Silicon Motion Technology (SIMO) investor relations material

Executive summary

• Q3 revenue reached $560.2M, up 24% QoQ and 131% YoY, marking a fourth consecutive quarterly record; FY2026 revenue is expected to more than double YoY.

• Diversification across enterprise SSD, automotive, boot drives and edge applications is supporting growth and reducing reliance on consumer cycles.

Financial highlights

• Non-GAAP gross profit was $300.7M, operating profit $180.0M and net income $149.2M; net income rose 341% YoY.

• Non-GAAP diluted EPS was $4.35, up 79% QoQ and 333% YoY; stock-based compensation excluded from non-GAAP results was $17.3M.

• GAAP net income was $65.3M, or $1.91 per diluted ADS; GAAP results included a $78.0M net investment loss.

• Non-GAAP operating expenses were $120.7M, down from $122.1M QoQ; operating margin was 32.1%, above guidance.

• Cash, cash equivalents and restricted cash totaled $953.6M at quarter-end, versus $181.8M at Q2-end.

Outlook and guidance

• Q4 revenue guidance is $588M–$616M, up 5%–10% QoQ; non-GAAP gross margin is 54%–55% and operating margin 36%–37%.

• Q4 GAAP gross margin guidance is 53.8%–54.8%, with operating margin of 29.9%–31.4%; non-GAAP operating guidance excludes $34.6M–$35.6M of stock-based compensation and dispute-related expenses.

• FY2026 revenue is expected to exceed twice FY2025 revenue; 2027 revenue is expected to grow at least 40% YoY, with gross margin in the low-to-mid 50% range and continued operating-margin leverage.

• 2027 wafer supply, test and assembly capacity, and substrate materials were secured; more detailed 2027 guidance is expected in January.

• Seven SM8366 customers were expected to begin production ramps by end-2026; volume ramps with two customers began in Q2 2026.