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Mar 31
Supermicro Q3 2025 Earnings Report
Supermicro reported lower revenue and income due to customer platform decision delays.
Key Takeaways
Supermicro saw a decline in both revenue and net income for Q3 FY2025, reflecting customer hesitation and macroeconomic challenges, though operational cash flow remained strong and the company expressed confidence in upcoming quarters.
Revenue fell to $4.6B from $5.68B in Q2 FY25, impacted by delayed customer platform decisions.
Net income dropped to $109M, down significantly from the prior quarter and year.
Non-GAAP EPS was $0.31, affected by stock-based compensation and extinguishment of convertible notes.
Operating cash flow remained strong at $627M, supporting long-term growth confidence.
Supermicro
Supermicro
Forward Guidance
Supermicro expects stronger Q4 revenue between $5.6B–$6.4B and earnings improvement, driven by deferred customer commitments and AI demand.
Positive Outlook
- Expected Q4 revenue guidance of $5.6B to $6.4B shows strong rebound potential.
- GAAP EPS projected between $0.30 to $0.40.
- Non-GAAP EPS expected between $0.40 to $0.50.
- Deferred customer commitments expected to materialize in Q4 and Q1 FY26.
- Long-term confidence supported by AI and liquid-cooled infrastructure demand.
Challenges Ahead
- FY25 revenue guidance was revised downward to $21.8B–$22.6B from $23.5B–$25.0B.
- Gross margin compressed to 9.6% in Q3 FY25.
- Tariff-related pressures could impact near-term margins.
- Customer delays indicate ongoing macroeconomic uncertainty.
- Significant stock-based compensation ($84.7M) continued to weigh on profitability.