Microchip Technology Incorporated (0K19.L) Q2 2025: 0k19 L

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Microchip Technology

0K19.L

$65.65 -1.22%

Exchange: LSE | Sector: Technology | Industry: Semiconductors

Q2 2025

Published: Nov 5, 2024

Earnings Highlights

Revenue of $1.16B down 48.4% year-over-year
EPS of $0.14 decreased by 87.8% from previous year
Gross margin of 57.4%
Net income of 78.40M
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0K19.L

Microchip Technology Incorporated

Period Q2 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Microchip Technology reported a challenging QQ2 2025 quarter with revenue of $1.1638 billion, representing a year-over-year decline of 48.37% and a sequential drop of 6.24%. Despite the pronounced top-line weakness, gross profit remained robust at $668.5 million, delivering a gross margin of approximately 57% on the period. Operating income was $146.6 million (operating margin ~12.6%), with net income of $78.4 million and earnings per share of $0.15. EBITDA stood at $335.9 million, underscoring that profitability persists even as volumes sag.

Key Performance Indicators

Revenue

Decreasing

1.16B

QoQ: -6.24% | YoY: -48.37%

Gross Profit

Decreasing

668.50M

57.44% margin

QoQ: -9.28% | YoY: -56.23%

Operating Income

Decreasing

146.60M

QoQ: -33.09% | YoY: -83.44%

Net Income

Decreasing

78.40M

QoQ: -39.37% | YoY: -88.24%

EPS

Decreasing

0.15

QoQ: -37.50% | YoY: -87.80%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue: $1.1638B; YoY change: -48.37%; QoQ change: -6.24%\nGross Profit: $668.5M; Gross Margin: ~57% (668.5/1163.8)\nOperating Income: $146.6M; Operating Margin: ~12.6%\nEBITDA: $335.9M; EBITDA Margin: ~28.9% (EBITDA/revenue)\nNet Income: $78.4M; Net Margin: ~6.74%\nEPS: $0.15; Diluted EPS: $0.14\nCash Flow: Operating cash flow $43.6M; Capex $20.8M; Free cash flow $22.8M\nBalance Sheet: Cash and equivalents $286.1M; Total debt $6.4576B; Net debt $6.1715B; Current ratio 0.884; Quick ratio 0.477; Cash ratio 0.0871\nLiquidity/Leverage: Total debt to capitalization ~50.7%; Debt to equity ~1.03; Interest coverage ~2.51x\nCapital Allocation: Dividends paid $243.7M; Share repurchases $17.3M; Net financing cash flow negative $8.4M; Net change in cash −$29M; Ending cash $286.1M

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	1.16B	-48.37%	-6.24%
Gross Profit	668.50M	-56.23%	-9.28%
Operating Income	146.60M	-83.44%	-33.09%
Net Income	78.40M	-88.24%	-39.37%
EPS	0.15	-87.80%	-37.50%

Key Financial Ratios

Gross Profit Margin

Good

46.90%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Fair

12.70%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

6.74%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

0.50%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

1.25%

Return on equity suggests inefficient capital allocation

Current Ratio

Concern

0.88

Current ratio below safe levels, potential liquidity risk

Debt to Equity

High Risk

1.03

Debt-to-equity indicates high leverage and elevated financial risk

P/E Ratio

High Growth

136.47x

Very high P/E indicates aggressive growth expectations, higher risk

Price to Book

High Premium

6.82x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	1,075.50	-0.09	-13.4%	View
Q4 2025	970.50	-0.29	-26.8%	View
Q3 2025	1,026.00	-0.10	-41.9%	View
Q2 2025	1,163.80	0.14	-48.4%	View
Q1 2025	1,241.30	0.24	-45.8%	View

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Microchip Technology (0K19.L) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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