Exhibit 99.1

PRESS RELEASE

For Immediate Release

Monolithic Power Systems Announces

Results for the Fourth Quarter and Year Ended December 31, 2025

and an Increase in Quarterly Cash Dividend

Schaffhausen, Switzerland, February 5, 2026 -- Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter and year ended December 31, 2025. MPS also announced that its Board of Directors has approved an increase in the quarterly cash dividend from $1.56 per share to $2.00 per share. The first quarter dividend of $2.00 per share will be paid on April 15, 2026 to all stockholders of record as of the close of business on March 31, 2026.

The financial results for the quarter ended December 31, 2025 were as follows:

● Revenue was $751.2 million for the quarter ended December 31, 2025, a 1.9% increase from $737.2 million for the quarter ended September 30, 2025 and a 20.8% increase from $621.7 million for the quarter ended December 31, 2024.

● GAAP gross margin was 55.2% for the quarter ended December 31, 2025, compared with 55.4% for the quarter ended December 31, 2024.

● Non-GAAP gross margin (1) was 55.5% for the quarter ended December 31, 2025, excluding the impact of $2.1 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with 55.8% for the quarter ended December 31, 2024, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.

● GAAP operating expenses were $214.3 million for the quarter ended December 31, 2025, compared with $181.1 million for the quarter ended December 31, 2024.

● Non-GAAP operating expenses (1) were $148.1 million for the quarter ended December 31, 2025, excluding $64.7 million for stock-based compensation and related expenses and $1.5 million for deferred compensation plan expense, compared with $126.1 million for the quarter ended December 31, 2024, excluding $54.6 million for stock-based compensation and related expenses and $0.4 million for deferred compensation plan expense.

● GAAP operating income was $199.9 million for the quarter ended December 31, 2025, compared with $163.3 million for the quarter ended December 31, 2024.

● Non-GAAP operating income (1) was $269.0 million for the quarter ended December 31, 2025, excluding $66.9 million for stock-based compensation and related expenses, $1.9 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets, compared with $220.7 million for the quarter ended December 31, 2024, excluding $56.3 million for stock-based compensation and related expenses, $0.8 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.

● GAAP other income, net was $9.8 million for the quarter ended December 31, 2025, compared with $6.2 million for the quarter ended December 31, 2024.

● Non-GAAP other income, net (1) was $7.8 million for the quarter ended December 31, 2025, excluding $2.0 million for deferred compensation plan income, compared with $6.0 million for the quarter ended December 31, 2024, excluding $0.2 million for deferred compensation plan income.

● GAAP income before income taxes was $209.8 million for the quarter ended December 31, 2025, compared with $169.5 million for the quarter ended December 31, 2024.

● Non-GAAP income before income taxes (1) was $276.9 million for the quarter ended December 31, 2025, excluding $66.9 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.1 million for net deferred compensation plan income, compared with $226.7 million for the quarter ended December 31, 2024, excluding $56.3 million for stock-based compensation and related expenses, $0.6 million for net deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.

● GAAP net income was $170.1 million and $3.46 per diluted share for the quarter ended December 31, 2025. Comparatively, GAAP net income was $1,449.4 million and $29.88 per diluted share for the quarter ended December 31, 2024. GAAP net income and income per diluted share for the quarter ended December 31, 2024 included $1,285.4 million for the recognition of a tax benefit granted to a foreign subsidiary.

● Non-GAAP net income (1) was $235.3 million and $4.79 per diluted share for the quarter ended December 31, 2025, excluding $66.9 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets, $0.1 million for net deferred compensation plan income and $1.9 million for related tax effects, compared with $198.4 million and $4.09 per diluted share for the quarter ended December 31, 2024, excluding $1,285.4 million for the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP net income for the quarter ended December 31, 2024 also excluded $56.3 million for stock-based compensation and related expenses, $0.6 million for net deferred compensation plan expense, $0.3 million for amortization of acquisition-related intangible assets and $22.8 million for the related tax effects.

