A maker of silicon-based timing chips that replace the quartz crystals found inside nearly every electronic device, keeping clocks and signals in sync across AI data centers, phones, cars, and industrial gear. Founded in 2005 in Santa Clara by researchers Markus Lutz and Aaron Partridge, it builds its oscillators and clock chips from microscopic moving parts etched into silicon, outsourcing manufacturing to foundries like Bosch and TSMC. The name blends "silicon" with "time," and its MEMS timing technology—grown out of work on tiny silicon machines—aims to make electronics more reliable than fragile quartz.
SiTime revenue more than doubled to $157.4M as AI datacenter demand drove gross margin to 63.0%.
SiTime swung to an for the first time in over two years. rose 127% to $157.4M and expanded 11.1 points to 63.0%, driven by higher volume and pricing for AI and datacenter applications. The company is now profitable, but has taken on $1.35 billion in convertible debt to fund its largest-ever acquisition.
Key takeaways
more than doubled to $157.4M, driven by higher average selling prices and sales volume tied to AI and datacenter applications.
expanded to 63.0% from 51.9% a year ago, which management attributed to favorable product mix and on higher .
The company returned to operating profitability, posting $8.2M in compared to a $24.6M loss in the same quarter last year.
Section summaries
Management's Discussion and Analysis
Revenue more than doubled to $157.4M driven by AI/datacenter demand, with gross margin expanding to 63.0%.
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rose 127% to $157.4M in Q2 FY2026, primarily from higher average selling prices and sales volume tied to AI and datacenter applications.
expanded to 63.0% from 51.9%, driven by favorable product mix and on higher .
Operating expenses rose 50% to $90.9M, with SG&A up 64% on higher headcount, , and sales commissions, while acquisition-related costs rose to $8.5M for the pending Renesas timing business deal.
Cash and equivalents rose to $1,921.1M at quarter-end, up from $16.8M at year-end 2025, after the company issued $1,350.0M in to fund the Renesas acquisition.
Customer concentration increased: the top three distributors accounted for 66% of and the ten largest end customers for 70%, with no long-term purchase commitments.
What changed
The Q1 FY2026 watch item on whether growth past $113.6M would continue was answered: accelerated to $157.4M, up 38.6% sequentially, confirming the AI-driven expansion is still building.
, flagged in Q1 to watch for further expansion, rose another 4.0 points sequentially to 63.0%, moving well past the Aura that had weighed on margins in prior years.
Customer concentration, noted in Q1 after the top three distributors rose to 66%, held at that level while the ten largest end customers reached 70%, deepening the reliance on a small number of relationships.
The Renesas timing business acquisition, flagged in FY2025 and Q1 FY2026, moved closer to closing with the issuance of $1.35 billion in , adding significant financial to the balance sheet.
What to watch
Q3 FY2026 and unit volume to see if the AI-driven growth past $157.4M continues or begins to moderate.
in Q3 FY2026 to see if the 63.0% level holds as the company integrates the Renesas timing business and of acquisition-related intangibles begins.
Top-three-distributor and ten-largest-customer share in Q3 FY2026 after reaching 66% and 70%, respectively.
Renesas timing business acquisition close, integration costs, and the effect of the $1.35 billion on and diluted share count.
Operating expenses grew 50% to $90.9M, with SG&A up 64% on higher headcount, , and sales commissions.
Acquisition-related costs surged to $8.5M due to one-time expenses for the pending Renesas timing business acquisition.
Cash and equivalents stood at $1,921.1M at quarter-end, bolstered by a $1,350.0M convertible notes issuance to fund the acquisition.
The company believes existing cash and short-term investments are sufficient to meet cash needs for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
The company faces limited market risk, with no material FX impact and modest interest-rate sensitivity on its cash holdings.
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Substantially all is in U.S. dollars, while expenses are in currencies of operating countries, but a hypothetical 10% FX change would not materially impact historical financials.
The company does not maintain a foreign currency hedging program.
Cash and cash equivalents rose to $1,921.1 million as of June 30, 2026, from $16.8 million at December 31, 2025, and short-term of $791.6 million were held at year-end.
Interest income of $19.9 million was generated in the six months ended June 30, 2026.
A hypothetical 10% change in market interest rates would alter fair value and interest income by approximately $0.7 million over the six-month period.
The company does not use derivatives or hold investments for trading or speculation.
The information required by this item is included in Note 9 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q and is incorporated herein by reference.
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The information required by this item is included in Note 9 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q and is incorporated herein by reference.
Customer concentration, cyclical semiconductor dynamics, and global trade and supply chain risks dominate the risk profile.
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is highly concentrated, with the top three distributors accounting for 66% of revenue and the ten largest end customers for 70%, including a significant but non-committed relationship with Apple.
Global macroeconomic and trade policy uncertainty, including tariffs and geopolitical tensions, could reduce demand, disrupt supply chains, and increase costs.
The company's model creates critical dependence on a limited number of third-party foundries and , primarily in Asia, for wafer fabrication, assembly, and testing.
The cyclical nature of the semiconductor industry and lack of long-term customer purchase commitments expose the business to risk and sudden order cancellations.
The recently completed Renesas timing business acquisition and the $1.35 billion convertible notes issuance introduce significant integration and financial risks.
International operations, particularly R&D and supply chain functions in Taiwan, Ukraine, and China, are subject to heightened geopolitical, military conflict, and regulatory risks.