Supermicro Announces First Quarter of Fiscal Year 2027 Financial Results
(BUSINESS WIRE) -- Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), an AI, Enterprise, Storage, and 5G/Edge IT Total Solution Provider, featuring Data Center Building Block Solutions® (DCBBS), today announced unaudited financial results for its first quarter ended September 30, 2026.
• Net sales of $19.9 billion versus $11.1 billion in Q4'26 and $5.0 billion in Q1'26.
• Net income of $1,594 million versus $1,178 million in Q4'26 and $168 million in Q1'26.
• Diluted net income per common share of $1.75 versus $1.62 in Q4'26 and $0.26 in Q1'26.
• Cash flow used in operations for Q1'27 of $434 million and capital expenditures and investments of $47 million.
“Supermicro’s transformation into a Total AI and IT Datacenter Solution provider continues to accelerate, delivering record revenue of $19.9 billion for the first quarter fiscal 2027,” said Charles Liang, Founder, President, and CEO of Supermicro. “DCBBS is driving significant value for our customers—from gigawatt- scale datacenters down to single-container PODs—which, including our expanding software, proactive service, and networking solutions, is enhancing profitability and long-term shareholder value. Through key enterprise partnerships and expanding global production capacity, we are making AI infrastructure faster to deploy, superior up-time, and more cost-effective for our customer base.”
The Non-GAAP gross margin for the first quarter of fiscal year 2027 was 12.8% with adjustments for stock-based compensation expense of $8 million. The Non- GAAP diluted net income per common share for the first quarter of fiscal year 2027 was $1.81.
As of September 30, 2026, total cash and cash equivalents was $6.9 billion and total bank debt and convertible notes were $8.6 billion.
The Company expects net sales in the range of $19.5 billion and $21.5 billion for the second quarter of fiscal year 2027 ending December 31, 2026, GAAP net income per diluted share of $1.59 to $1.83 and non-GAAP net income per diluted share of $1.66 to $1.90. The Company’s projections for GAAP and non-GAAP net income per diluted share assume a tax rate of approximately 21.2% and 21.1%, respectively, and a fully diluted share count of 753 million shares for GAAP and fully diluted share count of 769 million shares for non-GAAP. The outlook for the second quarter of fiscal year 2027 GAAP net income per diluted share includes approximately $89 million in expected stock-based compensation expense, net of related tax effects of $22 million that are excluded from non-GAAP net income per diluted share.
For fiscal year 2027, the Company expects net sales in the range of $72.0 billion to $82.0 billion.
Supermicro will present a live audio webcast of our conference call to review its first quarter 2027 financial results on Tuesday, November 3, 2026, at 5:00 p.m. ET / 2:00 p.m. PT. The webcast will be available at https://ir.supermicro.com .
A replay of the webcast will be available shortly after the call at the same website and will remain accessible for one year.
Statements contained in this press release that are not historical fact may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” “plan,” “seek,” “should,” “will,” “would” “optimistic” or similar expressions and the negatives of those terms. Such forward looking statements may include statements regarding, among other things, guidance for the second quarter of fiscal year 2027. Such forward looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated, including: (i) our quarterly operating results may fluctuate, (ii) as we increasingly target larger customers and larger sales opportunities, our customer base may become more concentrated, our cost of sales may increase, our margins may be lower and our sales may become less predictable for a variety of reasons, many of which are not in our control, (iii) the average sales prices for our server solutions could decline if customers do not continue to purchase our latest generation products or additional components, and (iv) adverse economic conditions could affect our business, including, but not limited to, increased tariffs. Certain prior period amounts have been reclassified to conform to the current period presentation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are detailed in our filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings, particularly in our Annual Report on Form 10-K for our fiscal year ended June 30, 2026. Financial Information Is Preliminary and May Be Subject to Change The unaudited financial information presented in this press release is preliminary. The final financial results reported for this period may also differ from the results reported in this release.
