MPWR · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

MONOLITHIC POWER SYSTEMS, INC. · 2026-08-05 · Importance 69 · Surprise 64

Second-quarter income tax expense increased to $64.4 million from $42.0 million, while the effective tax rate decreased to 20.0% from 23.7%. Six-month tax expense increased to $118.4 million from $80.8 million, while the effective rate declined to 20.8% from 23.0%. The rate reductions were primarily caused by higher non-deductible stock-based compensation in the 2025 periods than in 2026. The six-month rate reduction increased the portion of $568.9 million of pretax income retained after taxes relative to the prior-year period.

Key facts

• Income tax expense for the three months ended June 30, 2026: $64,431 thousand, effective tax rate 20.0%. source
• Income tax expense for the three months ended June 30, 2025: $41,969 thousand, effective tax rate 23.7%. source