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Technology · Semiconductors · Nasdaq

MPWRMonolithic Power Systems

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The 10-K against last year's

131 changes: 11 added, 11 removed, 107 reworded, 2 quiet changes

10-K Feb 27, 2026 vs Mar 3, 2025
Risk FactorsRedline ↓
11.6%
of the text changed · 16,032 words now
24.0%
of the text changed · 3,466 words now
Legal ProceedingsRedline ↓
15.8%
of the text changed · 345 words now
Accounting PoliciesRedline ↓
15.2%
of the text changed · 3,125 words now

10-K 0001437749-26-006113 (2026-02-27) vs 10-K 0001437749-25-005903 (2025-03-03)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 258 words changed in this paragraph; it is 57% similar to last year's version.
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.

Source: Item 1A, 10-K 0001437749-26-006113 vs Item 1A, 10-K 0001437749-25-005903

MD&A 232 words changed in this paragraph; it is 43% similar to last year's version.
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.

Source: Item 7, 10-K 0001437749-26-006113 vs Item 7, 10-K 0001437749-25-005903

Accounting Policies 210 words changed in this paragraph; it is 43% similar to last year's version.
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.

Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001437749-26-006113 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001437749-25-005903

Legal Proceedings 35 words changed in this paragraph; it is 84% similar to last year's version.
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.

Source: Item 3, via Note 14 – COMMITMENTS AND CONTINGENCIES, 10-K 0001437749-26-006113 vs Item 3, via Note 13 – COMMITMENTS AND CONTINGENCIES, 10-K 0001437749-25-005903

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of MPWR's Risk Factors and MD&A, 10-K 2026-02-27 against 10-K 2025-03-03. Each links to the text at sec.gov.

RewordedRisk Factors
Governments around Federal and state agencies in the world U.S. have adopted, and may continue to adopt, enacted or are considering enacting new laws and regulations related to regarding the use of AI, including the European Union’s AI Act, and several U.S. government agencies have there are increased investigations and enforcement efforts related to the use of AI technology, all of which could increase our compliance costs and limit affect our ability to use AI in the development of our products and in our operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
While we attempt to restrict the use of third-party and open-source open source AI tools, such as ChatGPT, our employees and consultants may use these tools on an unauthorized basis and our partners may also use these tools, which poses risks relating to the potential exposure of our proprietary confidential information to unauthorized recipients and the misuse of our or third-party intellectual property. tools.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
In addition, if 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.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Although we were able to successfully execute our contingency plan and our operations were not materially and adversely disrupted by the events, we We cannot guarantee that we will be able to mitigate the operational risks caused by extreme weather conditions or other events.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Moreover, our customers and end users could decide not to use our products, and products due to the threat of infringement claims, even if unfounded and, if we are found to infringe, our products and our customers’ accounts payable to us could be seized.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
All of these factors continue to be exacerbated by the adverse effects of macroeconomic factors, including inflation, increased interest rates, decreased economic output, fluctuations in currency rates, and geopolitical tensions, such as global tariffs and retaliatory measures and announcements regarding the Russia-Ukraine conflict and the Middle East conflict. same.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Our ability to mitigate these risks will depend on our continued effective maintaining, maintenance, training, monitoring and enforcement of appropriate policies and procedures governing the use of AI tools, and the results of any such use, use by us or our partners. partners, and the compliance with such policies and procedures by our workforce.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Specifically, our top three customers, all of which are distributors, accounted for 61%, an aggregate of 54%, 61% and 55% and 52% of our revenue in each of the years ended December 31, 2024, 2023 2025, 2024 and 2022, 2023, respectively.

