Thursday, July 30, 2026

Silicon Motion Announces Results for the Quarterly Period Ended June 30, 2026

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Business Highlights

  • Second quarter of 2026 sales increased 32% Q/Q and increased 127% Y/Y  
    • SSD controller sales: 2Q of 2026 increased 5% to 10% Q/Q and increased 50% to 55% Y/Y
    • eMMC+UFS controller sales: 2Q of 2026 increased 15% to 20% Q/Q and increased 95% to 100% Y/Y
    • Ferri & Boot Drive solutions sales: 2Q of 2026 increased 110% to 115% Q/Q and increased 1,690% to 1,695% Y/Y

Financial Highlights

  2Q 2026 GAAP 2Q 2026 Non-GAAP
• Net sales $451.0 million 
(+32% Q/Q, +127% Y/Y)
$451.0 million 
(+32% Q/Q, +127% Y/Y)
• Gross margin 50.2% 50.2%
• Operating margin 22.4% 23.1%
• Earnings per diluted ADS $3.99 $2.43

* Please see reconciliations of U.S. Generally Accepted Accounting Principles (“GAAP”) to all non-GAAP financial measures mentioned herein towards the end of this news release.

TAIPEI, Taiwan and MILPITAS, Calif., July 30, 2026 (GLOBE NEWSWIRE) — Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company,” “we” or similar terms) today announced its financial results for the quarter ended June 30, 2026. For the second quarter of 2026, net sales (GAAP) increased sequentially to $451.0 million from $342.1 million in the first quarter of 2026. Net income (GAAP) also increased sequentially to $136.1 million, or $3.99 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $66.8 million, or $1.97 per diluted ADS (GAAP), in the first quarter of 2026

For the second quarter of 2026, net income (non-GAAP) increased sequentially to $83.1 million, or $2.43 per diluted ADS (non-GAAP), from net income (non-GAAP) of $53.8 million, or $1.58 per diluted ADS (non-GAAP), in the first quarter of 2026.

All financial numbers are in U.S. dollars unless otherwise noted.

Second Quarter of 2026 Review

“Our shift from a consumer-focused NAND flash controller maker to a diversified leader in controllers and storage solutions — from AI infrastructure to the edge — is accelerating rapidly,” stated Wallace Kou, President & CEO of Silicon Motion. “The second quarter delivered exceptional growth in revenue, gross margin, and operating margin — powered by our Embedded eMMC & UFS business, our Enterprise and Edge SSD controller business, and our rapidly growing storage solutions business focusing on Ferri for Automotive & Enterprise Boot Drives. The first two quarters delivered a record-breaking start to the year, and we expect that momentum to continue into the second half. With our ongoing product and market expansion, we are building a resilient platform for sustainable, high-quality revenue and profitability growth for years to come.”

Key Financial Results

(in millions, except percentages and per ADS amounts) GAAP Non-GAAP
2Q 2026 1Q 2026 2Q 2025 2Q 2026 1Q 2026 2Q 2025
Revenue $451.0 $342.1 $198.7 $451.0 $342.1 $198.7
Gross profit $226.2 $161.3 $94.7 $226.3 $161.4 $94.7
Percent of revenue 50.2 % 47.1 % 47.7 % 50.2 % 47.2 % 47.7 %
Operating expenses $125.1 $109.1 $72.4 $122.1 $99.2 $69.3
Operating income $101.1 $52.2 $22.3 $104.2 $62.2 $25.3
Percent of revenue 22.4 % 15.3 % 11.2 % 23.1 % 18.2 % 12.8 %
Earnings per diluted ADS $3.99 $1.97 $0.49 $2.43 $1.58 $0.69


Other Financial Information

(in millions) 2Q 2026 1Q 2026 2Q 2025
Cash, cash equivalents and restricted cash—end of period $181.8 $210.9 $282.3
Routine capital expenditures $5.8 $13.2 $7.4
Dividend payments $16.9 $16.9 $16.7
Bank loans $59.2

During the second quarter of 2026, we had $7.7 million of capital expenditures, including $5.8 million for the routine purchases of testing equipment, software, design tools and other items, and $1.9 million for building construction and improvements.

Returning Value to Shareholders

On October 27, 2025, our Board of Directors declared a $2.00 per ADS annual cash dividend to be paid in quarterly installments of $0.50 per ADS. On May 21, 2026, we paid $16.9 million to Silicon Motion shareholders as the third installment of the annual cash dividend. The fourth installment of our annual dividend is scheduled to be paid on August 20, 2026 to all Silicon Motion shareholders of record as of the close of business on August 6, 2026.
  