The financial results presented reflect the Company's preliminary estimated unaudited financial results, based upon information available to the Company as of the date of this press release. The Company has provided preliminary estimates of financial results primarily because its financial closing procedures for the quarter ended September 30, 2026 are not yet complete. The data are not a comprehensive statement of the Company's results for such periods, and the actual results may differ materially from these preliminary estimated data. The Company's actual results remain subject to the completion of management’s and its audit committee’s review and other financial closing processes as well as the completion and preparation of its financial data for such periods. The Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to such preliminary data. During the course of the preparation of the Company's financial statements and related notes and the completion of the review for such periods, additional adjustments to the preliminary estimated financial information presented here may be identified, and its final results for these periods may vary from these preliminary estimates. This preliminary estimated data should not be considered a substitute for the financial statements to be prepared in accordance with accounting principles generally accepted in the United States and to be filed with the Securities and Exchange Commission once available.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first-to-market innovation for Enterprise, Cloud, AI, and 5G/Edge IT Infrastructure. We are a Total IT Solutions provider with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next-generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, Malaysia, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air- conditioned, free air cooling, or liquid cooling). Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
All other brands, names, and trademarks are the property of their respective owners. Investor Relations Contact:
ASSETS September 30, June 30, Current assets: 2026 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 6,897,497 $ 7,521,474 equivalents Accounts receivable, net of allowance 9,685,158 6,125,414 for credit losses Inventories 15,053,640 12,895,949 Prepaid expenses and other current 1,778,608 1,183,415 assets Total current assets 33,414,903 27,726,252 Property, plant, and 660,657 625,553 equipment, net Deferred income taxes, 704,476 697,441 net Other assets 947,091 896,221 Total assets $ 35,727,127 $ 29,945,467 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2,727,379 $ 2,247,003 Accrued liabilities 1,545,485 1,032,716 Income taxes payable 485,697 262,608 Lines of credit and 1,962,690 2,039,774 term loans, current Deferred revenue 4,329,345 1,578,005 Total current 11,050,596 7,160,106 liabilities Deferred revenue, 1,336,365 1,034,027 non-current Lines of credit and term loans, 2,014,381 2,016,374 non-current Convertible notes 4,668,946 4,664,139 Other long-term 588,045 591,205 liabilities Total liabilities 19,658,333 15,465,851 Stockholders’ equity: Preferred stock and additional paid-in 4,226,258 4,226,258 capital Common stock and additional paid-in 4,671,664 4,600,893 capital Accumulated other 397 397 comprehensive income Retained earnings 7,170,313 5,651,904 Total Super Micro Computer, Inc. 16,068,632 14,479,452 stockholders’ equity Non-controlling 162 164 interest Total stockholders’ 16,068,794 14,479,616 equity Total liabilities and stockholders’ $ 35,727,127 $ 29,945,467 equity
Stock-based compensation is included in the following cost and expense categories by period (in thousands):
Three Months Ended September OPERATING 30, ACTIVITI… 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net $ 1,594,205 $ 168,285 income Reconcil… of net income to net cash used in operating activiti… Deprecia… and 15,040 12,341 amortiza… Amortiza… of right-of… 13,791 8,266 (“ROU”) assets Amortiza… of debt discount 8,789 4,743 and issuance costs Inventory valuation 14,241 36,199 adjustme… write-do… Stock-ba… compensa… 100,223 89,139 expense Impairme… — 12,000 loss Share of loss from 979 106 equity investee Unrealiz… foreign currency 2,121 -1,017 exchange loss (gain) Deferred income -6,881 -12,201 taxes, net Other non-cash expense 5,533 -7,539 (income), net Changes in operating assets and liabilit… Accounts receivab… -3,559,839 -321,244 net Inventor… -2,477,392 -1,087,0… Prepaid expenses -349,754 134,087 and other assets Accounts 473,879 901 payable Accrued 445,557 -259,350 liabilit… Income taxes 222,971 4,978 payable Deferred 3,053,678 296,622 revenue