Silicon Motion Announces Results for the Quarterly Period Ended June 30, 2026
TAIPEI, Taiwan and MILPITAS, Calif., July 30, 2026 – Silicon Motion Technology Corporation (NasdaqGS: SIMO) (“Silicon Motion,” the “Company”) today announced its financial results for the quarter ended June 30, 2026.
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
| (in millions, except percentages and per ADS amounts) | 2Q 2026 GAAP | 1Q 2026 GAAP | 2Q 2025 GAAP | 2Q 2026 Non-GAAP | 1Q 2026 Non-GAAP | 2Q 2025 Non-GAAP |
|---|---|---|---|---|---|---|
| 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 |
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.
“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.”
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.
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 | 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.
Consolidated Statements of Income
| (in thousands, except percentages and per ADS data, unaudited) — Three months ended Jun. 30 | 2025 | Mar. 31, 2026 | 2026 |
|---|---|---|---|
| Net sales | 198,675 | 342,105 | 451,001 |
| Cost of sales | 103,988 | 180,845 | 224,784 |
| Gross profit | 94,687 | 161,260 | 226,217 |
| Research & development | 58,147 | 86,240 | 104,654 |
| Sales & marketing | 7,093 | 13,288 | 13,064 |
| General & administrative | 7,118 | 9,528 | 7,385 |
| Operating income | 22,329 | 52,204 | 101,114 |
| Interest income, net | 2,706 | 1,617 | 1,390 |
| Foreign exchange gain (loss), net | (3,302) | 16 | (381) |
| Realized/Unrealized gain (loss) on investments, net | (1,051) | 21,759 | 74,727 |
| Others, net | 1 | — | — |
| Subtotal | (1,646) | 23,392 | 75,736 |
| Income before income tax | 20,683 | 75,596 | 176,850 |
| Income tax expense | 4,372 | 8,797 | 40,738 |
| Net income | 16,311 | 66,799 | 136,112 |
| Earnings per basic ADS | 0.49 | 1.98 | 4.01 |
| Earnings per diluted ADS | 0.49 | 1.97 | 3.99 |
| Gross margin | 47.7% | 47.1% | 50.2% |
| Operating margin | 11.2% | 15.3% | 22.4% |
| Net margin | 8.2% | 19.5% | 30.2% |
| Weighted avg. ADS equivalents — basic | 33,557 | 33,678 | 33,908 |
| Diluted ADS equivalents | 33,562 | 33,916 | 34,097 |
Six months ended June 30, 2026: net sales $793,106 thousand (2025: $365,167), net income $202,911 thousand (2025: $35,774), earnings per diluted ADS $5.97 (2025: $1.06).
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. 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. Adjustments include stock-based compensation expense, dispute related expenses, foreign exchange loss (gain), and realized/unrealized loss (gain) on investments.