Monolithic Power Systems (MPWR) Q4 2025 earnings summary

Executive summary

• Achieved fourteenth consecutive year of growth with 2025 revenue of $2.8 billion, up 26.4% year-over-year, and a 25.1% CAGR from 2018 to 2025, outpacing the industry average.

• Q4 2025 revenue reached $751.2 million, up 1.9% sequentially and 20.8% year-over-year.

• Non-GAAP diluted EPS for 2025 was $17.77, with consistent growth over recent years.

• Announced CFO transition: Bernie Blegen retiring, Rob Dean appointed Interim CFO.

• Increased quarterly dividend by 28% to $2 per share, effective Q1 2026.

Financial highlights

• Full-year 2025 revenue: $2.8 billion, up 26.4% from 2024, with a five-year CAGR of 25.1%.

• Q4 2025 non-GAAP net income was $235.3M ($4.79/diluted share), up from $198.4M in Q4 2024.

• Full-year 2025 non-GAAP net income was $858.4M ($17.77/diluted share).

• Free cash flow for 2025 was $663.6M, with over 72% returned to shareholders from 2022 to 2025.

• Non-GAAP gross margin for 2025 was 55.5%, with a five-year average of 56.7%.

Outlook and guidance

• Q1 2026 revenue expected between $770M and $790M.

• Book-to-bill ratio well above one, with backlog extending into Q2 and Q3 2026.

• Enterprise data segment expected to grow at least 50% in 2025, with strong demand in AI, communications, and automotive into 2026.

• Gross margin improvement anticipated as backlog visibility increases.

• Non-GAAP tax rate for 2026 projected at 15%.