Latest news with #DCBBS
Business Insider
3 days ago
- Business
- Business Insider
Super Micro Computer Stock (SMCI) Could See Limited Upside Amid Ongoing Challenges
Super Micro Computer (SMCI) disappointed investors with its dismal results for the fourth quarter of Fiscal 2025. While SMCI bulls see the post-earnings dip in the stock as a buying opportunity, other analysts are cautious on the artificial intelligence (AI) server maker amid ongoing challenges, including execution risks and margin pressures due to intense competition. In fact, Wall Street's average price target indicates limited upside from current levels. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Cautious Stance on SMCI Stock While SMCI bulls have acknowledged its weak performance in Q4 FY25 and revenue guidance cut for Fiscal 2026, they remain bullish on the company's long-term growth prospects, driven by robust demand for AI servers. However, some analysts have pointed out execution risks and declining margins as competition from players like Dell Technologies (DELL) intensifies. Following the Q4 print, J.P. Morgan analyst Samik Chatterjee slightly lowered the price target for Super Micro Computer stock to $45 from $46 and reaffirmed a Hold rating. The 5-star analyst noted that the Q4 earnings miss was due to capital constraints and overall customer indecision/changes. Chatterjee contends that the Q4 FY25 performance reflects 'yet another quarter of the company's execution falling short of the targets laid out by the management.' The analyst added that competitive pressures across the industry are creating a challenging environment for SMCI to balance its revenues and gross margins. Nonetheless, Chatterjee noted some positives, like the launch of Data Center Building Block Solutions (DCBBS), which is expected to extend SMCI's leadership in advanced technical solutions and drive higher margins. He also highlighted that Super Micro is on track to serve six to eight large-scale data center customers (with the potential of becoming 10%+ customers) in FY26 compared to four in FY25. Despite these positives, Chatterjee remains on the sidelines on SMCI stock due to the 'challenging backdrop in relation to managing growth and margins in the near- to medium-term,' particularly with the higher-margin opportunities like DCBBS expected to take time to ramp and become material to the margin outlook. Meanwhile, Barclays analyst Tim Long raised the price target for Super Micro Computer stock to $45 from $29, noting that the DCBBS solution is expected to help the company grow its revenue, market share, and profitability. The 5-star analyst also highlighted management's commentary about the DCBBS solution being attractive not only to cloud players but also to sovereigns and enterprise customers. That said, Long reiterated a Hold rating on SMCI stock, citing near-term pressures like uncertainty around AI server builds and production ramp challenges. He noted that chip and resource availability, along with customers waiting for Nvidia's (NVDA) GB300s, is the bottleneck for Fiscal 2026 revenue growth. Is SMCI a Good Buy Right Now? Overall, Wall Street is sidelined on Super Micro Computer stock, with a Hold consensus rating based on five Buys, six Holds, and two Sell recommendations. The average SMCI stock price target of $47.58 indicates about 7% upside potential from current levels. SMCI stock has risen 46% year-to-date.