The financial results for the year ended December 31, 2025 were as follows:

● Revenue was $2.8 billion for the year ended December 31, 2025, a 26.4% increase from $2.2 billion for the year ended December 31, 2024.

● GAAP gross margin was 55.2% for the year ended December 31, 2025, compared with 55.3% for the year ended December 31, 2024.

● Non-GAAP gross margin (1) was 55.5% for the year ended December 31, 2025, excluding the impact of $7.7 million for stock-based compensation and related expenses, $1.3 million for deferred compensation plan expense and $1.1 million for amortization of acquisition-related intangible assets, compared with 55.8% for the year ended December 31, 2024, excluding the impact of $7.0 million for stock-based compensation and related expenses, $1.5 million for deferred compensation plan expense and $1.2 million for amortization of acquisition-related intangible assets.

● GAAP operating expenses were $811.1 million for the year ended December 31, 2025, compared with $681.5 million for the year ended December 31, 2024.

● Non-GAAP operating expenses (1) were $567.5 million for the year ended December 31, 2025, excluding $234.2 million for stock-based compensation and related expenses, $9.3 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets, compared with $466.4 million for the year ended December 31, 2024, excluding $206.2 million for stock-based compensation and related expenses, $8.8 million for deferred compensation plan expense and $0.1 million for amortization of acquisition-related intangible assets.

● GAAP operating income was $728.6 million for the year ended December 31, 2025, compared with $539.4 million for the year ended December 31, 2024.

● Non-GAAP operating income (1) was $982.4 million for the year ended December 31, 2025, excluding $241.8 million for stock-based compensation and related expenses, $10.6 million for deferred compensation plan expense and $1.3 million for amortization of acquisition-related intangible assets, compared with $764.1 million for the year ended December 31, 2024, excluding $213.2 million for stock-based compensation and related expenses, $10.3 million for deferred compensation plan expense and $1.3 million for amortization of acquisition-related intangible assets.

● GAAP other income, net was $37.6 million for the year ended December 31, 2025, compared with $33.6 million for the year ended December 31, 2024.

● Non-GAAP other income, net (1) was $27.5 million for the year ended December 31, 2025, excluding $10.0 million for deferred compensation plan income, compared with $24.2 million for the year ended December 31, 2024, excluding $9.4 million for deferred compensation plan income.

● GAAP income before income taxes was $766.2 million for the year ended December 31, 2025, compared with $572.9 million for the year ended December 31, 2024.

● Non-GAAP income before income taxes (1) was $1,009.9 million for the year ended December 31, 2025, excluding $241.8 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets and $0.6 million for net deferred compensation plan expense, compared with $788.3 million for the year ended December 31, 2024, excluding $213.2 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets and $0.9 million for net deferred compensation plan expense.

● GAAP net income was $615.9 million and $12.75 per diluted share for the year ended December 31, 2025. Comparatively, GAAP net income was $1,786.7 million and $36.59 per diluted share for the year ended December 31, 2024. GAAP net income and income per diluted share for the year ended December 31, 2024 included $1,285.4 million for the recognition of a tax benefit granted to a foreign subsidiary.

● Non-GAAP net income (1) was $858.4 million and $17.77 per diluted share for the year ended December 31, 2025, excluding $241.8 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets, $0.6 million for net deferred compensation plan expense and $1.2 million for related tax effects, compared with $689.8 million and $14.12 per diluted share for the year ended December 31, 2024, excluding $1,285.4 billion for the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP net income for the year ended December 31, 2024 also excluded $213.2 million for stock-based compensation and related expenses, $1.3 million for amortization of acquisition-related intangible assets, $0.9 million for net deferred compensation plan expense and $26.9 million for the related tax effects.

The following is a summary of revenue by end market (in thousands):

	Three Months Ended December 31,				Year Ended December 31,
End Market	2025		2024		2025		2024
Storage and Computing	$	162,119	$	136,507	$	732,522	$	501,576
Enterprise Data		233,476		194,867		701,846		716,264
Automotive		150,942		128,344		592,518		413,973
Communications		83,742		63,810		309,064		225,905
Consumer		66,146		57,311		255,155		202,015
Industrial		54,730		40,826		199,354		147,367
Total	$	751,155	$	621,665	$	2,790,459	$	2,207,100

“Our results demonstrate our continued success in transforming from a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’s financial targets for the first quarter ending March 31, 2026: 

● Revenue in the range of $770.0 million to $790.0 million.

