Business Highlights
- Fourth quarter of 2025 sales increased 15% Q/Q and increased 46% Y/Y
- SSD controller sales: 4Q of 2025 increased 25% to 30% Q/Q and increased 35% to 40% Y/Y
- eMMC+UFS controller sales: 4Q of 2025 increased 0% to 5% Q/Q and increased 50% to 55% Y/Y
- SSD solutions sales: 4Q of 2025 increased 125% to 130% Q/Q and increased 110% to 115% Y/Y
- Announced annual cash dividend of $2.00 per American Depositary Share (“ADS”)
Financial Highlights
| 4Q 2025 GAAP | 4Q 2025 Non-GAAP* | |
| • Net sales | $278.5 million (+15% Q/Q, +46% Y/Y) | $278.5 million (+15% Q/Q, +46% Y/Y) |
| • Gross margin | 49.1% | 49.2% |
| • Operating margin | 11.4% | 19.3% |
| • Earnings per diluted ADS | $1.41 | $1.26 |
| Full Year 2025 GAAP | Full Year 2025 Non-GAAP* | |
| • Net sales | $885.6 million (+10% Y/Y) | $885.6 million (+10% Y/Y) |
| • Gross margin | 48.3% | 48.3% |
| • Operating margin | 10.5% | 14.9% |
| • Earnings per diluted ADS | $3.64 | $3.55 |
* Please see reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.
TAIPEI, Taiwan and MILPITAS, Calif., Feb. 04, 2026 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NASDAQ:SIMO) (“Silicon Motion,” the “Company,” “we” or similar terms) today announced its financial results for the fourth quarter and year ended December 31, 2025. For the fourth quarter of 2025, net sales (GAAP) increased sequentially to $278.5 million from $242.0 million in the third quarter of 2025. Net income (GAAP) also increased sequentially to $47.7 million, or $1.41 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $39.1 million, or $1.16 per diluted ADS (GAAP), in the third quarter of 2025.
For the fourth quarter of 2025, net income (non-GAAP) increased sequentially to $42.7 million, or $1.26 per diluted ADS (non-GAAP), from net income (non-GAAP) of $33.8 million, or $1.00 per diluted ADS (non-GAAP), in the third quarter of 2025.
All financial numbers are in U.S. dollars unless otherwise noted.
Fourth Quarter of 2025 Review
“Our fourth quarter of 2025 outperformance was driven by strength across all our business lines as new products continued to ramp, and we further extended our market share gains in eMMC/UFS and client SSDs,” stated Wallace Kou, President and CEO of Silicon Motion. “Our client SSD controller sales grew over 25% quarter-over-quarter in the fourth quarter of 2025, primarily driven by our industry-leading leading 8-channel and our newly introduced 4-channel PCIe5 controllers. Our eMMC and UFS products increased again sequentially during the fourth quarter of 2025, primarily driven by market share gains. We also experienced strong growth in our automotive segment primarily driven by increased product diversification and new customer ramps. The fourth quarter of 2025 also marked the initial sales of our new boot drive storage products to a leading GPU maker, one of our new growth areas in our rapidly evolving enterprise business. We are pleased by the early progress we are seeing with our new products and the diversification strategy we have set in motion over the past couple of years. Our momentum in our core eMMC/UFS and client SSD controllers continues to be strong as we secure new wins that further our market share gains and our new initiatives in enterprise and automotive are beginning to take hold and will represent significant growth drivers long-term for the Company.”
Key Financial Results
| (in millions, except percentages and per ADS amounts) | GAAP | Non-GAAP | ||||||||||
| 4Q 2025 | 3Q 2025 | 4Q 2024 | 4Q 2025 | 3Q 2025 | 4Q 2024 | |||||||
| Revenue | $278.5 | $242.0 | $191.2 | $278.5 | $242.0 | $191.2 | ||||||
| Gross profit | $136.8 | $117.7 | $87.6 | $137.0 | $117.8 | $87.9 | ||||||
| Percent of revenue | 49.1% | 48.6% | 45.8% | 49.2% | 48.7% | 46.0% | ||||||
| Operating expenses | $105.1 | $88.5 | 69.9 | $83.2 | $79.5 | $58.3 | ||||||
| Operating income | $31.7 | $29.2 | $17.7 | $53.8 | $38.3 | $29.6 | ||||||
| Percent of revenue | 11.4% | 12.1% | 9.3% | 19.3% | 15.8% | 15.5% | ||||||
| Earnings per diluted ADS | $1.41 | $1.16 | $0.64 | $1.26 | $1.00 | $0.87 | ||||||
Other Financial Information
| (in millions) | 4Q 2025 | 3Q 2025 | 4Q 2024 | ||||||
| Cash, cash equivalents and restricted cash—end of period | $277.1 | $272.4 | $334.3 | ||||||
| Routine capital expenditures | $6.2 | $9.9 | $7.3 | ||||||
| Dividend payments | $16.7 | $16.7 | $16.8 | ||||||
During the fourth quarter of 2025, we had $7.8 million of capital expenditures, including $6.2 million for the routine purchases of testing equipment, software, design tools and other items, and $1.6 million for building and building improvements in Hsinchu, Taiwan.
