MPWR · 10-Q · 2026Q2 · Full report

Operating Expense Trends

MONOLITHIC POWER SYSTEMS, INC. · 2026-08-05 · Importance 46 · Surprise 22 · In source text

Second-quarter SG&A expense increased $13.6 million year over year to $118.6 million, driven by $11.5 million of higher cash compensation and benefits and $5.7 million of higher legal expenses, partly offset by a $6.8 million reduction in stock-based compensation. Six-month SG&A increased $24.7 million to $221.9 million, including $21.4 million of higher cash compensation, $10.1 million of higher legal expenses, $5.1 million of higher employer payroll taxes on vested equity awards, and $1.6 million of higher software licensing fees. Total operating expenses increased 17.2% for the quarter to $237.2 million and 14.3% for six months to $441.1 million, while operating expense ratios fell to 24.2% and 24.8%, respectively. Operating income increased to $303.9 million, or 31.0% of revenue, in the quarter and $545.0 million, or 30.5%, for six months, versus 24.8% and 25.6% in the prior-year periods.

Key facts

• SG&A expenses for the three months ended June 30, 2026: $118,558 thousand (12.1% of revenue), an increase of $13.6 million from Q2 2025 primarily driven by $11.5 million increase in cash-based compensation and benefits and $5.7 million increase in legal expenses. source
• Other income, net for the three months ended June 30, 2026: $17,835 thousand, increase primarily due to $3.4 million related to changes in the value of the deferred compensation plan investments. source
• Other income, net for the six months ended June 30, 2026: $23,865 thousand, increase primarily due to $4.5 million increase in interest income and $3.1 million related to changes in the value of the deferred compensation plan investments, partially offset by $2.4 million decrease in amortization of discount on available-for-sale securities. source

Impact estimates