Business Outlook

“SIMO is drawing on its leading NAND controller technology and unmatched industry relationships to broaden its product portfolio and addressable markets from AI infrastructure to the edge. We’ve built this foundation over the past several years through investments in leading embedded eMMC and UFS products, our high-performance 6nm PCIe5 edge SSD controller portfolio, our new MonTitan enterprise/AI SSD PCIe5 and in-development PCIe6 controllers, and our rapidly expanding lineup of Ferri and Enterprise Boot Drive storage solutions. Today we are exceptionally well positioned across every AI market, including AI data center, AI server, edge AI, and physical AI.”

“Based on our current backlog and customer forecasts, we expect continued strong top-line growth through the rest of the year. Although many of our consumer businesses face real headwinds from current NAND pricing and supply, we have never been better positioned as a company. We are on track to deliver the highest annual revenue in our company’s history, growing more than 100% year-over-year, and we’re still in the early stages of bringing our new enterprise/AI infrastructure products into the mix,” stated Mr. Kou.

For the third quarter of 2026, management expects:

($ in millions, except percentages) GAAP Non-GAAP Adjustment Non-GAAP
Revenue $519 to $541
+15% to 20% Q/Q
+114% to 124% Y/Y
$519 to $541
+15% to 20% Q/Q
+114% to 124% Y/Y
Gross margin 49.9% to 50.9% Approximately $0.3* 50.0% to 51.0%
Operating margin 24.4% to 25.7% Approximately $14.9 to $15.9** 27.5% to 28.5%

* Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Projected operating margin (non-GAAP) excludes $14.9 million to $15.9 million of stock-based compensation and dispute-related expenses.

Conference Call & Webcast:
The Company’s management team will host a conference call at 8:00 a.m. Eastern Time on July 30, 2026.

Conference Call Details
Participants must register in advance to join the conference call using the link provided below. Conference access details, including dial-in information and a unique access PIN, will be provided in the confirmation email received upon registration.

Participant Online Registration:
https://register-conf.media-server.com/register/BIe2be1a4a643c47708d5248b81964b23d

A webcast of the call will be available on the Company’s website at www.siliconmotion.com.

Discussion of Non-GAAP Financial Measures

To supplement the Company’s unaudited consolidated financial results calculated in accordance with GAAP, the Company discloses certain non-GAAP financial measures that exclude stock-based compensation and other items, including gross profit (non-GAAP), gross margin (non-GAAP), operating expenses (non-GAAP), operating profit (non-GAAP), operating margin (non-GAAP), non-operating income (expense) (non-GAAP), net income (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are not in accordance with or an alternative to GAAP and may be different from similarly titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measure. We compensate for the limitations of our non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Our non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Specifically, we believe the non-GAAP results provide useful information to both management and investors as these non-GAAP results exclude certain expenses, gains and losses that we believe are not indicative of our core operating results and because they are consistent with the financial models and estimates published by many analysts who follow the Company. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with our forecasts, and for benchmarking our performance externally against our competitors. Also, when evaluating potential acquisitions, we exclude the items described below from our consideration of the target’s performance and valuation. Since we find these measures to be useful, we believe that our investors benefit from seeing the results from management’s perspective in addition to seeing our GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;
  • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
  • a better understanding of how management plans and measures the Company’s underlying business; and
  • an easier way to compare the Company’s operating results against analyst financial models and operating results of our competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into our non-GAAP measures, as well as the reasons for excluding each of these individual items in our reconciliation of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges related to the fair value of restricted stock units awarded to employees. The Company believes that the exclusion of these non-cash charges provides for more accurate comparisons of our operating results to our peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact of share-based compensation on its operating results.

Dispute related expenses consist of legal, consultant, other fees and resolution related to the dispute.

Foreign exchange loss (gain) consists of remeasurement gains and/or losses of non-US$ denominated current assets and current liabilities, as well as certain other balance sheet items, which result from the appreciation or depreciation of non-US$ currencies against the US$. We do not use financial instruments to manage the impact on our operations from changes in foreign exchange rates, and because our operations are subject to fluctuations in foreign exchange rates, we therefore exclude foreign exchange gains and losses when presenting non-GAAP financial measures.

Realized/Unrealized loss (gain) on investments relates to the disposal and net change in fair value of long-term investments.

Silicon Motion Technology Corporation
Consolidated Statements of Income
(in thousands, except percentages and per ADS data, unaudited)
 
