SMCI · Super Micro Computer, Inc.
10-Q filed 2026-05-11 period 2026-03-31
53 Caution
confidence high · source filing on SEC.gov ↗
- A federal indictment was unsealed on March 19, 2026, charging three former associates with conspiracy to commit export control violations, contributing to stock volatility and reputational risk.
- Net sales surged 122.7% YoY to $10,243.0 million for Q3 2026, driven by a 150.5% increase in AI GPU related product sales, though gross margin for the nine-month period compressed to 8.2%.
- Operating cash flow turned severely negative at $(7,556.8) million for the nine months ended March 31, 2026, due to massive working capital requirements, including a $6,669.6 million increase in inventory.
Filing Health Score pillars
Profitability 25%
85
Revenue grew 122.7% YoY in Q3 2026 driven by AI GPU platform demand, showing strong operating leverage as operating expenses only rose 33.9%, though gross margin for the nine-month period compressed to 8.2% from 11.6% due to product mix and tariff expenses (MD&A - Financial Highlights, Results of Operations).
Balance sheet 20%
55
Cash decreased significantly to $1,290.3 million from $5,169.9 million, while total debt escalated with $4,113.7 million in lines of credit/term loans and $4,659.4 million in convertible notes, though the current ratio remains healthy at 2.66 (Condensed Consolidated Balance Sheets).
Cash generation 20%
25
Operating cash flow was highly negative at $(7,556.8) million for the nine months ended March 31, 2026, compared to net income of $1,052.2 million, driven by massive working capital outflows of $6,209.8 million in accounts receivable and $6,669.6 million in inventories (Condensed Consolidated Statements of Cash Flows).
Risk flags 20%
30
Risk flags are elevated due to the unsealing of a federal indictment in March 2026 against three former associates for export control violations, ongoing scrutiny from a 2024 short-seller report, and high customer concentration with Customer A representing 32.2% of accounts receivable (Item 1A. Risk Factors, Note 1. Concentration of Credit Risk).
Mgmt signal 15%
65
Management highlights massive momentum in AI GPU platforms (up 150.5% YoY in Q3), but notes a strategic shift away from other product categories (down 34.9% over nine months) and warns of rising tariff expenses and inventory write-downs (MD&A - Results of Operations).
Key metrics (Three and nine months ended March 31, 2026)
net income: $483,387 thousand (three months ended March 31, 2026)
cash and equivalents: $1,290,324 thousand (as of March 31, 2026)
total debt: $8,773,101 thousand (comprising $2,095,069 thousand current debt, $2,018,675 thousand non-current debt, and $4,659,357 thousand convertible notes as of March 31, 2026)
shares outstanding: 601,378 thousand (as of March 31, 2026)
revenue: $10,243,014 thousand (three months ended March 31, 2026)
period: Three and nine months ended March 31, 2026
operating cash flow: $(7,556,847) thousand (nine months ended March 31, 2026)
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.