SiTime Q4 Earnings Call Highlights

Key Points

• SiTime beat expectations in Q4, reporting $113.3 million in revenue (up 66% YoY) — its first quarter above $100 million — with non-GAAP EPS of $1.53 and a 61.2% gross margin; full-year 2025 revenue was $326.7 million with operating cash flow of $87.2 million.
• Communications, Enterprise & Data Center (CED) led growth, accounting for 53% of revenue and rising 160% YoY, with book-to-bill over 1.5 and demand driven by AI, 1.6T/800G optical modules and XPU deployments; Q1 guidance is $101–$104 million revenue and ~62% gross margin.
• Planned Renesas timing-business acquisition would pay $1.5 billion in cash plus ~4.13 million shares, is expected to add ~$300 million of revenue with ~70% gross margins within 12 months, be accretive to non-GAAP EPS, and is planned to close by end of 2026 funded with cash and about $900 million of committed debt.

SiTime NASDAQ: SITM reported what management called an “exceptional” fourth quarter and full year 2025, highlighted by strong growth in its Communications, Enterprise and Data Center (CED) business, expanding gross margins, and a proposed acquisition of Renesas’ timing business that executives described as transformational for the company’s clocking portfolio and scale in data center markets.

Fourth-quarter results top $100 million milestone

CEO Rajesh Vashist said SiTime delivered $113.3 million in fourth-quarter 2025 revenue, up 66% year-over-year, with earnings per share “tripling” from $0.48 to $1.53. CFO Beth Howe added that the quarter marked the first time the company surpassed $100 million in quarterly revenue and generated non-GAAP operating margins of 30%.

Howe said Q4 revenue rose 36% sequentially and came in “significantly higher than expected” as customer demand strengthened during the quarter. Gross margin was 61.2%, up 240 basis points year-over-year, which Vashist noted met the company’s earlier goal to exit 2025 above 60% gross margins.

Howe attributed the margin improvement primarily to mix shifting toward higher-margin products, as well as better manufacturing overhead absorption. Operating expenses were $35.5 million, including $19 million in R&D and $16.5 million in SG&A, which she said reflected higher headcount, variable compensation tied to revenue performance, and continued investment in the company’s roadmap.

By segment in Q4, Howe reported:

• CED: $64.6 million, or 57% of revenue, up 160% year-over-year.
• Automotive, industrial, and aerospace: $24.5 million, or 22% of revenue, up 19% year-over-year.
• Consumer, IoT, and mobile: $24.2 million, or 21% of revenue, up 7% year-over-year; SiTime’s largest consumer customer contributed $17 million.

Howe said non-GAAP operating income was $34 million, up $26 million year-over-year, with $7.4 million in interest and other income/expense contributing to non-GAAP net income of $41.3 million, or $1.53 per share.

Full-year 2025: revenue up 61%, cash flow improves

For full-year 2025, SiTime reported revenue of $326.7 million, up 61% from the prior year, with non-GAAP EPS of $3.20, more than triple the $0.93 reported in 2024. Howe said full-year gross margin was 59.3%, operating expenses were $135 million, and non-GAAP operating profit reached $58.6 million, an increase of $58 million year-over-year and equal to 18% of revenue.

Howe also highlighted cash flow strength, with cash flow from operations of $87.2 million for the year compared with $23.2 million in 2024, citing higher revenue, richer mix, and disciplined expense management.

On the balance sheet, Howe said accounts receivable ended Q4 at $45 million and days sales outstanding increased to 36 days from 24 days in Q3 as “linearity returned to more normal patterns.” Inventory declined to $81.7 million from $86.7 million in Q3. The company generated $25.4 million in Q4 operating cash flow, invested $12.6 million in capex, and paid $42.2 million to Aura, including what Howe described as the final payment for die deliveries. SiTime ended the quarter with $808 million in cash and short-term investments.

Demand commentary: CED leads, book-to-bill above 1.5

Vashist said demand remained “very strong” exiting 2025 and cited a book-to-bill of over 1.5 at the end of Q4, which he said provided “excellent visibility” for the year. In Q&A, he said most bookings were coming from CED due to the segment’s scale and growth, while also noting that other business units continued to grow.

Vashist said CED revenue grew 160% year-over-year in Q4, marking the seventh consecutive quarter of more than 100% year-over-year growth. He tied the outlook to increased AI capital spending and higher networking bandwidth requirements, including accelerated adoption of 1.6 terabit optical modules. Vashist said customers increased their 2026 forecast for SiTime oscillators used in 1.6T optical modules by 50% since the company’s prior update in November, and added that oscillator demand for 800G optical modules remained strong.

He also said hyperscaler deployments of XPUs for training and inference preparations drove a 50% increase in the 2026 forecast for the company’s Super-TCXOs used in computing infrastructure and SmartNICs.

Vashist noted that at IPO CED was 12% of revenue and that SiTime had aimed to expand it to 40%–50%. He said CED now represents 53% of revenue and includes a “large portion” of high-value products.

Outside data centers, Vashist cited adoption of autonomous systems and “physical AI” as drivers across aerospace and defense, automotive, and industrial markets, and said the company expects each of those businesses to exceed $100 million annually “in the next few years.”

Q1 2026 guidance: revenue $101–$104 million, gross margin ~62%

Howe said the proposed acquisition of Renesas’ timing business is not expected to close in Q1 and therefore does not affect first-quarter guidance. For the March quarter, SiTime guided for revenue of $101 million to $104 million, which Howe said is roughly 70% year-over-year growth at the midpoint.

The company expects gross margin of approximately 62%, plus or minus half a point, reflecting product mix, including a higher mix of CED and a seasonally lower mix of consumer. Howe guided operating expenses to $39 million to $40 million, interest income of about $7 million, and a share count of 27 million to 27.5 million shares. Non-GAAP EPS is expected to be $1.10 to $1.17.

Proposed acquisition of Renesas timing business: $1.5 billion cash plus shares

Vashist described the planned acquisition of Renesas’ timing business as a defining inflection point and said it would add scale in clocking, where SiTime currently has a smaller footprint. He said the Renesas timing unit has a broad portfolio of about 500 clock products, and that about 160 engineers would join SiTime at closing.

Management said the Renesas timing business is expected to add $300 million in revenue in the 12 months after close, with approximately 70% gross margins. Howe said roughly 75% of the acquired revenue comes from CED, with the remainder across automotive and industrial. She also said the transaction is expected to be accretive to non-GAAP EPS in the first full year post-close, and that the acquisition supports SiTime’s stated long-term annual revenue growth model of 25%–30%.

Under the terms discussed on the call, SiTime will acquire certain assets related to Renesas’ timing business for $1.5 billion in cash and approximately 4.13 million newly issued shares, subject to adjustments and a 15% symmetrical collar based on a 10-day volume-adjusted weighted average share price calculated as of the three days prior to execution. Howe said SiTime plans to fund the cash portion with a combination of cash on hand and approximately $900 million of committed debt financing from Wells Fargo, and targets reducing leverage to under 2x within 24 months after closing.

The deal is expected to close by the end of 2026, subject to customary conditions and regulatory approvals. In response to an analyst question, Howe said the company does not expect to need China SAMR approval based on its current view of jurisdictional requirements.

Executives also discussed cross-selling opportunities, noting minimal product overlap with common customers and opportunities to pair SiTime’s MEMS-based oscillators with clock designs historically paired with quartz solutions. Vashist additionally referenced a separate memorandum of understanding to explore integrating SiTime’s Titan resonators into Renesas microcontrollers, emphasizing that this is separate from the timing business being acquired.

About SiTime NASDAQ: SITM

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime's products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company's timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.

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