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Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI)

Common-Size Income Statement

Super Micro Computer Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 30, 2026 Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -89.18 -88.94 -86.25 -81.99 -84.60 -84.97
Gross profit 10.82% 11.06% 13.75% 18.01% 15.40% 15.03%
Research and development -1.97 -2.90 -3.09 -4.31 -5.24 -6.31
Sales and marketing -0.90 -1.24 -1.27 -1.61 -1.73 -2.41
General and administrative -0.85 -1.22 -1.32 -1.40 -1.97 -2.83
Operating expenses -3.73% -5.36% -5.67% -7.33% -8.95% -11.54%
Income from operations 7.09% 5.70% 8.08% 10.68% 6.45% 3.48%
Other income (expense), net 0.07 -0.19 -0.04 0.05 0.16 -0.08
Interest income 0.48 0.27 0.19 0.00 0.00 0.00
Interest expense -0.50 -0.27 -0.13 -0.15 -0.12 -0.07
Income before income tax provision 7.14% 5.52% 8.10% 10.59% 6.48% 3.33%
Income tax provision -1.42 -0.71 -0.42 -1.55 -1.02 -0.19
Share of income (loss) from equity investee, net of taxes -0.01 -0.03 0.01 -0.05 0.02 0.00
Net income 5.71% 4.77% 7.69% 8.98% 5.49% 3.14%

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 financial trajectory from 2021 to 2026 is characterized by a period of margin expansion peaking in 2023, followed by a notable compression in gross profitability that is partially offset by significant operational efficiencies.

Gross Profitability Trends
Gross profit margins exhibited an upward trend in the early period, rising from 15.03% in 2021 to a peak of 18.01% in 2023. However, a reversal occurred starting in 2024, with gross profit declining to 10.82% by 2026. This contraction is directly attributed to the increase in the cost of sales, which rose from 81.99% of net sales in 2023 to 89.18% in 2026.
Operating Expense Management
A consistent and significant reduction in operating expenses as a percentage of net sales is observed throughout the entire period. Total operating expenses decreased from 11.54% in 2021 to 3.73% in 2026. This improvement is evident across all categories: research and development fell from 6.31% to 1.97%, sales and marketing declined from 2.41% to 0.90%, and general and administrative expenses dropped from 2.83% to 0.85%.
Operating and Net Income Performance
Income from operations followed a bell-shaped trajectory, increasing from 3.48% in 2021 to a peak of 10.68% in 2023, before retreating to 7.09% in 2026. Net income mirrored this pattern, reaching a maximum of 8.98% of net sales in 2023 and settling at 5.71% by 2026. The ability to maintain a positive operating margin despite falling gross profits is a direct result of the aggressive reduction in operating overhead.
Non-Operating Items and Taxation
Interest expenses show a gradual increase relative to net sales, moving from 0.07% in 2021 to 0.50% in 2026, though this is partially mitigated by a corresponding increase in interest income from 0.00% to 0.48% in the same period. The income tax provision remains volatile, fluctuating between a low of 0.19% in 2021 and a high of 1.55% in 2023, ending at 1.42% in 2026.

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