Silicon Motion reported Q3 2025 net sales of $242.0 million, a 21% sequential increase and a 14% year‑over‑year rise from $212.4 million in Q3 2024. GAAP net income reached $39.1 million, or $1.16 per diluted ADS, while non‑GAAP net income was $33.8 million, or $1.00 per diluted ADS.
eMMC and UFS controller sales grew 20‑25% quarter‑over‑quarter, driven by a rebound in the smartphone market. SSD controller sales also increased 20‑25% quarter‑over‑quarter, with automotive and PCIe5 client SSD sales surging 45% due to demand from AI‑at‑the‑edge PCs and white‑box AI server makers.
Capital expenditures for the quarter totaled $20.1 million, including $9.9 million for testing equipment and software and $10.2 million for office building improvements in Hsinchu, Taiwan. The company declared an annual dividend of $2.00 per ADS, with the first installment scheduled for November 26, 2025.
Management guided Q4 revenue to $254–$266 million and gross margin to 48.4–49.4%. It expects Q4 revenue and margins to exceed the full‑year run‑rate target of $1 billion, keeping the company on track for a $1 billion annual revenue run‑rate by year‑end 2025.
Silicon Motion supplies more SSD controllers than any other company for servers, PCs, and client devices. Growth is driven by high‑margin products and strategic alignment with key customers, and diversification into automotive and enterprise storage positions the company for long‑term sustainable growth.
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