Navitas Semiconductor Q4 Earnings Call Highlights

Key Points

• Strategic pivot: Navitas shifted focus to high-power markets (AI data centers, grid, performance computing, industrial electrification), which made up the majority of Q4 revenue while mobile fell to <25% and is expected to become "insignificant" by end-2026.
• Q4 results and restructuring: Q4 revenue was $7.3M (down from $10.1M) and included a $16.6M restructuring/impairment charge; management said Q4 likely represented the revenue "bottom," cash was about $237M with no debt, and Q1 2026 guidance is $8.0–$8.5M.
• Product and manufacturing progress: Navitas is accelerating GaN and high-voltage SiC sampling for AI and grid applications (including a 10 kW all‑GaN 800V→50V platform at 98.5% peak efficiency) and has a long‑term manufacturing partnership with GlobalFoundries to scale U.S. GaN production starting late 2026/2027.

Navitas Semiconductor NASDAQ: NVTS said it ended 2025 with fourth-quarter revenue at the high end of guidance as the company accelerated its “Navitas 2.0” transformation, a strategic pivot away from its historical mobile and low-end consumer business toward higher-power end markets such as AI data centers and grid infrastructure.

Management emphasized that the company’s fourth-quarter results were preliminary and unaudited, with final results expected to be provided in its Form 10-K.

Strategic pivot: high-power markets become majority of revenue

President and CEO Chris Allexandre said the company is “laser-focused” on four high-growth segments: AI data center, energy and grid infrastructure, performance computing, and industrial electrification. He described AI as an underlying catalyst across these markets, driving new power architectures and increasing adoption of gallium nitride (GaN) and high-voltage silicon carbide (SiC) technologies.

Allexandre said the company has completed an organizational realignment—by skills and geography—to focus on high-power markets. He also noted that Navitas has shipped more than 300 million GaN devices over a 10-year period and is leveraging GeneSiC technology for high-voltage SiC.

A key milestone in the quarter was that high-power markets represented the majority of quarterly revenue for the first time, while the mobile business fell to less than 25% of revenue. Management said it expects mobile to continue declining as a percentage of revenue and to become “insignificant” by the end of 2026.

Product and market updates: AI data center and grid initiatives

In AI data centers, Allexandre said Navitas is supporting multiple architectures and has accelerated product sampling of 100V and 650V GaN for 800V HVDC and 48V intermediate bus converter (IBC) and high-voltage buck designs. He said samples are available in different package types and are being evaluated by more than a dozen customers.

Navitas highlighted a February 9 announcement of a 10 kW, all-GaN, 800V-to-50V DC-DC design platform. The company said the platform delivered 98.5% peak efficiency and is intended to support ±400V VDC standards used in AI data centers. In the Q&A, Allexandre characterized the platform as an enabling reference implementation co-developed with a customer, stating the company is not currently planning to sell complete brick-level modules and does not intend to compete with its customers.

On the SiC side for AI data centers, management said it is active supporting customers’ AC-DC power supply unit (PSU) designs using 1.2 kV SiC devices and highlighted its latest GeneSiC technology and top-side cooled D2PAK packaging.

For grid and energy infrastructure, Allexandre described a “multi-decade” modernization cycle and said Navitas is seeing accelerated design cycles. The company said it is sampling 2.3 kV and 3.3 kV ultra-high-voltage SiC modules and is in evaluation with more than 50 OEMs globally, “mostly in the U.S. and Europe,” with acceleration in the U.S. In a later Q&A exchange, Allexandre discussed solid-state transformers and other grid-tied applications, and said the company expects significant revenue growth in grid-related areas starting in 2027 due to longer design cycles.

In performance computing, management said it is seeing increased GaN adoption in high-power chargers and power units for high-end computing and AI notebooks, with “more than 15 projects” in production and roughly twice that number in design across power levels up to 360W. Industrial electrification traction was described as emerging across applications such as industrial pumps, AV equipment electrification, DC-DC converters, and megawatt chargers.

Fourth-quarter financial results and restructuring actions

CFO Todd Glickman reported fourth-quarter 2025 revenue of $7.3 million, down from $10.1 million in the third quarter. He attributed the decline to the company’s decision to deprioritize low-power, lower-profit China mobile and consumer business and to streamline the distribution network to align with high-power markets. Both Glickman and Allexandre said they believe the fourth quarter represented the “bottom” for revenue.

Glickman said the company’s GAAP results included a $16.6 million restructuring and impairment charge, consisting of:

• $10 million of distribution contract terminations
• $4 million of fixed asset impairments
• $2 million of workforce reduction expenses

He said $3.8 million of the charge was non-cash.

On a non-GAAP basis, Glickman reported gross margin of 38.7% in the fourth quarter, flat sequentially. He said that at current revenue levels the company does not yet have sufficient scale to overcome fixed costs, but expects this to improve as high-power revenue grows and mix shifts away from mobile and low-end consumer products.

Non-GAAP operating expenses were $14.9 million, down from $15.4 million in the third quarter, following a 19% workforce reduction largely in mobile and consumer roles and an organizational shift toward U.S.-based high-power markets. Operating expenses included SG&A of $6.8 million and R&D of $8.1 million. Non-GAAP loss from operations was $12.1 million, compared with $11.5 million in the prior quarter. Weighted average shares were approximately 222 million in the quarter.

For the full year 2025, the company reported revenue of $45.9 million, down from $83.3 million in 2024, and gross margin of 38.4% versus 40.4% a year earlier. Operating expenses were $63.6 million compared with $83.4 million in 2024, and full-year loss from operations was $46.0 million versus $49.7 million the prior year.

Balance sheet, operational changes, and Q1 guidance

Glickman said accounts receivable declined to $3.6 million from $9.8 million, with days sales outstanding of 45 days. Inventory decreased to $13.3 million from $14.7 million. Cash and cash equivalents ended the quarter at approximately $237 million, reflecting net proceeds of about $96 million from a November private placement of common stock. The company said it has no debt.

Operationally, Allexandre highlighted a long-term technology and manufacturing partnership with GlobalFoundries to accelerate GaN design and manufacturing in the U.S. Development began “a few weeks ago,” with production expected to begin later in 2026 and accelerate in 2027. Over time, the company expects to transition to 8-inch manufacturing to lower costs and increase scale. Navitas also consolidated distribution partners from roughly 40 to fewer than 10 as part of its go-to-market restructuring.

For the first quarter of 2026, the company guided to revenue of $8.0 million to $8.5 million, implying sequential growth. It expects gross margin of 38.7% plus or minus 25 basis points and operating expenses of approximately $15 million. The company expects weighted average shares of about 230 million in Q1.

During the call, Allexandre also said Glickman will step down after 10 years as CFO and will assist with a transition until a successor is named. The company said it expects to provide an update on its CFO search in the coming weeks.

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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