Silicon Movement Publicizes Outcomes for the Fourth Quarter and 12 months Ended December 31, 2025 – Worldwide Dispatch

Enterprise Highlights

• Fourth quarter of 2025 gross sales elevated 15% Q/Q and elevated 46% Y/Y
  • SSD controller gross sales: 4Q of 2025 elevated 25% to 30% Q/Q and elevated 35% to 40% Y/Y
  • eMMC+UFS controller gross sales: 4Q of 2025 elevated 0% to five% Q/Q and elevated 50% to 55% Y/Y
  • SSD options gross sales: 4Q of 2025 elevated 125% to 130% Q/Q and elevated 110% to 115% Y/Y
• Introduced annual money dividend of $2.00 per American Depositary Share (“ADS”)

Monetary Highlights

*  Please see reconciliations of U.S. Usually Accepted Accounting Rules (“GAAP”) to all non-GAAP monetary measures talked about herein in direction of the top of this information launch.

TAIPEI, Taiwan and MILPITAS, Calif., Feb. 04, 2026 (GLOBE NEWSWIRE) — Silicon Movement Know-how Company (NasdaqGS: SIMO) (“Silicon Movement,” the “Firm,” “we” or comparable phrases) right this moment introduced its monetary outcomes for the fourth quarter and yr ended December 31, 2025. For the fourth quarter of 2025, web gross sales (GAAP) elevated sequentially to $278.5 million from $242.0 million within the third quarter of 2025. Web earnings (GAAP) additionally elevated sequentially to $47.7 million, or $1.41 per diluted American depositary share (“ADS”) (GAAP), from web earnings (GAAP) of $39.1 million, or $1.16 per diluted ADS (GAAP), within the third quarter of 2025.

For the fourth quarter of 2025, web earnings (non-GAAP) elevated sequentially to $42.7 million, or $1.26 per diluted ADS (non-GAAP), from web earnings (non-GAAP) of $33.8 million, or $1.00 per diluted ADS (non-GAAP), within the third quarter of 2025.

All monetary numbers are in U.S. {dollars} until in any other case famous.

Fourth Quarter of 2025 Evaluation

“Our fourth quarter of 2025 outperformance was pushed by energy throughout all our enterprise traces as new merchandise continued to ramp, and we additional prolonged our market share beneficial properties in eMMC/UFS and consumer SSDs,” acknowledged Wallace Kou, President and CEO of Silicon Movement. “Our consumer SSD controller gross sales grew over 25% quarter-over-quarter within the fourth quarter of 2025, primarily pushed by our industry-leading main 8-channel and our newly launched 4-channel PCIe5 controllers. Our eMMC and UFS merchandise elevated once more sequentially in the course of the fourth quarter of 2025, primarily pushed by market share beneficial properties. We additionally skilled robust progress in our automotive phase primarily pushed by elevated product diversification and new buyer ramps. The fourth quarter of 2025 additionally marked the preliminary gross sales of our new boot drive storage merchandise to a number one GPU maker, certainly one of our new progress areas in our quickly evolving enterprise enterprise. We’re happy by the early progress we’re seeing with our new merchandise and the diversification technique we’ve set in movement over the previous couple of years. Our momentum in our core eMMC/UFS and consumer SSD controllers continues to be robust as we safe new wins that additional our market share beneficial properties and our new initiatives in enterprise and automotive are starting to take maintain and can symbolize vital progress drivers long-term for the Firm.”

Key Monetary Outcomes

Different Monetary Info

In the course of the fourth quarter of 2025, we had $7.8 million of capital expenditures, together with $6.2 million for the routine purchases of testing tools, software program, design instruments and different objects, and $1.6 million for constructing and constructing enhancements in Hsinchu, Taiwan.

Returning Worth to Shareholders
On October 27, 2025, our Board of Administrators declared a $2.00 per ADS annual money dividend to be paid in quarterly installments of $0.50 per ADS. On November 26, 2025, we paid $16.7 million to Silicon Movement shareholders as the primary installment of the annual money dividend. The second installment of our annual dividend shall be paid on February 26, 2026 to all shareholders of file on February 11, 2026.

