Executive Summary

SiTime delivered a strong Q1 2025: revenue $60.3M (+83% YoY), non-GAAP gross margin 57.4%, and non-GAAP EPS $0.26; both revenue and EPS exceeded Wall Street consensus ($54.0M revenue and $0.12 EPS), driven by AI data center demand and mobile strength . Revenue Consensus Mean=$54.0M*, Primary EPS Consensus Mean=$0.12* (Values retrieved from S&P Global).
Segment performance was broad-based: CED $29.3M (+198% YoY), Mobile/IoT/Consumer $16.9M (+64% YoY), Auto/Industrial/Defense $14.1M (+10% YoY); management expects continued strength across segments into Q2 .
Q2 2025 guidance: revenue growth +45% to +50% YoY (midpoint $64.7M), GM approximately flat vs Q1, OpEx $33.0–$33.5M, interest $3.0–$3.4M, non-GAAP EPS $0.25–$0.31; catalysts include ongoing AI infrastructure upgrades (800G shipping, 1.6T design activity, AEC adoption) .
Gross margin trajectory: near-term pressure from consumer mix and product ramps, but target for core business remains ~60% by year-end as costs/yields improve and volumes scale .
Balance sheet and cash generation solid: cash and short-term investments $398.9M, cash from operations $15.0M, capex $16.4M (capacity for new products); no debt .

What Went Well and What Went Wrong

What Went Well

CED segment tripled YoY, with consecutive quarterly strength driven by AI infrastructure upgrades, 800G modules shipping and rising 1.6T activity; “We expect the data center business to continue to grow through 2025” .
Mobile product innovation: Symphonic SiT30100 clock generator launched, integrating MEMS resonator and unlocking a cumulative $2B SAM over five years; enhances GPS accuracy and resilience for 5G/GNSS consumer and industrial use cases .
Non-GAAP profitability and execution: Q1 non-GAAP operating income $2.1M and non-GAAP EPS $0.26; DSO improved to 42 days, with $15.0M cash from operations, highlighting operating discipline alongside growth .

What Went Wrong

GAAP loss persisted: GAAP net loss -$23.9M and GAAP diluted EPS -$1.01, reflecting stock-based comp and amortization of intangibles, and elevated OpEx supporting product ramps .
Non-GAAP gross margin of 57.4% was down sequentially vs Q4’s 58.8%, pressured by consumer mix and early-stage cost/yield dynamics on new products; management reiterated actions to mitigate and reach ~60% .
Inventory rose to $82.6M and capex remained elevated ($16.4M in Q1) to support capacity for key new products; near-term absorption/dépreciation headwind to margins while ramps proceed .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$57.7	$68.1	$60.3
GAAP Gross Margin (%)	51.1%	52.6%	50.3%
Non-GAAP Gross Margin (%)	58.1%	58.8%	57.4%
GAAP EPS Diluted ($)	$(0.83)	$(0.80)	$(1.01)
Non-GAAP EPS Diluted ($)	$0.40	$0.48	$0.26

Segment revenue and mix:

Segment	Q3 2024 ($M, %)	Q4 2024 ($M, %)	Q1 2025 ($M, %)
Communications, Enterprise & Data Center (CED)	$19.7, 34%	$24.8, 37%	$29.3, 49%
Automotive, Industrial & Defense	$17.7, 31%	$20.5, 30%	$14.1, 23%
Mobile, IoT & Consumer	$20.3, 35%	$22.8, 33%	$16.9, 28%

Key KPIs:

KPI	Q3 2024	Q4 2024	Q1 2025
DSO (Days)	47	50	42
Inventory ($M)	$71.9	$76.7	$82.6
Cash + Short-term Investments ($M)	$434.8	$418.8	$398.9
Cash from Operations ($M)	$8.2	$13.6	$15.0
CapEx ($M)	$15.0	$16.0	$16.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Revenue ($M)	Q1 2025	$53–$55	Actual: $60.3	Raised/Beat
Non-GAAP EPS ($)	Q1 2025	$0.09–$0.13	Actual: $0.26	Raised/Beat
Gross Margin (%)	Q1 2025	~57%	Actual: 57.4% (non-GAAP)	Slight Beat
Revenue ($M)	Q2 2025	—	+45% to +50% YoY; midpoint $64.7	New
Non-GAAP EPS ($)	Q2 2025	—	$0.25–$0.31	New
Gross Margin (%)	Q2 2025	—	~Flat vs Q1	New
OpEx ($M)	Q2 2025	—	$33.0–$33.5	New
Interest Income ($M)	Q2 2025	—	$3.0–$3.4	New
Core Business Gross Margin Target (%)	FY 2025	~60% H2 2025	~60% by year-end, reaffirmed	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
AI/Data center upgrades (800G→1.6T), AEC	Leadership in AI timing; 800G optical modules; CED up >200% YoY; target ~60% GM in H2’25	Shipping 800G at volume; design activity for 1.6T with 20+ opportunities; strong CED demand across switches/NICs/GPUs/AECs	Strengthening
Clocking platforms (Cascade, Chorus, Symphonic)	Aura-acquired clock generators integral to AI server connectivity; path to ~$100M clocking revenue over few years	Cascade (CED), Chorus (auto), Symphonic (mobile/5G mmWave) launched; higher ASPs and longer revenue streams	Expanding
Consumer/mobile and “largest customer”	Q4: Mobile $22.8M (33% of sales); holiday season strength	Mobile $16.9M (+64% YoY); largest end customer +76% YoY; lower margin mix pressure acknowledged	Growth with margin headwind
Margins and cost/yield ramps	Sequential non-GAAP GM improvement to 58.8% (Q4); seasonal dip expected in Q1	Non-GAAP GM 57.4%; targeting ~60% by year-end via cost/yield improvements and scale	Improving trajectory
Capex and capacity builds	Q3/Q4 capex ~$15–$16M; tooling/new product ramps	Q1 capex $16.4M; FY capex mid-to-high $30Ms expected	Elevated near term, normalizing
Auto/industrial exposure and China	Auto SAM $400–$500M; multiple ADAS/EV design wins; GNSS resilience	30%–40% of auto business from China; ongoing ADAS/camera/radar/LiDAR positioning content	Stable demand

