Super Micro Computer, Inc. (NASDAQ:SMCI) ("Supermicro" or the "Company"), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its second quarter of fiscal year 2026 ended December 31, 2025.

Second Quarter Fiscal Year 2026 Highlights

Net sales of $12.7 billion versus $5.0 billion in Q1'26 and $5.7 billion in Q2'25
Gross margin of 6.3% versus 9.3% in Q1'26 and 11.8% in Q2'25
Net income of $401 million versus $168 million in Q1'26 and $321 million in Q2'25
Diluted net income per common share of $0.60 versus $0.26 in Q1'26 and $0.51 in Q2'25
Non-GAAP gross margin of 6.4% versus 11.9% in Q2'25
Non-GAAP diluted net income per common share of $0.69 versus $0.59 in Q2'25
Cash flow used in operations for Q2'26 of $24 million and capital expenditures and investments of $46 million

"With our leading AI server and storage technology foundation, strong customer engagements, and expanding global manufacturing footprint, we are scaling rapidly to support large AI and enterprise deployments while continuing to strengthen our operational and financial execution," said Charles Liang, Founder, President and CEO of Supermicro. "Our DCBBS, Data Center Building Block Solutions, enable customers to scale faster, greener, and at lower cost, Supermicro is well positioned to capture the next wave of AI and IT infrastructure demand."

As of December 31, 2025, total cash and cash equivalents was $4.1 billion and total bank debt and convertible notes were $4.9 billion.

Business Outlook

The Company expects net sales of at least $12.3 billion for the third quarter of fiscal year 2026 ending March 31, 2026, GAAP net income per diluted share of at least $0.52 and non-GAAP net income per diluted share of at least $0.60. The Company's projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 19.6% and 20.2%, respectively, and a fully diluted share count of 684 million shares for GAAP and fully diluted share count of 699 million shares for non-GAAP. The outlook for the third quarter of fiscal year 2026 GAAP net income per diluted share includes approximately $62 million in expected stock-based compensation, net of related tax effects of $19 million that are excluded from non-GAAP net income per diluted share.

For fiscal year 2026, the Company expects net sales of at least $40.0 billion.

Conference Call and Webcast Information

Supermicro will present a live audio webcast of our conference call to review its second quarter of fiscal year 2026 financial results on Tuesday, February 3, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com.

A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.

Forward Looking Statements and Other Disclosures

Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "may," "plan," "seek," "should," "will," "would" "optimistic" or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the third quarter of fiscal year 2026 and updated full year fiscal 2026 guidance, expectations that additional customer commitments will be secured in the upcoming quarters of fiscal year 2026, meeting the Company's long-term targets and capitalizing on the growing market opportunity in the long-term, and our progressing leadership in DCBBS, DLC and AI technology. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2025.

About Super Micro Computer, Inc.

Supermicro (NASDAQ:SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solution, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.

SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

	December 31,		June 30,
	2025		2025
ASSETS
Current assets:
Cash and cash equivalents	$	4,091,083	$	5,169,911
Accounts receivable, net of allowance for credit losses		11,004,122		2,203,942
Inventories		10,595,448		4,680,375
Prepaid expenses and other current assets		433,944		247,426
Total current assets		26,124,597		12,301,654
Property, plant, and equipment, net		538,584		504,488
Deferred income taxes, net		655,367		607,416
Other assets		683,062		604,871
Total assets	$	28,001,610	$	14,018,429
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	13,753,207	$	1,281,977
Accrued liabilities		548,179		565,637
Income taxes payable		118,700		53,381
Lines of credit and current portion of term loans		201,776		75,060
Deferred revenue		774,846		368,737
Total current liabilities		15,396,708		2,344,792
Deferred revenue, non-current		527,909		362,645
Term loans, non-current		21,437		37,415
Convertible notes		4,654,623		4,645,178
Other long-term liabilities		408,756		326,528
Total liabilities		21,009,433		7,716,558
Stockholders' equity:
Common stock and additional paid-in capital		2,987,932		2,866,449
Accumulated other comprehensive income		695		705
Retained earnings		4,003,388		3,434,539
Total Super Micro Computer, Inc. stockholders' equity		6,992,015		6,301,693
Non-controlling interest		162		178
Total stockholders' equity		6,992,177		6,301,871
Total liabilities and stockholders' equity	$	28,001,610	$	14,018,429

SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

	Three Months Ended December 31,						Six Months Ended December 31,
		2025			2024			2025			2024
Net sales	$	12,682,491		$	5,677,962		$	17,700,281		$	11,615,218
Cost of sales		11,883,924			5,007,940			16,434,341			10,169,616
Gross profit		798,567			670,022			1,265,940			1,445,602
Operating expenses:
Research and development		180,761			158,229			354,075			290,472
Sales and marketing		73,078			79,568			121,006			148,422
General and administrative		70,430			63,601			134,305			128,885
Total operating expenses		324,269			301,398			609,386			567,779
Income from operations		474,298			368,624			656,554			877,823
Other income, net		225			4,183			96			3,409
Interest income		51,042			8,776			102,398			16,783
Interest expense		(25,358	)		(6,535	)		(50,289	)		(23,889	)
Income before income tax provision		500,207			375,048			708,759			874,126
Income tax provision		(99,151	)		(56,969	)		(139,312	)		(131,701	)
Share of (loss) gain from equity investee, net of taxes		(492	)		2,517			(598	)		2,498
Net income	$	400,564		$	320,596		$	568,849		$	744,923
Net income per common share ^(A):
Basic	$	0.67		$	0.54		$	0.95		$	1.26
Diluted	$	0.60		$	0.51		$	0.86		$	1.17
Weighted-average shares used in the calculation of net income per common share ^(A):
Basic		598,004			592,507			596,814			591,033
Diluted		693,989			636,047			674,068			637,597

(A) Reflects a ten-for-one stock split on September 30, 2024.

Stock-based compensation is included in the following cost and expense categories by period (in thousands):

	Three Months Ended December 31,				Six Months Ended December 31,
		2025		2024		2025		2024
Cost of sales	$	6,803	$	6,694	$	13,878	$	10,653
Research and development		59,542		50,809		116,975		87,336
Sales and marketing		10,324		9,559		21,424		17,322
General and administrative		13,816		15,060		27,347		30,825
Stock-based compensation expense, before taxes	$	90,485	$	82,122	$	179,624	$	146,136

SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Six Months Ended December 31,
		2025			2024
OPERATING ACTIVITIES:
Net income	$	568,849		$	744,923
Reconciliation of net income to net cash (used in) provided by operating activities:
Depreciation and amortization		25,354			18,557
Amortization of right-of-use ("ROU") assets		17,670			5,991
Amortization of debt discount and issuance costs		9,506			4,415
Inventory valuation adjustment write-down		169,100			34,032
Stock-based compensation expense		179,624			146,136
Impairment loss		13,747			—
Share of loss (gain) from equity investee		598			(2,498	)
Unrealized foreign currency exchange loss (gain)		159			(300	)
Deferred income taxes, net		(51,875	)		(76,078	)
Other non-cash income, net		(8,705	)		(4,125	)
Changes in operating assets and liabilities:
Accounts receivable, net		(8,792,828	)		(319,374	)
Inventories		(6,088,819	)		699,613
Prepaid expenses and other assets		(58,855	)		(398,769	)
Accounts payable		12,466,768			(906,916	)
Accrued liabilities		(39,661	)		(59,654	)
Income taxes payable		68,041			96,845
Deferred revenue		571,373			182,276
Other long-term liabilities		8,533			4,073
Net cash (used in) provided by operating activities		(941,421	)		169,147
INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(53,491	)		(71,836	)
Investment in equity securities		(25,000	)		—
Net cash used in investing activities		(78,491	)		(71,836	)
FINANCING ACTIVITIES:
Proceeds from lines of credit and term loans		238,800			1,306,777
Repayment of lines of credit and term loans		(123,391	)		(1,574,059	)
Payment of debt issuance costs		(9,785	)		—
Proceeds from exercise of stock options		12,925			6,869
Payment for withholding taxes related to settlement of equity awards		(71,066	)		(77,036	)
Other		14			15
Net cash provided by (used in) financing activities		47,497			(337,434	)
Effect of exchange rate fluctuations on cash		(6,161	)		837
Net decrease in cash, cash equivalents and restricted cash		(978,576	)		(239,286	)
Cash, cash equivalents and restricted cash at the beginning of the period		5,172,301			1,670,273
Cash, cash equivalents and restricted cash at the end of the period	$	4,193,725		$	1,430,987

Supplemental disclosure of cash flow information:
Cash paid for interest	$	40,470		$	19,006
Cash paid for taxes, net of refunds	$	90,574		$	57,029

Non-cash investing and financing activities:
Unpaid property, plant, and equipment purchases	$	17,131		$	26,674
ROU assets obtained in exchange for operating lease commitments	$	94,073		$	18,472
Transfer of inventory to property, plant, and equipment, net	$	4,646		$	3,238

SUPER MICRO COMPUTER, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

(unaudited)

Use of Non-GAAP Financial Measures

To supplement its condensed consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share, adjusted earnings before interest, taxes, depreciation, and amortization, ("Adjusted EBITDA"); and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.

We exclude the following adjustments from our non-GAAP financial measures:

Non-GAAP Adjustments

Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock-based compensation.

Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to the adjustments described above, we exclude the impact of Interest expense, Income tax (provision) benefit, and Depreciation and amortization during the period.

Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.