Enterprise Outlook
“As we enter 2026, our momentum in growing market share, rising our buyer and product portfolio and increasing into new markets has by no means been stronger. These new merchandise and alternatives throughout all our enterprise traces are anticipated to ramp in 2026, driving income acceleration and profitability progress for the Firm. Based mostly on our present backlog for the primary quarter of 2026 and the full-year, we anticipate a considerably stronger-than-seasonal begin, with sustained and regular progress all year long,” acknowledged Mr. Kou.

For the primary quarter of 2026, administration expects:

* Projected gross margin (non-GAAP) excludes $0.3 million of stock-based compensation.
** Projected working margin (non-GAAP) excludes $10.8 million to $11.8 million of stock-based compensation and dispute associated bills.

Convention Name & Webcast:

The Firm’s administration crew will conduct a convention name at 8:00 am Jap Time on February 4, 2026.

Convention Name Particulars
Contributors should register prematurely to hitch the convention name utilizing the hyperlink offered under. Convention entry info (together with dial-in info and a novel entry PIN) shall be offered within the e-mail acquired upon registration.

Participant On-line Registration:
https://register-conf.media-server.com/register/BI240b206301124437a300f3cdda6f35b8

A webcast of the decision shall be obtainable on the Firm’s web site at www.siliconmotion.com.

Dialogue of Non-GAAP Monetary Measures

To complement the Firm’s unaudited consolidated monetary outcomes calculated in accordance with GAAP, the Firm discloses sure non-GAAP monetary measures that exclude stock-based compensation and different objects, together with gross revenue (non-GAAP), gross margin (non-GAAP), working bills (non-GAAP), working revenue (non-GAAP), working margin (non-GAAP), non-operating earnings (expense) (non-GAAP), web earnings (non-GAAP), and earnings per diluted ADS (non-GAAP). These non-GAAP measures are usually not in accordance with or an alternative choice to GAAP and could also be completely different from similarly-titled non-GAAP measures utilized by different corporations. We imagine that these non-GAAP measures have limitations in that they don’t mirror all of the quantities related to the Firm’s outcomes of operations as decided in accordance with GAAP and that these measures ought to solely be used to judge the Firm’s outcomes of operations along side the corresponding GAAP measures. The presentation of this extra info isn’t meant to be thought of in isolation or as an alternative to essentially the most straight comparable GAAP measure. We compensate for the restrictions of our non-GAAP monetary measures by relying upon GAAP outcomes to realize an entire image of our efficiency.

Our non-GAAP monetary measures are offered to boost the consumer’s general understanding of our present monetary efficiency and our prospects for the long run. Particularly, we imagine the non-GAAP outcomes present helpful info to each administration and buyers as these non-GAAP outcomes exclude sure bills, beneficial properties and losses that we imagine are usually not indicative of our core working outcomes and since they’re per the monetary fashions and estimates printed by many analysts who comply with the Firm. We use non-GAAP measures to judge the working efficiency of our enterprise, for comparability with our forecasts, and for benchmarking our efficiency externally towards our opponents. Additionally, when evaluating potential acquisitions, we exclude the objects described under from our consideration of the goal’s efficiency and valuation. Since we discover these measures to be helpful, we imagine that our buyers profit from seeing the outcomes from administration’s perspective along with seeing our GAAP outcomes. We imagine that these non-GAAP measures, when learn along side the Firm’s GAAP financials, present helpful info to buyers by providing:

• the power to make extra significant period-to-period comparisons of the Firm’s on-going working outcomes;
• the power to higher determine developments within the Firm’s underlying enterprise and carry out associated development evaluation;
• a greater understanding of how administration plans and measures the Firm’s underlying enterprise; and
• a neater approach to evaluate the Firm’s working outcomes towards analyst monetary fashions and working outcomes of our opponents that complement their GAAP outcomes with non-GAAP monetary measures.

The next are explanations of every of the changes that we incorporate into our non-GAAP measures, in addition to the explanations for excluding every of those particular person objects in our reconciliation of those non-GAAP monetary measures:

Inventory-based compensation expense consists of non-cash prices associated to the truthful worth of restricted inventory items awarded to staff. The Firm believes that the exclusion of those non-cash prices offers for extra correct comparisons of our working outcomes to our peer corporations because of the various obtainable valuation methodologies, subjective assumptions and the number of award sorts. As well as, the Firm believes it’s helpful to buyers to grasp the particular impression of share-based compensation on its working outcomes.

