AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Customer engineering collaboration and required technical evaluation establish design-in friction. Its economic magnitude is unquantified, and claimed product superiority lacks comparative demonstration.
durability · 2/4 · Integration supports persistence within an existing design, but future wins require continued product development. No evidence establishes exceptional duration or protection across successive product generations.
customer dependency · 2/4 · Products must operate within customer systems and receive technical evaluation, creating meaningful dependence within a design. Purchase-order cancellation rights and supplier substitution limit commercial lock-in.
erosion resilience · 2/4 · Strong 2026 growth and stable gross margins show current operating resilience, and trade restrictions had no material reported impact through the August filing. Larger rivals, product-life price erosion and continuing innovation requirements remain material; the observed period does not establish resilience across a full downturn.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · A shift toward power solutions carrying higher average selling prices contributed to revenue growth. This is a favorable realized mix outcome, balanced against disclosed product-life price erosion; unchanged-product pricing is unavailable.
retention · 2/4 · Retention is assessed indirectly from design-in friction and technical collaboration. These support continuity within customer systems, but aggregate growth does not identify repeat customers, and customers retain cancellation and supplier-switching options.
margin resilience · 3/4 · First-half 2026 gross margin held at 55.3% versus 55.2%, while operating margin rose to 30.5% from 25.6% amid 37.1% revenue growth. This demonstrates strong recent margin preservation, but mix and operating leverage prevent attributing it solely to pricing or extrapolating through a downturn.
contractual freedom · 1/4 · Purchase-order sales and customers' ability to reschedule or cancel on short notice provide weak contractual protection for supplier economics. Specific MPS repricing rights are absent, so this grade assesses disclosed bargaining constraints rather than an assumed prohibition on price changes.
Predictability85
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 16.75
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 7.65
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, interestCoverageGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- currentRatioGrade
- 100.00
- Current ratio (x)
- 5.91
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 0.94
- 3-year average SBC / revenue (%)
- 8.56
- cashConversionGrade
- 66.62
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual dividends increased from $190.6 million in 2023 to $300.1 million in 2025, with 72% of three-year free cash flow returned. Cash and short-term investments reached approximately $1.414 billion at June 2026. However, inventory, equipment balances and purchase commitments increased, shares outstanding rose, and stock compensation remained material. Returns on incremental investment and current operating cash flow are not supplied.
incentive alignment · 3/4 · Actual 2025 cash incentives used pre-established operating-income metrics, and granted executive equity awards used three-year relative revenue-growth and shareholder-return conditions. These are implemented arrangements, not proposals or proof of eventual vesting. Maximum cash payouts and exclusion of stock compensation and litigation expense temper the alignment assessment; ownership evidence is missing.
execution · 3/4 · GAAP operating income increased from $481.7 million in 2023 to $728.6 million in 2025. First-half 2026 revenue grew 37.1%, accompanied by higher operating profitability. These are strong operating achievements, although execution is inferred from aggregate results rather than directly measured against product-delivery or design-win targets. Growth is concentrated in enterprise data, and financial-reporting execution suffered a restatement.
governance · 2/4 · An independent compensation committee, lead independent director and completed clawback recovery review provide concrete oversight mechanisms. A disclosed material weakness and actual restatement are adverse evidence. The financial statements nevertheless received an unqualified opinion, and the issuer reports that the corrective adjustments were non-cash and did not affect listed operating metrics. Remediation completion is not established.
Evidence
Our products typically require a highly technical sales and applications engineering effort where we assist our customers in the design and use of our products in their application.
Customers, Sales and Marketing: technical sales and applications engineering · Filed 27/02/2026
We maintain a staff of applications engineers who work directly with our customers’ engineers in the development of their systems’ electronics containing our products.
Customers, Sales and Marketing: collaboration with customer engineers · Filed 27/02/2026
Sales cycles for our products are lengthy for a number of reasons, including: • our products must be designed to operate with and into our customers’ products or systems, which usually includes an in-depth technical evaluation of our products by our customers before they place a purchase order; • delays attributable to the development of our customers’ products; and • delays attributable to commercial adoption by our end customers upon the initial release of our products in order for our customers to evaluate product performance and consumer demand.
