Short answer
Supermicro (SMCI) filed its fiscal 2025 10-K annual report with the SEC on Aug 28, 2025. It reported revenue of $22.0B (+46.6% year over year) and net income of $1.0B.
- Top risk flagged: Risk from Sarbanes-Oxley Act Section 404 material weaknesses, impairing timely and accurate financial reporting as of June 30, 2025
FY2025 key financial metrics · XBRL
- Revenue
- $22.0B
- +46.6% YoY
- Net income
- $1.0B
- −9.0% YoY
- Operating margin
- 5.7%
- −2.4 pp YoY
- Gross margin
- 11.1%
- −2.7 pp YoY
- EPS (diluted)
- $1.68
- −12.5% YoY
- ROE
- 16.6%
- −4.6 pp YoY
- Operating cash flow
- $1.7B
- +166.8% YoY
Source: XBRL data from the Supermicro (SMCI) FY2025 10-K on SEC EDGAR. USD.
Supermicro FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Silicon Valley-based provider of Rack Scale Total IT Solutions, delivering servers, storage, networking optimized for AI, HPC, edge, and cloud workloads
- New products: Launched Data Center Building Block Solutions for liquid-cooled AI factories, next-gen Direct Liquid Cooling DLC-2 reducing electricity costs by up to 40%
- Strategic shift: Expanded focus on liquid cooling technologies and integrated rack-scale AI solutions to improve power efficiency and total cost of ownership
- Quantitative metric: R&D organization grew to over 3,200 employees as of June 30, 2025, emphasizing accelerated innovation and rapid product introduction
- Noteworthy fact: Added new manufacturing facility in Malaysia during fiscal 2025 to expand global capacity alongside existing US, Taiwan, Netherlands sites
Management Discussion & Analysis
- Revenue $21,972M, up 46.6% YoY from $14,989M driven by GPU servers and rack-scale solutions growth
- Gross margin 11.1% vs 13.8% YoY due to competitive pricing, product mix shift, higher manufacturing costs
- Best segment: Server and storage systems $21,312M up 50.2% YoY; worst: Subsystems/accessories $660M down 17.9%
- Net income $1,048.9M down from $1,152.7M despite sales growth; operating margin 5.7% vs 8.1% prior year
- Operating expenses +38.4% due to higher headcount and compensation; no explicit capex or buyback amounts disclosed
- Management expects continued AI/datacenter growth, focusing on Total IT Solutions and expanding sales channels as key risks include macroeconomic and supply chain factors
Risk Factors
- Risk from Sarbanes-Oxley Act Section 404 material weaknesses, impairing timely and accurate financial reporting as of June 30, 2025
- Geopolitical exposure with significant operations and credit lines in Taiwan, subject to regional economic and policy risks
- Operational risk due to reliance on limited contract manufacturers Ablecom and Compuware for manufacturing and inventory warehousing
- Market disruption risk from AI industry demands requiring continuous innovation and rapid adaptation to evolving technology and standards
- Financial risk from $3.0 billion aggregate principal 2028 and 2030 Convertible Notes increasing leverage and potential equity dilution
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