EX-99.1 2 exhibit991_q425.htm EX-99.1 Document

Exhibit 99.1
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Supermicro Announces Fourth Quarter and Full Fiscal Year 2025 Financial Results

SAN JOSE, Calif. -- August 5, 2025 -- (BUSINESS WIRE) -- Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its fourth quarter and full fiscal year ended June 30, 2025.

Fourth Quarter Fiscal Year 2025 Highlights

•Net sales of $5.8 billion versus $4.6 billion in Q3'25 and $5.4 billion in Q4'24.

•Gross margin of 9.5% versus 9.6% in Q3'25 and 10.2% in Q4'24.

•Net income of $195 million versus $109 million in Q3'25 and $297 million in Q4'24.

•Diluted net income per common share of $0.31 versus $0.17 in Q3'25 and $0.46 in Q4'24.

•Non-GAAP diluted net income per common share of $0.41 versus $0.31 in Q3'25 and $0.54 in Q4'24.

•Cash flow provided by operations for Q4'25 of $864 million and capital expenditures and investments of $79 million.

“We made solid progress in FY25 by growing our AI solution leadership in Neoclouds, CSPs, Enterprises, and Sovereign entities, which fueled our 47% annual growth,” said Charles Liang, Founder, President and CEO of Supermicro. “I’m especially excited about our new Datacenter Building Block Solutions (DCBBS), which offer exceptional value to customers seeking faster datacenter deployment and time-to-online advantages. With support from our expanding global operations that help mitigate tariffs and regional costs, combined with a growing enterprise customer base, AI product innovations, and robust DCBBS-powered total solutions, we’re on track to grow more large-scale datacenter customers from four in FY25 to six to eight in FY26.”

The Non-GAAP gross margin for the fourth quarter of fiscal year 2025 was 9.6% with adjustments for stock-based compensation expenses of $7 million. The Non-GAAP diluted net income per common share for the fourth quarter of fiscal year 2025 was $0.41.

Fiscal Year 2025 Summary

Net sales for the fiscal year ended June 30, 2025, were $22.0 billion versus $15.0 billion for the fiscal year ended June 30, 2024. Net income for fiscal year 2025 was $1.0 billion, or $1.68 per diluted share, versus $1.2 billion, or $1.92 per diluted share, for fiscal year 2024.

For the full fiscal year ended 2025, the Non-GAAP gross margin was 11.2% with adjustments for stock-based compensation expenses of $25 million. Non-GAAP net income for fiscal year 2025 was $1.3 billion, or $2.06 per diluted share, versus $1.3 billion, or $2.12 per diluted share, for fiscal year 2024. This non-GAAP net income includes adjustments for stock-based compensation expenses and the loss on extinguishment of convertible notes of $239 million and $23 million, which are net of the related tax effect of $75 million and $8 million for fiscal year 2025.

As of June 30, 2025, total cash and cash equivalents was $5.2 billion and total bank debt and convertible notes were $4.8 billion.



Business Outlook

The Company expects net sales of $6.0 billion to $7.0 billion for the first quarter of fiscal year 2026 ending September 30, 2025, GAAP net income per diluted share of $0.30 to $0.42 and non-GAAP net income per diluted share of $0.40 to $0.52. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 13.0% and 15.5%, respectively, and a fully diluted share count of 631 million shares for GAAP and fully diluted share count of 644 million shares for non-GAAP. The outlook for first quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $69 million in expected stock-based compensation, net of related tax effects of $20 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2026, the Company expects net sales of at least $33.0 billion.

Conference Call and Webcast Information

Supermicro will present a live audio webcast of a conference call to review its fourth quarter and full-year fiscal 2025 financial results on Tuesday, August 5, 2025, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.

A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.

Cautionary Statement Regarding Forward Looking Statements

Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the first quarter of fiscal year 2026 and full year fiscal 2026 guidance, expectations that additional customer commitments will be secured in the upcoming second and third quarters of fiscal year 2026, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our progressing leadership in DCBBS, DLC and AI technology. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may be less predictable, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (v) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2024, and Quarterly Reports on Form 10-Q filed thereafter.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.