Other long-term 8,838 3,171 liabilit… Net cash used in -434,021 -917,523 operating activiti… INVESTING ACTIVITI… Purchases of property, -41,588 -32,270 plant, and equipment Investme… in equity -5,000 — securiti… Net cash used in -46,588 -32,270 investing activiti… FINANCING ACTIVITI… Proceeds from lines of 162,236 28,588 credit and term loans Repayment of lines of credit -244,168 -11,540 and term loans Proceeds from exercise 3,109 7,922 of stock options Payment for withhold… taxes related -32,561 -43,642 to settleme… of equity awards Proceeds related to Receivab… 43,376 — Purchase Agreemen… net Payments of equity -3,546 — issuance costs Dividends declared and paid -63,729 — on preferred stock Other -9 7 Net cash used in -135,292 -18,665 financing activiti… Effect of exchange rate -15 -4,588 fluctuat… on cash Net decrease in cash, cash -615,916 -973,046 equivale… and restrict… cash Cash, cash equivale… and restrict… 7,631,536 5,172,301 cash at the beginning of period Cash, cash equivale… and $ 7,015,620 $ 4,199,255 restrict… cash at the end of period
Supplemental disclosure Three Months Ended of cash flow September 30, information: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash paid for interest $ 110,394 $ 39,244 Cash paid for income taxes, net of $ 208,392 $ 38,502 refunds Non-cash investing and financing activities: Unpaid property, plant, and equipment $ 29,636 $ 11,127 purchases ROU assets obtained in exchange for $ 1,977 $ 90,542 operating lease commitments Series A Mandatory Convertible Preferred $ 25,155 $ — Stock accrued dividends Transfer of inventory to property, $ — $ 1,184 plant, and equipment, net
To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses non-GAAP measures that are adjusted for certain items from the most directly comparable GAAP measures. The specific non-GAAP measures presented below are: gross profit, gross margin; operating expenses; net income; net income per common share; diluted net income; diluted net income per common share, adjusted earnings before interest, taxes, depreciation, and amortization, (“Adjusted EBITDA”); and effective tax rate. Management believes these non-GAAP measures provide useful information to investors by offering a consistent basis for comparing the Company's performance across periods, excluding items that are not reflective of our core operating results. These non-GAAP measures are not prepared in accordance with GAAP or intended to be a replacement for GAAP financial data; and therefore, should be reviewed together with the GAAP measures and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies. We exclude the following adjustments from our non-GAAP financial measures:
Stock-based compensation: Stock-based compensation relates primarily to our equity incentive awards. Stock-based compensation is a non-cash expense that is dependent on market forces that are difficult to predict. We believe that this adjustment for stock-based compensation provides investors with a basis to measure the company's core performance, including compared with the performance of other companies, without the period-to-period variability created by stock- based compensation.
• Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to the adjustments described above, we exclude the impact of Interest expense, Income tax (provision) benefit, and Depreciation and amortization during the period.
Pursuant to the requirements of SEC Regulation G, please see the tables below for the reconciliations of GAAP to Non-GAAP measures. These should be read together with the preceding financial statements prepared in accordance with GAAP.
Three Months September 30, September 30, Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── GAAP net income $ 1,594,205 $ 168,285 - basic Preferred stock -75,796 — dividends Earnings allocated to participating -251,561 — securities - GAAP GAAP net income attributable to common 1,266,848 168,285 stockholders - basic Adjustments related to stock-based compensation: Cost of sales 8,096 7,075 Operating 92,127 82,064 expenses Total adjustments to GAAP income 100,223 89,139 from operations Income tax effect of -20,048 -19,201 non-GAAP adjustments Adjustments to earnings allocated to participating securities: Earnings allocated to 251,561 — participating securities GAAP Earnings allocated to participating -264,844 — securities - Non-GAAP Non-GAAP net income attributable to $ 1,333,740 $ 238,223 common stockholders - basic GAAP net income $ 1,594,205 $ 168,285 - basic Preferred stock -75,796 — dividends Earnings allocated to participating -251,561 — securities - GAAP GAAP net income