragraph:393: 280,578

paragraph:394: $

paragraph:395: 719,246

paragraph:396: $

paragraph:397: 533,019

paragraph:398: Gross margin

paragraph:399: 55.1

paragraph:400: %

paragraph:401: 55.3

paragraph:402: %

paragraph:403: 55.2

paragraph:404: %

paragraph:405: 55.2

paragraph:406: %

paragraph:407: Adjustments to reconcile gross profit to non-GAAP gross profit:

paragraph:408: Stock-based compensation and related expenses

paragraph:409: 1,915

paragraph:410: 1,635

paragraph:411: 3,621

paragraph:412: 3,535

paragraph:413: Amortization of acquisition-related intangible assets

paragraph:414: 287

paragraph:415: 339

paragraph:416: 574

paragraph:417: 597

paragraph:418: Deferred compensation plan expense

paragraph:419: 605

paragraph:420: 100

paragraph:421: 442

paragraph:422: 540

paragraph:423: Non-GAAP gross profit

paragraph:424: $

paragraph:425: 368,823

paragraph:426: $

paragraph:427: 282,652

paragraph:428: $

paragraph:429: 723,883

paragraph:430: $

paragraph:431: 537,691

paragraph:432: Non-GAAP gross margin

paragraph:433: 55.5

paragraph:434: %

paragraph:435: 55.7

paragraph:436: %

paragraph:437: 55.6

paragraph:438: %

paragraph:439: 55.7

paragraph:440: %

paragraph:441: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:442: (Unaudited, in thousands)

paragraph:443: Three Months Ended June 30,

paragraph:444: Six Months Ended June 30,

paragraph:445: 2025

paragraph:446: 2024

paragraph:447: 2025

paragraph:448: 2024

paragraph:449: Total operating expenses

paragraph:450: $

paragraph:451: 201,258

paragraph:452: $

paragraph:453: 164,042

paragraph:454: $

paragraph:455: 385,729

paragraph:456: $

paragraph:457: 320,996

paragraph:458: Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

paragraph:459: Stock-based compensation and related expenses

paragraph:460: (58,365

paragraph:461: )

paragraph:462: (51,069

paragraph:463: )

paragraph:464: (110,470

paragraph:465: )

paragraph:466: (100,938

paragraph:467: )

paragraph:468: Amortization of acquisition-related intangible assets

paragraph:469: (33

paragraph:470: )

paragraph:471: (33

paragraph:472: )

paragraph:473: (66

paragraph:474: )

paragraph:475: (66

paragraph:476: )

paragraph:477: Deferred compensation plan expense

paragraph:478: (5,256

paragraph:479: )

paragraph:480: (1,273

paragraph:481: )

paragraph:482: (4,063

paragraph:483: )

paragraph:484: (4,899

paragraph:485: )

paragraph:486: Non-GAAP operating expenses

paragraph:487: $

paragraph:488: 137,604

paragraph:489: $

paragraph:490: 111,667

paragraph:491: $

paragraph:492: 271,130

paragraph:493: $

paragraph:494: 215,093

paragraph:495: 10

paragraph:496: RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

paragraph:497: (Unaudited, in thousands)

paragraph:498: Three Months Ended June 30,

paragraph:499: Six Months Ended June 30,

paragraph:500: 2025

paragraph:501: 2024

paragraph:502: 2025

paragraph:503: 2024

paragraph:504: Total operating income

paragraph:505: $

paragraph:506: 164,758

paragraph:507: $

paragraph:508: 116,536

paragraph:509: $

paragraph:510: 333,517

paragraph:511: $

paragraph:512: 212,023

paragraph:513: Adjustments to reconcile total operating income to non-GAAP total operating income:

paragraph:514: Stock-based compensation and related expenses

paragraph:515: 60,280

paragraph:516: 52,704

paragraph:517: 114,091

paragraph:518: 104,473

paragraph:519: Amortization of acquisition-related intangible assets

paragraph:520: 320

paragraph:521: 372

paragraph:522: 640

paragraph:523: 663

paragraph:524: Deferred compensation plan expense

paragraph:525: 5,861

paragraph:526: 1,373

paragraph:527: 4,505

paragraph:528: 5,439

paragraph:529: Non-GAAP operating income

paragraph:530: $

paragraph:531: 231,219

paragraph:532: $

paragraph:533: 170,985

paragraph:534: $

paragraph:535: 452,753

paragraph:536: $

paragraph:537: 322,598

paragraph:538: RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

paragraph:539: (Unaudited, in thousands)

paragraph:540: Three Months Ended June 30,

paragraph:541: Six Months Ended June 30,

paragraph:542: 2025

paragraph:543: 2024

paragraph:544: 2025

paragraph:545: 2024

paragraph:546: Total other income, net

paragraph:547: $

paragraph:548: 12,220

paragraph:549: $

paragraph:550: 7,512

paragraph:551: $

paragraph:552: 17,351

paragraph:553: $

paragraph:554: 17,052

paragraph:555: Adjustments to reconcile other income, net to non-GAAP other income, net:

paragraph:556: Deferred compensation plan income

paragraph:557: (5,580

paragraph:558: )

paragraph:559: (1,266

paragraph:560: )

paragraph:561: (4,230

paragraph:562: )

paragraph:563: (5,285

paragraph:564: )

paragraph:565: Non-GAAP other income, net

paragraph:566: $

paragraph:567: 6,640

paragraph:568: $

paragraph:569: 6,246

paragraph:570: $

paragraph:571: 13,121

paragraph:572: $

paragraph:573: 11,767

paragraph:574: RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

paragraph:575: (Unaudited, in thousands)

paragraph:576: Three Months Ended June 30,

paragraph:577: Six Months Ended June 30,

paragraph:578: 2025

paragraph:579: 2024

paragraph:580: 2025

paragraph:581: 2024

paragraph:582: Total income before income taxes

paragraph:583: $

paragraph:584: 176,978

paragraph:585: $

paragraph:586: 124,048

paragraph:587: $

paragraph:588: 350,868

paragraph:589: $

paragraph:590: 229,075

paragraph:591: Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

paragraph:592: Stock-based compensation and related expenses

paragraph:593: 60,280

paragraph:594: 52,704

paragraph:595: 114,091

paragraph:596: 104,473

paragraph:597: Amortization of acquisition-related intangible assets

paragraph:598: 320

paragraph:599: 372

paragraph:600: 640

paragraph:601: 663

paragraph:602: Deferred compensation plan expense, net

paragraph:603: 281

paragraph:604: 106

paragraph:605: 275

paragraph:606: 153

paragraph:607: Non-GAAP income before income taxes

paragraph:608: $

paragraph:609: 237,859

paragraph:610: $

paragraph:611: 177,230

paragraph:612: $

paragraph:613: 465,874

paragraph:614: $

paragraph:615: 334,364

paragraph:616: 11

paragraph:617: 2025

paragraph:618: THIRD

paragraph:619: QUARTER OUTLOOK

paragraph:620: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:621: (Unaudited)