Reconciliation of GAAP Net Income to Adjusted EBITDA:

	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
GAAP Net Income	$	400,564		$	320,596		$	568,849		$	744,923
Interest expense		25,358			6,535			50,289			23,889
Income tax provision		99,151			56,969			139,312			131,701
Depreciation and amortization		13,013			9,183			25,354			18,557
Stock-based compensation		90,485			82,122			179,624			146,136
Adjusted EBITDA	$	628,571		$	475,405		$	963,428		$	1,065,206

Adjusted EBITDA % of net sales		5.0	%		8.4	%		5.4	%		9.2	%

Reconciliation of GAAP to Non-GAAP Gross Margin:


	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025				December 31, 2024
GAAP Gross Profit	$	798,567		$	670,022		$	1,265,940			$	1,445,602
Stock-based compensation		6,803			6,694			13,878				10,653
Non-GAAP Gross Profit	$	805,370		$	676,716		$	1,279,818			$	1,456,255

GAAP gross margin (%)		6.3	%		11.8	%		7.2	%			12.4	%
Stock-based compensation (%)		0.1	%		0.1	%		—	%	*		0.1	%
Non-GAAP gross margin (%)		6.4	%		11.9	%		7.2	%			12.5	%

*Represents an amount less than 0.1%.

Reconciliation of GAAP to Non-GAAP Operating Expenses:


	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
GAAP Operating Expenses	$	324,269		$	301,398		$	609,386		$	567,779
Adjustments to operating expenses
GAAP R&D operating expenses		180,761			158,229			354,075			290,472
Stock-based compensation		(59,542	)		(50,809	)		(116,975	)		(87,336	)
Non-GAAP R&D operating expenses		121,219			107,420			237,100			203,136

GAAP S&M operating expenses		73,078			79,568			121,006			148,422
Stock-based compensation		(10,324	)		(9,559	)		(21,424	)		(17,322	)
Non-GAAP S&M operating expenses		62,754			70,009			99,582			131,100

GAAP G&A operating expenses		70,430			63,601			134,305			128,885
Stock-based compensation		(13,816	)		(15,060	)		(27,347	)		(30,825	)
Non-GAAP G&A operating expenses		56,614			48,541			106,958			98,060

Non-GAAP Operating Expenses	$	240,587		$	225,970		$	443,640		$	432,296

Reconciliation of GAAP to Non-GAAP Net Income:
	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
GAAP Net Income - basic	$	400,564		$	320,596		$	568,849		$	744,923
Adjustments related to stock-based compensation:
Cost of sales		6,803			6,694			13,878			10,653
Operating expenses		83,682			75,428			165,746			135,483
Total adjustments to GAAP income before income tax provision		90,485			82,122			179,624			146,136
Income tax effect of non-GAAP adjustments		(22,459	)		(19,136	)		(41,660	)		(35,009	)
Non-GAAP net income - basic	$	468,590		$	383,582		$	706,813		$	856,050

GAAP net income - basic	$	400,564		$	320,596		$	568,849		$	744,923
Convertible notes interest charge, net of tax		17,888			1,110			10,986			3,859
GAAP net income - diluted	$	418,452		$	321,706		$	579,835		$	748,782

Non-GAAP net income - basic	$	468,590		$	383,582		$	706,813		$	856,050
Convertible notes interest charge, net of tax		17,888			1,110			10,986			3,859
Non-GAAP net income - diluted	$	486,478		$	384,692		$	717,799		$	859,909

Weighted-average shares used in the calculation of net income per common share:

Basic - GAAP		598,004			592,507			596,814			591,033
Basic - Non-GAAP		598,004			592,507			596,814			591,033

Diluted - GAAP		693,989			636,047			674,068			637,597
Non-GAAP adjustment		15,126			10,624			14,259			9,777
Diluted - Non-GAAP		709,115			646,671			688,327			647,374

Reconciliation of GAAP to Non-GAAP EPS:

	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
GAAP Net Income per common share - basic	$	0.67		$	0.54		$	0.95		$	1.26
Adjustments to GAAP:
Stock-based compensation		0.15			0.14			0.30			0.25
Income tax		(0.04	)		(0.03	)		(0.07	)		(0.06	)
Non-GAAP Net Income per common share - basic	$	0.78		$	0.65		$	1.18		$	1.45

GAAP net income per common share - diluted	$	0.60		$	0.51		$	0.86		$	1.17
Adjustments to GAAP:
Stock-based compensation		0.13			0.12			0.25			0.22
Income tax		(0.04	)		(0.04	)		(0.07	)		(0.06	)
Non-GAAP Net Income per common share – diluted	$	0.69		$	0.59		$	1.04		$	1.33

GAAP to Non-GAAP Effective Tax Rate:

	Three Months Ended				Six Months Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
GAAP effective tax rate	19.8	%	15.2	%	19.7	%	15.1	%
Total adjustments to GAAP provision to income tax	0.8	%	1.4	%	0.7	%	1.2	%
Non-GAAP effective tax rate	20.6	%	16.6	%	20.4	%	16.3	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260203844970/en/

Investor Relations Contact:

Nicole Noutsios

Stratos Advisors

email: ir@supermicro.com