01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Monolithic Power Systems, Inc. (MPWR) has filed its 10-K for the fiscal year ended December 31, 2025.
A significant event disclosed is the restatement of financial statements for the fiscal year ended December 31, 2024, and certain quarterly periods in 2025, due to an accounting error related to deferred income taxes from a foreign tax incentive. This restatement has led to the identification of a material weakness in internal controls over financial reporting concerning deferred income taxes, impacting investor confidence and requiring remediation efforts. Despite the restatement and internal control issues, the company reported substantial revenue growth for 2025, driven by increased shipment volumes across most end markets, with Storage and Computing and Enterprise Data being the largest.
However, gross margins saw a slight decrease due to higher warranty expenses. Research and development and selling, general, and administrative expenses increased, largely due to higher compensation costs. The company also announced a significant increase in its quarterly cash dividend and continues its stock repurchase program, demonstrating a commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Monolithic Power Systems (MPWR) reported strong revenue growth of 26.4% in 2025, reaching $2.8 billion, driven by increased shipment volumes.
- The company restated its 2024 annual and 2025 quarterly financial statements due to an accounting error related to deferred income taxes, leading to a material weakness in internal controls.
- Storage and Computing and Enterprise Data remained the largest end markets in 2025, with notable revenue increases in Automotive and Communications.
- Gross margin slightly decreased to 55.2% in 2025 from 55.3% in 2024, primarily due to higher warranty expenses.
- Research and Development (R&D) expenses increased by 17.7% and Selling, General, and Administrative (SG&A) expenses increased by 20.2%, driven by compensation and operational growth.
- The company declared a significant increase in its quarterly cash dividend to $2.00 per share.
- A material weakness in internal control over financial reporting was identified concerning the accounting for deferred income taxes.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Monolithic Power Systems kept $0.22.
- Revenue$2.79B100.0%
- Cost of revenue−$1.25B44.8%
- Gross profit$1.54B55.2%
- Operating costs−$811.1M29.1%
- Operating income$728.6M26.1%
- Interest, other & tax−$107.2M3.8%
- Net income$621.5M22.3%
Where FY2025 revenue went
$2.79B- Cost of revenue: $1.25B, 45% of revenue
- Net income: $621.5M, 22% of revenue
- SG&A: $428.8M, 15% of revenue
- Other operating costs: $382.3M, 14% of revenue
- Interest, other & tax: $107.2M, 3.8% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $2.79B$2.21B | +26.4% |
| Cost of Revenue | $1.25B$986.23M | +26.8% |
| Gross Profit | $1.54B$1.22B | +26.1% |
| SG&A Expenses | $428.84M$356.76M | +20.2% |
| Operating Expenses | $811.11M$681.51M | +19.0% |
| Operating Income | $728.64M$539.36M | +35.1% |
| Net Income | $621.48M$1.59B | −61.0% |
| EPS (Basic) | $12.94$32.76 | −60.5% |
| EPS (Diluted) | $12.86$32.60 | −60.6% |
| Shares Outstanding (Basic) | 48.03M48.60M | −1.2% |
| Shares Outstanding (Diluted) | 48.31M48.84M | −1.1% |
05—Questions
Frequently Asked Questions
What is the impact of the restated financial statements and the material weakness on the company?
The restatement of financial statements for the fiscal year ended December 31, 2024, and certain quarterly periods in 2025, along with the identification of a material weakness in internal control over financial reporting related to deferred income taxes, could affect investor confidence. The company is implementing remediation plans to address this weakness.
How did the company's revenue perform in 2025?
The company experienced strong revenue growth in 2025, increasing by 26.4% to $2.8 billion. This growth was primarily driven by higher shipment volumes across most end markets, including Storage and Computing, Enterprise Data, Automotive, and Communications.
What is the company's outlook on dividends and share repurchases?
Monolithic Power Systems has increased its quarterly cash dividend to $2.00 per share. The company also has an active stock repurchase program, with approximately $493.4 million remaining for future repurchases as of December 31, 2025, indicating a continued focus on returning capital to shareholders.
What are the main risks the company faces according to the 10-K filing?
Key risks identified in the filing include significant operations in Asia (particularly China), exposure to global economic conditions and trade policies, dependence on key suppliers and distributors, the cyclical nature of the semiconductor industry, intellectual property risks, and cybersecurity threats. The material weakness in internal controls also presents a significant risk.
06—Continue