Stock Analysis on Net
Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI)

Common-Size Income Statement 
Quarterly Data

Super Micro Computer Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -90.69 -90.55 -90.43 -88.20 -86.94 -89.80 -84.48 -84.60 -83.31 -82.99 -82.36 -81.29 -81.24 -82.43 -84.45 -86.03 -86.62 -86.39 -86.27 -83.61 -82.96 -86.22 -82.73 -84.11 -83.63
Gross profit 9.31% 9.45% 9.57% 11.80% 13.06% 10.20% 15.52% 15.40% 16.69% 17.01% 17.64% 18.71% 18.76% 17.57% 15.55% 13.97% 13.38% 13.61% 13.73% 16.39% 17.04% 13.78% 17.27% 15.89% 16.37%
Research and development -3.45 -3.18 -3.54 -2.79 -2.23 -2.38 -3.02 -2.97 -5.24 -3.88 -6.04 -3.92 -4.01 -4.33 -5.23 -5.58 -6.31 -5.51 -6.46 -6.35 -7.19 -7.45 -6.42 -6.38 -6.20
Sales and marketing -0.96 -1.12 -1.30 -1.40 -1.16 -1.05 -1.29 -1.28 -1.76 -1.46 -1.97 -1.58 -1.59 -1.48 -1.65 -1.87 -2.09 -2.14 -2.44 -2.50 -2.66 -2.35 -2.83 -2.52 -2.52
General and administrative -1.27 -1.18 -1.53 -1.12 -1.10 -1.38 -1.38 -1.01 -1.55 -1.29 -1.91 -1.28 -1.29 -1.66 -2.05 -2.15 -2.15 -2.31 -2.93 -3.04 -3.20 -2.93 -6.00 -3.79 -3.54
Operating expenses -5.68% -5.48% -6.38% -5.31% -4.49% -4.81% -5.69% -5.26% -8.55% -6.63% -9.92% -6.78% -6.88% -7.47% -8.93% -9.61% -10.56% -9.96% -11.83% -11.89% -13.05% -12.73% -15.25% -12.70% -12.26%
Income from operations 3.63% 3.97% 3.19% 6.49% 8.58% 5.39% 9.83% 10.14% 8.14% 10.38% 7.72% 11.93% 11.88% 10.10% 6.62% 4.35% 2.82% 3.66% 1.90% 4.50% 3.99% 1.05% 2.01% 3.19% 4.11%
Other income (expense), net 1.02 0.29 -0.40 0.23 0.12 0.26 0.26 -0.22 0.31 0.09 -0.01 -0.35 0.43 0.24 0.34 -0.05 0.00 -0.14 0.23 -0.31 -0.11 -0.08 0.12 -0.05 0.20
Interest expense -0.50 -0.39 -0.29 -0.12 -0.29 -0.06 -0.16 -0.22 -0.09 -0.16 -0.10 -0.10 -0.21 -0.18 -0.11 -0.10 -0.08 -0.06 -0.07 -0.07 -0.09 -0.07 -0.07 -0.06 -0.07
Income before income tax provision 4.16% 3.87% 2.50% 6.61% 8.41% 5.59% 9.92% 9.70% 8.36% 10.31% 7.61% 11.48% 12.11% 10.17% 6.85% 4.20% 2.75% 3.46% 2.06% 4.13% 3.80% 0.91% 2.07% 3.08% 4.24%
Income tax (provision) benefit -0.80 -0.34 -0.13 -1.00 -1.26 -0.03 0.52 -1.68 -0.95 -1.43 -0.85 -1.64 -2.10 -1.58 -1.19 -0.65 -0.32 0.15 0.03 -0.62 -0.48 0.77 0.12 -0.24 -1.07
Share of income (loss) from equity investee, net of taxes 0.00 -0.14 -0.01 0.04 0.00 -0.01 0.01 0.06 0.00 -0.02 -0.08 -0.07 -0.05 0.02 0.02 0.02 0.04 0.05 -0.03 -0.18 0.17 0.39 -0.14 -0.12 0.13
Net income 3.35% 3.39% 2.36% 5.65% 7.15% 5.55% 10.45% 8.08% 7.41% 8.86% 6.69% 9.77% 9.96% 8.61% 5.68% 3.58% 2.46% 3.66% 2.06% 3.33% 3.49% 2.06% 2.05% 2.72% 3.29%

Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).

