SITM Delivers Record Q3 Revenue with AI Tailwinds, Guides for 50%+ Annual Growth
AI-Driven Demand Fuels Record Revenue Growth in Q3
SiTime Corporation (NASDAQ: SITM) reported third quarter 2025 results highlighted by milestone revenue of $83.57 million, up 45% from the same period last year. The company credited increased adoption of its precision timing solutions, especially in communications, enterprise, and datacenter applications powered by AI growth. SiTime's CEO Rajesh Vashist expressed confidence in maintaining this momentum, guiding for annual growth to exceed 50% year-over-year for 2025.
Non-GAAP Margins Expand as Operating Efficiency Improves
The story of the quarter isn’t just top-line growth. SiTime reported significant improvements in operating performance on a non-GAAP basis. Gross profit margin expanded to 58.8% (up from 58.1% in the prior year). Operating expenses were tightly managed, resulting in non-GAAP operating income of $15.44 million—a robust 18.5% operating margin, a notable jump from 6.9% last year.
| Key Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue ($M) | 83.57 | 57.70 | +45% |
| Non-GAAP Gross Margin | 58.8% | 58.1% | +0.7 pts |
| Non-GAAP Op. Income ($M) | 15.44 | 4.00 | +286% |
| Non-GAAP Net Income ($M) | 23.44 | 9.55 | +145% |
| Non-GAAP EPS (diluted) | $0.87 | $0.40 | +118% |
Strong Cash Position Enables Growth Investments
As of September 30, 2025, SiTime reported cash, cash equivalents, and short-term investments totaling $809.6 million—enabling flexibility to support R&D, strategic hiring, and potential M&A. Reflecting continued investment in innovation, R&D expense for the quarter (on a GAAP basis) stood at $30 million, and the company granted 27,923 restricted stock units to new hires to attract and retain global talent.
Turnaround from GAAP Loss to Non-GAAP Profit Marks Strategic Shift
While the company still posted a GAAP net loss of $8 million (or $0.31 per share), the swing to non-GAAP net income of $23.44 million shows a marked improvement in underlying operations. Adjustments stemmed mainly from stock-based compensation and amortization of acquired intangibles. This accounting distinction matters—non-GAAP numbers strip out one-time and non-cash items to offer a clearer look at operational performance.
| Q3 2025 | GAAP | Non-GAAP |
|---|---|---|
| Gross Profit ($M) | 44.72 | 49.12 |
| Op. Expenses ($M) | 60.74 | 33.69 |
| Net (Loss)/Income ($M) | -8.01 | 23.44 |
| EPS (diluted) | -0.31 | 0.87 |
Looking Ahead: Strong Outlook Driven by AI Adoption
Management is bullish, expecting more than 50% revenue growth for 2025 as AI and datacenter trends accelerate demand for high-reliability precision timing solutions. The company’s strong cash position, expanding operating margins, and growing customer base set the stage for continued momentum. With SiTime’s next conference call and webcast today, investors and analysts will be seeking additional color on growth prospects and strategic initiatives.
Key Takeaway
SiTime’s third quarter performance signals a shift toward profitable growth as AI adoption drives record sales. Improved operational efficiency, disciplined spending, and strategic hiring reflect a company aiming to sustain rapid expansion while maintaining financial discipline. With substantial cash reserves and bullish guidance, SiTime is well positioned to capture future opportunities in the precision timing space. Investors should monitor the next earnings call for further updates and outlook details.
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