paragraph:622: Three Months Ending

paragraph:623: September 30, 2025

paragraph:624: Low

paragraph:625: High

paragraph:626: Gross margin

paragraph:627: 54.9

paragraph:628: %

paragraph:629: 55.5

paragraph:630: %

paragraph:631: Adjustment to reconcile gross margin to non-GAAP gross margin:

paragraph:632: Stock-based compensation and other expenses

paragraph:633: 0.3

paragraph:634: %

paragraph:635: 0.3

paragraph:636: %

paragraph:637: Non-GAAP gross margin

paragraph:638: 55.2

paragraph:639: %

paragraph:640: 55.8

paragraph:641: %

paragraph:642: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:643: (Unaudited, in thousands)

paragraph:644: Three Months Ending

paragraph:645: September 30, 2025

paragraph:646: Low

paragraph:647: High

paragraph:648: Operating expenses

paragraph:649: $

paragraph:650: 201,300

paragraph:651: $

paragraph:652: 207,300

paragraph:653: Adjustments to reconcile operating expenses to non-GAAP operating expenses:

paragraph:654: Stock-based compensation and other expenses

paragraph:655: (58,300

paragraph:656: )

paragraph:657: (60,300

paragraph:658: )

paragraph:659: Non-GAAP operating expenses

paragraph:660: $

paragraph:661: 143,000

paragraph:662: $

paragraph:663: 147,000

paragraph:664: 12

paragraph:1: EX-99.2

paragraph:2: 3

paragraph:3: ex_786126.htm

paragraph:4: EXHIBIT 99.2

paragraph:5: ex_786126.htm

paragraph:6: Exhibit 99.2

paragraph:7: Monolithic Power Systems

paragraph:8: Q1’25 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems to Report First Quarter Results on May 1, 2025

paragraph:13: MPS will report its results after the market closes on May 1, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/92570889542 .

paragraph:14: Q1 2025 Financial Summary

paragraph:15: (Unaudited)

paragraph:16: GAAP

paragraph:17: Q1'25

paragraph:18: Q4'24

paragraph:19: Q1'24

paragraph:20: QoQ Change

paragraph:21: YoY Change

paragraph:22: Revenue ($k)

paragraph:23: $ 637,554

paragraph:24: $ 621,665

paragraph:25: 457,885

paragraph:26: Up 2.6%

paragraph:27: Up 39.2%

paragraph:28: Gross Margin

paragraph:29: 55.4%

paragraph:30: 55.4%

paragraph:31: 55.1%

paragraph:32: Flat

paragraph:33: Up 0.3 pts

paragraph:34: Opex ($k)

paragraph:35: $ 184,471

paragraph:36: $ 181,101

paragraph:37: 156,954

paragraph:38: Up 1.9%

paragraph:39: Up 17.5%

paragraph:40: Operating Margin

paragraph:41: 26.5%

paragraph:42: 26.3%

paragraph:43: 20.9%

paragraph:44: Up 0.2 pts

paragraph:45: Up 5.6 pts

paragraph:46: Net income ($k)

paragraph:47: $ 133,791

paragraph:48: $ 1,449,363

paragraph:49: 92,541

paragraph:50: Down 90.8%

paragraph:51: Up 44.6%

paragraph:52: Diluted EPS

paragraph:53: $ 2.79

paragraph:54: $ 29.88

paragraph:55: 1.89

paragraph:56: Down 90.7%

paragraph:57: Up 47.6%

paragraph:58: Non-GAAP

paragraph:59: Q1'25

paragraph:60: Q4'24

paragraph:61: Q1'24

paragraph:62: QoQ Change

paragraph:63: YoY Change

paragraph:64: Revenue ($k)

paragraph:65: $ 637,554

paragraph:66: $ 621,665

paragraph:67: $ 457,885

paragraph:68: Up 2.6%

paragraph:69: Up 39.2%

paragraph:70: Gross Margin

paragraph:71: 55.7%

paragraph:72: 55.8%

paragraph:73: 55.7%

paragraph:74: Down 0.1 pts

paragraph:75: Flat

paragraph:76: Opex ($k)

paragraph:77: $ 133,526

paragraph:78: $ 126,117

paragraph:79: $ 103,426

paragraph:80: Up 5.9%

paragraph:81: Up 29.1%

paragraph:82: Operating Margin

paragraph:83: 34.7%

paragraph:84: 35.5%

paragraph:85: 33.1%

paragraph:86: Down 0.8 pts

paragraph:87: Up 1.6 pts

paragraph:88: Net income ($k)

paragraph:89: $ 193,813

paragraph:90: $ 198,401

paragraph:91: $ 137,492

paragraph:92: Down 2.3%

paragraph:93: Up 41.0%

paragraph:94: Diluted EPS

paragraph:95: $ 4.04

paragraph:96: $ 4.09

paragraph:97: $ 2.81

paragraph:98: Down 1.2%

paragraph:99: Up 43.8%

paragraph:100: Tax Rate

paragraph:101: 15.0%

paragraph:102: 12.5%

paragraph:103: 12.5%

paragraph:104: Up 2.5 pts

paragraph:105: Up 2.5 pts

paragraph:106: Revenue by End Market

paragraph:107: Revenue

paragraph:108: YoY Change

paragraph:109: % of Revenue

paragraph:110: End Market ($M)

paragraph:111: Q1’25

paragraph:112: Q1’24

paragraph:113: $

paragraph:114: %

paragraph:115: Q1’25

paragraph:116: Q1’24

paragraph:117: Storage & Computing

paragraph:118: $ 188.5

paragraph:119: $ 106.1

paragraph:120: $ 82.4

paragraph:121: 77.7%

paragraph:122: 29.6

paragraph:123: %

paragraph:124: 23.2

paragraph:125: %

paragraph:126: Automotive

paragraph:127: 144.9

paragraph:128: 87.1

paragraph:129: 57.8

paragraph:130: 66.4%

paragraph:131: 22.7

paragraph:132: 19.0

paragraph:133: Enterprise Data

paragraph:134: 132.9

paragraph:135: 149.7

paragraph:136: (16.8

paragraph:137: )

