Navitas Semiconductor Corporation Q3 FY2025 earnings call

• Chris Alexandra introduced the Navitas 2.0 transformation, emphasizing focus on high-power markets like AI data centers, performance computing, energy and grid infrastructure, and industrial electrification. • Resource realignment: Reallocating engineering, commercial, and R&D resources towards high-power platforms. • Roadmap acceleration: Accelerating the release of new products tailored to high-power markets. • Go-to-market restructuring: Focusing on hyperscalers, GPU vendors, Tier 1 OEM and ODM, and streamlining the distribution network. • Portfolio and customer pruning: Deprioritizing lower margin, short life cycle projects and mobile/certain China-based segments. • NVIDIA named Navitas a power selector partner for its 800-volt DC AI factory power architecture, and Navitas announced new GaNFast and high-voltage SiC products.

Third quarter 2025 revenue was at the midpoint of guidance at $10.1 million. Gross margin was 38.7%. For the fourth quarter, revenue is expected at $7 million ± $250,000, with gross margin expected at 38.5% ± 50 basis points. The mobile business is being deprioritized as the focus shifts to high-power markets such as AI data centers, performance computing, energy and grid infrastructure, and industrial electrification.

• Fourth quarter 2025 revenue is expected at $7 million ± $250,000. • Fourth quarter gross margin is expected to be relatively flat at 38.5% ± 50 basis points, with gradual increase in gross margins anticipated in the future. • Operating expenses are expected to be trimmed to $15 million in the fourth quarter, a 24% year-over-year reduction. • Q4 is expected to be the revenue bottom, with gradual growth in 2026 as the company focuses on the high-power business.

• Forward-looking statements are subject to assumptions, risks, and uncertainties that could cause actual results to differ materially. • Factors affecting the business are described in the earnings release and the Risk Factors section of the most recent 10-K and 10-Q. • Market changes and competitive pressures could impact the company's performance.

Q: How long of a tail is the mobile market?

A: Todd Glickman stated mobile will represent less than 50% in Q4, and future growth will come from high-power markets. Chris Alexandra added the mobile low end has commoditized and the high end has plateaued.

Q: What is the competitive differentiation for Navitas?

A: Chris Allexandre said having both high-voltage SiC and GaN, track record in GaN adoption, and speed and support to enable transition are key differentiators.

Q: Is the solar microinverter ramp still on track?

A: Chris Allexandre said it is still on track, ramping in 2026 with the lead customer.

Q: How about the cash position and burn rate?

A: Todd Glickman said cash at quarter end was $151 million, burn rate was around $10-11 million a quarter, and it is enough for ongoing operations.

Q: Relative contribution of lower voltage GaN and silicon carbide?

A: Chris Allexandre said both GaN and SiC will grow in high-power markets, mobile will decline, and high-power computing and energy grid infrastructure will increase.