SiTime's Q3 2025 Earnings Call Unveils Contradictions in Mobile Guidance, Automotive Growth, and Resonator Timelines

Date of Call: November 5, 2025

Financials Results

• Revenue: $83.6M, up 45% year-over-year
• EPS: $0.87 non-GAAP, more than doubled year-over-year
• Gross Margin: 58.8% non-GAAP, up 70 basis points year-over-year
• Operating Margin: 18.4% non-GAAP operating margin ($15.4M / $83.6M), up 12 percentage points year-over-year

Guidance:

• Q4 revenue expected to be $100M to $103M
• Q4 gross margin expected to be 60.0% to 60.5%
• Q4 operating expenses expected to be $35M to $36M
• Q4 interest income expected to be $7M to $7.5M
• Diluted share count ~27M
• Q4 non-GAAP EPS expected to be $1.16 to $1.21

Business Commentary:

* Record Revenue and Growth: - SiTime Corporation reported revenue of $83.6 million for Q3 2025, up 45% year-over-year. - The growth was driven by strong demand in the communications, enterprise, and datacenter (CED) segment, which grew 115% year-over-year.

• CED Segment Dominance:
• The CED segment revenue reached $42.1 million, representing 51% of total revenue in Q3 2025.

• The high growth in this segment was attributed to increased demand for precision timing products in AI applications.

• Margin Improvement and Product Mix:

• SiTime achieved a non-GAAP gross margin of 58.8%, an improvement of 70 basis points year-on-year.

• This was due to better product mix and favorable product costs, particularly in the CED segment.

• Strong Financial Performance:

• The company reported a non-GAAP operating income of $15.4 million, a 12 percentage point improvement versus the previous year.

• EPS more than doubled to $0.87, reflecting strong operational performance and revenue growth.

• Titan Platform Launch:

• SiTime introduced the Titan Platform, aiming to enter the $4 billion stand-alone resonator market.
• This is expected to open an incremental $400 million serviceable addressable market (SAM) today, with future potential growth to $1 billion by 2028.

Sentiment Analysis:

Overall Tone: Positive

• Management called Q3 a "milestone quarter" with revenue $83.6M (+45% YOY), gross margin 58.8%, and EPS $0.87 (more than doubled). CEO: "Exceptionally strong bookings reinforce our outlook for continued growth." CFO provided Q4 revenue and EPS guidance above current quarter, signaling confidence.

Q&A:

• Question from Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division): Could you give us a sense for what's driving the strength in Q4? Can you talk about the three segments into Q4?
  Response: Sequential growth across all segments with AI/datacenter (CED) leading; continued adoption of Symphonic in mobile and strength in aerospace/defense.

• Question from Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division): How do clocks and the resonator product line pull in more oscillator opportunities?
  Response: Clocks/resonators expand strategic footprint but meaningful oscillator pull-through is ~1–1.5 years; Titan resonator revenue not expected until late 2026/2027.

• Question from Quinn Bolton (Needham & Company, LLC, Research Division): What's the margin profile of the Titan family and is it aligned with ~60% gross margin?
  Response: Titan ASPs are low (~$0.20 or below) but gross margins are in the ~60%+ range; the opportunity is volume-driven.

• Question from Quinn Bolton (Needham & Company, LLC, Research Division): Any updated thoughts on M&A given cash raised and rumored assets for sale?
  Response: Interested in M&A to gain scale and near-term revenue impact; atomic-clock targets are interesting technologically but currently too small to be near-term priorities.

• Question from Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division): Is the strong gross margin (60%+) mix- or scale-driven and where could margins eventually go?
  Response: Target is 60%+; current improvement is driven primarily by CED mix (higher ASPs/margins) plus scale and cost reductions.

• Question from Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division): Update on go-to-market strategy and engagement with hyperscalers and chip players?
  Response: Progressing: increasing semiconductor and hyperscaler engagement, adding R&D and sales resources globally to address AI/CED demand.

• Question from Christopher Caso (Wolfe Research, LLC): How much of the AI/datacenter market can you address today and how will you expand penetration?
  Response: We're in the early innings; selling across semiconductors, hyperscalers, OEMs/ODMs, modules and cables while scaling R&D, sales and geographic footprint.

• Question from Christopher Caso (Wolfe Research, LLC): What does the 1.6T transition do to timing content on the board and other potential content drivers in CED?
  Response: 1.6T transition increases volumes and ASPs for timing in optical modules, switches and accelerator/connectivity cards; chiplets could further raise content longer term.

• Question from Quinn Bolton (Needham & Company, LLC, Research Division): On CED visibility/lead times—any component shortages, hoarding, or inventory stocking to be aware of?
  Response: No hoarding observed; SiTime's supply-chain preparedness and programmability enable fulfillment; there are industry rumors of optical and substrate shortages but nothing timing-specific constraining volumes so far.

