Navitas Semiconductor Corp Q1 FY2025 earnings call

• Announced the industry's first production release of a bidirectional GaN IC (GaN BDS), which enables single-stage converters and bidirectional energy flow, with the first customer ramping in solar microinverters later this year.
• GaNSafe technology has been automotive-qualified to AEC-Q101 standard and is set for production in mainstream EV applications early in 2026.
• GeneSiC technology has been qualified to exceed automotive reliability standards and is gaining share in commercial EV applications, with ultra-high voltage capability enabling new energy megawatt applications.
• In data centers, Navitas has made progress with system designs, including a new 12 kilowatt design set to launch at Computex, leveraging GaN and SiC technologies.
• Board and executive changes, including separation of chair and CEO roles and CTO transitioning to a technical advisory role, to accelerate scale and profitability.

In Q1 2025, Navitas Semiconductor reported revenue of $14 million, with a 38% gross margin. GaN currently represents the significant majority of revenue, while SiC is a minority but growing in certain markets like commercial EV applications. GaN revenues are less directly impacted by tariffs due to manufacturing in Taiwan and sales predominantly outside the U.S., whereas SiC revenues from China are affected by tariff dynamics.

• Q2 2025 revenue expected in the range of $14 million to $15 million.
• Gross margin for Q2 expected to be slightly higher than Q1, around 38.5% ± 50 basis points.
• Operating expenses for Q2 anticipated to be $15.5 million, down from $17.2 million in Q1.
• Aim to reach EBITDA breakeven in 2026, with design wins expected to drive growth later in 2026 and 2027.

• Tariffs pose a dynamic risk, particularly impacting China SiC revenues; monitoring updates between China and the U.S. is ongoing.
• Channel inventory slowdown in EV, solar, and industrial markets presents near-term headwinds.
• Uncertainties related to geopolitical factors and potential changes in country of origin definitions affecting manufacturing and sales.

Q: Ross Seymore from Deutsche Bank asked about visibility into the second-half and design wins timing.

A: Gene Sheridan stated design wins are being converted to production orders, with revenue kicking in late 2025, majority in 2026, and some in 2027.

Q: Jack Egan from Charter Equity Research asked about design wins breakdown between GaN and SiC.

A: Gene Sheridan said design wins are well balanced between GaN and SiC, varying by segment but not indicative of near-term revenue split.

Q: Jon Tanwanteng from CJS Securities asked about exposure to China and SiC production plans.

A: Gene Sheridan discussed China-for-China strategy and potential expansion of foundry base if tariffs impact U.S. manufacturing.

Q: Madison de Paola from Rosenblatt Securities asked about data center traction.

A: Gene Sheridan talked about progress in data center designs, from lower kilowatt to 12 kilowatt, positioning Navitas for future Blackwell and Rubin designs.

Q: Richard Shannon from Craig-Hallum Capital Group asked about solar ramp and market diversification.

A: Gene Sheridan said solar microinverter ramp is in the second-half of 2025, with market diversification including mobile, EV, AI data centers, and solar as key drivers.

Q: Jack Egan asked about at-the-market offering and bidirectional GaN revenue potential.

A: Todd Glickman said ATM offering is for strategic purposes, and Gene Sheridan estimated bidirectional GaN revenue potential north of $10 million for 2026.

Q: Joseph Moore from Morgan Stanley asked about AI data center timing and contingency plans.

A: Gene Sheridan discussed ongoing Blackwell designs and Todd Glickman talked about cash burn contingency plans.

Q: Ross Seymore asked about channel inventory normalization.

A: Gene Sheridan said channel inventory overhang in SiC is declining but still a quarter or two away from full normalization.

Q: Nick Doyle from Needham asked about smartphone market and channel slowdown.

A: Gene Sheridan discussed mobile market trends and channel slowdown as a combination of demand and semiconductor industry dynamics