Gross Profit Margin
The gross profit margin shows variability over the analyzed periods, generally fluctuating between approximately 10% and 19%. Initial quarters indicate margins near 16%, followed by a decline during mid-2020, falling to around 13-14%. Subsequently, there is a notable improvement reaching a peak above 18% in late 2022, before experiencing a gradual decrease again through 2023 and into 2024, reaching just above 9% by the latest quarter. This trend suggests episodic pressures on cost of sales impacting profitability at the gross level.
Cost of Sales
Cost of sales as a percentage of net sales remains the dominant factor affecting gross profit, with values typically ranging from about 81% up to over 90%. A discernible increase in cost intensity occurs toward the later periods, particularly from 2023 onwards, peaking near 90% in the most recent quarters. This rising cost burden negatively influences gross margins and overall profitability.
Operating Expenses
Operating expenses relative to net sales display a declining trend over time. Earlier quarters show operating expenses near or above 12%, including research and development (R&D), sales and marketing, and general and administrative (G&A) expenses. By contrast, the more recent quarters demonstrate a progressive reduction with expenses dropping below 6% at times, indicating tightening control or efficiency gains in operating spending.
Research and Development (R&D) Expenses
R&D expenses as a percentage of sales fluctuate, but overall decrease across the timeline. From an initial range around 6-7%, there is a consistent downward movement, reaching lows near 2-3% in later periods. This could reflect strategic shifts in innovation investments or resource allocation adjustments.
Sales and Marketing Expenses
Sales and marketing expenses steadily decline as a percentage of net sales, starting from approximately 2.5-2.8% in earlier periods to under 1% by the most recent data points. The reduction suggests possible efforts to streamline marketing expenditures or changing market conditions requiring less promotional outlay.
General and Administrative Expenses
G&A costs also show a downward trend, decreasing from nearly 3-6% at certain points in earlier quarters to close to or below 1% in later quarters. This consistent reduction implies ongoing cost containment measures or organizational efficiencies.
Income from Operations
Income from operations exhibits considerable variability, initially ranging between 1-4% with some quarters showing improvements up to approximately 12%. Despite fluctuations, the later periods maintain a general operating profitability exceeding 3%, with some quarters nearing or exceeding 10%, indicating improved operational control possibly aided by reduced operating costs.
Other Income (Expense), Net
Other income and expenses are relatively minor and fluctuate around the zero line, with some slight positive and negative swings. This line item does not significantly impact profitability trends but occasionally contributes marginally positively or negatively.
Interest Expense
Interest expense remains low as a percentage of net sales, generally below 0.5%, with slight variability but no notable trend upwards or downwards. The expense size suggests limited impact of financing costs on overall profitability.
Income Before Tax
Income before income tax follows a pattern similar to operating income, oscillating between about 1% and 12%. The periods of improved operating income see parallel increases in pretax profit, with some recent quarters showing stronger performance near double digits, reflecting operational gains mitigated somewhat by other factors.
Income Tax Provision
The income tax provision as a percentage of net sales fluctuates disproportionately, at times being a provision (negative impact), and occasionally showing benefit (positive impact). This variability suggests fluctuating tax rates, credits, or deferred tax effects affecting net results.
Net Income
Net income mirrors the overall pattern of operational and pretax income. Margins generally range from just above 2% to nearly 10%, with peaks in late 2021 and into 2022, followed by a decrease toward mid-2023, and some recovery toward 2024. The fluctuations in net income percentage reflect combined effects of operating efficiency changes, gross margin pressures, and variable tax impacts.
Summary
Overall, the financial data reveal a company facing varying cost pressures that impact gross margins, alongside sustained efforts to reduce operating expenses. The reduction in operating expenses, particularly R&D, sales and marketing, and administrative costs, has supported improved operational profitability despite rising cost of sales percentages in recent quarters. Profitability trends indicate resilience with income from operations and net income margins recovering periodically after troughs. Tax impacts are variable and contribute to fluctuations in net income margins. Continued attention to cost management appears critical amid pressures on gross marginal profitability.