MP
MPWR
Sep 30, 2025
Quarter ended Sep 30, 2025 · FY2025 Q3

Monolithic Power Systems, Inc. stock research

Monolithic Power Systems (MPWR) Free Cash Flow — Quarter Ended Sep 30, 2025

Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods due to higher capital expenditure relative to revenue.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods due to higher capital expenditure relative to revenue.

  • Operating cash flow as a proportion of revenue was stable compared to the prior quarter but slightly lower than a year ago. Free cash flow margin declined sequentially and year-over-year as capital expenditure consumed a larger share of operating cash flow.
  • Revenue and operating cash flow were higher than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow was slightly higher than the prior quarter but marginally lower than the year-ago quarter, while free cash flow margin weakened in both comparisons.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$705.2M

Trailing twelve-month free cash flow.

Quarter free cash flow

$196.8M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$239.3M

Cash generated by operations before capital spending.

CapEx

$42.5M

Capital spending and related asset purchases.

FCF margin

26.7%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2024-12-31$621.7M$167.7M$64.8M$102.9M16.5%
2025-03-31$637.6M$256.4M$40.3M$216.0M33.9%
2025-06-30$664.6M$237.6M$48.1M$189.5M28.5%
2025-09-30$737.2M$239.3M$42.5M$196.8M26.7%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income109.4%Shows whether accounting earnings convert into cash.
CapEx / revenue5.8%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Revenue growth driving operating cash flow

Revenue increased from both the prior quarter and the year-ago quarter, and operating cash flow rose in tandem. This was the strongest observable driver of free cash flow, as operating cash flow remained the primary source.

Higher revenue supported a larger absolute free cash flow compared to the prior quarter, despite a lower margin.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow as a proportion of revenue was stable compared to the prior quarter but slightly lower than a year ago. Free cash flow margin declined sequentially and year-over-year as capital expenditure consumed a larger share of operating cash flow.

Revenue and operating cash flow were higher than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow was slightly higher than the prior quarter but marginally lower than the year-ago quarter, while free cash flow margin weakened in both comparisons.

Monitor the trend in capital expenditure relative to operating cash flow, as its increase has reduced free cash flow conversion.

MPWR Free Cash Flow — Quarter Ended Sep 30, 2025