Super Micro Computer, Inc. has released its unaudited financial report for the third quarter of fiscal year 2025, which concluded on March 31, 2025. Here are the key highlights from their performance during this period:
Financial Performance Overview
- Net sales reached $4.60 billion, a decrease from $5.68 billion in Q2 2025 and an increase from $3.85 billion in Q3 2024.
- The gross margin was reported at 9.6%, down from 11.8% in the previous quarter and significantly lower than 15.5% in the same quarter of the previous year.
- Net income stood at $109 million, a decline from $321 million in Q2 2025 and $402 million in Q3 2024.
- Diluted net income per common share was $0.17, compared to $0.51 in Q2 2025 and $0.66 in Q3 2024.
- For non-GAAP diluted net income per share, the figure was $0.31, down from $0.59 in Q2 2025 and the same as Q3 2024.
- Cash flow from operations during the quarter totaled $627 million, with capital expenditures amounting to $33 million.
Management Commentary
Charles Liang, the company’s founder, president, and CEO, stated, “We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2), and AI technology leadership, but some customers delayed making platform decisions in the quarter. We expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets. However, economic uncertainty and tariff impacts may have a short-term effect.”
Balance Sheet Insights
As of March 31, 2025, Supermicro reported total cash and cash equivalents of $2.54 billion, with total bank debt and convertible notes of $2.49 billion. The non-GAAP gross margin for the quarter was adjusted to 9.7%, accounting for stock-based compensation expenses of $7 million and other adjustments related to the extinguishment of convertible notes.
Corporate Governance Developments
Recent advancements in corporate governance practices have been noted, with all outstanding financial statements filed and compliance with Nasdaq requirements confirmed. Following recommendations from the Special Committee of the board of directors, new appointments include Scott Angel to the board, Yitai Hu as General Counsel & SVP of Corporate Development, and Kenneth Cheung as SVP and Chief Accounting Officer.
Future Outlook
Looking ahead, Supermicro anticipates net sales between $5.6 billion and $6.4 billion for the fourth quarter of fiscal year 2025. They project GAAP net income per diluted share ranging from $0.30 to $0.40, and non-GAAP net income per diluted share between $0.40 and $0.50. For the full fiscal year 2025, revenue guidance has been revised to a range of $21.8 billion to $22.6 billion.
Webcast and Forward-Looking Statements
A live audio webcast was held on May 6, 2025, with a replay available for one year. Importantly, the press release includes cautionary statements regarding forward-looking statements that may involve various risks and uncertainties, affecting actual results.
Non-GAAP Financial Measures
Supermicro employs non-GAAP measures to present a clearer picture of its financial performance, adjusting for stock-based compensation, losses on extinguishment of convertible notes, and other non-recurring items. This approach is intended to provide a consistent basis for comparison across reporting periods while aligning with overall operating results.