● GAAP gross margin between 54.9% and 55.5%. Non-GAAP gross margin (1) between 55.2% and 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.

● GAAP operating expenses between $207.1 million and $213.1 million. Non-GAAP operating expenses (1) between $156.0 million and $160.0 million, which excludes estimated stock-based compensation and related expenses in the range of $51.1 million to $53.1 million.

● Total stock-based compensation and related expenses of $52.8 million to $54.8 million including approximately $1.7 million that would be charged to cost of goods sold.

● Interest and other income in the range of $7.4 million to $7.8 million before foreign exchange gains or losses.

● Non-GAAP tax rate of 15.0% for 2026.

● Fully diluted shares outstanding between 49.0 million and 49.4 million.

(1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP net income and non-GAAP net income per share in the prior year also exclude the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

Earnings Commentary

Earnings commentary on the results of operations for the quarter and year ended December 31, 2025 is available under the Investor Relations page on the MPS website.

Earnings Webinar

MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, February 5, 2026. The webinar can be accessed at: https://mpsic.zoom.us/j/99373894222. It can also be accessed live over the phone by dialing (669) 444-9171; the webinar ID is 99373894222. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor Statement

This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the first quarter of fiscal year 2026 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our end markets, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) our ability to reduce our expenses, and (v) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), or (iv). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to current and potential global conflicts, global tariffs, export controls and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any impact from current and potential global conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if our tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs, export controls and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including current and potential global conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar.

About Monolithic Power Systems

Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

Contact:

Tony Balow

Vice President, Finance

Monolithic Power Systems, Inc.

MPSInvestor.Relations@monolithicpower.com

Monolithic Power Systems, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value) 

	December 31,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,099,302		$	691,816
Short-term investments		157,243			171,130
Accounts receivable, net		255,626			172,518
Inventories		564,649			419,611
Other current assets		106,982			109,978
Total current assets		2,183,802			1,565,053
Property and equipment, net		627,689			494,945
Acquisition-related intangible assets, net		8,790			9,938
Goodwill		25,944			25,944
Deferred tax assets, net		1,281,488			1,326,840
Other long-term assets		165,091			194,377
Total assets	$	4,292,804		$	3,617,097
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	138,272		$	102,526
Accrued compensation and related benefits		85,963			63,918
Other accrued liabilities		145,130			128,123
Total current liabilities		369,365			294,567
Income tax liabilities		75,022			65,193
Other long-term liabilities		127,835			111,570
Total liabilities		572,222			471,330
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 48,709 and 47,823, respectively		936,998			706,817
Retained earnings		2,798,736			2,487,461
Accumulated other comprehensive loss		(15,152	)		(48,511	)
Total stockholders’ equity		3,720,582			3,145,767
Total liabilities and stockholders’ equity	$	4,292,804		$	3,617,097

Monolithic Power Systems, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,					Year Ended December 31,
	2025		2024			2025		2024
Revenue	$	751,155	$	621,665		$	2,790,459	$	2,207,100
Cost of revenue		336,888		277,257			1,250,718		986,230
Gross profit		414,267		344,408			1,539,741		1,220,870
Operating expenses:
Research and development		95,597		85,762			382,263		324,748
Selling, general and administrative		118,734		95,339			428,842		356,764
Total operating expenses		214,331		181,101			811,105		681,512
Operating income		199,936		163,307			728,636		539,358
Other income, net		9,837		6,224			37,580		33,554
Income before income taxes		209,773		169,531			766,216		572,912
Income tax expense (benefit), net		39,637		(1,279,832	)		150,289		(1,213,788	)
Net income	$	170,136	$	1,449,363		$	615,927	$	1,786,700
Net income per share:
Basic	$	3.51	$	30.00		$	12.82	$	36.76
Diluted	$	3.46	$	29.88		$	12.75	$	36.59
Weighted-average shares outstanding:
Basic		48,502		48,317			48,035		48,599
Diluted		49,168		48,506			48,309		48,835

