MPWRMonolithic Power Systems

Certain software we use is from open-source open source code sources, which, under certain circumstances, may lead to unintended consequences and, therefore, could materially adversely affect our business, financial condition, operating results and cash flows. We use open-source open source software in connection with certain of our products and services, and we intend to continue to use open-source open source software in the future. From time Some open source software licenses require the source code of derivative works of the open source software be made available to time, there have been claims challenging the ownership public and modifications of open-source the open source software against companies that incorporate open-source software into their products or services or alleging that these companies have violated be licensed under the terms of an open-source license. As a result, same restrictive terms. If we could be subject to lawsuits by parties claiming ownership of what we believe to be open-source software or alleging that we have violated the terms of an open-source license. Litigation could be costly for us to defend, have a negative effect on our operating results and financial condition or require us to devote additional research and development resources to change our solutions. In addition, if we were to combine our proprietary software solutions with open-source open source software in certain circumstances, ways, we could, under certain open-source open source licenses, be required to publicly release the source code of our proprietary software, and make our proprietary software solutions, available under the same open source licenses, which could harm our business and ability to compete. If In the event that potions of our proprietary software are determined to be subject to an open source license, we inappropriately use open-source software, we may could be required to release the affected portions of our source code to the public at no cost, re-engineer all or a portion of our software solutions, discontinue the sale of our solutions, release or otherwise be limited in the source code commercial licensing of our proprietary software to the public at no cost or take other remedial actions, solutions, each of which could reduce or eliminate the value of our intellectual property, increase our costs, harm our ability to compete and have a material adverse effect on our business, operating results and financial condition. There is also a risk that open-source open source licenses could be construed by the courts in a way manner that could impose unanticipated conditions or restrictions on our ability to commercialize our software solutions, which could adversely affect our business, operating results and financial condition.

For By end market, full year 2025 revenue for storage and computing of $732.5 million increased $230.9 million, or 46.0%, from the year ended December 31, 2024, revenue same period in 2024. This increase was primarily driven by increased sales of power solutions for memory, storage, notebooks and graphic cards. Revenue from the enterprise data market increased $393.3 decreased $14.4 million, or 121.8%, 2.0%, from the same period in 2023. This increase was primarily due to higher sales 2024. Full year 2025 automotive revenue of our power management solutions for AI applications. Revenue from the communications market $592.5 million increased $21.0 $178.5 million, or 10.2%, 43.1%, from the same period in 2023. The increase was a result of higher sales of power solutions for optical modules and routers, partially offset by lower sales of networking solutions. Revenue from the automotive market increased $19.3 million, or 4.9%, from the same period in 2023. 2024. This increase was broad-based and primarily driven by increased sales of our highly integrated applications supporting advanced driver assistance systems, partially offset by lower sales of applications supporting body electronics systems and infotainment. Revenue from the storage and computing market Communications revenue of $309.1 million increased $10.4 $83.2 million, or 2.1%, 36.8%, from the same period in 2023. This increase was primarily driven by increased 2024 due to higher sales of products power solutions for notebooks. Revenue from the optical modules and routers. Full year 2025 consumer market decreased $32.6 revenue of $255.2 million increased $53.2 million, or 13.9%, 26.3%, from the same period in 2023. 2024. This decrease increase was a result of broad market weakness. higher sales of products for home appliances and gaming. Revenue of $199.4 million from the industrial market decreased $25.4 increased $52.0 million, or 14.7%, 35.3%, from the same period in 2023. This decrease primarily reflected lower 2024 due to higher sales of products related to industrial meter for power sources and security instrumentation applications.

The Company is a party to actions and proceedings in the ordinary course of business, including challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. The Company has also been is subject to litigation initiated by its stockholders. The pending proceedings involve complex questions of fact and law and will require the expenditure of significant funds and the diversion of other resources to prosecute and defend. In addition, from time to time, the Company becomes aware that it is subject to other contingent liabilities. When this occurs, the Company will evaluate the appropriate accounting for the potential contingent liabilities to determine whether a contingent liability should be recorded. In making this determination, management may, depending on the nature of the matter, consult with internal and external legal counsel and technical experts. Based on the facts and circumstances in each matter, the Company uses its judgment to determine whether it is probable that a contingent loss has occurred and whether the amount of such loss can be estimated. If the Company determines a loss is probable and estimable, the Company records a contingent loss. In determining the amount of a contingent loss, the Company takes into account advice received from experts for each specific matter regarding the status of legal proceedings, settlement negotiations, prior case history and other factors. Should the judgments and estimates made by management need to be adjusted as additional information becomes available, the Company may need to record additional contingent losses. Alternatively, if the judgments and estimates made by management are adjusted, for example, if a particular contingent loss does not occur, the contingent loss recorded would be reversed.

The Company is a party to actions and proceedings in the ordinary course of business, including challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. The Company has is also been subject to litigation initiated by its stockholders. These proceedings often involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. The Company defends itself vigorously against any such claims. As Based on current information, the Company does not believe that a material loss from known matters is probable as of December 31, 2024, there were no material pending legal proceedings to which the Company was a party. 2025.