"We expect the growth in new generation platforms to accelerate as supply ramps this quarter and beyond." — Charles Liang, CEO
— Charles Liang
03Detailed Report
SMCI
Super Micro Computer Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
In the second quarter of fiscal year 2025, Super Micro Computer Inc (SMCI) demonstrated robust sales growth, achieving a preliminary net revenue range of $5.6 billion to $5.7 billion, representing a significant 54% year-over-year increase. This impressive growth is primarily driven by surging demand for air-cooled and direct liquid-cooled (DLC) AI GPU platforms, contributing over 70% of total revenue. Despite experiencing some operational challenges, including a delay in 10-K filings affecting cash flow perceptions and margins under pressure due to new product development investments, management remains optimistic about the future. The upcoming Blackwell GPU transition is anticipated to enhance growth momentum in the following quarters, leading to expectations of revenue reaching $23.5 billion to $25 billion for fiscal year 2025.
Key Performance Indicators
Revenue
Increasing
5.68B
QoQ: -4.37% | YoY: 54.93%
Gross Profit
Increasing
670.02M
1.00% margin
QoQ: -13.61% | YoY: 18.73%
Operating Income
Decreasing
368.62M
QoQ: -27.61% | YoY: -0.76%
Net Income
Increasing
320.60M
QoQ: -24.45% | YoY: 8.32%
EPS
Decreasing
0.54
QoQ: -25.00% | YoY: -1.82%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Performance
- Revenue: $5.7 billion, up 54% YoY
- Gross Profit: $670 million; Gross Margin: 11.9% (down from 13.1% in Q1)
- Operating Income: $368 million; Operating Margin: 7.9% (down from 9.7% in Q1)
- Net Income: $321 million; EPS: $0.54 (diluted: $0.51)
- Cash Flow from Operations: $804 million
- Cash at End of Period: $1.43 billion
- Current Ratio: 6.38, indicating strong liquidity.
### Performance Comparison
For context, prior periods saw revenues of $5.0 billion in Q1 and $3.7 billion in Q2 of the previous year, showcasing consistent growth. Management projects a range of $5.0 to $6.0 billion for Q3 2025, aligning with ongoing demand trends in the data center segment. Management provided guidance, reinforcing a strong confidence that revenue growth could mirror previous years, bolstered by a more favorable product mix with new technology introductions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.68B
54.93%
-4.37%
Gross Profit
670.02M
18.73%
-13.61%
Operating Income
368.62M
-0.76%
-27.61%
Net Income
320.60M
8.32%
-24.45%
EPS
0.54
-1.82%
-25.00%
Key Financial Ratios
Gross Profit Margin
Weak
11.80%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
6.49%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
5.65%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.30%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
5.14%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
6.38
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.30
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
14.08x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
2.89x
Price-to-book ratio reasonable for profitable companies
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