paragraph:138: (11.2%

paragraph:139: )

paragraph:140: 20.8

paragraph:141: 32.7

paragraph:142: Communications

paragraph:143: 71.8

paragraph:144: 46.7

paragraph:145: 25.1

paragraph:146: 53.7%

paragraph:147: 11.3

paragraph:148: 10.2

paragraph:149: Consumer

paragraph:150: 56.9

paragraph:151: 38.1

paragraph:152: 18.8

paragraph:153: 49.3%

paragraph:154: 8.9

paragraph:155: 8.3

paragraph:156: Industrial

paragraph:157: 42.6

paragraph:158: 30.2

paragraph:159: 12.4

paragraph:160: 41.1%

paragraph:161: 6.7

paragraph:162: 6.6

paragraph:163: Total

paragraph:164: $ 637.6

paragraph:165: $ 457.9

paragraph:166: $ 179.7

paragraph:167: 39.2%

paragraph:168: 100

paragraph:169: %

paragraph:170: 100

paragraph:171: %

paragraph:172: 2

paragraph:173: Ongoing Business Conditions

paragraph:174: In Q1 2025, MPS achieved record quarterly revenue of $637.6 million, slightly higher than revenue in the fourth quarter of 2024 and 39.2% higher than revenue in the first quarter of 2024.

paragraph:175: Our performance during the quarter reflected the continued strength of our diversified market strategy and a continued trend of the ordering patterns we saw at the end of 2024.

paragraph:176: Q1 2025 highlights include:

paragraph:177: ●

paragraph:178: At our March 20th investor day, we showcased MPS innovation across a range of areas including new opportunities in Robotics, Automotive, Data Center, Building Automation, Medical, and Audio.

paragraph:179: ●

paragraph:180: In Q1, Storage and Computing segment revenue increased 38% quarter-over-quarter on strong demand for both memory and notebook solutions.

paragraph:181: ●

paragraph:182: We continue to win designs across all major Enterprise Data customers with revenue ramps expected in the second half of this year.

paragraph:183: ●

paragraph:184: Finally, Q1’25 Automotive revenue increased 13% from Q4’24, the third consecutive quarter of sequential double-digit growth.

paragraph:185: MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

paragraph:186: “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:187: Q1 ’ 25 Revenue Results

paragraph:188: MPS reported first quarter revenue of $637.6 million, slightly higher than the fourth quarter of 2024 and 39.2% higher than the first quarter of 2024. Compared with the fourth quarter of 2024, sales in Storage & Computing, Automotive, Communication and Industrial improved sequentially.

paragraph:189: First quarter 2025 Storage and Computing revenue of $188.5 million increased 38.1% from the fourth quarter of 2024. The sequential increase was primarily driven by higher sales of power solutions for storage and notebooks. First quarter 2025 Storage and Computing revenue was up 77.7% year over year. Storage and Computing revenue represented 29.6% of MPS’s first quarter 2025 revenue compared with 22.0% in the fourth quarter of 2024.

paragraph:190: 3

paragraph:191: First quarter Automotive revenue of $144.9 million increased 12.9% from the fourth quarter of 2024 primarily from higher sales in ADAS, body electronics, and infotainment power solutions. First quarter 2025 Automotive revenue was up 66.4% year over year. Automotive revenue represented 22.7% of MPS’s first quarter 2025 revenue compared with 20.6% in the fourth quarter of 2024.

paragraph:192: First quarter 2025 Communications revenue of $71.8 million was up 12.3% from the fourth quarter of 2025 primarily on higher sales into networking and optical solutions. First quarter 2025 Communications revenue was up 53.7% year over year. Communications sales represented 11.3% of our total first quarter 2025 revenue compared with 10.3% in the fourth quarter of 2024.

paragraph:193: First quarter 2025 Industrial revenue of $42.6 million increased 4.3% from the fourth quarter of 2024 primarily due to higher sales for industrial meters. First quarter 2025 Industrial revenue was up 41.1% year over year. Industrial revenue represented 6.7% of our total first quarter 2025 revenue compared with 6.6% in the fourth quarter of 2024.

paragraph:194: First quarter Consumer revenue of $56.9 million decreased 0.6% from the fourth quarter of 2024 primarily from lower sales in gaming partially offset by higher sales for TV solutions. First quarter 2025 Consumer revenue was up 49.3% year over year. Consumer revenue represented 8.9% of MPS’s first quarter 2025 revenue compared with 9.2% in the fourth quarter of 2024.

paragraph:195: In our Enterprise Data market, first quarter 2025 revenue of $132.9 million decreased 31.8% from the fourth quarter of 2024. First quarter 2025 Enterprise Data revenue was down 11.2% year over year. Enterprise Data revenue represented 20.8% of MPS’s first quarter 2025 revenue compared with 31.3% in the fourth quarter of 2024.

paragraph:196: Q1 ’ 25 Gross Margin & Operating Income

paragraph:197: GAAP gross margin was 55.4%, flat to the fourth quarter of 2024. Our GAAP operating income was $168.8 million compared to $163.3 million reported in the fourth quarter of 2024.

paragraph:198: Non-GAAP gross margin for the first quarter of 2025 was 55.7%, down 0.1 percentage points compared to the fourth quarter of 2024. Our non-GAAP operating income was $221.5 million compared to $220.7 million reported in the fourth quarter of 2024.

paragraph:199: Q1 ’ 25 Operating Expenses

paragraph:200: Our GAAP operating expenses were $184.5 million in the first quarter of 2025 compared with $181.1 million in the fourth quarter of 2024.

paragraph:201: Our Non-GAAP operating expenses were $133.5 million, up from $126.1 million in the fourth quarter of 2024.

paragraph:202: 4

paragraph:203: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income.

paragraph:204: Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $53.8 million compared with $56.3 million recorded in the fourth quarter of 2024.

paragraph:205: The Bottom Line

paragraph:206: First quarter 2025 GAAP net income was $133.8 million or $2.79 per fully diluted share, compared with $1.4 billion or $29.88 per share in the fourth quarter of 2024. Fourth quarter 2024 GAAP net income and EPS included the recognition of a tax benefit granted to a foreign subsidiary.

paragraph:207: First quarter 2025 non-GAAP net income was $193.8 million or $4.04 per fully diluted share, compared with $198.4 million or $4.09 per fully diluted share in the fourth quarter of 2024.

