MONOLITHIC POWER SYSTEMS INC 8-K

What Happened
Monolithic Power Systems, Inc. (MPWR) announced on Feb. 26, 2026 that its Audit Committee determined prior financial statements (the 2024 Form 10‑K and 2025 Form 10‑Qs) should no longer be relied upon and will be restated. The restatement arises from an incorrect accounting for deferred income taxes related to a one-time foreign tax incentive. The required adjustment is non-cash, was discovered during preparation of the 2025 Form 10‑K, and the company consulted Ernst & Young LLP. The company says the error did not involve misconduct and does not change its business outlook for Q1 2026 disclosed Feb. 5, 2026.

Key Details

• Date: Audit Committee determination made Feb. 26, 2026; restated 2024 and 2025 interim results will be included in the 2025 Form 10‑K filed with this 8‑K.
• 2024 impact: Deferred taxes and income tax benefit decreased by $195.0 million, reducing 2024 net income from $1,786.7M to $1,592.1M. Diluted EPS for 2024 fell by about $3.99 to $32.60.
• Q4 2024: Net income decreased by $194.6M to $1,254.7M; Q4 diluted EPS fell to $25.87.
• 2025 impact: A $5.556M reduction in income tax expense increased 2025 net income to $621.48M (diluted EPS up ~$0.11).
• Non-GAAP metrics: Company says the adjustment is non-cash and does not affect revenue, non-GAAP gross margin, non-GAAP operating expenses, or non-GAAP net income per share.

Why It Matters
This is a material accounting restatement driven by deferred tax treatment, not by operating performance — revenue and operating results are unchanged. The restatement reduces reported 2024 net income and EPS materially (roughly $4 per share on 2024 diluted EPS), while slightly increasing 2025 net income. Investors should review the amended 2024 audited statements and the 2025 Form 10‑K (filed with this 8‑K) for the revised tax and balance-sheet details and monitor any related disclosures about controls or remediation. The company engaged outside tax advisors initially and says there was no misconduct.