Recent News
On September 22, 2025 the company announced a new license agreement with a major Chinese smartphone vendor and raised its outlook, citing an increase in projected annualized recurring revenue. On September 17, 2025 the Board approved a dividend increase to $0.70 per share payable in Q4 2025. On November 12, 2025 the company scheduled presentations at three investor conferences in November–December. On October 14, 2025 the company set the release date for third-quarter 2025 financial results to October 30, 2025.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX measures 17.47, indicating no established trend strength. DI+ shows an increasing pattern, reflecting renewed bullish pressure, while DI- registered a dip & reversal pattern, reflecting recent reacceleration of downside pressure. The mix of rising DI+ and a recovering DI- under a low ADX implies countervailing forces rather than a clear directional trend.
MACD: MACD sits at -2.83 with a peak & reversal pattern and the MACD below its signal line (-2.02), indicating bearish momentum in the oscillator and a lack of bullish cross confirmation.
MRO (Momentum/Regression Oscillator): MRO at 10.6 with a peak & reversal indicates the price sits above model targets and carries potential for downward mean reversion, adding to short-term downside pressure relative to recent levels.
RSI: RSI at 54.69 with a peak & reversal shows momentum rolling over from a recent high while remaining near neutral; this does not confirm sustained buying strength.
Price vs. moving averages and other overlays: Last close $350.79 sits above the 20-day average ($344.12) and the 12-day EMA ($348.40) but below the 26-day EMA ($351.89) and the 50-day average ($357.52). Ichimoku components place resistance near the Kijun-sen at $367.68 and Senkou A at $355.49, while the price lies inside the Bollinger bands (1x upper $356.10, 1x lower $332.13). The pattern implies short-term consolidation with overhead resistance into the mid-$350s and stronger resistance near the $360–$368 zone.
Fundamental Analysis
Profitability and margins: EBIT equals $85,996,000 and EBIT margin reaches 52.22%, above the industry peer high of 42.378%. Operating margin stands at 46.03% and gross margin at 88.03%, both well above industry peer means. QoQ change in EBIT margin declined by 28.84%, while EBIT margin improved YoY by 29.48%, showing sizable year-over-year margin expansion despite recent quarter-to-quarter compression.
Revenue and earnings trends: Total revenue equals $164,682,000. Year-over-year revenue growth shows +6.58% while quarter-over-quarter revenue change reads -205.65%, indicating a sharp sequential swing into the reported period even as annual comparisons remain positive. Net income $67,503,000 and EPS actual $2.55 exceeded the estimate of $2.05, producing an EPS surprise of +24.39%.
Cash, leverage, and returns: Cash and short-term investments total $1,263,138,000 and the cash ratio registers 1.61 with a current ratio of 1.89, supporting near-term liquidity. Total debt $487,746,000 yields debt-to-assets of 22.80% and debt-to-equity of 0.443, while interest coverage sits at 8.58x. Return on equity measures 6.14%, marginally below the industry peer mean of 6.72%.
Valuation metrics: Price-to-earnings stands at 126.36 and price-to-sales at 50.45; both sit above industry peer means. Price-to-book at 7.55 also exceeds the industry peer mean. Free cash flow yield at 4.59% ranks above the industry peer mean. Forward EPS equals $1.2075 with a forward PE of 233.53. WMDST values the stock as over-valued given current price multiples relative to earnings and book metrics, despite strong margin and cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 528.8 M |
| Operating Cash Flow | $ 395.9 M | |
| Capital Expenditures | $ -15.05 M | |