paragraph:208: The first quarter 2025 non-GAAP tax rate increased to 15% from 12.5% in the fourth quarter of 2024.

paragraph:209: There were 48.0 million fully diluted shares outstanding at the end of the first quarter of 2025.

paragraph:210: Balance Sheet and Cash Flow

paragraph:211: Cash, cash equivalents and short-term investments were $1,026.7 million at the end of the first quarter of 2025 compared to $862.9 million at the end of the fourth quarter of 2024. For the first quarter of 2025, MPS generated operating cash flow of $256.4 million compared with the fourth quarter of 2024 operating cash flow of $167.7 million.

paragraph:212: Accounts receivable at the end of the first quarter of 2025 were $214.9 million, representing 31 days of sales outstanding, which was 6 days higher than the 25 days reported at the end of the fourth quarter of 2024.

paragraph:213: Our internal inventories at the end of the first quarter of 2025 were $454.8 million, up from $419.6 million at the end of the fourth quarter of 2024. Days of inventory of 146 days at the end of the first quarter of 2025 was 8 days higher than at the end of the fourth quarter of 2024.

paragraph:214: We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the first quarter of 143 days was 9 days higher than at the end of the fourth quarter of 2024.

paragraph:215: 5

paragraph:216: Selected Balance Sheet and Inventory Data

paragraph:217: (Unaudited)

paragraph:218: Q1'25

paragraph:219: Q4'24

paragraph:220: Q1'24

paragraph:221: Cash, Cash Equivalents, and Short-Term Investments

paragraph:222: $ 1,026.7 M

paragraph:223: $ 862.9 M

paragraph:224: $ 1,286.4 M

paragraph:225: Operating Cash Flow

paragraph:226: $ 256.4 M

paragraph:227: $ 167.7 M

paragraph:228: $ 248.0 M

paragraph:229: Accounts Receivable

paragraph:230: $ 214.9 M

paragraph:231: $ 172.5 M

paragraph:232: $ 194.4 M

paragraph:233: Days of Sales Outstanding

paragraph:234: 31 Days

paragraph:235: 25 Days

paragraph:236: 39 Days

paragraph:237: Internal Inventories

paragraph:238: $ 454.8 M

paragraph:239: $ 419.6 M

paragraph:240: $ 396.0 M

paragraph:241: Days of Inventory (current quarter revenue)

paragraph:242: 146 Days

paragraph:243: 138 Days

paragraph:244: 175 Days

paragraph:245: Days of Inventory (next quarter revenue)

paragraph:246: 143 Days

paragraph:247: 134 Days

paragraph:248: 159 Days

paragraph:249: Q2 ’ 25 Business Outlook

paragraph:250: For the second quarter of 2025 ending June 30, we are forecasting:

paragraph:251: •

paragraph:252: Revenue in the range of $640 million to $660 million.

paragraph:253: •

paragraph:254: GAAP gross margin in the range of 54.9% to 55.5%.

paragraph:255: •

paragraph:256: Non-GAAP gross margin in the range of 55.2% to 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

paragraph:257: •

paragraph:258: Total stock-based compensation and related expenses in the range of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.

paragraph:259: •

paragraph:260: GAAP operating expenses between $189 million and $195 million.

paragraph:261: •

paragraph:262: Non-GAAP operating expenses in the range of $132.6 million to $136.6 million. This estimate excludes stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.

paragraph:263: •

paragraph:264: Interest and other income in the range from $6.2 million to $6.6 million before foreign exchange gains or losses.

paragraph:265: •

paragraph:266: Non-GAAP tax rate of 15% for 2025.

paragraph:267: •

paragraph:268: Fully diluted shares outstanding in the range of 47.9 to 48.3 million shares.

paragraph:269: 6

paragraph:270: For further information, contact:

paragraph:271: Bernie Blegen

paragraph:272: Executive Vice President and Chief Financial Officer

paragraph:273: Monolithic Power Systems, Inc.

paragraph:274: 408-826-0777

paragraph:275: MPSInvestor.Relations@monolithicpower.com

paragraph:276: Safe Harbor Statement

paragraph:277: This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q2’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

paragraph:278: 7

paragraph:279: Non-GAAP Financial Measures

paragraph:280: This CFO Commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

paragraph:281: 8

paragraph:282: RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

paragraph:283: (Unaudited, in thousands, except per share amounts)

paragraph:284: Three Months Ended March 31,

paragraph:285: 2025

paragraph:286: 2024

paragraph:287: Net income

paragraph:288: $

paragraph:289: 133,791

paragraph:290: $

paragraph:291: 92,541

paragraph:292: Adjustments to reconcile net income to non-GAAP net income:

paragraph:293: Stock-based compensation and related expenses

paragraph:294: 53,811

paragraph:295: 51,769

paragraph:296: Amortization of acquisition-related intangible assets

paragraph:297: 320

paragraph:298: 291

paragraph:299: Deferred compensation plan expense (income), net

paragraph:300: (6

paragraph:301: )

paragraph:302: 47

paragraph:303: Tax effect

paragraph:304: 5,897

paragraph:305: (7,156

paragraph:306: )

paragraph:307: Non-GAAP net income

paragraph:308: $

paragraph:309: 193,813

paragraph:310: $

paragraph:311: 137,492

paragraph:312: Non-GAAP net income per share:

paragraph:313: Basic

paragraph:314: $

paragraph:315: 4.05

paragraph:316: $

paragraph:317: 2.83

paragraph:318: Diluted

paragraph:319: $

paragraph:320: 4.04

paragraph:321: $

paragraph:322: 2.81

paragraph:323: Shares used in the calculation of non-GAAP net income per share:

paragraph:324: Basic

paragraph:325: 47,851

paragraph:326: 48,635

paragraph:327: Diluted

paragraph:328: 48,006

paragraph:329: 48,928

paragraph:330: 9

paragraph:331: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:332: (Unaudited, in thousands)

paragraph:333: Three Months Ended March 31,

paragraph:334: 2025

paragraph:335: 2024

paragraph:336: Gross profit

paragraph:337: $

paragraph:338: 353,230

paragraph:339: $

paragraph:340: 252,441

paragraph:341: Gross margin

paragraph:342: 55.4

paragraph:343: %

paragraph:344: 55.1

paragraph:345: %

paragraph:346: Adjustments to reconcile gross profit to non-GAAP gross profit:

paragraph:347: Stock-based compensation and related expenses

paragraph:348: 1,706

paragraph:349: 1,900

paragraph:350: Amortization of acquisition-related intangible assets

paragraph:351: 287

paragraph:352: 258

paragraph:353: Deferred compensation plan expense (income)