Yahoo
15-05-2025
- Business
- Yahoo
Supermicro's Revolutionary Data Center Building Block Solutions® (DCBBS) Simplify and Shorten Global-Scale Buildouts of AI/IT Liquid-Cooled Data Centers
Easy-to-design, easy-to-build, easy-to-deploy, and easy-to-operate solution for all critical computing and cooling infrastructure Quick time-to-deployment and quick time-to-online with everything required to fully outfit AI/IT data centers Saving cost with modularized building block solution architecture from system to rack to data center scale High quality and high availability with Supermicro's industry-leading design, manufacturing capacity, management software, on-site services, and global support SAN JOSE, Calif., May 15, 2025 /PRNewswire/ -- Supermicro, Inc. (NASDAQ: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, is announcing Data Center Building Block Solutions, the easiest solution to overcome the immense complexities of outfitting liquid cooled AI factories with all critical infrastructure components, including servers, storage, networking, rack, liquid cooling, software, services, and support. As an expansion of Supermicro's System Building Block Solutions, DCBBS adopts a standardized, yet flexible solution architecture, vastly expanded in scope to handle the most demanding AI data center training and inference workloads, enabling easier data center planning, buildout, and operation – all while reducing cost. "Supermicro's DCBBS enables clients to easily construct data center infrastructure with the fastest time-to-market and time-to-online advantage, deploying as quickly as three months," said Charles Liang, president and CEO of Supermicro. "With our total solution coverage, including designing data center layouts and network topologies, power and battery backup-units, DCBBS simplifies and accelerates AI data center buildouts leading to reduced costs and improved quality." For more information, please visit DCBBS offers packages of pre-validated data center-level scalable units, including a 256-node AI Factory DCBBS scalable unit, designed to alleviate the burden of prolonged data center design by providing a streamlined package of floor plans, rack elevations, bill of materials, and more. Supermicro provides comprehensive first-party services to ensure project success, starting from consultation to on-site deployment and continued on-site support. DCBBS is customizable at the system-level, rack cluster-level, and data center-level to meet virtually any project requirements. Along with our DLC-2 technology, DCBBS also helps customers save up to 40% power, reducing 60% data center footprint, and decreasing 40% water consumption, all of which leads to 20% lower TCO. AI Factory Data Center-Level Scalable Unit The need for AI infrastructure continues to scale: AI training clusters require clusters of thousands of GPUs to develop foundation models. AI inference applications are also leveraging more test-time compute capacity by running multiple inference passes with a mixture of models to deliver greater intelligence. Supermicro's AI Factory DCBBS package fully equips data centers to tackle these rising AI computational requirements. Solutions from Supermicro include up to 256 Liquid Cooled 4U Supermicro NVIDIA HGX™ system nodes, each system equipped with 8 NVIDIA Blackwell GPUs (2,048 GPUs in total), interconnected with up to 800Gb/s NVIDIA Quantum-X800 InfiniBand or NVIDIA Spectrum™ X Ethernet networking platform. The compute fabric is supported by elastically scalable tiered storage with high-performance PCIe Gen5 NVMe, TCO optimized Data Lake nodes, and resilient management system nodes for continuous uninterrupted operation. System-Level, Rack-Level, and Data Center-Level Customization Supermicro features a modular building block approach, composed of three hierarchical levels: the system-level, rack-level, and data center level, giving customers unparalleled design options in determining a system-level bill of materials, down to selecting individual components, including CPUs, GPUs, DIMMs, drives, and NICs. System-level customization ensures the ability to meet specialized hardware requirements for a particular data center workloads and applications and allows for granular fine-tuning of data center resources. Supermicro aids in designing rack enclosure elevation layouts to ensure optimization for thermals and cabling, giving customers the ability to select the type of rack enclosure, including 42U, 48U, and 52U configurations. After the initial consultation with the customer, Supermicro delivers a project proposal tailored to a given data center power budget, performance target, or other requirements. Supermicro DLC-2 With liquid-cooled data centers growing from less than 1% of the market to an expected 30% within a year, Supermicro is driving the industry-wide adoption of DLC by helping customers achieve the challenge of needing to build new liquid-cooled data centers that can more efficiently remove heat. DLC provides unmatched efficiency by capturing heat directly from the individual chips, including AI GPUs running at 1000W TDP and beyond. Liquid cooling infrastructure is planned and deployed at data center scale, including the piping and facility-side liquid cooling tower for heat dissipation. Supermicro leads the industry in providing a total solution for direct-to-chip liquid cooling infrastructure, consisting of DLC systems, in-rack or in-row coolant distribution units, coolant distribution manifolds, cooling towards, and more. Supermicro's DLC-2 brings further improvements: Cold Plates CPU, GPU, PCle Switch, DIMM, VRM, PSU and more Max Inlet Water Temperature Up to 45°C Noise Level As low as 50dB LC Heat Capture Up to 98% Data Center Power Savings (vs. Air-cooling) Up to 40% Service & Software Building Blocks DCBBS includes the services required to achieve time-to-market and time-to-online quickly, without having to drain the customer's own IT resources. Supermicro offers a complete portfolio of service-level building blocks such as datacenter design, solution validation, and professional onsite deployment. It includes continued on-site support to ensure long-term success, along with a 4-hour Onsite Response time option for mission-critical uptime. Supermicro's SuperCloud Composer® provides a suite of infrastructure management capabilities, with rich analytics that manage compute, storage, and network building blocks at cloud scale. In addition to services, Supermicro has broad expertise in data center application integration, including AI training, AI inferencing, cluster management, and workload orchestration. This includes supporting customers deploying the NVIDIA AI Enterprise software platform. Supermicro provides full services for software provisioning and validation based on the customer's software stack. 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 provider 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, Asia, 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 Solutions, 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. SOURCE Super Micro Computer, Inc.
