Navitas Semiconductor Corporation Q4 FY2025 earnings call

• Pivot to Navitas 2.0: Accelerating away from mobile and low-end consumer business to focus on high-power markets (AI data center, energy and grid infrastructure, performance computing, industrial electrification) with a serviceable addressable market of $3.5 billion by 2030. • Fourth quarter results: Revenue at high end of guidance, high-power market majority of revenue, Mobile business declining. • Organizational realignment: Redeploying resources, skills, and geography to focus on high-power markets. • Technology leadership: Prioritizing innovation in GaN and high-voltage SiC technology, e.g., breakthrough 10-kilowatt DC-DC platform, new 1.2 kV SiC Q-DPAK product, Gen 5 SiC technology. • Operational efficiency: Streamlined organization, strategic technology and manufacturing partnership with GlobalFoundries, consolidated distribution channel partners. • Financial discipline: 19% headcount reduction, realigned resources, completed private placement with net proceeds of ~$96 million, targeting flat operating expenses and gradual margin expansion.

Fourth quarter revenue was $7.3 million, at the high end of guidance. High-power market represented the majority of total revenue for the first time. Mobile business declined from majority of revenue in Q3 to less than 25% in Q4 and is expected to become insignificant by end of '26. Q1 revenue expected to be between $8 million and $8.5 million, with gross margin expected to be 38.7% plus or minus 25 basis points. Operating expenses anticipated to be approximately $15 million for Q1.

• Q4 was the bottom, expecting quarter-over-quarter growth for Q1 and continued sequential growth throughout '26 driven by high-power market sales traction. • Guiding Q1 revenue to be between $8 million and $8.5 million. • Q1 gross margin expected to be 38.7% plus or minus 25 basis points. • Anticipating operating expenses to remain approximately $15 million for Q1.

Q: Walk us through how each high-power end market performed in Q4 and trajectory for Q1?

A: Todd said high-power markets performed well, not breaking out by market now but expect all to perform as mobile becomes immaterial.

Q: Update on 800-volt architecture opportunity and customer decision timeline?

A: Chris said there's collaboration with hyperscalers on 800-volt HVDC, sampled new products, close to customers but early to tell timeline.

Q: Working with hyperscalers, directly with them or through suppliers?

A: Chris said all of the above, working with hyperscalers, OEMs, ODMs.

Q: When inflection point for 800-volt HVDC installations?

A: Chris said 2 streams, SiC in PSUs growing in '26, 800-volt HVDC real step function in '27, GaN possibly earlier in 48-volt IBC.

Q: Competitive landscape in 800-volt data center, partnership with Infineon?

A: Chris said continue partnership with Infineon, multiple vendors in ecosystem, not all in each socket, competition pool reducing.

Q: Incremental margin of 800-volt data center or high-power products?

A: Todd said combination of end market mix and technological innovation, scale, cost reduction to drive margin expansion.

Q: Driver of gross margin expansion, mix or product margins?

A: Todd said combination of end market mix and technological innovation, scale, cost reduction.

Q: High-voltage silicon carbide and solid-state transformers, design process and dollar content?

A: Chris said accelerating sampling of 2.3 kV and 3.2 kV, significant revenue growth starting '27, SAM of $25,000 to $35,000 per megawatt including outside data center applications.