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03Detailed Report
SMCI
Super Micro Computer Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
Super Micro Computer Inc (SMCI) delivered a robust performance in its first quarter of fiscal 2025, reporting preliminary revenues in the range of $5.9 billion to $6 billion, reflecting a remarkable year-over-year growth of 181% driven primarily by soaring demand for AI solutions. This quarter represents one of the company's strongest first quarters in history, capitalizing on trends in artificial intelligence and cloud computing despite challenges posed by supply constraints due to delayed new GPU chip releases. Non-GAAP net income ranged between $483 million to $493 million, showcasing a year-over-year growth of approximately 122%. Management remains optimistic about future growth, citing strong customer demand and enhancements in their product offering, particularly Liquid Cooling systems, as key drivers. Challenges remain however, with management facing an audit deadline and ongoing strategic adjustments to enhance operational governance.
Key Performance Indicators
Revenue
Increasing
5.94B
QoQ: -4.37% | YoY: 54.93%
Gross Profit
Increasing
775.58M
1.00% margin
QoQ: -13.61% | YoY: 18.73%
Operating Income
Decreasing
509.20M
QoQ: -27.61% | YoY: -0.76%
Net Income
Increasing
424.33M
QoQ: -24.45% | YoY: 8.32%
EPS
Decreasing
0.72
QoQ: -25.00% | YoY: -1.82%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics Q1 2025
- Revenue: $5.94 billion, up 181% YoY, up 12% QoQ
- Gross Profit: $775.58 million, representing a gross margin of 13.3%.
- Operating Income: $509.20 million
- Net Income: $424.33 million, translating into a net profit margin of 7.1%.
- Earnings Per Share (EPS): GAAP EPS of $0.68 to $0.70; Diluted Non-GAAP EPS of $0.75 to $0.76
- Cash Flow from Operations: $408.90 million
- Total Debt: $2.19 billion with an improved net cash position from negative $0.5 billion to negative $0.2 billion sequentially.
- Current Ratio: 3.43, indicating strong liquidity.
- Cash at End of Period: $2.09 billion.
This quarter showed a positive trend despite the complexities surrounding supply chain constraints, particularly the dependence on NVIDIA's next-generation GPU chips. Management highlighted that revenue growth could become influenced if supply chain issues persist.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.94B
54.93%
-4.37%
Gross Profit
775.58M
18.73%
-13.61%
Operating Income
509.20M
-0.76%
-27.61%
Net Income
424.33M
8.32%
-24.45%
EPS
0.72
-1.82%
-25.00%
Key Financial Ratios
Gross Profit Margin
Weak
13.10%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
8.58%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
7.15%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.91%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
7.22%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
3.43
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.37
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
14.46x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Premium
4.18x
Trading at premium to book value, reflects strong intangibles or growth
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