Risk factors: design integration and technical evaluation · Filed 27/02/2026
We believe our DC to DC products are differentiated in the market, particularly with respect to their high degree of integration, high voltage operation, high load current, high switching speed, small footprint, and high energy efficiency.
Business: management's product differentiation assessment · Filed 27/02/2026
We consider our primary competitors to include Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments.
Competition: named primary competitors · Filed 27/02/2026
Results of Operations The table below sets forth the data on the Condensed Consolidated Statements of Operations as a percentage of revenue for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except percentages) Revenue $ 980,642 100.0 % $ 664,574 100.0 % $ 1,784,827 100.0 % $ 1,302,128 100.0 % Cost of revenue 439,572 44.8 298,558 44.9 798,692 44.7 582,882 44.8 Gross profit 541,070 55.2 366,016 55.1 986,135 55.3 719,246 55.2 Operating expenses: Research and development 118,618 12.1 96,266 14.5 219,184 12.4 188,493 14.5 Selling, general and administrative 118,558 12.1 104,992 15.8 221,905 12.4 197,236 15.1 Total operating expenses 237,176 24.2 201,258 30.3 441,089 24.8 385,729 29.6 Operating income 303,894 31.0 164,758 24.8 545,046 30.5 333,517 25.6 Other income, net 17,835 1.8 12,220 1.8 23,865 1.4 17,351 1.3 Income before income taxes 321,729 32.8 176,978 26.6 568,911 31.9 350,868 26.9 Income tax expense 64,431 6.6 41,969 6.3 118,387 6.7 80,807 6.2 Net income $ 257,298 26.2 % $ 135,009 20.3 % $ 450,524 25.2 % $ 270,061 20.7 % 22 Table of Contents Revenue The following table summarizes our revenue by end market for the periods presented: Three Months Ended June 30, Six Months Ended June 30, End Market 2026 % of Revenue 2025 % of Revenue 2026 % of Revenue 2025 % of Revenue (In thousands, except percentages) Enterprise Data $ 380,561 38.8 % $ 143,964 21.7 % $ 643,384 36.0 % $ 276,888 21.3 % Storage and Computing 199,830 20.4 195,320 29.4 374,224 21.0 383,831 29.5 Automotive 157,068 16.0 145,132 21.8 309,414 17.3 290,036 22.3 Communications 131,571 13.4 73,783 11.1 243,028 13.6 145,454 11.2 Consumer 56,805 5.8 59,663 9.0 111,345 6.2 116,610 8.9 Industrial 54,807 5.6 46,712 7.0 103,432 5.8 89,309 6.8 Total $ 980,642 100.0 % $ 664,574 100.0 % $ 1,784,827 100.0 % $ 1,302,128 100.0 % Revenue for the three months ended June 30, 2026 was $980.6 million, an increase of $316.1 million, or 47.6%, from $664.6 million for the three months ended June 30, 2025.
Results of Operations: margins and end-market revenue · Filed 05/08/2026
In addition, the delays inherent in lengthy sales cycles raise additional risks that customers may cancel or change their orders, particularly as our customers are exposed to economic risks in connection with global economic uncertainty and political tensions, including tariffs, or move to another supplier, in whole or in part, as well as the risks inherent in introducing new products or entering new markets.
Risk factors: customer order changes and supplier substitution · Filed 27/02/2026
Because industry practice allows customers to reschedule or cancel orders on relatively short notice, backlog is not always a good indicator of our future sales.
Risk factors: short-notice cancellation and rescheduling · Filed 27/02/2026
We compete with domestic and foreign semiconductor companies, many of which have substantially greater financial and other resources with which to pursue engineering, manufacturing, marketing, and distribution of their products, and, in some cases, may have broader product offerings that enable them to more effectively market and sell to customers and engage sales partners.
Competition risks: rival resources and broader offerings · Filed 27/02/2026
Our industry is characterized by decreasing average selling prices over the life of a product.
Competition: declining selling prices over product lives · Filed 27/02/2026
Our ability to compete effectively and to expand our business will depend on our ability to continue to recruit application and design engineers, introduce new products, and maintain the rate at which we introduce new products.
