Supermicro 10-K Reveals $6.8B Operating Cash Burn and Unremediated Material Weakness
SMCI sits 92% above its 52-week low of $19.48 on light trading volume (0.3× avg).
Summary
Supermicro's FY2026 10-K shows $39.1B revenue and $2.23B net income, but $6.8B in operating cash burn, $8.7B in debt, and an unremediated material weakness in IT controls.
Key Events · Earnings and Guidance · SMCI
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FY2026 Revenue Surges 77.8% to $39.1B
Net sales grew from $21.97B in FY2025 to $39.06B in FY2026, driven by AI server demand. Net income rose to $2.23B, with diluted EPS of $3.26.
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Operating Cash Flow Negative $6.8B
Cash used in operations was $6.81B, driven by an $8.88B inventory build to $12.9B and a $3.92B increase in accounts receivable to $6.1B.
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Material Weakness Remains Unremediated
BDO issued an adverse opinion on ICFR as of June 30, 2026. The IT general controls material weakness identified in FY2025 remains unremediated, though three other prior material weaknesses were remediated.
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Debt and Commitments Balloon
Total consolidated indebtedness reached $8.7B, including $2.0B drawn on the JPMorgan revolver and $1.76B on CTBC facilities. Non-cancelable purchase commitments stand at $34.2B.
Analysis · SMCI · Technology
Supermicro's FY2026 annual report shows explosive revenue growth to $39.1B but a deteriorating cash profile: operations consumed $6.8B as inventory ballooned to $12.9B and receivables to $6.1B. The company now carries $8.7B in debt and $34.2B in non-cancelable purchase commitments. BDO issued an adverse opinion on internal controls, with the IT general controls material weakness still unremediated. Customer concentration is extreme — one customer is 28.1% of revenue and one supplier is 63.1% of purchases. This is the first full audited picture of the company's financial health after the June capital raises.
How filings like this one have moved
In the 30 days to Sep 9, 2026, 36.4% of the 1919 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SMCI was trading at $37.42 on NASDAQ in the Technology sector, with a market capitalization of approximately $24.2B. The 52-week trading range was $19.48 to $58.78. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.