attributable to common 1,266,848 168,285 stockholders - basic Earnings allocated to participating 251,561 — securities - GAAP Convertible notes interest 18,041 1,680 charge, net of tax Earnings re-allocated to participating securities for -228,164 — the impact of dilutive securities GAAP net income attributable to common $ 1,308,286 $ 169,965 stockholders - diluted Non-GAAP net income attributable to $ 1,333,740 $ 238,223 common stockholders - basic Earnings allocated to participating 264,844 — securities - Non-GAAP Convertible notes interest 18,041 1,680 charge, net of tax Earnings re-allocated to participating securities for -236,041 — the impact of dilutive securities Non-GAAP net income attributable to $ 1,380,584 $ 239,903 common stockholders - diluted Weighted-avera… shares used in the calculation of net income per common share: Basic - GAAP 658,128 595,624 Basic - 658,128 595,624 Non-GAAP Diluted - GAAP 749,351 663,235 Non-GAAP 15,020 13,782 adjustment Diluted - 764,371 677,017 Non-GAAP
Three Months September 30, September 30, Ended 2026 2025 ────────────────────────────────────────────────────────────────────────────── GAAP net income per common $ 1.92 $ 0.28 share - basic Adjustments to GAAP: Stock-based 0.15 0.15 compensation Income tax -0.04 -0.03 Non-GAAP net income per $ 2.03 $ 0.40 common share - basic GAAP net income per common $ 1.75 $ 0.26 share - diluted Adjustments to GAAP: Stock-based 0.11 0.13 compensation Income tax -0.05 -0.04 Non-GAAP net income per $ 1.81 $ 0.35 common share – diluted
Full text with the tables
Exhibit 99.1
Supermicro Announces First Quarter of Fiscal Year 2027 Financial Results
SAN JOSE, Calif. -- November 3, 2026
--
(BUSINESS WIRE) -- Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or
the “Company”), an AI, Enterprise, Storage, and 5G/Edge IT Total Solution
Provider, featuring Data Center Building Block Solutions® (DCBBS), today
announced unaudited financial results for its first quarter ended September 30,
2026.
First Quarter Fiscal Year 2027 Highlights
• Net sales of $19.9 billion versus $11.1 billion in Q4'26 and $5.0 billion in
Q1'26.
•
Gross margin of 12.7% versus 17.5% in Q4'26 and 9.3% in Q1'26.
• Net income of $1,594 million versus $1,178 million in Q4'26 and $168 million
in Q1'26.
• Diluted net income per common share of $1.75 versus $1.62 in Q4'26 and $0.26
in Q1'26.
• Non-GAAP gross margin of 12.8% versus 9.5% in Q1'26.
• Non-GAAP diluted net income per common share of $1.81 versus $0.35 in Q1'26.
• Cash flow used in operations for Q1'27 of $434 million and capital
expenditures and investments of $47 million.
“Supermicro’s transformation into a Total AI and IT Datacenter Solution provider
continues to accelerate, delivering record revenue of $19.9 billion for the
first quarter fiscal 2027,” said Charles Liang, Founder, President, and CEO of
Supermicro. “DCBBS is driving significant value for our customers—from gigawatt-
scale datacenters down to single-container PODs—which, including our expanding
software, proactive service, and networking solutions, is enhancing
profitability and long-term shareholder value. Through key enterprise
partnerships and expanding global production capacity, we are making AI
infrastructure faster to deploy, superior up-time, and more cost-effective for
our customer base.”
The Non-GAAP gross margin for the first quarter of fiscal year 2027 was 12.8%
with adjustments for stock-based compensation expense of $8 million. The Non-
GAAP diluted net income per common share for the first quarter of fiscal year
2027 was $1.81.
As of September 30, 2026, total cash and cash equivalents was $6.9 billion and
total bank debt and convertible notes were $8.6 billion.
Business Outlook
The Company expects net sales in the range of $19.5 billion and $21.5 billion
for the second quarter of fiscal year 2027 ending December 31, 2026, GAAP net
income per diluted share of $1.59 to $1.83 and non-GAAP net income per diluted
share of $1.66 to $1.90. The Company’s projections for GAAP and non-GAAP net
income per diluted share assume a tax rate of approximately 21.2% and 21.1%,
respectively, and a fully diluted share count of 753 million shares for GAAP and
fully diluted share count of 769 million shares for non-GAAP. The outlook for
the second quarter of fiscal year 2027 GAAP net income per diluted share
includes approximately $89 million in expected stock-based compensation expense,
net of related tax effects of $22 million that are excluded from non-GAAP net
income per diluted share.
For fiscal year 2027, the Company expects net sales in the range of $72.0
billion to $82.0 billion.