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

(Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Net income	$	170,136		$	1,449,363		$	615,927		$	1,786,700
Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation and related expenses		66,875			56,320			241,841			213,209
Amortization of acquisition-related intangible assets		320			320			1,280			1,303
Deferred compensation plan expense (income), net		(113	)		573			585			867
Tax effect of non-GAAP adjustments		(1,891	)		(22,773	)		(1,199	)		(26,922	)
Recognition of a tax benefit granted to a foreign subsidiary		-			(1,285,402	)		-			(1,285,402	)
Non-GAAP net income	$	235,327		$	198,401		$	858,434		$	689,755
Non-GAAP net income per share:
Basic	$	4.85		$	4.11		$	17.87		$	14.19
Diluted	$	4.79		$	4.09		$	17.77		$	14.12
Shares used in the calculation of non-GAAP net income per share:
Basic		48,502			48,317			48,035			48,599
Diluted		49,168			48,506			48,309			48,835

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Gross profit	$	414,267		$	344,408		$	1,539,741		$	1,220,870
Gross margin		55.2	%		55.4	%		55.2	%		55.3	%
Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation and related expenses		2,137			1,745			7,675			6,975
Amortization of acquisition-related intangible assets		287			287			1,148			1,171
Deferred compensation plan expense		387			417			1,329			1,500
Non-GAAP gross profit	$	417,078		$	346,857		$	1,549,893		$	1,230,516
Non-GAAP gross margin		55.5	%		55.8	%		55.5	%		55.8	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Total operating expenses	$	214,331		$	181,101		$	811,105		$	681,512
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation and related expenses		(64,738	)		(54,575	)		(234,166	)		(206,234	)
Amortization of acquisition-related intangible assets		(33	)		(33	)		(132	)		(132	)
Deferred compensation plan expense		(1,510	)		(376	)		(9,288	)		(8,767	)
Non-GAAP operating expenses	$	148,050		$	126,117		$	567,519		$	466,379

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

(Unaudited, in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2025		2024		2025		2024
Total operating income	$	199,936	$	163,307	$	728,636	$	539,358
Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation and related expenses		66,875		56,320		241,841		213,209
Amortization of acquisition-related intangible assets		320		320		1,280		1,303
Deferred compensation plan expense		1,897		793		10,617		10,267
Non-GAAP operating income	$	269,028	$	220,740	$	982,374	$	764,137

RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET

(Unaudited, in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2025			2024			2025			2024
Total other income, net	$	9,837		$	6,224		$	37,580		$	33,554
Adjustments to reconcile other income, net to non-GAAP other income, net:
Deferred compensation plan income		(2,010	)		(220	)		(10,032	)		(9,400	)
Non-GAAP other income, net	$	7,827		$	6,004		$	27,548		$	24,154

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

(Unaudited, in thousands)

	Three Months Ended December 31,					Year Ended December 31,
	2025			2024		2025		2024
Total income before income taxes	$	209,773		$	169,531	$	766,216	$	572,912
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation and related expenses		66,875			56,320		241,841		213,209
Amortization of acquisition-related intangible assets		320			320		1,280		1,303
Deferred compensation plan expense (income), net		(113	)		573		585		867
Non-GAAP income before income taxes	$	276,855		$	226,744	$	1,009,922	$	788,291

2026 FIRST QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

	Three Months Ending
	March 31, 2026
	Low			High
Gross margin		54.9	%		55.5	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation and other expenses		0.3	%		0.3	%
Non-GAAP gross margin		55.2	%		55.8	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

	Three Months Ending
	March 31, 2026
	Low			High
Operating expenses	$	207,100		$	213,100
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation and other expenses		(51,100	)		(53,100	)
Non-GAAP operating expenses	$	156,000		$	160,000