Restructuring prices relate to the restructuring of our underperforming product traces, principally the write-down of NAND flash, embedded DRAM and SSD stock valuation and severance funds. 

Dispute associated bills include authorized, advisor, different charges and determination associated to the dispute.

International alternate loss (acquire) consists of translation beneficial properties and/or losses of non-US$ denominated present belongings and present liabilities, in addition to sure different steadiness sheet objects, which end result from the appreciation or depreciation of non-US$ currencies towards the US$. We don’t use monetary devices to handle the impression on our operations from adjustments in overseas alternate charges, and since our operations are topic to fluctuations in overseas alternate charges, we due to this fact exclude overseas alternate beneficial properties and losses when presenting non-GAAP monetary measures.

Realized/Unrealized loss (acquire) on investments pertains to the disposal and web change in truthful worth of long-term investments.

About Silicon Movement:
We’re the worldwide chief in supplying NAND flash controllers for strong state storage gadgets. We provide extra SSD controllers than some other firm on the earth for servers, PCs and different consumer gadgets and are the main service provider provider of eMMC and UFS embedded storage controllers utilized in smartphones, IoT gadgets and different purposes. We additionally provide custom-made high-performance hyperscale knowledge heart and specialised industrial and automotive SSD options. Our clients embody many of the NAND flash distributors, storage system module makers and main OEMs. For additional info on Silicon Movement, go to us at www.siliconmotion.com.

Ahead-Trying Statements:
This information launch comprises “forward-looking statements” throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. In some circumstances, you’ll be able to determine forward-looking statements by terminology comparable to “might,” “will,” “ought to,” “anticipate,” “intend,” “plan,” “anticipate,” “imagine,” “estimate,” “predict,” “potential,” “proceed,” or the adverse of those phrases or different comparable terminology. Though such statements are primarily based on our personal info and data from different sources we imagine to be dependable, you shouldn’t place undue reliance on them. These statements contain dangers and uncertainties, and precise market developments or our precise outcomes of operations, monetary situation or enterprise prospects might differ materially from these expressed or implied in these forward-looking statements for quite a lot of causes. Potential dangers and uncertainties embody, however are usually not restricted to the unpredictable quantity and timing of buyer orders, which aren’t fastened by contract however range on a purchase order order foundation; the lack of a number of key clients or the numerous discount, postponement, rescheduling or cancellation of orders from a number of clients; normal financial circumstances or circumstances within the semiconductor or shopper electronics markets; the impression of inflation on our enterprise and buyer’s companies and any impact this has on financial exercise within the markets during which we function; the functionalities and efficiency of our info know-how (“IT”) programs, that are topic to cybersecurity threats and which help our essential operational actions, and any breaches of our IT programs or these of our clients, suppliers, companions and suppliers of third-party licensed know-how; the results on our enterprise and our buyer’s enterprise taking into consideration the continued U.S.-China tariffs and commerce disputes; the uncertainties related to any future international or regional pandemic; the persevering with tensions between Taiwan and China, together with enhanced navy actions; decreases within the general common promoting costs of our merchandise; adjustments within the relative gross sales mixture of our merchandise; adjustments in our price of completed items; provide chain disruptions which have affected us and our {industry} in addition to different industries on a worldwide foundation; the fee, or non-payment, of money dividends sooner or later on the discretion of our Board of Administrators and any introduced deliberate will increase in such dividends; adjustments in our price of completed items; the provision, pricing, and timeliness of supply of different parts and uncooked supplies used within the merchandise we promote given the present uncooked materials provide shortages being skilled in our {industry}; our clients’ gross sales outlook, buying patterns, and stock changes primarily based on shopper calls for and normal financial circumstances; any potential impairment prices that could be incurred associated to companies beforehand acquired or divested sooner or later; our potential to efficiently develop, introduce, and promote new or enhanced merchandise in a well timed method; and the timing of latest product bulletins or introductions by us or by our opponents. For extra dialogue of those dangers and uncertainties and different elements, please see the paperwork we file occasionally with the U.S. Securities and Alternate Fee, together with our Annual Report on Kind 20-F filed with the U.S. Securities and Alternate Fee on April 30, 2025. Aside from as required underneath the securities legal guidelines, we don’t intend, and don’t undertake any obligation to, replace or revise any forward-looking statements, which apply solely as of the date of this information launch.