• Question from Quinn Bolton (Needham & Company, LLC, Research Division): Any updated thoughts on seasonality for modeling 2026—will March quarter declines persist as CED mix grows?
  Response: Still expect Q4-to-Q1 seasonality, but strong CED demand and large-customer timing/order timing can mitigate or shift quarter-to-quarter patterns.

Contradiction Point 1

Mobile Segment Visibility and Guidance

It involves changes in the company's policy regarding providing guidance for the mobile segment, which affects investors' expectations and strategic planning.

Can you provide visibility into lead times for the CED business given the over 100% growth in the fourth quarter? Are component shortages constraining this business, and is there any hoarding or inventory stocking due to tightness? - Quinn Bolton (Needham & Company, LLC, Research Division)

2025Q3: The policy is to only give guidance when there is visibility. For 2025, we have enough visibility to include the mobile segment in our growth guidance. - Rajesh Vashist(CEO)

Are there any extraordinary items in your Q3 mobile segment guidance, and is this policy still in place for the mobile segment? - Christopher Caso (Wolfe Research, LLC)

2025Q2: The policy is to only give guidance when there is visibility. For 2025, we have enough visibility to include the mobile segment in our growth guidance. For future years, we will likely carve out the mobile segment as visibility improves. - Rajesh Vashist(CEO)

Contradiction Point 2

Automotive Market Growth Expectations

It involves differing expectations regarding growth in the automotive market, which impacts strategic planning and investor expectations.

How much of the AI datacenter market can your current reach address? What strategies will you use to expand into underpenetrated areas as a smaller player in this large market? - Christopher Caso (Wolfe Research, LLC)

2025Q3: We see some softness in automotive but continued growth, with strength in industrial and aerospace/military/defense. - Rajesh Vashist(CEO)

Could you share insights into performance in non-data center segments (e.g., industrial, auto) as we move into the second half of the year, particularly given mixed trends in traditional analog markets due to tariffs? - Tore Egil Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division)

2025Q2: We see some softness in automotive but continued growth, with strength in industrial and aerospace/military/defense. We expect significant growth in automotive beyond 2026 due to design wins and robotaxis traction. - Rajesh Vashist(CEO)

Contradiction Point 3

Growth Drivers and Market Dynamics

It involves differing perspectives on the primary growth drivers and market dynamics, which are crucial for understanding company strategy and performance expectations.

What's driving the Q4 strength, and how did the three segments perform? Is CED a key growth driver? - Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division)

2025Q3: We do see a kind of continuation of trends and sequential growth in each of our segments for Q4. No surprise, the AI and datacenter business continues to lead the growth in terms of the strength of the markets. - Beth Howe(CFO)

Which segments are expected to drive sequential growth into the June quarter? Have you seen any pull-in activity related to potential tariffs? - Tore Svanberg (Stifel, Nicolaus & Company, Incorporated, Research Division)

2025Q1: Our growth in the data center segment is strong, driven by opportunities in optical modules, connectivity, switches, servers, and GPUs. There are also new opportunities in AI infrastructure, and we see continued growth for years to come. - Rajesh Vashist(CEO)

Contradiction Point 4

Annual Revenue Growth Expectations

It involves differing expectations for annual revenue growth, which is a key financial indicator for investors and stakeholders.

Are you still confident in meeting your long-term growth rate of 25-30% in 2025-2026? - Quinn Bolton (Needham & Company)

2025Q3: We see that kind of growth coming from the breadth of the market that we address and the broad level of activity in these markets with our latest products. So yes, we're good for that. - Rajesh Vashist(CEO)

Do you still expect to achieve your 25% to 30% long-term growth rate in 2025 and 2026? - Quinn Bolton (Needham & Company)

2024Q4: We see that kind of growth coming from the breadth of the market that we address and the broad level of activity in these markets with our latest products. So yes, we're good for that as a target. - Rajesh Vashist(CEO)

Contradiction Point 5

Timing of Resonator Revenue Impact

It relates to the timing of revenue contributions from the Titan resonator product line, which is a new strategic focus for the company.

Can you provide the margin profile for the Titan resonator family as the business scales through late 2026 into 2027, and clarify if it aligns with your ~60% gross margin guidance for Q4? - Quinn Bolton (Needham & Company, LLC, Research Division)

2025Q3: The ASPs are definitely lower. They're lower than oscillators typically, and they're lower than clocks typically. But as I say, it really shows up in volume because that $4 billion resonator market is a 40-billion-unit market or more. - Rajesh Vashist(CEO)

Can you explain the platforms Rajesh, Cascade, Chorus, and Symphonic, their role in the product portfolio and roadmap, and why they're being cited as your platform for the first time? - Suji Desilva (ROTH Capital)

2025Q1: Titan is now fully qualified, and we expect to start shipping this quarter. We expect meaningful revenue from Titan starting in 2026. - Rajesh Vashist(CEO)