Conference Call and Webcast Information
Supermicro will present a live audio webcast of our conference call to review
its first quarter 2027 financial results on Tuesday, November 3, 2026, at 5:00
p.m. ET / 2:00 p.m. PT. The webcast will be available at
https://ir.supermicro.com .
A replay of the webcast will be available shortly after the call at the same
website and will remain accessible for one year.
Forward Looking Statements and Other Disclosures
Statements contained in this press release that are not historical fact may be
forward looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements can be identified by the use of forward-looking
terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “may,” “plan,” “seek,” “should,” “will,” “would” “optimistic” or
similar expressions and the negatives of those terms. Such forward looking
statements may include statements regarding, among other things, guidance for
the second quarter of fiscal year 2027. Such forward looking statements do not
constitute guarantees of future performance and are subject to a variety of
risks and uncertainties that could cause our actual results to differ materially
from those anticipated, including: (i) our quarterly operating results may
fluctuate, (ii) as we increasingly target larger customers and larger sales
opportunities, our customer base may become more concentrated, our cost of sales
may increase, our margins may be lower and our sales may become less predictable
for a variety of reasons, many of which are not in our control, (iii) the
average sales prices for our server solutions could decline if customers do not
continue to purchase our latest generation products or additional components,
and (iv) adverse economic conditions could affect our business, including, but
not limited to, increased tariffs. Certain prior period amounts have been
reclassified to conform to the current period presentation. Additional factors
that could cause actual results to differ materially from those projected or
suggested in any forward-looking statements are detailed in our filings with the
Securities and Exchange Commission, including those factors discussed under the
caption “Risk Factors” in such filings, particularly in our Annual Report on
Form 10-K for our fiscal year ended June 30, 2026.
Financial Information Is Preliminary and May Be Subject to Change
The unaudited financial information presented in this press release is
preliminary. The final financial results reported for this period may also
differ from the results reported in this release.
The financial results presented reflect the Company's preliminary estimated
unaudited financial results, based upon information available to the Company as
of the date of this press release. The Company has provided preliminary
estimates of financial results primarily because its financial closing
procedures for the quarter ended September 30, 2026 are not yet complete. The
data are not a comprehensive statement of the Company's results for such
periods, and the actual results may differ materially from these preliminary
estimated data. The Company's actual results remain subject to the completion of
management’s and its audit committee’s review and other financial closing
processes as well as the completion and preparation of its financial data for
such periods. The Company's independent registered public accounting firm has
not audited, reviewed, compiled or performed any procedures with respect to such
preliminary data. During the course of the preparation of the Company's
financial statements and related notes and the completion of the review for such
periods, additional adjustments to the preliminary estimated financial
information presented here may be identified, and its final results for these
periods may vary from these preliminary estimates. This preliminary estimated
data should not be considered a substitute for the financial statements to be
prepared in accordance with accounting principles generally accepted in the
United States and to be filed with the Securities and Exchange Commission once
available.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT
Solutions. Founded and operating in San Jose, California, Supermicro is
committed to delivering first-to-market innovation for Enterprise, Cloud, AI,
and 5G/Edge IT Infrastructure. We are a Total IT Solutions provider with server,
AI, storage, IoT, switch systems, software, and support services. Supermicro's
motherboard, power, and chassis design expertise further enables our development
and production, enabling next-generation innovation from cloud to edge for our
global customers. Our products are designed and manufactured in-house (in the
US, Taiwan, Malaysia, and the Netherlands), leveraging global operations for
scale and efficiency and optimized to improve TCO and reduce environmental
impact (Green Computing). The award-winning portfolio of Server Building Block
Solutions® allows customers to optimize for their exact workload and application
by selecting from a broad family of systems built from our flexible and reusable
building blocks that support a comprehensive set of form factors, processors,
memory, GPUs, storage, networking, power, and cooling solutions (air-
conditioned, free air cooling, or liquid cooling).
Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks
and/or registered trademarks of Super Micro Computer, Inc.
All other brands, names, and trademarks are the property of their respective
owners.
Investor Relations Contact:
email: ir@supermicro.com
Source: Super Micro Computer, Inc.
