SiTime Q2 2026 Earnings: Revenue More Than Doubles as Margins Expand

SiTime (NASDAQ: SITM) reported Q2 2026 revenue of $157.4 million, up 127% from $69.5 million a year earlier, while GAAP diluted EPS improved to $0.66 from a loss of $0.84. GAAP gross margin expanded to 63.0% from 51.9%, and every segment grew at least 50%, led by 181% growth in CED.

Core earnings data

The quarter ended June 30, 2026 marked a return to GAAP operating and net profitability. Cost of revenue increased about 74%, considerably slower than revenue, while GAAP operating expenses rose about 50%; that combination supported higher gross margin and operating leverage.

Dollar amounts in the table are in millions, except per-share data.

Business and segment performance

Management said every segment increased revenue by at least 50%, with CED growing 181%. The release did not provide segment revenue amounts, so it is not possible to determine CED’s precise contribution to consolidated growth or the relative size of the other segments.

SiTime completed its acquisition of Renesas’ Timing Business on July 1, one day after the quarter ended. The transaction added more than 550 clocking products, but the acquired operations were not included in Q2 results. Their revenue, costs and integration effects will therefore become important comparability factors in subsequent periods.

Revenue growth outpaced expenses, but adjustments remained sizable

GAAP operating expenses increased to $90.9 million from $60.7 million, slower than the 127% increase in revenue. On a non-GAAP basis, operating expenses rose to $52.1 million from $33.3 million, allowing non-GAAP operating margin to expand to 34.0% from 10.3%.

The difference between GAAP and non-GAAP operating income was $45.2 million. It consisted of $31.0 million in stock-based compensation, $8.5 million in acquisition-related costs and $5.7 million in acquired-intangible amortization. The net-income reconciliation also excluded $2.2 million in financing-related transaction cost amortization, making the treatment of these items important when evaluating underlying profitability.

Liquidity and balance sheet

GAAP net income exceeded operating income partly because SiTime recorded $12.5 million of interest income, compared with $4.3 million a year earlier. This was partly offset by $2.2 million of interest expense and $0.3 million of other expense.

Cash, cash equivalents and short-term investments totaled $1.921 billion at June 30. However, that balance included net proceeds from convertible senior notes raised to fund the Renesas transaction; the notes had a net balance-sheet value of $1.318 billion. Because the acquisition closed the following day, the June 30 balance sheet represents a pre-closing funding position rather than the post-transaction capital structure.

Accounts receivable increased to $88.7 million from $45.0 million at December 31, 2025, while inventory rose to $103.9 million from $81.6 million. The release did not provide quarterly operating or free cash flow, so the increase in reported liquidity should not be interpreted as operating cash generation.

Recent insider transactions

The supplied insider data reports 228,130 shares purchased and 505,079 shares sold over the past two years, resulting in net sales of 276,949 shares. Its separate six-month metric shows net purchases of 59,196 shares, while the 10 latest individual reports consist of seven sales and three zero-price stock grants.

These filings describe the transactions but do not establish why each insider sold shares or received an award.

Risks investors need to watch

• Acquisition integration and comparability: The Renesas Timing Business closed after quarter-end, so Q2 does not show its revenue, expenses or integration costs. Future results will include a business and product portfolio absent from the reported quarter.
• Financing and acquisition costs: Convertible senior notes totaled $1.318 billion on a net basis, and financing-related expense already affected the Q2 reconciliation. The transaction also generated $8.5 million of acquisition-related costs during the quarter.
• Stock-based compensation and dilution: Stock-based compensation was $31.0 million, a major contributor to the GAAP/non-GAAP profit difference. GAAP diluted weighted-average shares increased about 15% year over year to 27.5 million.
• Working-capital growth: Receivables nearly doubled and inventory increased about 27% from year-end. With no quarterly cash flow figures supplied, investors cannot yet assess how these balances affected cash conversion.

Summary

SiTime’s Q2 2026 results combined broad-based revenue growth with substantial gross-margin and operating-margin expansion, producing a return to GAAP profitability. The next major issue is how the Renesas Timing Business changes growth, expenses and the balance sheet, while stock-based compensation, acquisition costs and working-capital conversion remain important measures of earnings quality.