0001451809-26-000041
SEC filingRevenue surged 88% YoY to $113.6M driven by AI/datacenter demand, with gross margin expanding 8.7pp to 59.0%.
For the three months ended March 31, 2026, SiTime reported revenue of $113.6 million, an 88% increase from $60.3 million in the same period last year. The surge was driven by strong demand for precision timing solutions in AI and datacenter applications, coupled with higher average selling prices due to product mix and increased sales volume. Gross profit more than doubled to $67.0 million (up 121%), yielding a gross margin of 59.0% compared to 50.3% in the prior year. The margin expansion was attributed to revenue leverage (+4.9pp), favorable product mix (+3.1pp), and lower stock-based compensation cost (+0.6pp). Operating expenses rose 36% to $79.3 million, reflecting higher R&D, SG&A, and acquisition-related costs. Despite the increase, the operating loss improved significantly to $12.3 million from $28.1 million a year ago, as revenue growth outpaced expense growth. Net loss was $5.2 million, compared to a net loss in the prior year (not explicitly stated but implied by the operating loss improvement). Interest income increased 70% to $7.3 million due to a higher average investment balance from funds raised in June 2025, partially offset by lower interest rates. Other expense net was $0.2 million vs. $4,000 income, primarily due to foreign exchange losses.
The MD&A does not provide discrete segment financials. However, the company noted that revenue growth was primarily driven by AI and datacenter applications. The top three customers (distributors) accounted for 66% of revenue (vs. 64% in prior year), and the top ten end customers represented 67% (vs. 64%). The company operates in a single segment, selling precision timing solutions across multiple end markets including AI, datacenter, communications, enterprise, automotive, industrial, aerospace/defense, mobile/IoT, and consumer. The mix shift toward higher-value AI/datacenter products contributed to the gross margin improvement.
Management's forward-looking statements indicate plans to focus on oscillators, clock ICs, resonators, and timing synchronization, with an aggressive expansion in these markets. They expect continued investment in R&D and sales/marketing, and anticipate incremental costs related to the proposed acquisition of Renesas' timing business. The company believes existing cash and short-term investments ($788.7M as of March 31, 2026) along with planned debt financing (up to $900M bridge facility) will be sufficient for at least the next 12 months. No specific numerical guidance was provided for upcoming quarters.
Operating cash flow (CFO) of $31.2M significantly exceeded the net loss of $5.2M, indicating strong cash generation despite negative GAAP earnings. The primary non-cash adjustments were stock-based compensation ($30.8M) and depreciation ($12.4M). Working capital changes were mixed: accounts receivable increased by $10.0M (cash outflow), inventories rose by $10.5M, and accounts payable grew by $6.9M, resulting in a net working capital outflow of $9.5M.
Capex of $13.3M represented 43% of CFO, a moderate intensity. Investing activities were dominated by $610.8M in proceeds from held-to-maturity securities against $113.6M in purchases, netting a large inflow. Financing activities included $27.8M in tax withholdings for net share settlement and $3.9M in contingent consideration payments. No share repurchases or dividends were reported.
Overall, SiTime's cash flow profile improved sharply year-over-year, driven by lower net loss and efficient working capital management, despite ongoing investment in property and equipment.