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS September 30, June 30,
Current assets: 2026 2026
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 6,897,497 $ 7,521,474
equivalents
Accounts receivable,
net of allowance 9,685,158 6,125,414
for credit losses
Inventories 15,053,640 12,895,949
Prepaid expenses and
other current 1,778,608 1,183,415
assets
Total current assets 33,414,903 27,726,252
Property, plant, and 660,657 625,553
equipment, net
Deferred income taxes, 704,476 697,441
net
Other assets 947,091 896,221
Total assets $ 35,727,127 $ 29,945,467
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 2,727,379 $ 2,247,003
Accrued liabilities 1,545,485 1,032,716
Income taxes payable 485,697 262,608
Lines of credit and 1,962,690 2,039,774
term loans, current
Deferred revenue 4,329,345 1,578,005
Total current 11,050,596 7,160,106
liabilities
Deferred revenue, 1,336,365 1,034,027
non-current
Lines of credit and
term loans, 2,014,381 2,016,374
non-current
Convertible notes 4,668,946 4,664,139
Other long-term 588,045 591,205
liabilities
Total liabilities 19,658,333 15,465,851
Stockholders’ equity:
Preferred stock and
additional paid-in 4,226,258 4,226,258
capital
Common stock and
additional paid-in 4,671,664 4,600,893
capital
Accumulated other 397 397
comprehensive income
Retained earnings 7,170,313 5,651,904
Total Super Micro
Computer, Inc. 16,068,632 14,479,452
stockholders’ equity
Non-controlling 162 164
interest
Total stockholders’ 16,068,794 14,479,616
equity
Total liabilities and
stockholders’ $ 35,727,127 $ 29,945,467
equity
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months
Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net sales $ 19,945,832 $ 5,017,790
Cost of sales 17,404,789 4,550,417
Gross profit 2,541,043 467,373
Operating
expenses:
Research and 227,279 173,314
development
Sales and 132,527 47,928
marketing
General and 116,744 63,875
administrati…
Total
operating 476,550 285,117
expenses
Income from 2,064,493 182,256
operations
Other -5,467 -129
expense, net
Interest 54,188 51,356
income
Interest -82,539 -24,931
expense
Income before
income tax 2,030,675 208,552
provision
Income tax -435,491 -40,161
provision
Share of loss
from equity -979 -106
investee, net
of taxes
Net income $ 1,594,205 $ 168,285
Net income
per common
share:
Basic $ 1.92 $ 0.28
Diluted $ 1.75 $ 0.26
Weighted-ave…
shares used
in the
calculation
of net income
per common
share:
Basic 658,128 595,624
Diluted 749,351 663,235
Stock-based compensation is included in the following cost and expense
categories by period (in thousands):
Three Months Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost of sales $ 8,096 $ 7,075
Research and development 67,227 57,433
Sales and marketing 9,448 11,100
General and administrative 15,452 13,531
Stock-based compensation
expense, before $ 100,223 $ 89,139
taxes
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three
Months
Ended
September
OPERATING 30,
ACTIVITI… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,594,205 $ 168,285
income
Reconcil…
of net
income to
net cash
used in
operating
activiti…
Deprecia…
and 15,040 12,341
amortiza…
Amortiza…
of
right-of… 13,791 8,266
(“ROU”)
assets
Amortiza…
of debt
discount 8,789 4,743
and
issuance
costs
Inventory
valuation 14,241 36,199
adjustme…
write-do…
Stock-ba…
compensa… 100,223 89,139
expense
Impairme… — 12,000
loss
Share of
loss from 979 106
equity
investee
Unrealiz…
foreign
currency 2,121 -1,017
exchange
loss
(gain)
Deferred
income -6,881 -12,201
taxes,
net
Other
non-cash
expense 5,533 -7,539
(income),
net
Changes
in
operating
assets
and
liabilit…
Accounts
receivab… -3,559,839 -321,244
net
Inventor… -2,477,392 -1,087,0…
Prepaid
expenses -349,754 134,087
and other
assets
Accounts 473,879 901
payable
Accrued 445,557 -259,350
liabilit…
Income
taxes 222,971 4,978
payable
Deferred 3,053,678 296,622
revenue
Other
long-term 8,838 3,171
