Super Micro Computer Inc (SMCI)

Gross profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Gross profit	US$ in thousands	2,429,920	2,111,730	1,283,010	800,001	534,538
Revenue	US$ in thousands	21,972,000	14,942,900	7,123,480	5,196,100	3,557,420
Gross profit margin		11.06%	14.13%	18.01%	15.40%	15.03%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $2,429,920K ÷ $21,972,000K
= 11.06%

The gross profit margin of Super Micro Computer Inc. exhibits notable fluctuations over the four-year period from June 30, 2021, to June 30, 2025. In fiscal year 2021, the gross profit margin was 15.03%, indicating a relatively modest level of profitability on sales after cost of goods sold. This margin experienced a slight increase in the following year, reaching 15.40% in June 2022, reflecting a marginal improvement in operational efficiency or product mix.

The most significant change occurred by June 30, 2023, when the gross profit margin rose to 18.01%. This upward movement may suggest enhancements in gross profitability, possibly driven by favorable product pricing, improved cost controls, or a more profitable product mix. However, subsequent years saw a decline; by June 30, 2024, the gross profit margin decreased to 14.13%, indicating a contraction in gross profitability. This decline might be attributable to increased costs, competitive pricing pressures, or changes in sales composition. The margin continued to edge downward in the following year, reaching 13.75% by June 30, 2025, which could signal ongoing challenges in maintaining gross profitability levels.

Overall, the gross profit margin has exhibited variability, with an initial slight increase followed by a notable peak in 2023, and a subsequent decline in the latter years. This pattern indicates fluctuations in the company's ability to convert sales into gross profit, influenced likely by external market conditions, competitive dynamics, cost structures, or product strategies. The recent downward trend may warrant further analysis to ascertain the underlying causes and to determine strategic responses to restore or improve gross profitability.