Third quarter of 2025 sales increased 22% Q/Q and increased 14% Y/Y
SSD controller sales: 3Q of 2025 increased 20% to 25% Q/Q and decreased 0% to 5% Y/Y
eMMC+UFS controller sales: 3Q of 2025 increased 20% to 25% Q/Q and increased 35% to 40% Y/Y
SSD solutions sales: 3Q of 2025 increased 15% to 20% Q/Q and decreased 40% to 45% Y/Y
Financial Highlights
3Q 2025 GAAP
3Q 2025 Non-GAAP*
• Net sales
$242.0 million (+22% Q/Q, +14% Y/Y)
$242.0 million (+22% Q/Q, +14% Y/Y)
• Gross margin
48.6%
48.7%
• Operating margin
12.1%
15.8%
• Earnings per diluted ADS
$1.16
$1.00
* Please see reconciliations of U.S. Generally Accepted Accounting Principles ("GAAP") to all non-GAAP financial measures mentioned herein towards the end of this news release.
TAIPEI, Taiwan and MILPITAS, Calif., Oct. 31, 2025 (GLOBE NEWSWIRE) -- Silicon Motion Technology Corporation (NASDAQ:SIMO) ("Silicon Motion," the "Company," "we" or similar terms) today announced its financial results for the quarter ended September 30, 2025. For the third quarter of 2025, net sales (GAAP) increased sequentially to $242.0 million from $198.7 million in the second quarter of 2025. Net income (GAAP) also increased sequentially to $39.1 million, or $1.16 per diluted American depositary share ("ADS") (GAAP), from net income (GAAP) of $16.3 million, or $0.49 per diluted ADS (GAAP), in the second quarter of 2025.
For the third quarter of 2025, net income (non-GAAP) increased sequentially to $33.8 million, or $1.00 per diluted ADS (non-GAAP), from net income (non-GAAP) of $23.0 million, or $0.69 per diluted ADS (non-GAAP), in the second quarter of 2025.
All financial numbers are in U.S. dollars unless otherwise noted.
Third Quarter of 2025 Review
"We experienced better than projected strength across each of our markets in the third quarter of 2025 and delivered revenue well above our previously provided range," stated Wallace Kou, President and CEO of Silicon Motion. "Our eMMC and UFS products experienced strong growth during the third quarter, primarily driven by a rebounding smartphone market coupled with market share gains. We also experienced continued growth in our automotive segment primarily driven by increased product diversification and new customer ramps. Our leading PCIe5 client SSD controller sales grew 45% quarter-over-quarter as AI-at-the-edge PCs are gaining traction and as white box AI server makers continue to leverage mainstream hardware components. The investments we have made over the past few years are taking root as we are starting to benefit from increased product and market diversification. We believe we are well positioned to achieve long-term, sustainable growth given our expanding product portfolio of leading consumer, enterprise, automotive and industrial storage solutions."
Key Financial Results
(in millions, except percentages and per ADS amounts)
GAAP
Non-GAAP
3Q 2025
2Q 2025
3Q 2024
3Q 2025
2Q 2025
3Q 2024
Revenue
$242.0
$198.7
$212.4
$242.0
$198.7
$212.4
Gross profit Percent of revenue
$117.748.6%
$94.747.7%
$99.346.7%
$117.848.7%
$94.747.7%
$99.346.8%
Operating expenses
$88.5
$72.4
$74.8
$79.5
$69.3
$65.1
Operating income Percent of revenue
$29.212.1%
$22.311.2%
$24.511.5%
$38.315.8%
$25.312.8%
$34.216.1%
Earnings per diluted ADS
$1.16
$0.49
$0.62
$1.00
$0.69
$0.92
Other Financial Information
(in millions)
3Q 2025
2Q 2025
3Q 2024
Cash, cash equivalents and restricted cash—end of period
$272.4
$282.3
$368.6
Routine capital expenditures
$9.9
$7.4
$7.4
Dividend payments
$16.7
$16.7
$16.8
During the third quarter of 2025, we had $20.1 million of capital expenditures, including $9.9 million for the routine purchases of testing equipment, software, design tools and other items, and $10.2 million for building improvements and furniture for our office building in Hsinchu, Taiwan.
