Super Micro Burned $6.8 Billion Last Year. Here’s What Changed in June
Yahoo Finance ·
Super Micro used $6.8 billion in operating cash in fiscal 2026, including $6.6 billion in fiscal Q3 alone, before a $5.6 billion June equity raise cut net debt to $1.2 billion from $7.5 billion. Fiscal Q4’s $747 million operating inflow was primarily supported by collections from customers: receivables fell to $6.13 billion from $8.41 billion, while payables also declined to $2.25 billion from $3.69 billion. Inventory ended June at a record $12.9 billion, and management says the fiscal 2027 plan is self-funded at $65 billion in revenue. Super Micro’s cash finally turned positive, but inventory hit a record. Track Super Micro’s operating cash flow on TIKR for free → On September 23, Super Micro ( SMCI ) said it had started shipping Nvidia’s Vera Rubin NVL72 racks , each packing 72 Rubin GPUs and 36 Vera CPUs into a liquid-cooled cabinet. Shares rose 1.9% premarket to $42.32 and closed September 25 at $43.26, extending a year in which the stock had already gained 41.9% through September 22. Demand appears strong based on Super Micro’s backlog and guidance. The harder question is what filling those orders costs. Super Micro booked more than $60 billion in new orders in its June quarter and is guiding for $65 billion to $72 billion in fiscal 2027 revenue. The harder question is what filling those orders costs. Hedge funds kept SMCI in the top 10 of data platform Hazeltree’s most-shorted list in August , alongside CoreWeave and Nebius, as Reuters noted investors are paying close attention to how AI companies fund their spending. Fiscal 2026 answered that question badly. Operations used $6.8 billion of cash, compared with $1.66 billion generated the year before. The strange part is the timing. In the December 2025 quarter, inventory swallowed $5.0 billion, yet operating cash flow was nearly flat at negative $23.9 million. The burn arrived a quarter later, at negative $6.62 billion. The balance sheet explains the lag. In December, payables jumped to $13.75 billion from $1.28 billion as large AI GPU projects moved through the system, and suppliers effectively financed the build. By March, those bills had come due, and payables fell to $3.69 billion. The June quarter looked different. Payables fell again, to $2.25 billion, so the $747 million inflow was not borrowed from suppliers. It came from collections, with receivables dropping $2.28 billion as days sales outstanding fell to 59 from 85. Inventory kept climbing, though, absorbing $2.21 billion in cash and ending at $12.9 billion. Collections, not supplier credit, drove fiscal Q4’s cash inflow. Compare Super Micro’s receivables, inventory and payables on TIKR for free → See the exact moment Wall Street upgrades a stock before the rest of the market piles in — track analyst rating changes in real time with TIKR for free → The June quarter was Super Micro’s first positive operating cash result since June 2025, and the source matters: customers paid down balances while the company paid its suppliers. That is the pattern a self-funding business needs. One quarter doesn’t make it a trend. Management has put a specific claim on the table. Asked at Citi’s conference whether the $65 billion to $70 billion outlook could be internally funded, Senior Vice President Michael Staiger answered, “Yes, 65.” He pointed to tighter backlog terms, including enterprise customers that pay half up front and half on delivery. CEO Charles Liang added that revenue above $80 billion could require more capital, and said the company has no current plans to use its at-the-market equity program. The June raise bought room, but it came with a cost. Super Micro ended fiscal 2026 with $7.5 billion in cash against $8.7 billion in bank borrowings and convertible notes, and the $4.2 billion in mandatory convertible preferred pushes the guided non-GAAP diluted share count to 761 million, up from 721 million in the June quarter. The fiscal Q1 report, covering the quarter that ended September 30, is the first real test. Management guided for $14.5 billion to $15.5 billion in revenue, enough to work through the $12.9 billion inventory pile if deliveries hold. Positive operating cash flow, with inventory flat or lower and receivables not rebuilding, would support the self-funding claim. Another multibillion-dollar burn, or any use of the at-the-market program, would suggest the June raise delayed the funding problem rather than solved it. Management says $65 billion in revenue won’t need new capital. Watch Super Micro’s cash flow and share count on TIKR for free → Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
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