Super Micro Computer, Inc.

Company facts

Industry

Electronic Computers

Headquarters

San Jose, California

Most recent report

10-K, filed Aug 31, 2026

Incorporated

California

Filings on record

1,002+ filings

On EDGAR

CIK 1375365

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 8 of 27 sections worth reading, with 3 positive, 16 notable, and 11 negative flags.

• Business (Item 1)

  Contains related-party, export-control, and geographic mix details important for assessing risk.
  Notable

  • Company expanded Silicon Valley capacity with new business complex and DCBBS campus in FY2026.
  • International sales share fell from 40.6% to 29.1% in FY2026, driven by concentrated US AI data center deployments.
  • Related-party manufacturing support with Ablecom/Compuware; amounts and terms are in Note 11.
  • Component supply constraints (memory, storage, GPUs, CPUs) in FY2026 affected delivery timing and pricing.
  • US export controls on advanced computing products tightened Jan 2025, then rescinded May 2025, creating ongoing regulatory uncertainty.

• Risk Factors (Item 1A)

  Material weakness persists; indictment, SEC/BIS probes; $8.7B debt; extreme concentration.
  Negative

  • Customer concentration: one customer at 10%+ of sales in FY2026 vs four at 10%+ in FY2025, raising dependency risk.
  • Top supplier provided 63.1% of total purchases in FY2026 (down from 64.4% in FY2025).
  • Internal control over financial reporting still not effective as of June 30, 2026 due to a material weakness.
  • SEC subpoena and grand jury subpoena from SDNY; BIS subpoenas and inquiries ongoing with uncertain outcome.
  • Consolidated debt of $8.7B as of June 30, 2026, including $2.0B drawn on a new JP Morgan revolver and $1.76B on CTBC facilities.

• Management's Discussion (Item 7)

  Massive revenue growth but negative operating cash flow and heavy reliance on new financing warrant a close read.
  Positive

  • Net sales up 77.8% to $39.06B in FY2026, driven by data center deployments and large design wins, especially GPU & Super Racks.
  • Net income climbed to $2.23B in FY2026 from $1.05B in FY2025, more than offsetting margin decline.
  Notable

  • Operating expenses rose 23.8% in FY2026 to $1.46B, led by headcount and stock-based compensation.
  • Purchases from related parties Ablecom and Compuware dropped to 2.1% of cost of sales in FY2026 from 3.3% in FY2025.
  • Financing in FY2026 provided $5.64B from an equity raise and $3.95B from credit lines, funding the cash burn.
  • Non-cancellable purchase commitments total $34.2B as of June 30, 2026, a major forward obligation.
  Negative

  • Gross margin fell to 10.8% in FY2026 from 11.1% in FY2025 due to competitive pricing and product mix.

• Financial Statements (Item 8)

  Adverse ICFR opinion, negative operating cash flow, massive debt, and litigation.
  Negative

  • Adverse opinion on ICFR – a red flag for financial reporting reliability.
  • One customer was 28.1% of net sales in FY2026; top 3 AR customers total 52.6% of receivables.

• Controls and Procedures (Item 9A)

  Still has a material weakness in IT controls; auditor says not effective.
  Notable

  • Three material weaknesses from FY2025 were remediated during FY2026, a positive step.
  Negative

  • One ITGC material weakness remains unremediated as of June 30, 2026, despite progress on others.

• Executive Compensation (Item 11)

  Contains CEO pay structure, material weakness KPI, and revenue numbers.
  Positive

  • Revenue surged to $39.1B in FY2026 from $22.0B, over 77% growth, driving performance award vesting.
  Notable

  • CEO Liang's base salary is $1, with no cash bonuses, tied to a long-term performance option award.
  • The 5th tranche of the 2023 CEO Performance Award (1M shares) remains unvested; $110 stock-price goal not achieved.

• Related Party Transactions (Item 13)

  Massive related-party purchases and family employment; governance risk.
  Notable

  • Five family members of CEO employed in FY2026: Albert Liu ($2.5M), Sara Liu ($1.4M), Carly Kao ($0.6M), Michelle Hung ($0.2M), Bill Liang ($0.3M).
  • Non-cancelable purchase orders to Ablecom ($59.8M) and Compuware ($182.2M) total $242M exposure at June 30, 2026, up from $148.9M.
  • CEO loan from brother's spouse was fully repaid October 9, 2025: $16.9M principal and accrued interest cleared.
  Negative

  • Related-party purchases from Ablecom were $390.5M in FY2026, up from $321.9M; from Compuware $335.2M, up from $328.3M. Majority of their sales.

• Accountant Fees (Item 14)

  Auditor change & 51% fee jump tied to government investigation costs.
  Notable

  • Auditor switched to BDO in Nov 2024, replacing prior firm (likely EY).
  Negative

  • Audit fees include costs for internal investigations and legal fees from government probes.

What changed: FY2026 vs. FY2025

About 20% of SMCI's FY2026 10-K is new information. 341 paragraphs were added, 603 changed, and 499 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 265
• Executive Compensation (Item 11) 204
• Risk Factors (Item 1A) 87
• Management's Discussion (Item 7) 79
• Business (Item 1) 50
• Directors and Officers (Item 10) 44
• Exhibits (Item 15) 32
• Controls and Procedures (Item 9A) 28
• Market for the Stock (Item 5) 20
• Security Ownership (Item 12) 19
• Related Party Transactions (Item 13) 18
• Form 10-K Summary (Item 16) 13
• Cybersecurity (Item 1C) 9
• Properties (Item 2) 6
• Market Risk (Item 7A) 4
• Accountant Fees (Item 14) 3