Returning Value to Shareholders
On October 28, 2024, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On August 21, 2025, we paid $16.7 million to Silicon Motion shareholders as the fourth installment of the annual cash dividend. On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual dividend to be paid in quarterly installments of $0.50 per ADS. The first installment of our new annual dividend will be paid on November 26, 2025.
Business Outlook
"Our efforts in product and market diversification are yielding results on both the top and bottom lines. We introduced several new products in 2025 in client SSDs, portable SSDs, eMMC/UFS, enterprise, automotive and expandable cards that will ramp and scale in 2026, driving higher share across our markets and benefiting from higher ASPs and strong margins. We expect continued top and bottom line growth in the current quarter, exceeding our previously announced full-year revenue run rate target of $1 billion exiting the quarter, and look forward to capitalizing on these new products and further expanding our product portfolio and target markets next year," stated Mr. Kou.
For the fourth quarter of 2025, management expects:
($ in millions, except percentages)
GAAP
Non-GAAP Adjustment
Non-GAAP
Revenue
$254 to $266+5% to 10% Q/Q+33% to 39% Y/Y
--
$254 to $266+5% to 10% Q/Q+33% to 39% Y/Y
Gross margin
48.4% to 49.4%
Approximately $0.3*
48.5% to 49.5%
Operating margin
11.5% to 13.2%
Approximately $18.1 to $19.1**
19.0% to 20.0%
* Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.** Projected operating margin (non-GAAP) excludes $18.1 million to $19.1 million of stock-based compensation and dispute related expenses.
Conference Call & Webcast:
The Company's management team will conduct a conference call at 8:00 am Eastern Time on October 31, 2025.
Conference Call DetailsParticipants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.
Participant Online Registration:https://register-conf.media-server.com/register/BI5a424c717da840efac90cdf19c8ac036
A webcast of the call will be available on the Company's website at www.siliconmotion.com.
Discussion of Non-GAAP Financial Measures
To supplement the Company's unaudited consolidated financial results calculated in accordance with GAAP, the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.
Our non-GAAP financial measures are provided to enhance the user's overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target's performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management's perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:
the ability to make more meaningful period-to-period comparisons of the Company's on-going operating results;
the ability to better identify trends in the Company's underlying business and perform related trend analysis;
a better understanding of how management plans and measures the Company's underlying business; and
an easier way to compare the Company's operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.
Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.
Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.
Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.
Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.
Silicon Motion Technology CorporationConsolidated Statements of Income(in thousands, except percentages and per ADS data, unaudited)
For the Three Months Ended
For the Nine Months Ended
Sep. 30,
Jun. 30,
Sep. 30,
Sep. 30,
Sep. 30,
2024
2025
2025
2024
2025
($)
($)
($)
($)
($)
Net sales
212,412
198,675
241,999
612,392
607,166
Cost of sales
113,142
103,988
124,311
331,227
316,424
Gross profit
99,270
94,687
117,688
281,165
290,742
Operating expenses
Research & development
58,486
58,147
69,461
163,666
182,634
Sales & marketing
7,009
7,093
9,492
20,090
23,701
General & administrative
9,315
7,118
9,503
23,003
23,081
Loss from settlement of litigation
-
-
-
1,250
-
Operating income
24,460
22,329
29,232
73,156
61,326
Non-operating income (expense)
Interest income, net
3,518
2,706
2,160
10,760
7,796
Foreign exchange gain (loss), net
(488
)
(3,302
)
574
345
(2,355
)
Realized/Unrealized gain(loss) on investments
(602
)
(1,051
)
