Monolithic Power Systems 2026 Q2 Earnings Call

Please go ahead. Earlier today, MPS released a written commentary on the results of its operations for the second quarter ended June 30th, 2026.

This document can be found on our website. Before we begin, I would like to remind everyone that in the course of today's presentation, we may make forward-looking statements and projections within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. The risk, uncertainties, and other factors that could cause actual results to differ from these forward-looking statements are identified in the safe harbor statements contained in the Q2 2026 earnings commentary and in our SEC filings, including our Forms 10-K and Forms 10-Q, which can be found on our website. We assume no obligation to update this information. Now I would like to turn the call over to Tony.

Thanks, Arthur. Good afternoon, and welcome to our Q2 2026 earnings call. In Q2, MPS achieved record quarterly revenue of $981 million, 22% higher than the first quarter of 2026 and 48% higher than the second quarter of 2025. Our performance was a result of our continued innovation, our consistent execution, and the resilience of our diversified market strategy. Let me take a moment to call out a few of the highlights from the quarter. All-in markets grew sequentially, with enterprise data growing 45% as we continue to see strong, broad-based ordering patterns. We extended our capacity goals significantly beyond $6 billion to support future revenue growth and our transformation into a full solution provider. We received initial orders for high-speed DDR5 memory components, which we expect to grow our SAM into next year.

We began sampling high-voltage AC to DC products for 800-volt data center architectures as we expand beyond our current AI and server core power solutions. Finally, in our automotive market so far this year, we have shipped products for over 1,500 new sockets as we increase our footprint in both ADAS as well as in other applications within the vehicle. Overall, while we continue to adjust for the fluid geopolitical and macroeconomic environment, our diversified market strategy remains unchanged. MPS focuses on innovation and solving our customers' most challenging problems. We consistently invest in new technologies that open new end markets and applications and accelerate our transition from chip-only to a full-service silicon solution-based provider. Finally, we continuously expand and diversify our global supply chain, allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur.

Before moving to Q&A, I am also pleased to announce that our board of directors has authorized an additional $500 million for stock repurchases, increasing our total current authorization to $1 billion. Operator, you may now open the webinar for questions.

Hi, Rick. We see a lot of growth and a lot of demand, modules, chips, we see from multiple of our customers.

Tony, you want to have a detail?

Yeah. I'll just add a little more color. Rick, you do see contribution from both optical module solutions as well as from what we've generally bucketed as switches. As I think as I'd mentioned previously, that's kind of a big bucket that would include power solutions for not only top-of-rack switches but TPUs, NIC cards, and other things in the rack. You're starting to see that grow as well. Optical's still the bigger portion, just because it's had a longer runway since last year, but you are seeing growth from both of those really driving the comms market.

Thanks. It's more than a couple of customers, okay.