Yahoo
07-05-2025
- Business
- Yahoo
Super Micro Computer Inc (SMCI) Q3 2025 Earnings Call Highlights: Navigating Growth Amid Challenges
Revenue: Fiscal Q3 net revenue totaled $4.6 billion, up 19% year over year, but down 19% quarter over quarter. Non-GAAP EPS: $0.31 per share, compared to $0.66 last year. Gross Margin: Non-GAAP gross margin was 9.7%, down from 11.9% in Q2. Operating Expenses: Non-GAAP operating expenses were $216 million, a decrease of 5% quarter over quarter and an increase of 30% year over year. Operating Margin: Non-GAAP operating margin was 5%, compared to 7.9% in Q2. Cash Flow from Operations: $627 million generated in Q3. Free Cash Flow: $594 million during the quarter. Inventory: Closing inventory was $3.9 billion, up 7.6% quarter over quarter. Net Cash Position: $44 million, compared to a negative net cash position of $479 million last quarter. Q4 Revenue Guidance: Expected net sales in the range of $5.6 billion to $6.4 billion. Q4 Non-GAAP EPS Guidance: $0.40 to $0.50 per share. CapEx: $33 million for Q3, with Q4 expected to be in the range of $45 million to $55 million. Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Super Micro Computer Inc (NASDAQ:SMCI) reported fiscal Q3 2025 revenues of $4.6 billion, up 19% year over year. The company achieved a volume shipment of new AI platforms, indicating strong demand and market leadership. Super Micro Computer Inc (NASDAQ:SMCI) is expanding its global operations, including new facilities in Malaysia, Taiwan, and Europe. The company is launching its Data Center Building Block Solution (DCBBS), which promises to reduce power consumption and optimize space. Super Micro Computer Inc (NASDAQ:SMCI) maintains a strong cash position with $2.54 billion in cash and a net cash position of $44 million. Negative Points Fiscal Q3 net revenue of $4.6 billion was lower than the original forecast due to delayed customer commitments. Non-GAAP EPS for fiscal Q3 was $0.31 per share, down from $0.66 last year, impacted by inventory write-downs. The company's gross margin decreased to 9.7%, down from 11.9% in the previous quarter, due to higher inventory reserves and lower volume. Super Micro Computer Inc (NASDAQ:SMCI) faces macroeconomic challenges and tariff impacts, creating uncertainty in forecasting. The company experienced a 19% quarter-over-quarter revenue decline, attributed to delayed platform decisions by customers. Q & A Highlights Q: Are customers pulling back orders due to macroeconomic conditions, and how does this affect the June quarter outlook? A: Charles Liang, CEO, stated that despite macroeconomic uncertainties, they see strong orders and expect a robust June quarter. The September quarter is anticipated to be even stronger with the full production of new products like Blackwell.