Investor Relations Contact:
Nicole Noutsios
Stratos Advisors
email: ir@supermicro.com

Source: Super Micro Computer, Inc.



SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 (unaudited)

June 30,June 30,
20252024
ASSETS
Current assets:
Cash and cash equivalents$5,169,911 $1,669,766 
Accounts receivable, net of allowance for credit losses2,374,602 2,737,331 
Inventories4,680,375 4,333,029 
Prepaid expenses and other current assets243,171 191,834 
Total current assets12,468,059 8,931,960 
Property, plant, and equipment, net504,488 414,008 
Deferred income taxes, net607,416 365,172 
Other assets438,466 114,952 
Total assets$14,018,429 $9,826,092 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,281,977 $1,472,381 
Accrued liabilities565,637 259,674 
Income taxes payable53,381 18,268 
Lines of credit and current portion of term loans75,060 402,346 
Deferred revenue368,737 193,052 
Total current liabilities2,344,792 2,345,721 
Deferred revenue, non-current362,645 223,324 
Term loans, non-current
37,415 74,083 
Convertible notes
4,645,178 1,697,716 
Other long-term liabilities326,528 67,878 
Total liabilities7,716,558 4,408,722 
Stockholders’ equity:
Common stock and additional paid-in capital2,866,449 2,830,820 
Accumulated other comprehensive income705 706 
Retained earnings3,434,539 2,585,680 
Total Super Micro Computer, Inc. stockholders’ equity6,301,693 5,417,206 
Non-controlling interest178 164 
Total stockholders’ equity6,301,871 5,417,370 
Total liabilities and stockholders’ equity$14,018,429 $9,826,092 


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 (unaudited)

 Three Months Ended June 30,Twelve Months Ended June 30,
 2025202420252024
Net sales$5,756,911 $5,354,589 $21,972,042 $14,989,251 
Cost of sales5,212,809 4,808,560 19,542,120 12,927,841 
Gross profit544,102 546,029 2,429,922 2,061,410 
Operating expenses:
Research and development183,221 127,471 636,550 463,548 
Sales and marketing64,739 55,963 273,139 189,738 
General and administrative67,751 74,109 267,239 197,350 
Total operating expenses315,711 257,543 1,176,928 850,636 
Income from operations228,391 288,486 1,252,994 1,210,774 
Other income, net 16,616 13,955 18,495 22,717 
Interest expense(22,282)(3,112)(59,573)(19,352)
Income before income tax provision222,725 299,329 1,211,916 1,214,139 
Income tax provision(19,307)(1,559)(156,851)(63,294)
Share of (loss) income from equity investee, net of taxes(8,264)(526)(6,211)1,821 
Net income$195,154 $297,244 $1,048,854 $1,152,666 
Net income per common share (A):
Basic$0.33 $0.51 $1.77 $2.07 
Diluted$0.31 $0.46 $1.68 $1.92 
Weighted-average shares used in the calculation of net income per common share (A):
Basic597,627 586,883 593,665 555,878 
Diluted624,671 642,081 628,402 602,146 
(A) Reflects a ten-for-one stock split on September 30, 2024.



Stock-based compensation is included in the following cost and expense categories by period (in thousands):

 Three Months Ended June 30,Years Ended June 30,
 2025202420252024
Cost of sales$6,792 $3,185 $24,505 $15,865 
Research and development53,854 28,890 195,444 114,895 
Sales and marketing10,539 6,197 37,784 21,195 
General and administrative12,427 36,688 56,719 79,552 
Stock-based compensation expense, before taxes
$83,612 $74,960 $314,452 $231,507 


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 (unaudited)