liabilit…
Net cash
used in -434,021 -917,523
operating
activiti…
INVESTING
ACTIVITI…
Purchases
of
property, -41,588 -32,270
plant,
and
equipment
Investme…
in equity -5,000 —
securiti…
Net cash
used in -46,588 -32,270
investing
activiti…
FINANCING
ACTIVITI…
Proceeds
from
lines of 162,236 28,588
credit
and term
loans
Repayment
of lines
of credit -244,168 -11,540
and term
loans
Proceeds
from
exercise 3,109 7,922
of stock
options
Payment
for
withhold…
taxes
related -32,561 -43,642
to
settleme…
of equity
awards
Proceeds
related
to
Receivab… 43,376 —
Purchase
Agreemen…
net
Payments
of equity -3,546 —
issuance
costs
Dividends
declared
and paid -63,729 —
on
preferred
stock
Other -9 7
Net cash
used in -135,292 -18,665
financing
activiti…
Effect of
exchange
rate -15 -4,588
fluctuat…
on
cash
Net
decrease
in cash,
cash -615,916 -973,046
equivale…
and
restrict…
cash
Cash,
cash
equivale…
and
restrict… 7,631,536 5,172,301
cash at
the
beginning
of period
Cash,
cash
equivale…
and $ 7,015,620 $ 4,199,255
restrict…
cash at
the end
of period
SUPER MICRO COMPUTER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Supplemental disclosure Three Months Ended
of cash flow September 30,
information: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash paid for interest $ 110,394 $ 39,244
Cash paid for income
taxes, net of $ 208,392 $ 38,502
refunds
Non-cash investing and
financing
activities:
Unpaid property, plant,
and equipment $ 29,636 $ 11,127
purchases
ROU assets obtained in
exchange for $ 1,977 $ 90,542
operating lease
commitments
Series A Mandatory
Convertible Preferred $ 25,155 $ —
Stock accrued dividends
Transfer of inventory
to property, $ — $ 1,184
plant, and equipment,
net
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with
United States Generally Accepted Accounting Principles (“GAAP”), the Company
uses non-GAAP measures that are adjusted for certain items from the most
directly comparable GAAP measures. The specific non-GAAP measures presented
below are: gross profit, gross margin; operating expenses; net income; net
income per common share; diluted net income; diluted net income per common
share, adjusted earnings before interest, taxes, depreciation, and amortization,
(“Adjusted EBITDA”); and effective tax rate. Management believes these non-GAAP
measures provide useful information to investors by offering a consistent basis
for comparing the Company's performance across periods, excluding items that are
not reflective of our core operating results. These non-GAAP measures are not
prepared in accordance with GAAP or intended to be a replacement for GAAP
financial data; and therefore, should be reviewed together with the GAAP
measures and are not intended to serve as a substitute for results under GAAP,
and may be different from non-GAAP measures used by other companies.
We exclude the following adjustments from our non-GAAP financial measures:
Non-GAAP Adjustments
•
Stock-based compensation: Stock-based compensation relates primarily to our
equity incentive awards. Stock-based compensation is a non-cash expense that is
dependent on market forces that are difficult to predict. We believe that this
adjustment for stock-based compensation provides investors with a basis to
measure the company's core performance, including compared with the performance
of other companies, without the period-to-period variability created by stock-
based compensation.
• Adjusted EBITDA adjustments: When calculating Adjusted EBITDA, in addition to
the adjustments described above, we exclude the impact of Interest expense,
Income tax (provision) benefit, and Depreciation and amortization during the
period.
Pursuant to the requirements of SEC Regulation G, please see the tables below
for the reconciliations of GAAP to Non-GAAP measures. These should be read
together with the preceding financial statements prepared in accordance with
GAAP.