Yahoo
07-05-2025
- Business
- Yahoo
Supermicro Announces Third Quarter Fiscal Year 2025 Financial Results
The Company has made progress on strengthening its corporate governance practices and implementing recommendations by the Special Committee of the board of directors. All outstanding financial statements have been filed and the Company is in compliance with all Nasdaq filing requirements. Since December 2, 2024, Supermicro has strengthened its board of directors and management team with the additions of Scott Angel, who joined the company's board of directors, Yitai Hu, as the Company's General Counsel & Senior Vice President of Corporate Development, and Kenneth Cheung, as the Company's Senior Vice President and Chief Accounting Officer. The non-GAAP gross margin for the third quarter of fiscal year 2025 was 9.7% with adjustments for stock-based compensation expenses of $7 million. The non-GAAP diluted net income per common share for the third quarter of fiscal year 2025 was $0.31. This non-GAAP figure includes adjustments for stock-based compensation expenses and the loss on extinguishment of convertible notes of $62 million and $23 million, which are net of the related tax effect of $22 million and $7 million, respectively. As of March 31, 2025, total cash and cash equivalents was $2.54 billion and total bank debt and convertible notes were $2.49 billion. "We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter," said Charles Liang, Founder, President, and CEO of Supermicro. "We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however economic uncertainty and tariff impacts may have a short-term impact. We believe that we are well positioned in the long-term to capitalize on the growing market opportunity." Cash flow provided by operations for Q3'25 of $627 million and capital expenditures of $33 million. Non-GAAP diluted net income per common share of $0.31 versus $0.59 in Q2'25 and $0.66 in Q3'24. Diluted net income per common share of $0.17 versus $0.51 in Q2'25 and $0.66 in Q3'24. Net income of $109 million versus $321 million in Q2'25 and $402 million in Q3'24. Gross margin of 9.6% versus 11.8% in Q2'25 and 15.5% in Q3'24. Net sales of $4.60 billion versus $5.68 billion in Q2'25 and $3.85 billion in Q3'24. SAN JOSE, Calif., May 06, 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 third quarter of fiscal year 2025 ended March 31, 2025. Story Continues Business Outlook The Company expects net sales of $5.6 billion to $6.4 billion for the fourth quarter of fiscal year 2025 ending June 30, 2025, GAAP net income per diluted share of $0.30 to $0.40 and non-GAAP net income per diluted share of $0.40 to $0.50. The Company's projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 14.9% and 16.5%, respectively, and a fully diluted share count of 628 million shares for GAAP and fully diluted share count of 642 million shares for non-GAAP. The outlook for fourth quarter of fiscal year 2025 GAAP net income per diluted share includes approximately $63 million in expected stock-based compensation, net of related tax effects of $18 million that are excluded from non-GAAP net income per diluted share. For fiscal year 2025, the Company is updating its revenue guidance from a range of $23.5 billion to $25.0 billion to a new range of $21.8 billion to $22.6 billion. Conference Call and Webcast Information Supermicro will present a live audio webcast of a conference call to review its third quarter of fiscal year 2025 on Tuesday, May 6, 2025, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at 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 fourth quarter of fiscal year 2025 and updated full year fiscal 2025 guidance, realizing sales from delayed commitments in the upcoming quarters ending June 30, 2025 and September 30, 2025, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our leadership in DCBBS 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. 