Super Micro Computer, Inc. has recently released its 10-Q report, revealing a net income of $168.3 million for the three months ended September 30, 2025, down from $424.3 million in the same period in 2024. The company, which develops and sells server and storage solutions, reported a 15.5% decrease in net sales, amounting to $5,017.8 million for the same period.
The company's gross margin decreased to 9.3% in the three months ended September 30, 2025, from 13.1% in the same period in 2024. This was primarily due to the company's strategy to offer competitive pricing to gain market share, a change in product and customer mix, and higher manufacturing-related expenses.
Operating expenses increased by 7.0% in the three months ended September 30, 2025, compared to the same period in 2024, primarily due to higher headcount and increases in salary and stock-based compensation.
Super Micro Computer, Inc. noted that the decrease in net sales was primarily due to the timing of several substantial customer orders, which were only received in late September, preventing the related GPU and SuperRack products from being shipped within the quarter. Additionally, changes in product mix and a modest reduction in average selling prices contributed to the decline in net sales of server and storage systems.
The company's net sales primarily consist of sales of server and storage solutions, including systems and related services, subsystems, and accessories. The key factors that impact net sales of the company's server and storage systems are the number of servers and racks sold, as well as the average selling prices per server or rack. For subsystems and accessories, the main drivers of net sales are the number of units shipped and the average selling price per unit.
Super Micro Computer, Inc. also highlighted that macroeconomic factors, including inflation, interest rate changes, capital market volatility, global supply chain constraints, tariffs, and global economic and geopolitical developments, have had and may continue to have direct and indirect impacts on its business and results of operations, particularly demand for its products and net sales. The company mentioned that while difficult to isolate and quantify, these macroeconomic factors have also impacted and may continue to impact its supply chain and manufacturing costs, employee wages, costs for capital equipment, and the value of its investments.
Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California. As a result of these announcements, the company's shares have moved -1.43% on the market, and are now trading at a price of $39.76. For more information, read the company's full 10-Q submission here.