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP Net Income to Adjusted EBITDA:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP net $ 1,594,205 $ 168,285
income
Interest 82,539 24,931
expense
Income tax 435,491 40,161
provision
Depreciation
and 15,040 12,341
amortization
Stock-based 100,223 89,139
compensation
Adjusted $ 2,227,498 $ 334,857
EBITDA
Adjusted
EBITDA % of 11.2 % 6.7 %
net sales
Reconciliation of GAAP to Non-GAAP Gross Margin:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP gross $ 2,541,043 $ 467,373
profit
Stock-based 8,096 7,075
compensation
Non-GAAP $ 2,549,139 $ 474,448
gross profit
GAAP gross 12.7 % 9.3 %
margin (%)
Stock-based
compensation 0.1 % 0.2 %
(%)
Non-GAAP
gross margin 12.8 % 9.5 %
(%)
Reconciliation of GAAP to Non-GAAP Operating Expenses:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP operating $ 476,550 $ 285,117
expenses
Adjustments to
operating
expenses
GAAP R&D
operating 227,279 173,314
expenses
Stock-based -67,227 -57,433
compensation
Non-GAAP R&D
operating 160,052 115,881
expenses
GAAP S&M
operating 132,527 47,928
expenses
Stock-based -9,448 -11,100
compensation
Non-GAAP S&M
operating 123,079 36,828
expenses
GAAP G&A
operating 116,744 63,875
expenses
Stock-based -15,452 -13,531
compensation
Non-GAAP G&A
operating 101,292 50,344
expenses
Non-GAAP
operating $ 384,423 $ 203,053
expenses
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP Net Income:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP net income $ 1,594,205 $ 168,285
- basic
Preferred stock -75,796 —
dividends
Earnings
allocated to
participating -251,561 —
securities -
GAAP
GAAP net income
attributable to
common 1,266,848 168,285
stockholders -
basic
Adjustments
related to
stock-based
compensation:
Cost of sales 8,096 7,075
Operating 92,127 82,064
expenses
Total
adjustments to
GAAP income 100,223 89,139
from
operations
Income tax
effect of -20,048 -19,201
non-GAAP
adjustments
Adjustments to
earnings
allocated to
participating
securities:
Earnings
allocated to 251,561 —
participating
securities GAAP
Earnings
allocated to
participating -264,844 —
securities -
Non-GAAP
Non-GAAP net
income
attributable to $ 1,333,740 $ 238,223
common
stockholders -
basic
GAAP net income $ 1,594,205 $ 168,285
- basic
Preferred stock -75,796 —
dividends
Earnings
allocated to
participating -251,561 —
securities -
GAAP
GAAP net income
attributable to
common 1,266,848 168,285
stockholders -
basic
Earnings
allocated to
participating 251,561 —
securities -
GAAP
Convertible
notes interest 18,041 1,680
charge, net
of tax
Earnings
re-allocated to
participating
securities for -228,164 —
the impact of
dilutive
securities
GAAP net income
attributable to
common $ 1,308,286 $ 169,965
stockholders -
diluted
Non-GAAP net
income
attributable to $ 1,333,740 $ 238,223
common
stockholders -
basic
Earnings
allocated to
participating 264,844 —
securities -
Non-GAAP
Convertible
notes interest 18,041 1,680
charge, net
of tax
Earnings
re-allocated to
participating
securities for -236,041 —
the impact of
dilutive
securities
Non-GAAP net
income
attributable to $ 1,380,584 $ 239,903
common
stockholders -
diluted
Weighted-avera…
shares used in
the
calculation of
net income per
common
share:
Basic - GAAP 658,128 595,624
Basic - 658,128 595,624
Non-GAAP
Diluted - GAAP 749,351 663,235
Non-GAAP 15,020 13,782
adjustment
Diluted - 764,371 677,017
Non-GAAP
SUPER MICRO COMPUTER, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP EPS:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP net income
per common $ 1.92 $ 0.28
share - basic
Adjustments to
GAAP:
Stock-based 0.15 0.15
compensation
Income tax -0.04 -0.03
Non-GAAP net
income per $ 2.03 $ 0.40
common share -
basic
GAAP net income
per common $ 1.75 $ 0.26
share -
diluted
Adjustments to
GAAP:
Stock-based 0.11 0.13
compensation
Income tax -0.05 -0.04
Non-GAAP net
income per $ 1.81 $ 0.35
common share –
diluted
GAAP to Non-GAAP Effective Tax Rate:
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP effective 21.4 % 19.3 %
tax rate
Total
adjustments to
GAAP provision 0.0 % 0.6 %
to
income tax
Non-GAAP
effective tax 21.4 % 19.9 %
rate