Navitas Semiconductor Q1 Earnings Call Highlights

Key Points

• Navitas reported Q1 revenue of $8.6 million, up 18% sequentially and driven by a ~35% YoY increase in high‑power markets that now comprise the majority of sales; gross margin improved to 39.0%, operating expenses were flat and cash stood at $221 million with no debt.
• Management is pivoting to AI data center, energy/grid and industrial electrification using GaN and high‑voltage SiC, spotlighting new offerings such as 2.3 kV/3.3 kV modules, 1.2 kV Gen‑5 SiC samples, and a 20 kW 800V→6V GaN platform targeting ~97.5% peak efficiency.
• For Q2 the company guided revenue to $10.0 million ± $0.5 million with non‑GAAP gross margin around 39.25% and flat operating expenses; management said profitability would require revenue "in the high 30s" but affirmed a strong cash runway to support the pivot.

Navitas Semiconductor NASDAQ: NVTS reported first-quarter 2026 results that management said marked “another quarter of solid progress” in its ongoing shift toward higher-power markets, with revenue returning to sequential growth and high-power applications making up a larger share of the business.

President and CEO Chris Allexandre said the company has “meaningfully accelerated” its pivot away from historical mobile and low-end consumer products over the past two quarters to focus on four target segments: AI data center, energy and green infrastructure, performance computing, and industrial electrification. “Although far too early to declare victory,” Allexandre said, “Navitas is back to growth, driven by our high power market.”

Revenue rebounds sequentially as mix shifts toward high power

CFO Tonya Stevens, who joined Navitas in late March, said first-quarter revenue exceeded the high end of guidance, rising 18% sequentially to $8.6 million on a GAAP basis. That compared with $7.3 million in the prior quarter and $14.0 million in the first quarter of 2025.

Stevens attributed the sequential improvement to growth in high-power markets, which she said increased approximately 35% year-over-year versus the first quarter of 2025 and now represents “a large majority of total revenue” as the company continues to reduce reliance on mobile and low-end consumer demand.

Gross margin improved modestly with the changing mix. Stevens said gross margin expanded 30 basis points sequentially to 39.0%, up from 38.7% in the prior quarter and 38.1% a year earlier. She said the company expects “sustained gradual improvements in gross margin throughout the coming year,” driven by a greater proportion of higher-value, high-power revenue.

Costs hold steady; cash balance remains strong

Operating expenses in the quarter were $15.0 million, compared with $14.9 million in the prior quarter and $17.2 million in the year-ago period. Stevens said the company kept total operating expenses flat while reallocating spending, emphasizing “focused and disciplined spending, particularly in SG&A,” which created room to invest more in R&D to support the company’s strategic pivot.

Loss from operations was $11.7 million, compared with a loss of $12.1 million in the prior quarter and $11.8 million a year ago. Stevens reported a non-GAAP loss per share of $0.04, compared with $0.05 in the prior quarter, with diluted shares outstanding of approximately 230 million.

Navitas ended the quarter with $221 million in cash and cash equivalents, down from $237 million at the end of the fourth quarter, and Stevens said the company continues to have no outstanding debt. Inventory ended at $14.9 million, up from $13.3 million at year-end, which Stevens said reflects “measured investment to support future anticipated revenue growth.” She also said channel inventory is “significantly healthier” following streamlining actions taken late last year.

AI infrastructure focus highlights GaN and SiC positioning

Allexandre said AI is the “primary catalyst” accelerating adoption of gallium nitride (GaN) and high-voltage silicon carbide (SiC) solutions across the company’s target markets. He framed the opportunity around “AI infrastructure,” combining AI data centers and supporting grid energy infrastructure, and said the company believes it is differentiated by its experience in both GaN and high-voltage SiC.

As the AI data center market evolves, Allexandre pointed to industry movement toward 800V high-voltage DC (HVDC) architectures. He said Navitas’ near-term focus is on sampling new GaN and SiC products, enabling qualifications, preparing for ramps, and supporting hyperscalers and OEMs across AC/DC power supplies, DC/DC power supplies, and 800V HVDC brick designs.