| Change In Working Capital | $ 238.3 M | |
| Dividends Paid | $ -15.51 M | |
| Cash Flow Delta | $ 319.8 M | |
| End Period Cash Flow | $ 848.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 164.7 M | |
| Forward Revenue | $ 19.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 19.7 M | |
| Depreciation | $ 19.8 M | |
| Depreciation and Amortization | $ 19.8 M | |
| Research and Development | $ 53.1 M | |
| Total Operating Expenses | $ 88.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 145.0 M | |
| EBITDA | $ 105.8 M | |
| EBIT | $ 86.0 M | |
| Operating Income | $ 75.8 M | |
| Interest Income | $ 9.5 M | |
| Interest Expense | $ 10.0 M | |
| Net Interest Income | $ -535.00 K | |
| Income Before Tax | $ 76.0 M | |
| Tax Provision | $ 8.5 M | |
| Tax Rate | 11.153 % | |
| Net Income | $ 67.5 M | |
| Net Income From Continuing Operations | $ 67.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.05 | |
| EPS Actual | $ 2.55 | |
| EPS Difference | $ 0.50 | |
| EPS Surprise | 24.39 % | |
| Forward EPS | $ 1.21 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.1 B | |
| Intangible Assets | $ 336.4 M | |
| Net Tangible Assets | $ 763.6 M | |
| Total Current Assets | $ 1.5 B | |
| Cash and Short-Term Investments | $ 1.3 B | |
| Cash | $ 840.3 M | |
| Net Receivables | $ 160.6 M | |
| Inventory | — | |
| Long-Term Investments | $ 4.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 9.1 M | |
| Short-Term Debt | $ 456.3 M | |
| Total Current Liabilities | $ 785.1 M | |
| Net Debt | — | |
| Total Debt | $ 487.7 M | |
| Total Liabilities | $ 1.0 B | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 2.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.66 | |
| Shares Outstanding | 25.783 M | |
| Revenue Per-Share | $ 6.39 | |
| VALUATION | Market Capitalization | $ 8.3 B |
| Enterprise Value | $ 7.5 B | |
| Enterprise Multiple | 71.194 | |
| Enterprise Multiple QoQ | 190.223 % | |
| Enterprise Multiple YoY | 55.932 % | |
| Enterprise Multiple IPRWA | high: 162.207 IDCC: 71.194 median: 68.592 mean: 67.38 low: -11.362 |
|
| EV/R | 45.739 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.945 | |
| Asset To Liability | 2.058 | |
| Debt To Capital | 0.307 | |
| Debt To Assets | 0.228 | |
| Debt To Assets QoQ | -7.209 % | |
| Debt To Assets YoY | -13.412 % | |
| Debt To Assets IPRWA | high: 0.533 IDCC: 0.228 mean: 0.217 median: 0.21 low: 0.024 |
|
| Debt To Equity | 0.443 | |
| Debt To Equity QoQ | -1.17 % | |
| Debt To Equity YoY | -29.469 % | |
| Debt To Equity IPRWA | high: 1.722 median: 0.569 mean: 0.558 IDCC: 0.443 low: 0.034 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.553 | |
| Price To Book QoQ | 29.513 % | |
| Price To Book YoY | 54.608 % | |
| Price To Book IPRWA | IDCC: 7.553 high: 5.805 median: 5.604 mean: 4.235 low: -1.369 |
|
| Price To Earnings (P/E) | 126.36 | |
| Price To Earnings QoQ | 206.333 % | |
| Price To Earnings YoY | 3.017 % | |
| Price To Earnings IPRWA | high: 260.287 IDCC: 126.36 mean: 109.905 median: 55.548 low: -52.517 |
|
| PE/G Ratio | -2.075 | |
| Price To Sales (P/S) | 50.447 | |
| Price To Sales QoQ | 139.271 % | |
| Price To Sales YoY | 83.914 % | |
| Price To Sales IPRWA | IDCC: 50.447 high: 43.745 median: 17.892 mean: 13.362 low: 0.045 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 233.531 | |
| Forward PE/G | -3.835 | |
| Forward P/S | 437.521 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.349 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.08 | |
| Asset Turnover Ratio QoQ | -48.903 % | |
| Asset Turnover Ratio YoY | 4.31 % | |
| Asset Turnover Ratio IPRWA | high: 0.496 mean: 0.159 median: 0.126 IDCC: 0.08 low: 0.057 |
|
| Receivables Turnover | 0.6 | |
| Receivables Turnover Ratio QoQ | -30.892 % | |
| Receivables Turnover Ratio YoY | 1.586 % | |