paragraph:354: (163

paragraph:355: )

paragraph:356: 440

paragraph:357: Non-GAAP gross profit

paragraph:358: $

paragraph:359: 355,060

paragraph:360: $

paragraph:361: 255,039

paragraph:362: Non-GAAP gross margin

paragraph:363: 55.7

paragraph:364: %

paragraph:365: 55.7

paragraph:366: %

paragraph:367: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:368: (Unaudited, in thousands)

paragraph:369: Three Months Ended March 31,

paragraph:370: 2025

paragraph:371: 2024

paragraph:372: Total operating expenses

paragraph:373: $

paragraph:374: 184,471

paragraph:375: $

paragraph:376: 156,954

paragraph:377: Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

paragraph:378: Stock-based compensation and related expenses

paragraph:379: (52,105

paragraph:380: )

paragraph:381: (49,869

paragraph:382: )

paragraph:383: Amortization of acquisition-related intangible assets

paragraph:384: (33

paragraph:385: )

paragraph:386: (33

paragraph:387: )

paragraph:388: Deferred compensation plan income (expense)

paragraph:389: 1,193

paragraph:390: (3,626

paragraph:391: )

paragraph:392: Non-GAAP operating expenses

paragraph:393: $

paragraph:394: 133,526

paragraph:395: $

paragraph:396: 103,426

paragraph:397: 10

paragraph:398: RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

paragraph:399: (Unaudited, in thousands)

paragraph:400: Three Months Ended March 31,

paragraph:401: 2025

paragraph:402: 2024

paragraph:403: Total operating income

paragraph:404: $

paragraph:405: 168,759

paragraph:406: $

paragraph:407: 95,487

paragraph:408: Adjustments to reconcile total operating income to non-GAAP total operating income:

paragraph:409: Stock-based compensation and related expenses

paragraph:410: 53,811

paragraph:411: 51,769

paragraph:412: Amortization of acquisition-related intangible assets

paragraph:413: 320

paragraph:414: 291

paragraph:415: Deferred compensation plan expense (income)

paragraph:416: (1,356

paragraph:417: )

paragraph:418: 4,066

paragraph:419: Non-GAAP operating income

paragraph:420: $

paragraph:421: 221,534

paragraph:422: $

paragraph:423: 151,613

paragraph:424: RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

paragraph:425: (Unaudited, in thousands)

paragraph:426: Three Months Ended March 31,

paragraph:427: 2025

paragraph:428: 2024

paragraph:429: Total other income, net

paragraph:430: $

paragraph:431: 5,131

paragraph:432: $

paragraph:433: 9,540

paragraph:434: Adjustments to reconcile other income, net to non-GAAP other income, net:

paragraph:435: Deferred compensation plan expense (income)

paragraph:436: 1,350

paragraph:437: (4,019

paragraph:438: )

paragraph:439: Non-GAAP other income, net

paragraph:440: $

paragraph:441: 6,481

paragraph:442: $

paragraph:443: 5,521

paragraph:444: RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

paragraph:445: (Unaudited, in thousands)

paragraph:446: Three Months Ended March 31,

paragraph:447: 2025

paragraph:448: 2024

paragraph:449: Total income before income taxes

paragraph:450: $

paragraph:451: 173,890

paragraph:452: $

paragraph:453: 105,027

paragraph:454: Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

paragraph:455: Stock-based compensation and related expenses

paragraph:456: 53,811

paragraph:457: 51,769

paragraph:458: Amortization of acquisition-related intangible assets

paragraph:459: 320

paragraph:460: 291

paragraph:461: Deferred compensation plan expense (income), net

paragraph:462: (6

paragraph:463: )

paragraph:464: 47

paragraph:465: Non-GAAP income before income taxes

paragraph:466: $

paragraph:467: 228,015

paragraph:468: $

paragraph:469: 157,134

paragraph:470: 11

paragraph:471: 2025

paragraph:472: SECOND

paragraph:473: QUARTER OUTLOOK

paragraph:474: RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

paragraph:475: (Unaudited)

paragraph:476: Three Months Ending

paragraph:477: March 31, 2025

paragraph:478: Low

paragraph:479: High

paragraph:480: Gross margin

paragraph:481: 54.9

paragraph:482: %

paragraph:483: 55.5

paragraph:484: %

paragraph:485: Adjustment to reconcile gross margin to non-GAAP gross margin:

paragraph:486: Stock-based compensation and other expenses

paragraph:487: 0.3

paragraph:488: %

paragraph:489: 0.3

paragraph:490: %

paragraph:491: Non-GAAP gross margin

paragraph:492: 55.2

paragraph:493: %

paragraph:494: 55.8

paragraph:495: %

paragraph:496: RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

paragraph:497: (Unaudited, in thousands)

paragraph:498: Three Months Ending

paragraph:499: March 31, 2025

paragraph:500: Low

paragraph:501: High

paragraph:502: Operating expenses

paragraph:503: $

paragraph:504: 189,000

paragraph:505: $

paragraph:506: 195,000

paragraph:507: Adjustments to reconcile operating expenses to non-GAAP operating expenses:

paragraph:508: Stock-based compensation and other expenses

paragraph:509: (56,400

paragraph:510: )

paragraph:511: (58,400

paragraph:512: )

paragraph:513: Non-GAAP operating expenses

paragraph:514: $

paragraph:515: 132,600

paragraph:516: $

paragraph:517: 136,600

paragraph:518: 12

paragraph:1: EX-99.2

paragraph:2: 3

paragraph:3: ex_746687.htm

paragraph:4: EXHIBIT 99.2

paragraph:5: ex_746687.htm

paragraph:6: Exhibit 99.2

paragraph:7: Monolithic Power Systems

paragraph:8: Full Year 2024 and Q4’24 Earnings Commentary

paragraph:9: The highest quality power solutions for

paragraph:10: Industrial Applications, Telecom Infrastructures,

paragraph:11: Cloud Computing, Automotive, and Consumer Applications

paragraph:12: Monolithic Power Systems to Report Fourth Quarter and Full Year 2024 Results on February 6, 2025

paragraph:13: MPS will report its results after the market closes on February 6, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/96816578886 .