Competition risks: dependence on engineering recruitment and new products · Filed 27/02/2026
In addition, a higher product mix of power solutions, which generally carry higher average selling prices than discrete ICs, also contributed to the increase in year over year revenue.
Revenue discussion: higher-priced power-solution mix · Filed 05/08/2026
Our sales are made by purchase orders.
Risk factors: purchase-order sales model · Filed 27/02/2026
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value) (Unaudited) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,005,587 $ 1,099,302 Short-term investments 408,174 157,243 Accounts receivable, net 343,620 255,626 Inventories 675,849 564,649 Other current assets 44,156 106,982 Total current assets 2,477,386 2,183,802 Property and equipment, net 774,549 627,689 Acquisition-related intangible assets, net 8,216 8,790 Goodwill 25,944 25,944 Deferred tax assets, net 1,182,833 1,182,883 Other long-term assets 217,279 165,091 Total assets $ 4,686,207 $ 4,194,199 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 182,224 $ 138,272 Accrued compensation and related benefits 93,635 85,963 Other accrued liabilities 222,075 145,130 Total current liabilities 497,934 369,365 Income tax liabilities 75,022 75,022 Deferred tax liabilities 90,316 90,480 Other long-term liabilities 127,511 127,835 Total liabilities 790,783 662,702 Commitments and contingencies (Note 7) Stockholders’ equity: Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 49,142 and 48,709, respectively 1,033,062 936,998 Retained earnings 2,861,853 2,609,651 Accumulated other comprehensive income (loss) 509 (15,152) Total stockholders’ equity 3,895,424 3,531,497 Total liabilities and stockholders’ equity $ 4,686,207 $ 4,194,199 See accompanying notes to unaudited condensed consolidated financial statements.
Condensed Consolidated Balance Sheets: liquidity, inventory, equipment and shares · Filed 05/08/2026
As of June 30, 2026, total estimated future unconditional purchase commitments to all suppliers and other parties were $571.0 million, of which $542.1 million was due within a year.
Material cash requirements: unconditional purchase commitments · Filed 05/08/2026
The following table summarizes the cash dividends declared by our Board in the past three years (in thousands, except per-share amounts): FY 2025 ($) FY 2024 ($) FY 2023 ($) Dividend declared per share 6.24 5.00 4.00 Total amount 300,117 242,459 190,642 Overall, we have returned 72% of free cash flows to our stockholders through our cash dividend and stock repurchase programs in the past three years.
Cash Dividends and Stock Repurchases: actual distributions and free-cash-flow return · Filed 30/04/2026
Stock-Based Compensation Expense The Company recognized stock-based compensation expense as follows for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Cost of revenue $ 1,764 $ 1,913 $ 3,238 $ 3,586 Research and development (“R&D”) 12,483 12,469 23,758 24,147 Selling, general and administrative (“SG&A”) 38,937 45,716 67,286 85,171 Total stock-based compensation expense $ 53,184 $ 60,098 $ 94,282 $ 112,904 Tax benefit related to stock-based compensation (1) $ 606 $ 703 $ 1,364 $ 1,163 ____________________________ (1)Amount reflects the tax benefit related to stock-based compensation recorded for equity awards that are expected to generate tax deductions when they vest in future periods.
Stock-Based Compensation Expense: recognized expense · Filed 05/08/2026
In 2025, 100% of the annual cash incentives earned by the NEOs continued to be tied to specific, pre-established non-GAAP operating income metrics, and 100% of the total equity awards (in the form of performance-based RSUs (“PSUs”)) granted to our NEOs were tied to the following performance conditions over a three-year performance period: (a) achievement of an average revenue growth rate as measured against the analog industry’s average revenue growth rate, and (b) TSR performance relative to the TSR of our industry peers.
Executive compensation: actual 2025 incentive conditions · Filed 30/04/2026
For 2025, we achieved non-GAAP operating income of $989.4 million (see Annexure A), which resulted in a payout of 400% of the target bonus for each NEO.
Analysis of 2025 Compensation Elements: achieved metric and cash payout · Filed 30/04/2026
Non-GAAP operating income represents GAAP operating income, excluding stock-based compensation and related expense, deferred compensation expense/income, amortization of acquisition-related intangible assets and litigation expense.
