Super Micro Computer (SMCI) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net sales were $4.60B, up 19–19.5% year-over-year but down 19% sequentially, driven by strong AI and data center demand, especially in Asia and large enterprise customers.

• Net income for Q3 FY2025 was $109M, down from $402M year-over-year and $321M sequentially; diluted EPS was $0.17 (GAAP) and $0.31 (non-GAAP), both down from prior periods.

• Gross margin declined to 9.6–9.7%, reflecting competitive pricing, inventory write-downs, and a shift in product mix.

• AI GPU platforms and infrastructure accounted for over 70% of revenues, with continued leadership in AI, DCBBS, and liquid cooling technology.

• Operating cash flow for Q3 FY2025 was $627M, with capital expenditures of $33M.

Financial highlights

• Server and storage systems revenue was $4.459B–$4.60B, up 20–21% year-over-year but down 19% sequentially.

• Subsystems & accessories revenue was $141M, down 26% sequentially and 7% year-over-year.

• Adjusted EBITDA for Q3 FY2025 was $258M, representing 5.6% of net sales.

• Cash and cash equivalents as of March 31, 2025, totaled $2.54B; total bank debt and convertible notes were $2.49B.

• Q3 closing inventory was $3.87B–$3.9B, up from Q2 but down from June 2024.

Outlook and guidance

• Q4 FY2025 net sales expected between $5.6B and $6.4B.

• Q4 GAAP diluted EPS guidance: $0.30–$0.40; non-GAAP diluted EPS: $0.40–$0.50.

• FY2025 revenue guidance revised to $21.8B–$22.6B.

• CapEx for Q4 projected at $45M–$55M.

• Liquidity remains strong, with $2.5B in cash and sufficient credit facilities.