In grid infrastructure, Allexandre said Navitas is seeing “notable acceleration in design activity,” driven in part by recognition that the existing energy grid is not equipped to support anticipated AI data center growth. He highlighted recently introduced 2.3 kV and 3.3 kV modules and a roadmap to higher-voltage solutions.

In performance computing, Allexandre described “sustained healthy adoption of GaN” in higher-power chargers for high-end laptops and mobile workstations used for gaming and AI development. He said power requirements are rising, with CPUs moving from 15W–30W to 45W–80W in new AI notebooks, and GPU integration requiring up to 120W–175W.

In industrial electrification, he said the company is seeing traction for both GaN and ultra-high-voltage SiC in applications such as DC/DC converters and megawatt chargers, industrial pumps, motor control, and audio/visual equipment electrification.

Product updates, manufacturing plans, and customer engagement

On GaN, Allexandre said the company continues to accelerate sampling of 100V and 650V devices to more OEMs and ODMs, and that some customers have begun internal reliability and system-level testing on the newest GaN devices.

He highlighted a 20 kW, 800V-to-6V DC/DC platform using the company’s “8 by 8” 650V GaNFast technology, which he said targets 97.5% peak efficiency and was unveiled in March at NVIDIA GTC. Allexandre also referenced a previously released “800V to 50V AI DC/DC power brick” that he said was introduced six years ago and is “on the board delivering best-in-class efficiency and density.”

On SiC, Allexandre said Navitas introduced “Gen 5 GeneSiC technology” based on a patented trench-assisted planar architecture and in March released 1.2 kV Gen 5 SiC products in packages aimed at higher power density DC/DC and AC/DC needs in power supply applications. He said samples have been delivered and are being evaluated by “most PSU vendors,” with initial feedback including reports of “up to 50% increase in power density” and “greater than 98% system efficiency and improved cooling.”

Allexandre also said Navitas continues to progress on its strategic partnership with GlobalFoundries for GaN, which he said is intended to support an “8-inch pivot in 2027 for GaN manufacturing in the U.S.,” while building buffers with TSMC for a smooth transition for existing customers.

Guidance calls for continued growth in Q2

For the second quarter of 2026, Stevens guided revenue to $10.0 million, plus or minus $0.5 million, implying more than 16% sequential growth at the midpoint. She guided non-GAAP gross margin to 39.25% plus or minus 75 basis points, and non-GAAP operating expenses to remain approximately flat at $14.5 million to $15.5 million.

During Q&A, Allexandre said the combined AI data center and grid infrastructure portion of the business grew 50% quarter-over-quarter from Q4 to Q1, calling it “stronger than expected,” and said the company is seeing that AI infrastructure growth accelerate into Q2. He also said the shift to higher-power markets has improved visibility compared with the company’s historical mobile business.

On profitability, Allexandre said the company is not providing a specific timeline but characterized breaking even as “a key objective.” He added that at current gross margin and operating expense levels, profitability would require revenue “in the high 30s.” Stevens said the company’s cash position provides “a pretty long runway” to support working capital and capital expenditure flexibility and added that the company’s thinking on profitability is unchanged, and “potentially accelerated a bit.”

Allexandre closed the call by reiterating confidence in the company’s momentum as it executes its “Navitas 2.0” pivot, while noting that it is “too early to declare victory.”

About Navitas Semiconductor NASDAQ: NVTS

Navitas Semiconductor is a fabless semiconductor company specialized in gallium nitride (GaN) power integrated circuits. The company’s core mission centers on delivering high-efficiency, high-power-density power solutions that address the needs of modern electronic devices, ranging from fast chargers for consumer electronics to industrial and automotive power systems.

Navitas offers a portfolio of GaNFast power ICs designed to replace traditional silicon-based power components. These products integrate GaN transistors, drivers and protection features into single-chip solutions, enabling faster charging, reduced energy loss and smaller power supply footprints.

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