Read it in 10-K 2026-02-27 at sec.gov ↗

Show the other 16
RewordedRisk Factors
The potential impact, if any, to impact on our provision for income taxes, net income, and cash flows could be materially impacted by the implementation global minimum tax of the Pillar Two 15% in our international jurisdictions where we have significant business operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
In addition, events such as the Russia-Ukraine conflict, the Middle East conflict current and potential global conflicts and supply chain disruptions may materially impact our assembly or testing suppliers’ ability to operate.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Remote working arrangements, the Russia-Ukraine conflict, the Middle East conflict, current and potential global conflicts, and AI-powered cybersecurity threats have also heightened our potential exposure to cyberattacks, which could put the sensitive data we store on our internal or third-party systems at risk.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedRisk Factors
Many aspects of Pillar Two are were effective for tax years beginning in January 2024, with certain impacts to be effective in 2024 and 2025.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
The $61.1 $57.6 million increase in R&D expenses was primarily due to a $27.7 $30.1 million increase in cash cash-based compensation expenses and benefits, an $11.0 million increase in stock-based compensation expenses and related payroll taxes, a $7.6 $9.1 million increase in new product development expenses expenses, a $5.8 million increase in laboratory and other supplies, and a $5.0 $4.1 million increase consisting mostly of software licensing fees. in stock-based compensation and related payroll taxes.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
The $81.0 $72.0 million increase in SG&A expenses was primarily driven by a $50.1 $37.3 million increase in cash-based compensation and benefits, and a $23.8 million increase in stock-based compensation expenses and related payroll taxes, a $16.4 million increase in cash compensation expenses and benefits, and a $6.7 million increase in professional services. taxes.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
The lower effective tax rate relative to the federal statutory rate was partially offset by the inclusion U.S. taxation of the GILTI tax, the addition of a valuation allowance against foreign subsidiaries’ deferred tax assets arising from the indefinite extension of an R&D super deduction policy, earnings and excess tax benefits from non-deductible stock-based compensation.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
As of December 31, 2024, 2025, we had cash and cash equivalents of $1.1 billion and short-term investments of $157.2 million, compared with cash and cash equivalents of $691.8 million and short-term investments of $171.1 million, compared with cash and cash equivalents of $527.8 million and short-term investments of $580.6 million as of December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Cost of revenue was $1,250.7 million, or 44.8% of revenue, for the year ended December 31, 2025, and $986.2 million, or 44.7% of revenue, for the year ended December 31, 2024, and $800.0 million, or 43.9% of revenue, for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
R&D expenses were $382.3 million, or 13.7% of revenue, for the year ended December 31, 2025, and $324.7 million, or 14.7% of revenue, for the year ended December 31, 2024, and $263.6 million, or 14.5% of revenue, for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
SG&A expenses were $428.8 million, or 15.4% of revenue, for the year ended December 31, 2025, and $356.8 million, or 16.2% of revenue, for the year ended December 31, 2024, and $275.7 million, or 15.1% of revenue, for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
December 31, 2025 2024 2023 (As Restated) (In thousands, except percentages) Cash and cash equivalents $ 691,816 $527,843 1,099,302 $691,816 Short-term investments 157,243 171,130 580,633 Total cash, cash equivalents and short-term investments $ 862,946 $1,108,476 1,256,545 $862,946 Percentage of total assets 23.9% 45.5% 30.0% 24.5% Total current assets $ 1,565,053 $1,819,499 2,183,802 $1,565,053 Total current liabilities (369,365) (294,567) (235,035) Working capital $ 1,270,486 $1,584,464 1,814,437 $1,270,486

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
As of For the year ended December 31, 2024 2025 and through the date we filed this Annual Report, no restrictions or requirements have had a material impact on our revenue and operations; however, such restrictions can be enacted quickly and unexpectedly and could impact our business in the future. operations.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Estimates and judgments used in the preparation of our financial statements are, by their nature, uncertain and unpredictable, and depend upon, among other things, many factors outside of our control, including demand for our products, economic conditions and other current and future events, such as macroeconomic factors, global economic uncertainties and geopolitical tensions. control.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Other income, net, was $37.6 million for the year ended December 31, 2025, compared with $33.6 million for the year ended December 31, 2024, compared with $24.1 million for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-27 at sec.gov ↗

RewordedMD&A
Although consequences of economic uncertainties and macroeconomic conditions conditions, including tariffs and retaliatory measures and announcements regarding the same, and many other factors could adversely affect our liquidity and capital resources in the future, and cash requirements may fluctuate based on the timing and extent of many factors such as those discussed above, we believe that our balances of cash, cash equivalents and short-term investments of $862.9 million $1.3 billion as of December 31, 2024, 2025, along with cash generated by ongoing operations, will be sufficient to satisfy our liquidity requirements for the next 12 months and beyond. months.

Read it in 10-K 2026-02-27 at sec.gov ↗

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