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 Solutions, 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. SUPER MICRO COMPUTER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, June 30, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 2,536,101 $ 1,669,766 Accounts receivable, net of allowance for credit losses 2,642,556 2,737,331 Inventories 3,870,243 4,333,029 Prepaid expenses and other current assets 464,689 191,834 Total current assets 9,513,589 8,931,960 Property, plant and equipment, net 492,565 414,008 Deferred income taxes, net 481,216 365,172 Other assets 251,155 114,952 Total assets $ 10,738,525 $ 9,826,092 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 643,050 $ 1,472,381 Accrued liabilities 344,679 259,674 Income taxes payable 23,633 18,268 Lines of credit and current portion of term loans 63,971 402,346 Deferred revenue 352,803 193,052 Total current liabilities 1,428,136 2,345,721 Deferred revenue, non-current 312,994 223,324 Term loans, non-current 43,003 74,083 Convertible notes 2,385,320 1,697,716 Other long-term liabilities 189,593 67,878 Total liabilities 4,359,046 4,408,722 Stockholders' equity: Common stock and additional paid-in capital 2,939,276 2,830,820 Accumulated other comprehensive income 663 706 Retained earnings 3,439,380 2,585,680 Total Super Micro Computer, Inc. stockholders' equity 6,379,319 5,417,206 Noncontrolling interest 160 164 Total stockholders' equity 6,379,479 5,417,370 Total liabilities and stockholders' equity $ 10,738,525 $ 9,826,092 SUPER MICRO COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Net sales $ 4,599,913 $ 3,850,066 $ 16,215,131 $ 9,634,662 Cost of sales 4,159,695 3,252,698 14,329,311 8,119,281 Gross profit 440,218 597,368 1,885,820 1,515,381 Operating expenses: Research and development 162,857 116,226 453,329 336,077 Sales and marketing 59,978 49,691 208,400 133,775 General and administrative 70,603 53,137 199,488 123,241 Total operating expenses 293,438 219,054 861,217 593,093 Income from operations 146,780 378,314 1,024,603 922,288 Other (expense) income, net (18,313 ) 10,035 1,879 8,762 Interest expense (13,402 ) (6,246 ) (37,291 ) (16,240 ) Income before income tax provision 115,065 382,103 989,191 914,810 Income tax (provision) benefit (5,843 ) 19,983 (137,544 ) (61,735 ) Share of (expense) income from equity investee, net of taxes (445 ) 373 2,053 2,347 Net income $ 108,777 $ 402,459 $ 853,700 $ 855,422 Net income per common share: Basic $ 0.18 $ 0.71 $ 1.44 $ 1.57 Diluted $ 0.17 $ 0.66 $ 1.37 $ 1.45 Weighted-average shares used in the calculation of net income per common share: Basic 595,041 564,780 592,349 545,620 Diluted 621,809 614,310 625,272 588,890 Stock-based compensation is included in the following cost and expense categories by period (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Cost of sales $ 7,060 $ 3,221 $ 17,713 $ 12,680 Research and development 54,254 24,856 141,590 86,005 Sales and marketing 9,923 4,993 27,245 14,998 General and administrative 13,467 23,037 44,292 42,864 Stock-based compensation expense, before taxes $ 84,704 $ 56,107 $ 230,840 $ 156,547 SUPER MICRO COMPUTER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Nine Months Ended March 31, 2025 2024 OPERATING ACTIVITIES: Net income $ 853,700 $ 855,422 Reconciliation of net income to net cash provided by (used in) operating activities: Depreciation and amortization 39,708 29,174 Stock-based compensation expense 230,840 156,547 Share of income from equity investee (2,053 ) (2,347 ) Unrealized foreign currency exchange loss (gain) 2,742 (282 ) Loss on extinguishment of convertible notes 30,251 — Deferred income taxes, net (134,401 ) (144,485 ) Other 5,577 3,186 Changes in operating assets and liabilities: Accounts receivable, net 94,782 (501,870 ) Inventories 457,897 (2,679,023 ) Prepaid expenses and other assets (284,356 ) (25,673 ) Accounts payable (811,690 ) 309,613 Accrued liabilities 52,714 123,937 Income taxes payable 5,365 (99,824 ) Deferred revenue 249,421 132,043 Other long-term liabilities 5,414 5,424 Net cash provided by (used in) operating activities 795,911 (1,838,158 ) INVESTING ACTIVITIES: Purchases of property, plant and equipment (104,536 ) (110,296 ) Investment in equity securities — (27,673 ) Net cash used in investing activities (104,536 ) (137,969 ) FINANCING ACTIVITIES: Proceeds from lines of credit and term loans 1,357,991 1,818,850 Repayment of lines of credit and term loans (1,731,366 ) (1,939,590 ) Proceeds from exercise of stock options 14,452 25,114 Payment for withholding taxes related to settlement of equity awards (118,960 ) (119,285 ) Issuances of common stock in public offerings, net of issuance costs — 2,313,990 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 costs 683,696 — Purchase of capped calls — (142,140 ) Other 22 76 Net cash provided by financing activities 174,618 3,652,783 Effect of exchange rate fluctuations on cash 826 (1,634 ) Net increase in cash, cash equivalents and restricted cash 866,819 1,675,022 Cash, cash equivalents and restricted cash at the beginning of the period 1,670,273 440,960 Cash, cash equivalents and restricted cash at the end of the period $ 2,537,092 $ 2,115,982 Supplemental disclosure of cash flow information: Cash paid for interest $ 24,046 $ 14,813 Cash paid for taxes, net of refunds $ 270,392 $ 300,596 Unpaid property, plant and equipment purchases $ 18,283 $ 9,345 Right of use assets obtained in exchange for operating lease commitments $ 128,617 $ 24,140 Transfer of inventory to property, plant and equipment $ 4,889 $ — 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. Further, beginning with this reporting period management is adding adjusted earnings before interest, taxes, depreciation, and amortization, ("Adjusted EBITDA") as an additional non-GAAP financial measure. 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 directly tied to a capital-raising event 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 the following items during the period: Interest expense Income tax (provision) benefit Depreciation and amortization 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: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP Net Income $ 156,995 $ 295,968 $ 402,459 $ 297,244 $ 424,327 $ 320,596 $ 108,777 Interest expense 1,863 8,131 6,246 3,112 17,354 6,535 13,402 Income tax provision (benefit) 20,215 61,503 (19,983 ) 1,559 74,732 56,969 5,843 Depreciation & Amortization 9,097 9,479 9,830 10,287 11,776 12,725 15,207 Stock-based compensation 57,379 43,061 56,107 74,960 64,014 82,122 84,704 Loss on extinguishment of convertible notes — — — — — — 30,251 Adjusted EBITDA $ 245,549 $ 418,142 $ 454,659 $ 387,162 $ 592,203 $ 478,947 $ 258,184 Adjusted EBITDA % of net sales 11.6 % 11.4 % 11.8 % 7.2 % 10.0 % 8.4 % 5.6 % Reconciliation of GAAP to Non-GAAP Gross Margin: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP Gross Profit $ 353,691 $ 564,322 $ 597,368 $ 546,029 $ 775,580 $ 670,022 $ 440,218 Stock-based compensation 5,904 3,555 3,221 3,185 3,959 6,694 7,060 Non-GAAP Gross Profit $ 359,595 $ 567,877 $ 600,589 $ 549,214 $ 779,539 $ 676,716 $ 447,278 GAAP gross margin (%) 16.7 % 15.4 % 15.5 % 10.2 % 13.1 % 11.8 % 9.6 % Stock-based compensation (%) 0.3 % 0.1 % 0.1 % 0.1 % — % * 0.1 % 0.1 % Non-GAAP gross margin (%) 17.0 % 15.5 % 15.6 % 10.3 % 13.1 % 11.9 % 9.7 % *Represents an amount less than 0.1%. 