Super Micro Computer (SMCI) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net sales were $5.9–$6.0 billion, up 180–181% year over year, driven by strong AI, GPU server, and liquid cooling demand.

• Non-GAAP EPS was $0.75–$0.76, up 122% year over year; GAAP diluted EPS was $0.68–$0.70.

• Special Committee found no evidence of fraud or misconduct after an independent investigation; remedial governance measures recommended.

• Company is addressing auditor and reporting delays, seeking a new auditor, and working to regain Nasdaq compliance.

• Completed a 10-for-1 stock split effective September 30, 2024.

Financial highlights

• Q1 non-GAAP gross margin was 13.3%; GAAP gross margin was 13.1%.

• Q1 non-GAAP net income: $483–$493 million; GAAP net income: $424.3–$443 million.

• Operating cash flow was $407–$409 million, up significantly year over year.

• Q1 closing cash: $2.09–$2.1 billion; total debt: $2.3 billion, including $0.6 billion bank debt and $1.7 billion convertible notes.

• CapEx for Q1: $42–$44.3 million.

Outlook and guidance

• Q2 FY25 net sales expected at $5.5–$6.1 billion.

• Q2 GAAP EPS guidance: $0.48–$0.58; non-GAAP EPS: $0.56–$0.65.

• Gross margin expected to decline 100 bps sequentially due to customer/product mix.

• No annual guidance provided; management optimistic about growth with new GPU chips.

• Q2 outlook includes $54 million in expected stock-based compensation and other expenses, net of $14 million tax effects.