MPWR · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

MONOLITHIC POWER SYSTEMS, INC. · 2026-08-05 · Importance 56 · Surprise 38 · No source text

Second-quarter 2026 cost of revenue increased $141.0 million year over year to $439.6 million, primarily because of higher shipment volume and product mix. Six-month cost of revenue increased $215.8 million to $798.7 million for the same volume and mix reasons. Gross margin was 55.2% in the second quarter versus 55.1% in the prior-year quarter, and 55.3% for six months versus 55.2% in 2025. MPS attributed the revenue increase partly to a higher mix of power solutions, which generally have higher average selling prices than discrete ICs.

Key facts

• Gross profit for the three months ended June 30, 2026: $541,070 thousand (55.2% gross margin). source
• Gross profit for the three months ended June 30, 2025: $366,016 thousand (55.1% gross margin). source
• Cost of revenue for the three months ended June 30, 2026: $439,572 thousand (44.8% of revenue). source
• Cost of revenue for the three months ended June 30, 2025: $298,558 thousand (44.9% of revenue). source

Impact estimates