paragraph:14: 2024 Financial Summary

paragraph:15: (Unaudited)

paragraph:16: GAAP

paragraph:17: 2024

paragraph:18: 2023

paragraph:19: YoY Change

paragraph:20: YoY Change (%)

paragraph:21: Revenue ($k)

paragraph:22: $ 2,207,100

paragraph:23: $ 1,821,072

paragraph:24: Up $ 386,028

paragraph:25: Up 21.2%

paragraph:26: Gross Margin

paragraph:27: 55.3%

paragraph:28: 56.1%

paragraph:29: Down 0.8 pts

paragraph:30: Down 1.4%

paragraph:31: Opex ($k)

paragraph:32: $ 681,512

paragraph:33: $ 539,383

paragraph:34: Up $ 142,129

paragraph:35: Up 26.4%

paragraph:36: Operating Margin

paragraph:37: 24.4%

paragraph:38: 26.5%

paragraph:39: Down 2.1 pts

paragraph:40: Down 7.9%

paragraph:41: Net income ($k)

paragraph:42: $ 1,786,700

paragraph:43: $ 427,374

paragraph:44: Up $ 1,359,326

paragraph:45: Up 318.1%

paragraph:46: Diluted EPS

paragraph:47: $ 36.59

paragraph:48: $ 8.76

paragraph:49: Up $ 27.83

paragraph:50: Up 317.7%

paragraph:51: Non-GAAP

paragraph:52: 2024

paragraph:53: 2023

paragraph:54: YoY Change

paragraph:55: YoY Change (%)

paragraph:56: Revenue ($k)

paragraph:57: $ 2,207,100

paragraph:58: $ 1,821,072

paragraph:59: Up $ 386,028

paragraph:60: Up 21.2%

paragraph:61: Gross Margin

paragraph:62: 55.8%

paragraph:63: 56.4%

paragraph:64: Down 0.6 pts

paragraph:65: Down 1.1%

paragraph:66: Opex ($k)

paragraph:67: $ 466,379

paragraph:68: $ 385,395

paragraph:69: Up $ 80,984

paragraph:70: Up 21.0%

paragraph:71: Operating Margin

paragraph:72: 34.6%

paragraph:73: 35.2%

paragraph:74: Down 0.6 pts

paragraph:75: Down 1.7%

paragraph:76: Net income ($k)

paragraph:77: $ 689,755

paragraph:78: $ 574,647

paragraph:79: Up $ 115,108

paragraph:80: Up 20.0%

paragraph:81: Diluted EPS

paragraph:82: $ 14.12

paragraph:83: $ 11.78

paragraph:84: Up $ 2.34

paragraph:85: Up 19.9%

paragraph:86: Revenue by End Market

paragraph:87: Revenue

paragraph:88: YoY Change

paragraph:89: % of Total Rev

paragraph:90: End Market ($M)

paragraph:91: 2024

paragraph:92: 2023

paragraph:93: $

paragraph:94: %

paragraph:95: 2024

paragraph:96: 2023

paragraph:97: Enterprise Data

paragraph:98: $ 716.2

paragraph:99: $ 323.0

paragraph:100: $ 393.2

paragraph:101: 121.7%

paragraph:102: 32.5%

paragraph:103: 17.7%

paragraph:104: Storage & Computing

paragraph:105: 501.6

paragraph:106: 491.1

paragraph:107: 10.5

paragraph:108: 2.1%

paragraph:109: 22.7

paragraph:110: 27.0

paragraph:111: Automotive

paragraph:112: 414.0

paragraph:113: 394.7

paragraph:114: 19.3

paragraph:115: 4.9%

paragraph:116: 18.8

paragraph:117: 21.7

paragraph:118: Communications

paragraph:119: 225.9

paragraph:120: 204.9

paragraph:121: 21.0

paragraph:122: 10.2%

paragraph:123: 10.2

paragraph:124: 11.3

paragraph:125: Consumer

paragraph:126: 202.0

paragraph:127: 234.7

paragraph:128: (32.7

paragraph:129: )

paragraph:130: (13.9%)

paragraph:131: 9.1

paragraph:132: 12.9

paragraph:133: Industrial

paragraph:134: 147.4

paragraph:135: 172.7

paragraph:136: (25.3

paragraph:137: )

paragraph:138: (14.6%)

paragraph:139: 6.7

paragraph:140: 9.4

paragraph:141: Total

paragraph:142: $ 2,207.1

paragraph:143: $ 1,821.1

paragraph:144: $ 386.0

paragraph:145: 21.2%

paragraph:146: 100%

paragraph:147: 100%

paragraph:148: 2

paragraph:149: Q4 2024 Financial Summary

paragraph:150: (Unaudited)

paragraph:151: GAAP

paragraph:152: Q4'24

paragraph:153: Q3'24

paragraph:154: Q4'23

paragraph:155: QoQ Change

paragraph:156: YoY Change

paragraph:157: Revenue ($k)

paragraph:158: $ 621,665

paragraph:159: $ 620,119

paragraph:160: $ 454,012

paragraph:161: Up 0.2%

paragraph:162: Up 36.9%

paragraph:163: Gross Margin

paragraph:164: 55.4%

paragraph:165: 55.4%

paragraph:166: 55.3%

paragraph:167: Flat

paragraph:168: Up 0.1 pts

paragraph:169: Opex ($k)

paragraph:170: $ 181,101

paragraph:171: $ 179,415

paragraph:172: $ 141,554

paragraph:173: Up 0.9%

paragraph:174: Up 27.9%

paragraph:175: Operating Margin

paragraph:176: 26.3%

paragraph:177: 26.5%

paragraph:178: 24.1%

paragraph:179: Down 0.2 pts

paragraph:180: Up 2.2 pts

paragraph:181: Net income ($k)

paragraph:182: $ 1,449,363

paragraph:183: $ 144,430

paragraph:184: $ 96,905

paragraph:185: Up 903.5%

paragraph:186: Up 1395.7%

paragraph:187: Diluted EPS

paragraph:188: $ 29.88

paragraph:189: $ 2.95

paragraph:190: $ 1.98

paragraph:191: Up 912.9%

paragraph:192: Up 1409.1%

paragraph:193: Non-GAAP

paragraph:194: Q4'24

paragraph:195: Q3'24

paragraph:196: Q4'23

paragraph:197: QoQ Change

paragraph:198: YoY Change

paragraph:199: Revenue ($k)

paragraph:200: $ 621,665

paragraph:201: $ 620,119

paragraph:202: $ 454,012

paragraph:203: Up 0.2%

paragraph:204: Up 36.9%

paragraph:205: Gross Margin

paragraph:206: 55.8%

paragraph:207: 55.8%

paragraph:208: 55.7%

paragraph:209: Flat

paragraph:210: Up 0.1 pts

paragraph:211: Opex ($k)

