Strong cash conversion is evidenced by an OCF/NI ratio frequently exceeding 1.30, supporting a robust liquidity buffer of $1.1 billion in cash.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 832.07M | 838.2M | 788.41M | 638.21M | 246.67M | 320.01M | 267.8M | 216.3M | 141.45M | 133.82M | 107.79M | 69.74M | 74.13M | 60.69M | 24.91M | 43.69M | 48.49M | 31.76M | 39.59M | 24.34M | 11.82M | 17.21M | 3.11M | -2.95M | -2.35M |
| Operating CF Margin % | - | 30.04% | 35.72% | 35.05% | 13.75% | 26.5% | 31.71% | 34.45% | 24.29% | 28.42% | 27.73% | 20.94% | 26.24% | 25.49% | 11.65% | 22.23% | 22.16% | 19.25% | 24.66% | 18.17% | 11.25% | 17.36% | 6.54% | -12.2% | -19.28% |
| Operating CF Growth % | 32% | 6.32% | 23.53% | 158.73% | -22.92% | 19.49% | 23.81% | 52.92% | 5.7% | 24.15% | 54.56% | -5.93% | 22.16% | 143.6% | -42.97% | -9.92% | 52.67% | -19.77% | 62.63% | 105.97% | -31.33% | 452.69% | 205.46% | -25.5% | - |
| Net Income | 675.36M | 621.48M | 1.79B | 427.37M | 437.67M | 242.02M | 164.38M | 108.84M | 105.27M | 65.2M | 52.72M | 35.17M | 35.49M | 22.9M | 15.76M | 13.3M | 29.56M | 19.67M | 24.23M | 9.29M | -2.86M | 5.11M | -4.45M | -3.04M | -3.24M |
| Depreciation & Amortization | 56.17M | 52.51M | 36.43M | 40.17M | 37.11M | 28.7M | 19.19M | 14.87M | 12.31M | 16.1M | 14.67M | 13.78M | 13.13M | 12.16M | 9.33M | 8.73M | 8.02M | 6.57M | 5.72M | 4.18M | 14.25M | 7.1M | 13.46M | 4.07M | 809.11K |
| Stock-Based Compensation | -19.73M | 227.49M | 205.64M | 149.71M | 160.99M | 123.48M | 85.55M | 78.7M | 60.61M | 52.62M | 44.99M | 41.56M | 33.45M | 20.7M | 18.65M | 13.13M | 16.81M | 14.61M | 13.16M | 11.23M | 11.52M | 5.43M | 12.35B | 0 | 0 |
| Deferred Taxes | 31.11M | 39.69M | -1.3B | 5.87M | -13.22M | -2.77M | -1.63M | -577K | -843K | -15.24M | -5K | 42K | 17K | -81K | -8K | 1.55M | -56K | -84K | 710K | 2.05M | 1.92M | -1.64M | -1.46M | 0 | 0 |
| Other Non-Cash Items | 226.49M | -14.87M | -29.52M | -15.23M | 11.07M | 221K | -2.69M | -3.34M | 1.63M | -558K | -1.65M | -8.18M | 86K | 474K | 2.44M | 382K | 2.78M | 2.11M | 1.35M | 1.04M | -10.88M | -4.07M | -12.35B | 0 | 4.37K |
| Working Capital Changes | -137.33M | -88.11M | 92.07M | 30.32M | -386.96M | -71.64M | 3M | 17.81M | -37.52M | 15.7M | -2.95M | -12.65M | -8.05M | 4.53M | -21.25M | 6.59M | -8.62M | -11.12M | -5.58M | -3.45M | -2.14M | 5.28M | -4.49M | -3.99M | 71.2K |
| Change in Receivables | -87.24M | -83.07M | 7.33M | 2.88M | -77.9M | -37.98M | -14.12M | 2.51M | -18.08M | -3.79M | -3.42M | -5.2M | -1.87M | -4.35M | -4.29M | 3.25M | -2.83M | -6.41M | -876K | 917K | 381K | -5.55M | 570.44M | 0 | 0 |
| Change in Inventory | -164.4M | -145.08M | -35.22M | 63.58M | -188.07M | -102.32M | -29.5M | 8.87M | -37.06M | -27.8M | -8.32M | -22.21M | -1.14M | -7.61M | -12M | 5.7M | -6.18M | -737K | -1.36M | -10.75M | -572K | -766K | -3.8M | -331.66K | -700.5K |
| Change in Payables | 49.67M | 41.24M | 23.17M | 4.8M | -11.24M | 32.93M | 10.41M | 3.05M | 871K | 3.08M | 5.48M | 147K | 1.63M | 1.44M | 754K | -957K | 1.16M | 2.7M | -1.38M | 208K | -687K | 3.15M | 1.6B | 0 | 0 |
| Cash from Investing | -112.11M | -157.27M | 223.05M | -178.73M | -12.51M | -378.89M | -39.18M | -167.11M | -14.74M | -134.06M | -55.73M | -57.2M | -9.37M | -54.32M | -26.84M | 36.22M | -33.75M | -82.13M | -29.61M | -13.95M | 6.61M | -26.59M | -18.68M | -2.65M | -1.07M |
| Capital Expenditures | -202.92M | -174.94M | -146.12M | -57.58M | -58.84M | -95.24M | -55.64M | -96.79M | -22.53M | -65.77M | -37.11M | -16.02M | -9.51M | -15.76M | -21.06M | -21.02M | -22.78M | -10.26M | -5.23M | -6.65M | -7.47M | -1.88M | -3.22M | -1.63M | -1.07M |