Years ended June 30,
 20252024
OPERATING ACTIVITIES:
Net income$1,048,854 $1,152,666 
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation and amortization
58,344 38,693 
Amortization of debt discount and issuance costs10,268 2,292 
Stock-based compensation expense314,452 231,507 
Share of loss (income) from equity investee6,211 (1,821)
Unrealized foreign currency exchange loss (gain)18,832 (531)
Loss on extinguishment of convertible notes
30,251 — 
Deferred income taxes, net
(214,638)(168,499)
Other non-cash (income) expense, net(3,077)12,343 
Changes in operating assets and liabilities:
Accounts receivable, net
362,681 (1,589,187)
Inventories(355,606)(2,899,996)
Prepaid expenses and other assets
(58,447)(44,646)
Accounts payable
(180,968)679,190 
Accrued liabilities
272,404 92,942 
Income taxes payable32,043 (110,897)
Deferred revenue315,006 111,927 
Other long-term liabilities
2,914 8,045 
Net cash provided by (used in) operating activities1,659,524 (2,485,972)
INVESTING ACTIVITIES:
Purchases of property, plant, and equipment(127,214)(124,279)
Investment in equity securities(56,000)(69,673)
Acquisition, net of cash acquired
— (296)
Net cash used in investing activities(183,214)(194,248)
FINANCING ACTIVITIES:
Proceeds from lines of credit and term loans
1,387,991 2,156,529 
Repayment of lines of credit and term loans
(1,768,650)(1,967,545)
Proceeds from exercise of stock options
20,898 29,453 
Payment for withholding taxes related to settlement of equity awards
(142,348)(174,354)
Stock repurchases(200,000)— 
Issuances of common stock in public offerings, net of issuance costs
— 2,313,983 
Debt issuance costs in connection with amended 2029 Convertibles Notes
(31,217)— 
Proceeds from issuance of 2029 Convertible Notes, net of issuance costs— 1,695,768 
Proceeds from issuance of 2028 Convertible Notes, net of issuance costs683,696 — 
Proceeds from issuance of 2030 Convertible Notes, net of issuance costs2,255,973 — 
Purchase of capped calls(182,215)(142,140)
Other(83)30 
Net cash provided by financing activities2,024,045 3,911,724 
Effect of exchange rate fluctuations on cash1,673 (2,191)
Net increase in cash, cash equivalents and restricted cash
3,502,028 1,229,313 
Cash, cash equivalents and restricted cash at the beginning of the period1,670,273 440,960 
Cash, cash equivalents and restricted cash at the end of the period$5,172,301 $1,670,273 


SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 (unaudited)

Years ended June 30,
20252024
Supplemental disclosure of cash flow information:
Cash paid for interest$25,490 $16,015 
Cash paid for taxes, net of refunds$327,158 $392,020 
Non-cash investing and financing activities:
Unpaid property, plant, and equipment purchases$16,208 $19,613 
Right of use assets obtained in exchange for operating lease commitments $276,170 $32,581 
Transfer of inventory to property, plant, and equipment, net$8,260 $12,535 


SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)


Use of Non-GAAP Financial Measures

To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share; and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

We exclude the following adjustments from our non-GAAP financial measures:

Non-GAAP Adjustments

•Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.

•Loss on extinguishment of convertible notes: We exclude the loss on extinguishment of debt related to our convertible notes from our non-GAAP results, as it is a non-recurring, financing-related charge that does not reflect our underlying operating performance in the period incurred. We believe it is appropriate to exclude this loss - and to present it separately - to provide investors with greater insight, as it is a non-recurring financing activity and is not reflective of ongoing operating results.

•Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to the adjustments described above, we exclude the impact of Interest expense, Income tax (provision) benefit, and Depreciation and amortization during the period.

Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.



SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)


Reconciliation of GAAP Net Income to Adjusted EBITDA:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP Net Income
$195,154 $297,244 $1,048,854 $1,152,666 
Interest expense22,282 3,112 59,573 19,352 
Income tax provision19,307 1,559 156,851 63,294 
Depreciation & Amortization18,636 10,287 58,344 38,693 
Stock-based compensation83,612 74,960 314,452 231,507 
Loss on extinguishment of convertible notes
— — 30,251 — 
Adjusted EBITDA
$338,991 $387,162 $1,668,325 $1,505,512 
Adjusted EBITDA % of net sales
5.9 %7.2 %7.6 %10.0 %

Reconciliation of GAAP to Non-GAAP Gross Margin:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP Gross Profit
$544,102 $546,029 $2,429,922 $2,061,410 
Stock-based compensation6,792 3,185 24,505 15,865 
Non-GAAP Gross Profit
$550,894 $549,214 $2,454,427 $2,077,275 
GAAP gross margin (%)
9.5 %10.2 %11.1 %13.8 %
Stock-based compensation (%)
0.1 %0.1 %0.1 %0.1 %
Non-GAAP gross margin (%)
9.6 %10.3 %11.2 %13.9 %