Management Commentary

“Q1 2025 was a great quarter… Revenue was 83% higher than the year ago at $60.3 million. Gross margins were 57.4%, and EPS was $0.26 per share… CED business tripled year-over-year” .
“We’re shipping in high volume in 800G today… increased design activity for 1.6T modules… over 20 opportunities… AEC continue to replace passive cables… higher bandwidth” .
“We remain committed to the gross margin target for our core business of 60%… making improvements in our costs and yields… new consumer business… puts some pressure on our gross margin rate” .
“Symphonic… first mobile clock generator… unlocks a cumulative $2 billion SAM in the next five years” .
“For Q2, we expect revenue growth of 45% to 50% year-on-year… gross margins approximately flat… OpEx $33–$33.5M… non-GAAP EPS $0.25–$0.31” .

Q&A Highlights

Largest customer trajectory: management expects continued growth, but notes consumer cyclicality and tariff uncertainty; largest end customer +76% YoY in Q1 .
Gross margin levers: cost/yield improvements on new products, operating leverage from revenue growth; consumer mix is lower-margin, but target ~60% remains .
Data center content: steady ASPs moving 800G→1.6T; growth comes from more design wins, deeper penetration, architectural changes increasing timing density (e.g., AECs, accelerator cards) .
Capex cadence: elevated near term to build capacity; FY 2025 capex expected mid-to-high $30Ms .
Multi-year growth: reaffirmed 25%–30% company growth target for 2025–2026, led by CED, with broad segment contribution .

Estimates Context

Metric	Period	Actual	Consensus	Beat/Miss
Revenue ($USD Millions)	Q1 2025	$60.3	$54.0*	Beat
Non-GAAP EPS ($)	Q1 2025	$0.26	$0.12*	Beat

Values retrieved from S&P Global.*

Post-quarter reference: Q2 2025 actual revenue $69.5M vs $64.7M consensus*; non-GAAP EPS $0.47 vs $0.28 consensus*, reflecting sustained momentum (for context) [5: N/A estimate data already above] (Values retrieved from S&P Global).

Key Takeaways for Investors

The quarter was a clean beat on both revenue and EPS, supported by CED’s triple-digit growth and strong mobile demand; the setup into Q2 is constructive with guidance implying continued YoY acceleration .
AI infrastructure upgrades (800G shipping, 1.6T design funnel) and AEC adoption are expanding timing content and design-win breadth across switches, NICs, GPUs, and modules—core drivers for multi-quarter growth .
Gross margins face near-term pressure from consumer mix and product ramp costs/depreciation, but management reiterated ~60% core business target by year-end as yields improve and scale benefits accrue .
Cash generation and liquidity are strong with $398.9M cash/ST investments and $15.0M CFO; capex will be elevated near term to build capacity, with FY spending mid-to-high $30Ms .
Segment diversification provides resilience: CED leading growth, mobile contributing with new Symphonic platform, auto/industrial steady (with notable exposure to China EV/ADAS) .
Clocking business runway: Cascade/Chorus/Symphonic platforms and Aura-integrated products point to higher ASPs and longer revenue streams; management targets ~$100M clocking revenue over the coming years .
Near-term trading implications: watch for sustained AI data center order trends and confirmation of Q2 guidance trajectory; medium-term thesis hinges on timing content expansion, margin normalization toward 60%, and clocking monetization .

Note: Non-GAAP figures exclude stock-based compensation, amortization of acquired intangibles, and acquisition-related costs; see reconciliations in the company’s press release/8-K **[1451809_0001451809-25-000086_sitm-q125x8kxexx991.htm:3]** **[1451809_a608b8d0cb364db88d21e1219a3e15af_4]**.

SITIME Corp (SITM)·Q1 2025 Earnings Summary