  For Three Months Ended   For Six Months Ended
  Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
  2025   2026   2026   2025   2026
  ($)   ($)   ($)   ($)   ($)
Net sales 198,675   342,105   451,001   365,167   793,106
Cost of sales 103,988   180,845   224,784   192,113   405,629
Gross profit 94,687   161,260   226,217   173,054   387,477
Operating expenses
Research & development 58,147   86,240   104,654   113,173   190,894
Sales & marketing 7,093   13,288   13,064   14,208   26,352
General & administrative 7,118   9,528   7,385   13,578   16,913
Operating income 22,329   52,204   101,114   32,095   153,318
Non-operating income (expense)
Interest income, net 2,706   1,617   1,390   5,635   3,007
Foreign exchange gain (loss), net (3,302)   16   (381)   (2,929)   (365)
Realized/Unrealized gain (loss) on investments, net (1,051)   21,759   74,727   2,245   96,486
Others, net 1       1  
Subtotal (1,646)   23,392   75,736   4,952   99,128
Income before income tax 20,683   75,596   176,850   37,047   252,446
Income tax expense 4,372   8,797   40,738   1,273   49,535
Net income 16,311   66,799   136,112   35,774   202,911
 
Earnings per basic ADS 0.49   1.98   4.01   1.06   6.00
Earnings per diluted ADS 0.49   1.97   3.99   1.06   5.97
 
Margin Analysis:
Gross margin 47.7%   47.1%   50.2%   47.4%   48.9%
Operating margin 11.2%   15.3%   22.4%   8.8%   19.3%
Net margin 8.2%   19.5%   30.2%   9.8%   25.6%
Additional Data:
Weighted avg. ADS equivalents 33,557   33,678   33,908   33,596   33,793
Diluted ADS equivalents 33,562   33,916   34,097   33,681   34,006

Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results
(in thousands, except percentages and per ADS data, unaudited)
 
  For Three Months Ended   For Six Months Ended
  Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
2025   2026   2026   2025   2026
($)   ($)   ($)   ($)   ($)
Gross profit (GAAP) 94,687   161,260   226,217   173,054   387,477
Gross margin (GAAP) 47.7%   47.1%   50.2%   47.4%   48.9%
Stock-based compensation (A)   134   74   73   208
Gross profit (non-GAAP) 94,687   161,394   226,291   173,127   387,685
Gross margin (non-GAAP) 47.7%   47.2%   50.2%   47.4%   48.9%
 
Operating expenses (GAAP) 72,358   109,056   125,103   140,959   234,159
Stock-based compensation (A) (175)   (8,240)   (3,344)   (4,913)   (11,584)
Dispute related expenses (2,841)   (1,604)   320   (3,118)   (1,284)
Operating expenses (non-GAAP) 69,342   99,212   122,079   132,928   221,291
 
Operating profit (GAAP) 22,329   52,204   101,114   32,095   153,318
Operating margin (GAAP) 11.2%   15.3%   22.4%   8.8%   19.3%
Total adjustments to operating profit 3,016   9,978   3,098   8,104   13,076
Operating profit (non-GAAP) 25,345   62,182   104,212   40,199   166,394
Operating margin (non-GAAP) 12.8%   18.2%   23.1%   11.0%   21.0%
 
Non-operating income (expense) (GAAP) (1,646)   23,392   75,736   4,952   99,128
Foreign exchange loss (gain), net 3,302   (16)   381   2,929   365
Realized/Unrealized loss (gain) on investments, net 1,051   (21,759)   (74,727)   (2,245)   (96,486)
 
Non-operating income (expense) (non-GAAP) 2,707   1,617   1,390   5,636   3,007
 
Net income (GAAP) 16,311   66,799   136,112   35,774   202,911
Total pre-tax impact of non-GAAP
adjustments
7,369   (11,797)   (71,248)   8,788   (83,045)
Income tax impact of non-GAAP adjustments (670)   (1,153)   18,281   (1,280)   17,128
Net income (non-GAAP) 23,010   53,849   83,145   43,282   136,994
 
Earnings per diluted ADS (GAAP) $0.49   $1.97   $3.99   $1.06   $5.97
Earnings per diluted ADS (non-GAAP) $0.69   $1.58   $2.43   $1.28   $4.01
 
Shares used in computing earnings per diluted ADS (GAAP) 33,562   33,916   34,097   33,681   34,006
Non-GAAP adjustments 18   221   154   33   188
Shares used in computing earnings per diluted ADS (non-GAAP) 33,580   34,137   34,251   33,714   34,194
 
(A)Excludes stock-based compensation as follows:
Cost of sales   134   74   73   208
Research & development 55   4,788   1,630   3,058   6,418
Sales & marketing 79   2,007   863   941   2,870
General & administrative 41 1,445 851 914 2,296

Silicon Motion Technology Corporation
Consolidated Balance Sheets
(In thousands, unaudited)
 
  Jun. 30,   Mar. 31,   Jun. 30,
  2025   2026   2026
  ($)   ($)   ($)
Cash and cash equivalents 208,043   135,677   74,367
Accounts receivable, net 220,924   220,445   323,638
Inventories 208,005   515,250   673,042
Restricted assets – current 70,308   71,268   103,918
Prepaid expenses and other current assets 68,040   58,915   41,526
Total current assets 775,320   1,001,555   1,216,491
Long-term investments 19,620   51,823   127,403
Property and equipment, net 208,826   224,553   232,805
Other assets 29,997   29,077   28,532
Total assets 1,033,763   1,307,008   1,605,231
 