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 Operating Expenses: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP Operating Expenses $ 181,181 $ 192,858 $ 219,054 $ 257,543 $ 266,381 $ 301,398 $ 293,438 Adjustments to operating expenses GAAP R&D operating expenses 111,027 108,824 116,226 127,471 132,243 158,229 162,857 Stock-based compensation 35,710 25,439 24,856 28,890 36,527 50,809 54,254 Non-GAAP R&D operating expenses 75,317 83,385 91,370 98,581 95,716 107,420 108,603 GAAP S&M operating expenses 37,230 46,854 49,691 55,963 68,854 79,568 59,978 Stock-based compensation 5,665 4,340 4,993 6,197 7,763 9,559 9,923 Non-GAAP S&M operating expenses 31,565 42,514 44,698 49,766 61,091 70,009 50,055 GAAP G&A operating expenses 32,924 37,180 53,137 74,109 65,284 63,601 70,603 Stock-based compensation 10,100 9,727 23,037 36,688 15,765 15,060 13,467 Non-GAAP G&A operating expenses 22,824 27,453 30,100 37,421 49,519 48,541 57,136 Non-GAAP Operating Expenses $ 129,706 $ 153,352 $ 166,168 $ 185,768 $ 206,326 $ 225,970 $ 215,794 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: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP net income $ 156,995 $ 295,968 $ 402,459 $ 297,244 $ 424,327 $ 320,596 $ 108,777 Adjustments related to stock-based compensation: Cost of sales 5,904 3,555 3,221 3,185 3,959 6,694 7,060 Operating expenses 51,475 39,506 52,886 71,775 60,055 75,428 77,644 Total adjustments to GAAP income from operations 57,379 43,061 56,107 74,960 64,014 82,122 84,704 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 57,379 43,061 56,107 74,960 64,014 82,122 114,955 Income tax effect of non-GAAP adjustments (16,049 ) (9,569 ) (47,023 ) (20,169 ) (15,873 ) (19,136 ) (29,706 ) Non-GAAP net income $ 198,325 $ 329,460 $ 411,543 $ 352,035 $ 472,468 $ 383,582 $ 194,026 GAAP net income - diluted $ 156,995 $ 295,968 $ 402,844 $ 298,339 $ 427,076 $ 321,706 $ 108,777 Convertible note interest charge, net of tax — — 385 1,095 2,749 1,110 — Non-GAAP net income - diluted $ 198,325 $ 329,460 $ 411,928 $ 353,130 $ 475,217 $ 384,692 $ 194,026 Weighted-average shares used in the calculation of net income per common share: Basic - GAAP 530,928 541,354 564,780 586,883 589,558 592,507 595,041 Basic - Non-GAAP 530,928 541,354 564,780 586,883 589,558 592,507 595,041 Diluted - GAAP 571,853 580,777 614,310 642,081 639,148 636,047 621,809 Stock-based compensation 6,607 8,843 5,220 6,186 8,930 10,624 14,108 Diluted - Non-GAAP 578,460 589,620 619,530 648,267 648,078 646,671 635,917 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: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP Net Income per common share - basic $ 0.30 $ 0.55 $ 0.71 $ 0.51 $ 0.72 $ 0.54 $ 0.18 Adjustments to GAAP: Stock-based compensation - basic 0.11 0.08 0.10 0.13 0.11 0.14 0.14 Loss on extinguishment of convertible notes - basic — — — — — — 0.05 Income tax - basic (0.04 ) (0.02 ) (0.08 ) (0.04 ) (0.03 ) (0.03 ) (0.04 ) Non-GAAP Net Income per common share - basic $ 0.37 $ 0.61 $ 0.73 $ 0.60 $ 0.80 $ 0.65 $ 0.33 GAAP net income per common share - dilutive $ 0.27 $ 0.51 $ 0.66 $ 0.46 $ 0.67 $ 0.51 $ 0.17 Adjustments to GAAP: Stock-based compensation - diluted 0.10 0.07 0.09 0.12 0.09 0.12 0.14 Loss on extinguishment of convertible notes - diluted — — — — — — 0.05 Income tax - diluted (0.03 ) (0.02 ) (0.09 ) (0.04 ) (0.03 ) (0.04 ) (0.05 ) Non-GAAP Net Income per common share – diluted $ 0.34 $ 0.56 $ 0.66 $ 0.54 $ 0.73 $ 0.59 $ 0.31 GAAP to Non-GAAP Effective Tax Rate: Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP effective tax rate 11.4 % 17.3 % (5.2 )% 0.5 % 15.0 % 15.2 % 5.1 % Total adjustments to GAAP provision to income tax 4.1 % 0.5 % 11.4 % 5.3 % 1.1 % 1.4 % 10.4 % Non-GAAP effective tax rate 15.5 % 17.8 % 6.2 % 5.8 % 16.1 % 16.6 % 15.5 % View source version on Contacts Investor Relations Contact: Nicole Noutsios Stratos Advisors email: ir@
