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Call sheet · Q2'25

SiTime (SITM)

Q2'25 earnings call · held August 6, 2025 · compared with the Q1'25 call · management-credibility review
2/12
Disclosure score
2 high, 4 medium, 2 low flags
Financial quality
Bottom line
The sleeper story is that SITM generated negative free cash flow in a quarter they're calling 'exceptional' with 58% growth, suggesting the quality of earnings is deteriorating rapidly. The Street sees 137% AI datacenter growth and missed that it decelerated from 198% last quarter while the largest customer barely grew. The binding constraint is working capital and cash conversion, not demand, which explains why they just raised $388M despite claiming robust growth. Management's tell: 'I wouldn't read too much into that' when asked about flat mobile revenue despite new content wins. My view changes if Q3 shows positive FCF and they restore backlog disclosure.

The 30-second version

  • THE SLEEPER: Cash flow reality check despite 58% revenue growth
  • AI datacenter growth of 137% YoY masks dangerous customer concentration
  • Narrative regression alert: 'Already added design wins worth several hundred millions' lacks any timeline or denominator

What changed this quarter

MetricQ1'25Q2'25Change
Revenue$60.3M (+83% YoY)$69.5M (+58% YoY)YoY growth decelerated 2500 bps
EPS$0.26$0.47+81% sequential improvement
Net Income$6.3M$11.6M+84% sequential surge
Operating Income$2.1M$7.2M243% sequential explosion
CED Revenue$29.3M (+198% YoY)$36M (+137% YoY)YoY growth rate collapsed 61 percentage points
Automotive/Industrial/Defense$14.1M (+10% YoY)$16.5M (+11% YoY)Barely accelerating despite 'significant strength'
Mobile/IoT/Consumer$16.9M (+64% YoY)$17M (+23% YoY)Growth rate cratered 41 percentage points
Gross Margin57.4%58.2%+80 bps sequential expansion
Operating Cash Flow$15.0M$15.3MFlat despite 15% revenue growth
Free Cash Flow-$1.4M-$3.0MDeteriorating as CapEx outpaces CFFO

Accountability tracked

7 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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