Monolithic Power Systems delivered a strong first quarter, with management crediting broad-based demand across storage, computing, and automotive end markets as primary growth drivers. CEO Michael Hsing highlighted the company’s expanding design wins, particularly in enterprise data and automotive, and noted that recent product qualifications across customer platforms provided a foundation for confidence in future revenue ramps. CFO Bernie Blegen emphasized the balanced performance across business segments, stating, "Our strength is fairly broad-based with enterprise data, as we've talked about, still looking for the ramp in the second half of the year."
Is now the time to buy MPWR? Find out in our full research report (it’s free).
Monolithic Power Systems (MPWR) Q1 CY2025 Highlights:
- Revenue: $637.6 million vs analyst estimates of $633.3 million (39.2% year-on-year growth, 0.7% beat)
- Adjusted EPS: $4.04 vs analyst estimates of $4.00 (0.9% beat)
- Adjusted EBITDA: $233 million vs analyst estimates of $229.7 million (36.5% margin, 1.4% beat)
- Revenue Guidance for Q2 CY2025 is $650 million at the midpoint, above analyst estimates of $635.7 million
- Operating Margin: 26.5%, up from 20.9% in the same quarter last year
- Inventory Days Outstanding: 146, up from 138 in the previous quarter
- Market Capitalization: $34.61 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Monolithic Power Systems’s Q1 Earnings Call
- Tore Svanberg (Stifel) asked about whether enterprise data is at its low point for the year. CEO Michael Hsing indicated increased confidence for the second half but declined to offer specific forecasts, citing improved customer engagement and design wins.
- Quinn Bolton (Needham) inquired if recent platform changes by major customers would impact market share. Hsing and CFO Bernie Blegen emphasized the breadth of products qualified and growing customer confidence, but stopped short of providing detailed projections on share.
- Rick Schafer (Oppenheimer) pressed for details on the timing and magnitude of 400-volt rack power solutions in data centers. Hsing noted that meaningful revenues from these modules are expected in 2026, with current efforts focused on sampling and qualification.
- Jack Egan (Charter) asked if new accelerator ramps would structurally impact margins. Blegen clarified there are no significant structural changes to the margin model, with individual opportunities varying but the company intent on avoiding low-margin, high-volume business.
- Kelsey Chia (Citi Research) questioned the potential for gross margin expansion given product ramps and legacy wafer pricing trends. Blegen acknowledged room for future expansion but stated that significant improvements are not expected in the second half, with more positive trends anticipated next year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace at which enterprise data and automotive design wins translate into revenue, (2) the impact of expanding system-level solutions on product mix and margins, and (3) the company’s ability to maintain supply flexibility and resilience in the face of ongoing tariff and geopolitical uncertainties. The execution of recently qualified customer platforms and the scaling of new verticals such as building automation will also be key indicators of future success.
Monolithic Power Systems currently trades at $687.64, up from $601.62 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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