Returning Value to Shareholders
On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On November 26, 2025, we paid $16.7 million to Silicon Motion shareholders as the first installment of the annual cash dividend. The second installment of our annual dividend will be paid on February 26, 2026 to all shareholders of record on February 11, 2026.
Business Outlook
“As we enter 2026, our momentum in increasing market share, growing our customer and product portfolio and expanding into new markets has never been stronger. These new products and opportunities across all our business lines are expected to ramp in 2026, driving revenue acceleration and profitability growth for the Company. Based on our existing backlog for the first quarter of 2026 and the full-year, we anticipate a significantly stronger-than-seasonal start, with sustained and steady growth throughout the year,” stated Mr. Kou.
For the first quarter of 2026, management expects:
| ($ in millions, except percentages) | GAAP | Non-GAAP Adjustment | Non-GAAP |
| Revenue | $292 to $306 | — | $292 to $306 |
| +5% to 10% Q/Q | +5% to 10% Q/Q | ||
| +76% to 84% Y/Y | +76% to 84% Y/Y | ||
| Gross margin | 45.9% to 46.9% | Approximately $0.3* | 46.0% to 47.0% |
| Operating margin | 12.0% to 14.5% | Approximately $10.8 to $11.8** | 16.0% to 18.0% |
* Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $10.8 million to $11.8 million of stock-based compensation and dispute related expenses.
Conference Call & Webcast:
The Company’s management team will conduct a conference call at 8:00 am Eastern Time on February 4, 2026.
Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access information (including dial-in information and a unique access PIN) will be provided in the email received upon registration.
Participant Online Registration:
https://register-conf.media-server.com/register/BI240b206301124437a300f3cdda6f35b8
A webcast of the call will be available on the Company’s website at www.siliconmotion.com.
Discussion of Non-GAAP Financial Measures
To supplement the Company’s unaudited consolidated financial results calculated in accordance with GAAP, the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.
Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
- the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
- the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
- a better understanding of how management plans and measures the Company’s underlying business; and
- an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.
Restructuring charges relate to the restructuring of our underperforming product lines, principally the write-down of NAND flash, embedded DRAM and SSD inventory valuation and severance payments.
Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.
Foreign exchange loss (gain) consists of translation gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.
Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.
| Silicon Motion Technology Corporation Consolidated Statements of Income (in thousands, except percentages and per ADS data, unaudited) |
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| For Three Months Ended | For the Year Ended | |||||||||||||
| Dec. 31, | Sep. 30, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | ||||||||||
| ($) | ($) | ($) | ($) | ($) | ||||||||||
| Net sales | 191,160 | 241,999 | 278,461 | 803,552 | 885,627 | |||||||||
| Cost of sales | 103,560 | 124,311 | 141,694 | 434,787 | 458,118 | |||||||||
| Gross profit | 87,600 | 117,688 | 136,767 | 368,765 | 427,509 | |||||||||
| Operating expenses | ||||||||||||||
| Research & development | 54,156 | 69,461 | 80,084 | 217,822 | 262,718 | |||||||||
| Sales & marketing | 7,360 | 9,492 | 10,682 | 27,450 | 34,383 | |||||||||
| General & administrative | 8,350 | 9,503 | 14,290 | 31,354 | 37,371 | |||||||||
| Loss from settlement of litigation | – | – | – | 1,250 | – | |||||||||
| Operating income | 17,734 | 29,232 | 31,711 | 90,889 | 93,037 | |||||||||
| Non-operating income (expense) | ||||||||||||||
| Interest income, net | 3,768 | 2,160 | 1,867 | 14,528 | ||||||||||