Super Micro Computer Inc (SMCI.NE) Q2 2025 Earnings Report

Summary of QQ2 2025 performance for Super Micro Computer Inc (SMCI.NE). The quarter delivered a pronounced year-over-year revenue surge driven by AI-driven data center demand, with revenue of $5.6779 billion and net income of $320.6 million, translating to earnings per share (diluted) of $0.51 and basic EPS of $0.54. The company posted an 11.8% gross margin and a 6.49% operating margin, with EBITDA of $396.5 million (8.0% of revenue roughly, depending on metric used). Despite robust profitability, operating cash flow was negative at $(239.8) million as working capital absorbed cash and free cash flow was $(267.3) million. The balance sheet remains solid with cash and cash equivalents of about $1.43 billion and net debt of approximately $485.9 million, supporting continued investment in growth initiatives while sustaining financial flexibility.

Quarterly momentum was supported by a favorable mix toward higher-value modular/server offerings and continued hyperscale and enterprise data center capex aligned with AI and cloud deployment. However, the quarter exhibited seasonality and working capital pressure that dampened cash generation and caused a QoQ revenue decline of about 4.4%. Management did not disclose explicit numeric forward guidance in the provided data, but the favorable long-term data center investment cycle and AI compute demand imply a constructive medium-term outlook if supply chain and input costs stabilize. Investors should monitor data center spending trends, product mix shifts, and normalization of working capital as potential avenues for improving cash flow while continuing to capture above-market revenue growth.