paragraph:212: $ 126,117

paragraph:213: $ 125,169

paragraph:214: $ 96,745

paragraph:215: Up 0.8%

paragraph:216: Up 30.4%

paragraph:217: Operating Margin

paragraph:218: 35.5%

paragraph:219: 35.6%

paragraph:220: 34.4%

paragraph:221: Down 0.1 pts

paragraph:222: Up 1.1 pts

paragraph:223: Net income ($k)

paragraph:224: $ 198,401

paragraph:225: $ 198,786

paragraph:226: $ 140,852

paragraph:227: Down 0.2%

paragraph:228: Up 40.9%

paragraph:229: Diluted EPS

paragraph:230: $ 4.09

paragraph:231: $ 4.06

paragraph:232: $ 2.88

paragraph:233: Up 0.7%

paragraph:234: Up 42.0%

paragraph:235: Revenue by End Market

paragraph:236: Revenue

paragraph:237: YoY Change

paragraph:238: % of Total Rev

paragraph:239: End Market ($M)

paragraph:240: Q4’24

paragraph:241: Q4’23

paragraph:242: $

paragraph:243: %

paragraph:244: Q4’24

paragraph:245: Q4’23

paragraph:246: Enterprise Data

paragraph:247: $ 194.9

paragraph:248: $ 128.9

paragraph:249: $ 66.0

paragraph:250: 51.2%

paragraph:251: 31.3%

paragraph:252: 28.4%

paragraph:253: Storage & Computing

paragraph:254: 136.5

paragraph:255: 117.3

paragraph:256: 19.2

paragraph:257: 16.4%

paragraph:258: 22.0

paragraph:259: 25.8

paragraph:260: Automotive

paragraph:261: 128.4

paragraph:262: 89.8

paragraph:263: 38.6

paragraph:264: 43.0%

paragraph:265: 20.6

paragraph:266: 19.8

paragraph:267: Communications

paragraph:268: 63.8

paragraph:269: 40.9

paragraph:270: 22.9

paragraph:271: 55.9%

paragraph:272: 10.3

paragraph:273: 9.0

paragraph:274: Consumer

paragraph:275: 57.3

paragraph:276: 43.7

paragraph:277: 13.6

paragraph:278: 31.0%

paragraph:279: 9.2

paragraph:280: 9.6

paragraph:281: Industrial

paragraph:282: 40.8

paragraph:283: 33.4

paragraph:284: 7.4

paragraph:285: 22.3%

paragraph:286: 6.6

paragraph:287: 7.4

paragraph:288: Total

paragraph:289: $ 621.7

paragraph:290: $ 454.0

paragraph:291: $ 167.7

paragraph:292: 36.9%

paragraph:293: 100%

paragraph:294: 100%

paragraph:295: 3

paragraph:296: Ongoing Business Conditions

paragraph:297: In 2024, MPS’s revenue grew 21.2% year-over-year and achieved record revenue of $2.2 billion. This is our 13th consecutive year of revenue growth driven by consistent execution, continued innovation, and strong customer focus.

paragraph:298: Highlights from 2024 include:

paragraph:299: ●

paragraph:300: We introduced a Silicon Carbide inverter for high power clean energy applications. Initial revenue is expected to ramp in late 2025. Other Silicon Carbide-based applications are expected to be introduced in multiple geographies during 2025 and 2026.

paragraph:301: ●

paragraph:302: We developed a family of high quality, cost efficient automotive audio products utilizing DSP technology from our 2024 Axign acquisition powered by MPS solutions.

paragraph:303: ●

paragraph:304: For enterprise notebooks, we launched a battery management solution and are sampling our new mini-phase power stage. These products enable faster charge time and significantly improve notebook battery life.

paragraph:305: ●

paragraph:306: Building on our first analog to digital converter design win in 2024, we are developing new high accuracy 24-bit converters which are expected to ramp in the second half of 2025.

paragraph:307: ●

paragraph:308: We executed a $640M stock repurchase program offsetting dilution for our shareholders.

paragraph:309: In Q4 2024, MPS achieved record quarterly revenue of $621.7 million, slightly higher than revenue in the third quarter of 2024 and 36.9% higher than revenue in the fourth quarter of 2023. Our performance during the quarter reflected the continued strength of our diversified market strategy and a continued trend of the improved ordering patterns we saw in Q3 2024.

paragraph:310: MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

paragraph:311: “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

paragraph:312: 4

paragraph:313: 2024 Full Year Revenue Results

paragraph:314: Our full year 2024 revenue by market segment was as follows:

paragraph:315: Full year 2024 Enterprise Data revenue grew $393.2 million to $716.2 million. This 121.7% increase was due to higher sales of our power management solutions for AI and server applications. Enterprise Data revenue represented 32.5% of MPS’s total revenue in 2024 compared with 17.7% in 2023.

paragraph:316: Communications revenue grew by $21.0 million in 2024 to $225.9 million. This 10.2% increase was a result of higher sales of power solutions for optical modules and routers, partially offset by lower sales of networking solutions. Communications revenue represented 10.2% of our 2024 revenue compared with 11.3% in 2023.

paragraph:317: Automotive revenue grew $19.3 million year-over-year to $414.0 million in 2024. This 4.9% gain was driven by increased sales of our highly integrated applications supporting advanced driver assistance systems. Automotive revenue represented 18.8% of MPS’s full year 2024 revenue compared with 21.7% in 2023.

paragraph:318: Storage and Computing revenue for 2024 grew $10.5 million over the prior year to $501.6 million. This 2.1% increase was primarily driven by increased sales of products for notebooks. Storage and Computing revenue represented 22.7% of MPS’s total revenue in 2024 compared with 27.0% in 2023.

paragraph:319: Consumer revenue decreased $32.7 million to $202.0 million in 2024. This 13.9% year-over-year decrease was a result of broad market weakness. Consumer revenue represented 9.1% of MPS’s full year 2024 revenue compared with 12.9% in 2023.

paragraph:320: Industrial revenue fell by $25.3 million to $147.4 million in 2024. This 14.6% decrease was due to general market weakness across all industrial segments. Industrial revenue represented 6.7% of MPS’s full year 2024 revenue compared with 9.4% in 2023.

paragraph:321: Q4 ’ 24 Revenue Results

paragraph:322: MPS reported fourth quarter revenue of $621.7 million, slightly higher than the third quarter of 2024 and 36.9% higher than the fourth quarter of 2023. Compared with the third quarter of 2024, sales in Automotive and Enterprise Data improved sequentially.