| Receivables Turnover Ratio IPRWA | high: 3.142 median: 2.189 mean: 2.02 IDCC: 0.6 low: 0.595 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 152.196 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 119.448 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 366.812 IDCC: 119.448 mean: 116.624 median: 52.2 low: -92.54 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.237 | |
| CapEx To Revenue | -0.091 | |
| CapEx To Depreciation | -0.76 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 763.6 M | |
| Net Working Capital | $ 695.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.609 | |
| Current Ratio | 1.886 | |
| Current Ratio QoQ | -3.571 % | |
| Current Ratio YoY | 16.352 % | |
| Current Ratio IPRWA | high: 5.423 IDCC: 1.886 mean: 1.841 median: 1.171 low: 0.78 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.61 | |
| Cost Of Debt | 1.825 % | |
| Interest Coverage Ratio | 8.583 | |
| Interest Coverage Ratio QoQ | -62.888 % | |
| Interest Coverage Ratio YoY | 76.657 % | |
| Interest Coverage Ratio IPRWA | high: 35.667 mean: 11.192 IDCC: 8.583 median: 8.389 low: -29.448 |
|
| Operating Cash Flow Ratio | 0.403 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 32.748 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.353 | |
| Dividend Payout Ratio | 0.23 | |
| Dividend Rate | $ 0.60 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.799 % | |
| Revenue Growth | -45.215 % | |
| Revenue Growth QoQ | -205.652 % | |
| Revenue Growth YoY | 6.579 % | |
| Revenue Growth IPRWA | high: 19.785 % mean: 4.27 % median: 3.703 % low: -17.164 % IDCC: -45.215 % |
|
| Earnings Growth | -60.89 % | |
| Earnings Growth QoQ | -210.564 % | |
| Earnings Growth YoY | -14.23 % | |
| Earnings Growth IPRWA | high: 125.0 % mean: 11.809 % median: 2.857 % IDCC: -60.89 % low: -62.5 % |
|
| MARGINS | ||
| Gross Margin | 88.028 % | |
| Gross Margin QoQ | -4.365 % | |
| Gross Margin YoY | 11.917 % | |
| Gross Margin IPRWA | IDCC: 88.028 % high: 73.52 % median: 60.607 % mean: 57.106 % low: 6.723 % |
|
| EBIT Margin | 52.219 % | |
| EBIT Margin QoQ | -28.836 % | |
| EBIT Margin YoY | 29.479 % | |
| EBIT Margin IPRWA | IDCC: 52.219 % high: 42.378 % mean: 26.926 % median: 18.66 % low: -25.54 % |
|
| Return On Sales (ROS) | 46.033 % | |
| Return On Sales QoQ | -32.641 % | |
| Return On Sales YoY | 14.141 % | |
| Return On Sales IPRWA | IDCC: 46.033 % high: 42.378 % mean: 26.153 % median: 18.046 % low: -26.82 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 380.9 M | |
| Free Cash Flow Yield | 4.585 % | |
| Free Cash Flow Yield QoQ | 217.301 % | |
| Free Cash Flow Yield YoY | 149.728 % | |
| Free Cash Flow Yield IPRWA | high: 7.425 % IDCC: 4.585 % median: 1.53 % mean: 1.279 % low: -8.162 % |
|
| Free Cash Growth | 315.948 % | |
| Free Cash Growth QoQ | -206.63 % | |
| Free Cash Growth YoY | -254.607 % | |
| Free Cash Growth IPRWA | high: 387.5 % IDCC: 315.948 % mean: 24.086 % median: 5.822 % low: -263.379 % |
|
| Free Cash To Net Income | 5.642 | |
| Cash Flow Margin | 192.153 % | |
| Cash Flow To Earnings | 4.688 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.274 % | |
| Return On Assets QoQ | -65.129 % | |
| Return On Assets YoY | 60.964 % | |
| Return On Assets IPRWA | high: 4.933 % IDCC: 3.274 % mean: 2.797 % median: 1.696 % low: -12.459 % |
|
| Return On Capital Employed (ROCE) | 6.349 % | |
| Return On Equity (ROE) | 0.061 | |
| Return On Equity QoQ | -63.063 % | |
| Return On Equity YoY | 29.691 % | |
| Return On Equity IPRWA | high: 0.251 mean: 0.067 IDCC: 0.061 median: 0.021 low: -0.186 |
|
| DuPont ROE | 6.174 % | |
| Return On Invested Capital (ROIC) | 4.856 % | |
| Return On Invested Capital QoQ | -59.884 % | |
| Return On Invested Capital YoY | -140.467 % | |
| Return On Invested Capital IPRWA | high: 8.517 % IDCC: 4.856 % mean: 4.413 % median: 3.009 % low: -7.355 % |
|