Summary
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.
Financial Highlights
50 data points| Revenue | $2.79B |
| Cost of Revenue | $1.25B |
| Gross Profit | $1.54B |
| SG&A Expenses | $428.84M |
| Operating Expenses | $811.11M |
| Operating Income | $728.64M |
| Net Income | $621.48M |
| EPS (Basic) | $12.94 |
| EPS (Diluted) | $12.86 |
| Shares Outstanding (Basic) | 48.03M |
| Shares Outstanding (Diluted) | 48.31M |
Key Highlights
- 1Monolithic Power Systems (MPWR) reported strong revenue growth of 26.4% in 2025, reaching $2.8 billion, driven by increased shipment volumes.
- 2The 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.
- 3Storage and Computing and Enterprise Data remained the largest end markets in 2025, with notable revenue increases in Automotive and Communications.
- 4Gross margin slightly decreased to 55.2% in 2025 from 55.3% in 2024, primarily due to higher warranty expenses.
- 5Research 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.
- 6The company declared a significant increase in its quarterly cash dividend to $2.00 per share.
- 7A material weakness in internal control over financial reporting was identified concerning the accounting for deferred income taxes.