Compensation: exclusions from non-GAAP operating income · Filed 30/04/2026
BY ORDER OF THE BOARD OF DIRECTORS Dated: April 30, 2026 Saria Tseng Executive Vice President, Strategic Corporate Development, General Counsel and Corporate Secretary 55 Table of Contents Annexure A RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (1) (in thousands, except per-share amounts) FY 2025 FY 2024 FY 2023 FY 2022 FY 2021 GAAP operating income $ 728,636 $ 539,358 $ 481,736 $ 526,785 $ 262,417 Stock-based compensation and related expenses 241,841 213,209 149,711 160,992 123,479 Amortization of acquisition-related intangible assets 1,280 1,303 132 132 44 Deferred compensation plan expense (income), net 10,617 10,267 9,561 (7,011 ) 5,124 Non-GAAP operating income 982,374 764,137 641,140 680,898 391,064 Litigation expense 6,999 3,995 6,891 8,001 9,225 Non-GAAP operating income used in short-term cash incentive plan $ 989,373 $ 768,132 $ 648,031 $ 688,899 $ 400,289 GAAP net income (2)(3) $ 621,483 $ 1,592,058 $ 427,374 $ 437,672 $ 242,023 Stock-based compensation and related expenses 241,841 213,209 149,711 160,992 123,479 Amortization of acquisition-related intangible assets 1,280 1,303 132 132 44 Deferred compensation plan expense (income), net 585 867 1,055 (411 ) 561 Tax effect (6,755 ) (26,922 ) (3,625 ) 1,559 (9,434 ) Recognition of a tax benefit granted to a foreign subsidiary (2)(3) - (1,090,760 ) - - - Non-GAAP net income $ 858,434 $ 689,755 $ 574,647 $ 599,944 $ 356,673 GAAP net income per share - diluted (2)(3) $ 12.86 $ 32.60 $ 8.76 $ 9.05 $ 5.05 Non-GAAP net income per share - diluted $ 17.77 $ 14.12 $ 11.78 $ 12.41 $ 7.45 Shares used in the calculation of diluted net income per share 48,309 48,835 48,771 48,358 47,889 (1) These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
Annexure A: historical GAAP and non-GAAP operating results · Filed 30/04/2026
This material weakness was considered in determining the nature, timing and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and this report does not affect our report dated February 27, 2026, which expressed an unqualified opinion thereon.
Auditor report: material weakness and unqualified financial-statement opinion · Filed 27/02/2026
(3) In February 2026, we restated our 2024 GAAP income tax benefit, net, GAAP net income and GAAP diluted net income per share in our 2025 Annual Report.
Annexure A: February 2026 restatement of 2024 tax benefit and earnings · Filed 30/04/2026
The Board has currently determined that it is in the best interests of MPS and its stockholders to have Michael Hsing, our President and Chief Executive Officer, serve as Chairman, coupled with an active Lead Independent Director.
Board leadership: combined chairman and CEO with lead independent director · Filed 30/04/2026
The Roles of the Compensation Committee and Our Officers in Setting Compensation The Compensation Committee, which comprises solely independent directors, has primary responsibility for overseeing the design, development and implementation of the compensation program for our CEO and other NEOs.
Compensation oversight: independent compensation committee · Filed 30/04/2026
53 Table of Contents Recovery Analysis Following the restatement and the filing of the 2025 Annual Report, the Compensation Committee conducted a recovery analysis under our Compensation Clawback Policy, which was adopted pursuant to SEC Rule 10D-1 and NASDAQ listing standards.
Recovery Analysis: completed clawback review following restatement · Filed 30/04/2026
The error and corrective adjustments were non-cash in nature, and they did not impact key metrics used by MPS in managing operations, such as revenue, gross margin, operating expenses, non-GAAP net income and non-GAAP diluted net income per share.
Restatement discussion: non-cash adjustments and unaffected operating metrics · Filed 30/04/2026
For the three months ended June 30, 2026 and through the date we filed this Quarterly Report on Form 10-Q, no restrictions or requirements have had a material impact on our revenue and operations.
Macroeconomic Conditions and Regulations: actual trade-restriction impact through filing · Filed 05/08/2026