| CapEx % of Revenue | 6.86% | 6.27% | 6.62% | 3.16% | 3.28% | 7.89% | 6.59% | 15.41% | 3.87% | 13.97% | 9.55% | 4.81% | 3.37% | 6.62% | 9.85% | 10.7% | 10.41% | 6.22% | 3.26% | 4.96% | 7.12% | 1.89% | 6.76% | 6.75% | 8.8% |
| Acquisitions | 0 | 0 | -33.28M | 0 | 0 | -768K | 29K | 9.27M | 0 | 3K | 0 | 340K | -11.59M | 88K | 13K | 19K | 0 | -310K | 0 | 58K | 1K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -531K | -4.48M | -22.98M | -6.85M | -16.49M | -1.75M | -2.7M | -3.08M | -4.15M | -5.26M | -5.05M | -8.04M | -5.33M | -617K | 20K | -19K | -19K | 7.68M | 8.57M | -7.35M | 2.94M | -2.9M | 34.2K | 0 | 0 |
| Cash from Financing | -305.21M | -285.86M | -872.23M | -183.72M | -128.78M | -90.21M | -71.56M | -48.05M | -34.56M | -31.32M | -28.13M | -46.65M | -39.23M | 18.85M | -19.55M | -31.98M | -14.05M | 13.62M | -9.79M | 21.76M | 7.33M | 2.71M | 35.72M | 504.58K | 15.39M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 398K | 0 | 0 | 0 | 15.39M |
| Equity Issued (Net) | -1.49M | 1.53M | -627.52M | -3.74M | 11.23M | 21.99M | 22.59M | 19.93M | 13.66M | 2.85M | 3.81M | -32.29M | -41.2M | -20.61M | 15.24M | -32M | -15.3M | 12.97M | -10.55M | 17.29M | 5.33M | 2.72M | 35.72M | 481.58K | 0 |
| Dividends Paid | -303.19M | -284.8M | -240.62M | -185.84M | -137.97M | -109.36M | -88.79M | -67.29M | -47.48M | -33.93M | -33.1M | -29.96M | -11.66M | 0 | -35.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -7.32M | -7.69M | -636.24M | -3.74M | 5.88M | 4.67M | 0 | 3.28M | 0 | 0 | 0 | -32.29M | -41.2M | -20.61M | 0 | -38.47M | -31.53M | 0 | -25.04M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -537K | -2.6M | -4.09M | 5.86M | -2.06M | -2.83M | -5.36M | -683K | -749K | -250K | 1.17M | 15.6M | 13.63M | 39.47M | 869K | 27K | 1.26M | 643K | 765K | 4.46M | 1.6M | -8K | 0 | 23K | 0 |
| Net Change in Cash | 425.67M | 407.58M | 130.76M | 272.45M | 99.34M | -145.68M | 162M | 258K | 89.94M | -29.94M | 21.84M | -35.41M | 25.05M | 26.11M | -21.27M | 48.36M | 1.29M | -36.55M | 152K | 32.3M | 25.73M | -6.93M | 20.38M | -5.09M | 11.96M |
| Free Cash Flow | 627.55M | 666.19M | 642.29M | 580.63M | 187.83M | 224.77M | 212.16M | 119.52M | 118.92M | 68.05M | 70.67M | 53.71M | 64.62M | 44.92M | 3.85M | 22.66M | 25.71M | 21.5M | 34.36M | 17.69M | 4.34M | 15.33M | -104.62K | -4.59M | -3.43M |
| FCF Margin % | 21.22% | 23.87% | 29.1% | 31.88% | 10.47% | 18.61% | 25.12% | 19.03% | 20.42% | 14.45% | 18.18% | 16.13% | 22.87% | 18.87% | 1.8% | 11.53% | 11.75% | 13.03% | 21.4% | 13.2% | 4.14% | 15.47% | -0.22% | -18.95% | -28.08% |
| FCF Growth % | 0.2% | 3.72% | 10.62% | 209.13% | -16.43% | 5.94% | 77.52% | 0.5% | 74.77% | -3.72% | 31.58% | -16.88% | 43.85% | 1065.9% | -83% | -11.87% | 19.6% | -37.42% | 94.21% | 307.16% | -71.66% | 14756.46% | 97.72% | -33.84% | - |
| FCF per Share | 12.74 | 13.79 | 13.15 | 11.91 | 3.88 | 4.69 | 4.51 | 2.61 | 2.67 | 1.56 | 1.69 | 1.31 | 1.62 | 1.16 | 0.11 | 0.64 | 0.68 | 0.59 | 0.95 | 0.50 | 0.15 | 0.50 | -0.01 | -0.75 | -0.58 |
| FCF Conversion (FCF/Net Income) | 0.93x | 1.36x | 0.44x | 1.49x | 0.56x | 1.32x | 1.63x | 1.99x | 1.34x | 2.05x | 2.04x | 1.98x | 2.09x | 2.65x | 1.58x | 3.28x | 1.64x | 1.61x | 1.63x | 2.62x | -4.13x | 3.37x | -0.70x | 0.97x | 0.73x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 36.4M | 95.06M | 79.56M | 85.13M | 85.03M | 21.15M | 1.41M | 10.7M | 7.13M | 3.62M | 1.23M | 3.32M | 1.24M | 1.12M | 807K | 675K | 35K | 321K | 2.48M | 0 | 0 | 0 | 0 | 0 | 0 |
Geopolitical Supply Chain Concentration
Based on reported financial data, MPWR consistently demonstrates strong cash conversion, with the OCF/NI ratio frequently exceeding 1.30, suggesting that the company's reported net income is well-supported by actual cash inflows rather than being inflated by non-cash accounting accruals or aggressive revenue recognition practices.