paragraph:323: Fourth quarter Automotive revenue of $128.4 million increased 15.3% from the third quarter of 2024 primarily from higher sales in ADAS and infotainment power solutions. Fourth quarter 2024 Automotive revenue was up 43.0% year over year. Automotive revenue represented 20.6% of MPS’s fourth quarter 2024 revenue compared with 19.8% in the fourth quarter of 2023.

paragraph:324: In our Enterprise Data market, fourth quarter 2024 revenue of $194.9 million increased 5.6% from the third quarter of 2024. Fourth quarter 2024 Enterprise Data revenue was up 51.2% year over year. Enterprise Data revenue represented 31.3% of MPS’s fourth quarter 2024 revenue compared with 28.4% in the fourth quarter of 2023.

paragraph:325: 5

paragraph:326: Fourth quarter 2024 Storage and Computing revenue of $136.5 million decreased 5.2% from the third quarter of 2024. The sequential decrease was primarily driven by lower sales in notebooks, partially offset by stronger sales in graphic cards. Fourth quarter 2024 Storage and Computing revenue was up 16.4% year over year. Storage and Computing revenue represented 22.0% of MPS’s fourth quarter 2024 revenue compared with 25.8% in the fourth quarter of 2023.

paragraph:327: Fourth quarter 2024 Industrial revenue of $40.8 million decreased 7.3% from the third quarter of 2024 due to lower sales for security and power sources. Fourth quarter 2024 Industrial revenue was up 22.3% year over year. Industrial revenue represented 6.6% of our total fourth quarter 2024 revenue compared with 7.4% in the fourth quarter of 2023.

paragraph:328: Fourth quarter Consumer revenue of $57.3 million decreased 11.0% from the third quarter of 2024 primarily from lower sales in smart TVs, home appliance and gaming solutions. Fourth quarter 2024 Consumer revenue was up 31.0% year over year. Consumer revenue represented 9.2% of MPS’s fourth quarter 2024 revenue compared with 9.6% in the fourth quarter of 2023.

paragraph:329: Fourth quarter 2024 Communications revenue of $63.8 million was down 11.2% from the third quarter of 2024 reflecting lower sales in networking solutions, partially offset by higher sales in optical solutions. Fourth quarter 2024 Communications revenue was up 55.9% year over year. Communications sales represented 10.3% of our total fourth quarter 2024 revenue compared with 9.0% in the fourth quarter of 2023.

paragraph:330: Q4 ’ 24 Gross Margin & Operating Income

paragraph:331: GAAP gross margin was 55.4%, flat to the third quarter of 2024. Our GAAP operating income was approximately $163.3 million compared to $164.0 million reported in the third quarter of 2024.

paragraph:332: Non-GAAP gross margin for the fourth quarter of 2024 was 55.8%, flat to the third quarter of 2024. Our non-GAAP operating income was $220.7 million compared to $220.8 million reported in the third quarter of 2024.

paragraph:333: Q4 ’ 24 Operating Expenses

paragraph:334: Our GAAP operating expenses were $181.1 million in the fourth quarter of 2024 compared with $179.4 million in the third quarter of 2024.

paragraph:335: Our Non-GAAP operating expenses were approximately $126.1 million, up from $125.2 million in the third quarter of 2024.

paragraph:336: The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expense and deferred compensation plan expense.

paragraph:337: 6

paragraph:338: Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $56.3 million compared with $52.4 million recorded in the third quarter of 2024.

paragraph:339: The Bottom Line

paragraph:340: Fourth quarter 2024 GAAP net income was $1.4 billion or $29.88 per fully diluted share, compared with $144.4 million or $2.95 per share in the third quarter of 2024. Fourth quarter GAAP net income and EPS included the recognition of a tax benefit granted to a foreign subsidiary.

paragraph:341: Fourth quarter 2024 non-GAAP net income was $198.4 million or $4.09 per fully diluted share, compared with $198.8 million or $4.06 per fully diluted share in the third quarter of 2024.

paragraph:342: There were 48.5 million fully diluted shares outstanding at the end of the fourth quarter of 2024. MPS repurchased $622M in stock during the fourth quarter of 2024.

paragraph:343: Balance Sheet and Cash Flow

paragraph:344: Cash, cash equivalents and short-term investments were $862.9 million at the end of the fourth quarter of 2024 compared to $1.46 billion at the end of the third quarter of 2024. The change was driven primarily by the share repurchases made in the fourth quarter. For the fourth quarter of 2024, MPS generated operating cash flow of approximately $167.7 million compared with the third quarter of 2024 operating cash flow of $231.7 million.

paragraph:345: Accounts receivable at the end of the fourth quarter of 2024 at $172.5 million, representing 25 days of sales outstanding, which was 1 day higher than the 24 days reported at the end of the third quarter of 2024.

paragraph:346: Our internal inventories at the end of the fourth quarter of 2024 were $419.6 million, down from $424.9 million at the end of the third quarter of 2024. Days of inventory of 138 days at the end of the fourth quarter of 2024 was 2 days lower than at the end of the third quarter of 2024.

paragraph:347: We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the fourth quarter of 138 days was 2 days lower than at the end of the third quarter of 2024.

paragraph:348: 7

paragraph:349: Selected Balance Sheet and Inventory Data

paragraph:350: (Unaudited)

paragraph:351: Q4'24

paragraph:352: Q3'24

paragraph:353: Q4'23

paragraph:354: Cash, Cash Equivalents, and Short-Term Investments

paragraph:355: $

paragraph:356: 862.9 M

paragraph:357: $

paragraph:358: 1,462.4 M

paragraph:359: $

paragraph:360: 1,108.5 M

paragraph:361: Operating Cash Flow

paragraph:362: $

paragraph:363: 167.7 M

paragraph:364: $

paragraph:365: 231.7 M

paragraph:366: $

paragraph:367: 153.3 M

paragraph:368: Accounts Receivable

paragraph:369: $

paragraph:370: 172.5 M

paragraph:371: $

paragraph:372: 164.7 M

paragraph:373: $

paragraph:374: 179.9 M

paragraph:375: Days of Sales Outstanding

paragraph:376: 25 Days

paragraph:377: 24 Days

paragraph:378: 36 Days

paragraph:379: Internal Inventories

paragraph:380: $

paragraph:381: 419.6 M

paragraph:382: $

paragraph:383: 424.9 M

paragraph:384: $

paragraph:385: 383.7 M

paragraph:386: Days of Inventory (current quarter revenue)