Monolithic Power 2025 Q1 Earnings Strong Performance as Net Income Rises 44.6%

Monolithic Power (MPWR) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The total revenue of Monolithic Power increased by 39.2% to $637.55 million in 2025 Q1, up from $457.88 million in 2024 Q1, with specific segment revenue listed as follow: Storage and Computing: $188.51 million, Automotive: $144.90 million, Enterprise Data: $132.92 million, Communications: $71.67 million, Consumer: $56.95 million, Industrial: $42.60 million and Total: $637.55 million. Monolithic Power exceeded earnings expectations with EPS rising 47.4% to $2.80 in 2025 Q1 from $1.90 in 2024 Q1. The company anticipates continued revenue growth, particularly in the second half of 2025, as design wins ramp up across major enterprise data customers.

Revenue

Monolithic Power's revenue for Q1 2025 reached $637.55 million, marking a 39.2% increase compared to Q1 2024. The Storage and Computing segment led the growth contributing $188.51 million, followed by Automotive with $144.90 million. Enterprise Data generated $132.92 million, while Communications added $71.67 million. The Consumer segment brought in $56.95 million, and Industrial contributed $42.60 million, culminating in the total revenue of $637.55 million.

Earnings/Net Income

Monolithic Power's EPS rose 47.4% to $2.80 in 2025 Q1 from $1.90 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $133.79 million in 2025 Q1, marking 44.6% growth from $92.54 million in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in over 20 years. The EPS figures indicate a positive performance, reflecting strong earnings growth.

Post-Earnings Price Action Review

Following Monolithic Power's earnings release, the stock demonstrated positive short-term performance trends. Historical backtests from May 1, 2020, to May 1, 2025, indicate a 70% win rate for both the 3-Day and 10-Day periods after earnings, though the 30-Day win rate drops to 50%. This suggests a likelihood of immediate positive returns post-earnings, with the highest returns typically observed within three days. The maximum return observed was 15.01% on day 74 after an earnings release, indicating diminishing returns over extended periods. Despite the lack of specific backtest data for revenue, net income, or EPS, the overall positive stock performance implies favorable market reactions to these metrics. Investors aiming to leverage post-earnings momentum should be cautious of potential medium-term pullbacks, underscored by the 50% 30-Day win rate. In summary, Monolithic Power tends to experience favorable price appreciation shortly after earnings releases, though returns may taper off over longer durations.

CEO Commentary

Michael Hsing - Chairman, President and Chief Executive Officer: Monolithic Power Systems (MPS) achieved record quarterly revenue of $637.6 million, reflecting a 39.2% increase from Q1 2024. Hsing emphasized the strength of MPS's diversified market strategy and ongoing innovation, particularly in robotics, automotive, data centers, and medical sectors. He noted a significant ramp in design wins, particularly in enterprise data, stating, "We feel a lot better... and we have a lot more confidence than at the beginning of the year." Hsing highlighted the company's transformation to a full-service silicon-based solutions provider, maintaining a focus on quality and customer needs.

Guidance

MPS anticipates continued revenue growth, particularly in the second half of 2025, as design wins ramp up across major enterprise data customers. While specific forecasts for enterprise data were not provided, the company noted increased visibility and confidence in upcoming product ramps. The expectation for gross margins remains stable, with a slight decrease of about 20 basis points in Q2 guidance due to product mix, yet the company aims to operate within its established margin model.

Additional News

Monolithic Power Systems recently announced a strategic move to increase its quarterly dividend by 24.8%, from $1.25 to $1.56 per share, payable on April 15, 2025. This decision reflects the company's strong financial health and commitment to returning value to shareholders. Additionally, the board authorized a new $500 million stock repurchase program, effective over the next three years, following the completion of a previous $640 million buyback initiative. These financial maneuvers