Reconciliation of GAAP to Non-GAAP Operating Expenses:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP Operating Expenses
$315,711 $257,543 $1,176,928 $850,636 
Adjustments to operating expenses
GAAP R&D operating expenses
183,221 127,471 636,550 463,548 
Stock-based compensation
53,854 28,890 195,444 114,895 
Non-GAAP R&D operating expenses
129,367 98,581 441,106 348,653 
GAAP S&M operating expenses
64,739 55,963 273,139 189,738 
Stock-based compensation
10,539 6,197 37,784 21,195 
Non-GAAP S&M operating expenses
54,200 49,766 235,355 168,543 
GAAP G&A operating expenses
67,751 74,109 267,239 197,350 
Stock-based compensation12,427 36,688 56,719 79,552 
Non-GAAP G&A operating expenses
55,324 37,421 210,520 117,798 
Non-GAAP Operating Expenses
$238,891 $185,768 $886,981 $634,994 


SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)


Reconciliation of GAAP to Non-GAAP Net Income:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP net income - basic$195,154 $297,244 $1,048,854 $1,152,666 
Adjustments related to stock-based compensation:
Cost of sales
6,792 3,185 24,505 15,865 
Operating expenses76,820 71,775 289,947 215,642 
Total adjustments to GAAP income from operations
83,612 74,960 314,452 231,507 
Adjustments related to loss on extinguishment of convertible notes:
Other expense
— — 30,251 — 
Total adjustments to GAAP Other expense
— — 30,251 — 
Total adjustments to GAAP income before income tax provision
83,612 74,960 344,703 231,507 
Income tax effect of non-GAAP adjustments
(18,120)(20,169)(82,835)(92,810)
Non-GAAP net income - basic$260,646 $352,035 $1,310,722 $1,291,363 
GAAP net income - basic$195,154 $297,244 $1,048,854 $1,152,666 
Convertible note interest charge, net of tax75 1,095 5,726 1,480 
GAAP net income - diluted$195,229 $298,339 $1,054,580 $1,154,146 
Non-GAAP net income - basic$260,646 $352,035 $1,310,722 $1,291,363 
Convertible note interest charge, net of tax75 1,095 5,726 1,480 
Non-GAAP net income - diluted
$260,721 $353,130 $1,316,448 $1,292,843 
Weighted-average shares used in the calculation of net income per common share:
Basic - GAAP
597,627 586,883 593,665 555,878 
Basic - Non-GAAP
597,627 586,883 593,665 555,878 
Diluted - GAAP
624,671 642,081 628,402 602,146 
Non-GAAP adjustment13,663 6,186 11,768 6,713 
Diluted - Non-GAAP
638,334 648,267 640,170 608,859 


SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
 (unaudited)


Reconciliation of GAAP to Non-GAAP EPS:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP Net Income per common share - basic
$0.33 $0.51 $1.77 $2.07 
Adjustments to GAAP:
Stock-based compensation - basic
0.14 0.13 0.53 0.42 
Loss on extinguishment of convertible notes - basic
— — 0.05 — 
Income tax - basic
(0.03)(0.04)(0.14)(0.17)
Non-GAAP Net Income per common share - basic
$0.44 $0.60 $2.21 $2.32 
GAAP net income per common share - diluted$0.31 $0.46 $1.68 $1.92 
Adjustments to GAAP:
Stock-based compensation - diluted
0.13 0.12 0.48 0.38 
Loss on extinguishment of convertible notes - diluted
— — 0.04 — 
Income tax - diluted
(0.03)(0.04)(0.14)(0.18)
Non-GAAP Net Income per common share – diluted
$0.41 $0.54 $2.06 $2.12 


GAAP to Non-GAAP Effective Tax Rate:

Three months endedTwelve months ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
GAAP effective tax rate
8.7 %0.5 %12.9 %5.2 %
Total adjustments to GAAP provision to income tax
3.5 %5.3 %2.5 %5.6 %
Non-GAAP effective tax rate
12.2 %5.8 %15.4 %10.8 %