Analysis of Debt
Total Debt (Carrying Amount)
Super Micro Computer Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).
The total carrying amount of debt exhibits a period of initial volatility followed by an aggressive exponential growth trajectory starting in 2024. From June 30, 2021, to June 30, 2023, total debt fluctuated, peaking at approximately $597 million in 2022 before receding to $290 million in 2023. However, a substantial shift in the capital structure occurs thereafter, with total debt escalating to $2.17 billion in 2024, $4.76 billion in 2025, and reaching $8.72 billion by June 30, 2026.
- Convertible Notes Integration
- A fundamental change in the financing strategy is observed with the introduction of convertible notes in 2024, initially valued at $1.70 billion. This instrument becomes a primary driver of the debt profile, increasing significantly to $4.65 billion in 2025 and $4.66 billion in 2026. This shift indicates a transition toward hybrid financing mechanisms to fund expansion or operational requirements.
- Lines of Credit and Term Loan Trends
- Current and non-current loans remained relatively low and volatile between 2021 and 2025. However, a massive surge is projected for 2026, with current lines of credit rising to $2.04 billion and non-current loans increasing to $2.02 billion. This represents a sharp departure from previous years and suggests a projected requirement for substantial liquidity and long-term capital injection.
- Overall Debt Composition and Scaling
- The debt structure has evolved from a modest reliance on traditional bank loans to a diversified and high-volume portfolio of convertible notes and expanded credit facilities. The total carrying amount increases nearly 89-fold from its 2021 level of $98 million to the 2026 projected level of $8.72 billion, reflecting a rapid scaling of leverage.
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Total Debt (Fair Value)
| Jun 30, 2026 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Lines of credit and term loans | 4,056,148) |
| 2029 Convertible Notes | 1,579,200) |
| 2028 Convertible Notes | 685,300) |
| 2030 Convertible Notes | 2,037,100) |
| Total lines of credit, term loans, and convertible notes (fair value) | 8,357,748) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.96 |
Based on: 10-K (reporting date: 2026-06-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on lines of credit, term loans, and convertible notes: 3.58%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.87% | 183,249) | 8,924) | |
| 4.40% | 25,022) | 1,101) | |
| 4.94% | 50,000) | 2,470) | |
| 5.68% | 2,000,000) | 113,600) | |
| 5.11% | 1,763,533) | 90,117) | |
| 2.08% | 2,616) | 54) | |
| 1.83% | 21,075) | 386) | |
| 2.03% | 242) | 5) | |
| 2.22% | 2,511) | 56) | |
| 2.22% | 4,761) | 106) | |
| 2.02% | 3,139) | 63) | |
| 3.86% | 1,709,200) | 65,975) | |
| 2.97% | 690,000) | 20,493) | |
| 0.39% | 2,264,900) | 8,833) | |
| Total | 8,720,248) | 312,183) | |
| 3.58% | |||
Based on: 10-K (reporting date: 2026-06-30).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 312,183 ÷ 8,720,248 = 3.58%