The consistent premium of operating cash flow over net income indicates a high quality of earnings, likely driven by efficient management of non-cash charges and working capital. Investors should monitor whether this conversion ratio remains elevated as the company scales, as any sustained compression could signal a shift toward more aggressive accounting or deteriorating collection efficiency.
As reported in recent quarterly filings, MPWR has maintained a robust free cash flow trajectory, with margins peaking at 33.9% in 2025Q1, reflecting the company's ability to translate top-line growth into significant liquidity while managing its capital-light fabless-lite operational model effectively over the last ten quarters.
The volatility in FCF margins, ranging from 8.2% to 50.7%, appears tied to periodic working capital fluctuations rather than structural margin erosion. This suggests that while the business is highly cash-generative, its short-term liquidity profile remains sensitive to the timing of inventory builds and distributor-level sales cycles.
According to the provided cash flow statements, MPWR maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios generally hovering between 3% and 10%, which underscores the efficiency of its fabless-lite strategy in minimizing the need for heavy investment in depreciating manufacturing assets to support growth.
The relatively low capital intensity suggests that the company's competitive advantage is derived from intellectual property and design agility rather than physical scale. This structure allows for superior free cash flow generation compared to traditional semiconductor peers, though it necessitates ongoing R&D investment to maintain its technical lead.
Based on the quarterly cash flow data, working capital changes have been a significant source of volatility, with a notable $149.3 million outflow in 2025Q4, indicating that the company's cash position is highly sensitive to the timing of inventory procurement and distributor-level channel management strategies.
The frequent swings in working capital suggest that MPWR's cash flow is susceptible to supply chain bottlenecks and shifts in distributor demand. Analysts should interpret these fluctuations as a potential leading indicator of future revenue trends, as inventory builds often precede periods of anticipated demand growth or supply chain hedging.
As evidenced by recent financial statements, MPWR utilizes its strong cash position to fund consistent dividend payments and occasional share repurchases, such as the $622.1 million buyback in 2024Q4, demonstrating a commitment to returning capital to shareholders while maintaining a near-zero debt profile.
The company's capital allocation strategy appears conservative, prioritizing organic growth and shareholder returns over large-scale, potentially dilutive acquisitions. This approach reinforces the company's fortress balance sheet, though investors should monitor whether the reliance on stock-based compensation offsets the value created by these share repurchase programs.
Quick answers to the most common questions about buying MPWR stock.
Monolithic Power Systems, Inc. (MPWR) generated $838.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Monolithic Power Systems, Inc. (MPWR) generated $666.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Monolithic Power Systems, Inc. (MPWR) spent $174.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Monolithic Power Systems, Inc. (MPWR) returned $284.8M to shareholders via cash dividends and spent $7.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.