01—Abstract
Summary
Summary of the 8-K filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. reported unaudited results for the quarter ended September 30, 2025, which the press release calls its first quarter of fiscal year 2026.
Net sales were $5.0 billiona, compared with $5.8 billion in Q4'25 and $5.9 billion in Q1'25. Gross margin was 9.3%, versus 9.5% in Q4'25 and 13.1% in Q1'25. GAAP net income was $168 million, or $0.26 per diluted share, compared with $195 million and $0.31 in Q4'25 and $424 million and $0.67 in Q1'25.
Non-GAAP diluted net income per share was $0.35b, versus $0.73 in Q1'25. Adjusted EBITDA was $334.9 million, or 6.7% of net sales, compared with $589.8 million, or 9.9%, in the prior-year quarter. Cash flow was weak in the quarter.
Operations used $918 millionc of cash, and capital expenditures were $32 million. Inventories rose to $5.73 billion from $4.68 billion at June 30, 2025, and accounts receivable rose to $2.53 billion from $2.20 billion. Cash and cash equivalents fell to $4.2 billion, and total bank debt and convertible notes were $4.8 billion as of September 30, 2025.
Deferred revenue increased to $597.3 milliond in current liabilities from $368.7 million. Management pointed to a rapidly expanding order book, including more than $13 billion in Blackwell Ultra orders.
The company guided to second-quarter fiscal 2026 net sales of $10.0 billion to $11.0 billion, GAAP diluted EPS of $0.37 to $0.45, and non-GAAP diluted EPS of $0.46 to $0.54. It expects fiscal 2026 net sales of at least $36.0 billion.
02—Key points
Key Highlights
- Net sales of $5.0 billion, down from $5.8 billion in Q4'25 and $5.9 billion in Q1'25.
- Gross margin of 9.3% (GAAP) and 9.5% (non-GAAP), versus 13.1% in Q1'25.
- GAAP diluted EPS of $0.26 and non-GAAP diluted EPS of $0.35, versus $0.67 and $0.73 in Q1'25.
- Operating cash outflow of $918 million, with a $1.09 billion increase in inventories in the cash flow statement.
- Cash and cash equivalents of $4.2 billion and total bank debt and convertible notes of $4.8 billion as of September 30, 2025.
- Q2 fiscal 2026 guidance of $10.0 billion to $11.0 billion in net sales, and fiscal 2026 net sales of at least $36.0 billion.
- More than $13 billion in Blackwell Ultra orders cited by the CEO as support for the outlook.
03—Questions
Frequently Asked Questions
How did Supermicro perform in the quarter ended September 30, 2025?
Net sales were $5.0 billion, gross margin was 9.3%, and GAAP net income was $168 million, or $0.26 per diluted share. Non-GAAP diluted EPS was $0.35. Adjusted EBITDA was $334.9 million, or 6.7% of net sales, compared with $589.8 million, or 9.9%, a year earlier.
Why did margins decline compared with the prior year?
The filing reports gross margin of 9.3% versus 13.1% in Q1'25, but it does not state a specific cause. The cash flow statement shows an excess and obsolete inventories write-down of $36.2 million and an impairment loss of $12.0 million for the quarter.
What is the company's outlook?
For the quarter ending December 31, 2025, the company expects net sales of $10.0 billion to $11.0 billion, GAAP diluted EPS of $0.37 to $0.45, and non-GAAP diluted EPS of $0.46 to $0.54. For fiscal 2026, it expects net sales of at least $36.0 billion. The CEO cited more than $13 billion in Blackwell Ultra orders.
How strong is the company's cash and liquidity position?
As of September 30, 2025, cash and cash equivalents were $4.2 billion, down from $5.2 billion at June 30, 2025. Total bank debt and convertible notes were $4.8 billion. Operating activities used $918 million of cash in the quarter, and capital expenditures were $32 million.
04—Continue