Accounts payable 37,455   94,503   103,338
Loans     59,183
Income tax payable 17,370   31,440   37,969
Accrued expenses and other current liabilities 134,377   225,260   281,716
Total current liabilities 189,202   351,203   482,206
Other long-term liabilities 55,620   49,683   76,177
Total liabilities 244,822   400,886   558,383
Shareholders’ equity 788,941   906,122   1,046,848
Total liabilities & shareholders’ equity 1,033,763   1,307,008   1,605,231

Silicon Motion Technology Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
 
  For Three Months Ended   For Six Months Ended
  Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
  2025   2026   2026   2025   2026
  ($)   ($)   ($)   ($)   ($)
Net income 16,311   66,799   136,112   35,774   202,911
Depreciation & amortization 7,445   8,954   9,273   14,670   18,227
Stock-based compensation 175   8,374   3,418   4,986   11,792
Investment losses (gain) & disposals 1,053   (21,733)   (74,684)   (2,256)   (96,417)
Changes in operating assets and liabilities (42,258)   (93,619)   (137,899)   (20,176)   (231,518)
Net cash provided by (used in) operating activities (17,274)   (31,225)   (63,780)   32,998   (95,005)
 
Purchase of property & equipment (15,551)   (18,221)   (7,733)   (27,212)   (25,954)
Proceeds from disposal of properties   87     13   87
Net cash provided by (used in) investing activities (15,551)   (18,134)   (7,733)   (27,199)   (25,867)
 
Dividend payments (16,746)   (16,918)   (16,922)   (33,702)   (33,840)
Share repurchases (21)       (24,312)  
Bank loan     59,183     59,183
Net cash provided by (used in) financing activities (16,767)   (16,918)   42,261   (58,014)   25,343
 
Net increase (decrease) in cash, cash equivalents & restricted cash (49,592   (66,277   (29,252   (52,215   (95,529
Effect of foreign exchange changes 124   80   170   161   250
Cash, cash equivalents & restricted cash—beginning of period 331,747   277,081   210,884   334,333   277,081
Cash, cash equivalents & restricted cash—end of period 282,279   210,884   181,802   282,279   181,802


About Silicon Motion:

We are the global leader in supplying NAND flash controllers for solid state storage devices.  We supply more SSD controllers than any other company in the world for servers, PCs and other client devices and are the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications.  We also supply customized high-performance hyperscale data centers and specialized industrial and automotive SSD solutions.  Our customers include most of the NAND flash vendors, storage device module makers and leading OEMs.  For further information on Silicon Motion, visit us at www.siliconmotion.com.

Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, the unpredictable volume and timing of customer orders, which are not fixed by contract but vary on a purchase order basis; the loss of one or more key customers or the significant reduction, postponement, rescheduling or cancellation of orders from one or more customers; general economic conditions or conditions in the semiconductor or consumer electronics markets; the impact of inflation on our business and customers’ businesses and any effect this has on economic activity in the markets in which we operate; the functionalities and performance of our information technology (“IT”) systems, which are subject to cybersecurity threats and which support our critical operational activities, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; the effects on our business and our customers’ business taking into account the ongoing U.S.-China tariffs and trade disputes; other factors beyond our control such as natural disasters, terrorism, civil unrest, war, including conflicts in the Middle East, threats to the Strait of Hormuz and global energy supply routes, and the ongoing Russia-Ukraine War, and pandemics, epidemics and other health emergencies; the continuing tensions between Taiwan and China, including enhanced military activities; decreases in the overall average selling prices of our products; changes in the relative sales mix of our products; supply chain disruptions that have affected us and our industry as well as other industries on a global basis; the payment, or non-payment, of cash dividends in the future at the discretion of our Board of Directors and any announced planned increases in such dividends; changes in our cost of finished goods; the availability, pricing, and timeliness of delivery of other components and raw materials used in the products we sell given the current raw material supply shortages being experienced in our industry; our customers’ sales outlook, purchasing patterns, and inventory adjustments based on consumer demands and general economic conditions; any potential impairment charges that may be incurred related to businesses previously acquired or divested in the future; the risk that the anticipated benefits from our PCIe 5 controller products, including higher average selling prices, may not be maintained or may be less than expected; the risk that our anticipated market share gains across our product lines and penetration of enterprise end markets may not materialize as expected or on the anticipated timeline; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 30, 2026. Other than as required under the securities laws, we do not intend, and do not undertake any obligation to, update or revise any forward-looking statements, which apply only as of the date of this news release.

Silicon Motion Investor Contacts:

Tom Sepenzis Selina Hsieh
Vice President of Investor Relations & Strategy Investor Relations
[email protected] [email protected]

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