SiTime Corporation reported third‑quarter 2025 results that surpassed analyst expectations, with revenue rising 45% to $83.6 million from $57.7 million in Q3 2024. The jump was driven by a 115% increase in the Communications‑Enterprise‑Data‑Center (CED) segment, which generated $42.1 million—51% of total revenue—and reflected strong demand for high‑performance timing solutions in AI and data‑center infrastructure.
Non‑GAAP net income climbed to $23.4 million, or $0.87 per diluted share, beating the consensus estimate of $0.71 by $0.16 (a 22.5% surprise). The earnings beat was largely a result of disciplined cost management and a favorable product‑mix shift toward higher‑margin MEMS‑based timing devices, which lifted the non‑GAAP gross margin to 58.8% from 58.1% in the prior year. GAAP net loss of $8.0 million was offset by the non‑GAAP adjustments, illustrating the company’s ability to generate cash‑generating profitability while investing in growth.
Operating expenses were $60.7 million GAAP and $33.7 million non‑GAAP, reflecting a 30% reduction in non‑GAAP operating costs relative to the same period last year. The lower expense base, combined with the higher‑margin mix, enabled a non‑GAAP operating profit of $15.4 million, a 70% increase from $9.6 million in Q3 2024. The company’s cash, cash equivalents, and short‑term investments stood at $809.6 million as of September 30, 2025, providing a strong liquidity cushion for continued investment in product development and market expansion.
Management reiterated its full‑year 2025 outlook, projecting revenue growth of more than 50% year‑over‑year. The guidance reflects confidence in sustained demand from AI and data‑center customers, as well as the anticipated impact of the newly announced Titan platform, which is expected to open a $400 million incremental serviceable addressable market. CEO Rajesh Vashist highlighted that “AI growth powered milestone revenue of $83.6 million in the third quarter with increased adoption of our high‑performance, resilient and reliable precision timing solutions,” underscoring the strategic importance of the CED segment.
Analysts noted that the earnings beat and margin expansion signal strong execution and pricing power in a high‑growth market. The modest market‑reaction uptick—about 0.25%—was driven by the surprise in both revenue and EPS, as well as the company’s optimistic guidance, which reassured investors about the trajectory of its AI‑centric business.
The company also announced restricted stock unit awards for 19 newly hired employees, totaling 27,923 RSUs, demonstrating its commitment to attracting talent to support the accelerated growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.