Navitas Semiconductor (NVTS 0.69%), a developer of gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, reported results for the quarter ended June 30, 2025, on August 4, 2025. Navitas posted GAAP revenue of $14.5 million, precisely matching analyst expectations, but saw a 29.3% year-over-year decline in GAAP revenue from the same period last year. Non-GAAP loss from operations improved to $10.6 million from $13.3 million in Q2 2024, showing progress on cost control. However, GAAP net loss per share was a steeper $(0.25), EPS (GAAP) of $(0.25) was worse than the analysts' estimate of $(0.05). Cash and cash equivalents were $161.2 million, bolstered by a successful $100 million capital raise. The period reflected meaningful steps toward strategic repositioning, but near-term profitability remained elusive as the company deepened its focus on growing AI data center and energy infrastructure markets.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Revenue (GAAP) | $14.5 million | $14.5 million | $20.5 million | (29.3%) |
| EPS (Non-GAAP) | $(0.05) | N/A | $(0.07) | N/A |
| Loss from Operations (Non-GAAP) | $(10.6 million) | $(13.3 million) | 20.3% decrease | |
| Gross Margin (Non-GAAP) | 38.5% | 40.3% | (1.8) pp | |
| Cash and Cash Equivalents | $161.2 million | $86.7 million(Dec 31, 2024) | 85.9% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Priorities
Navitas Semiconductor designs power semiconductors using advanced materials like GaN and SiC. These chips enable faster, more energy-efficient conversion and control of electrical power across a wide range of applications. The company started by targeting mobile fast-charging, but its technology is now moving into data centers, electric vehicles (EVs), solar power systems, and energy storage.
Navitas' expertise is in creating integrated circuits that combine functions like drive, control, and protection, all on a single chip. This approach reduces size and complexity, allowing device makers to develop smaller, more efficient products. The company operates a fabless model, meaning it designs chips but uses third-party manufacturers for fabrication. Continued innovation in GaN and SiC, expanding strategic partnerships, and securing intellectual property through patents are seen as keys to the company's long-term competitive position.
Quarter Review: Key Drivers and Developments
GAAP revenue matched analyst expectations but Revenue declined 29.3% year over year, with continued weakness in end markets such as EVs and solar power. Non-GAAP gross margin slipped to 38.5%, down from 40.3% in Q2 2024, as pricing and one-off inventory reserves for China-related SiC products weighed on results.
The GAAP loss from operations remained sizable, largely due to a $3.2 million write-down on China SiC inventory and $4.7 million in amortization expense for intangible assets (GAAP). The bottom-line GAAP net loss of $49.1 million was notably affected by a $28.0 million accounting loss related to earnout liabilities, distorting traditional year-over-year comparability. Management highlighted that, absent these items, the non-GAAP operational loss trajectory was less severe.
Navitas completed a $100 million capital raise by selling approximately 20 million new shares, nearly doubling its cash position to $161.2 million (GAAP) versus $86.7 million (GAAP) as of December 31, 2024. The extra capital is targeted to support expansion into AI data centers and energy infrastructure. A manufacturing partnership was secured with Powerchip to obtain more foundry capacity for 200mm GaN chip production, which the company expects will lead to lower costs and increased scalability.
On the technology and product front, Navitas reported ongoing traction for its GaN bidirectional switches, a new product type that controls power flow in both directions. In automotive, the company's GaNSafe chips were adopted in a leading Chinese electric vehicle maker’s onboard charger, with production anticipated to start in 2026. The mobile and consumer segment also saw new launches, especially in partnership with Xiaomi, touting a compact and high-speed charger powered by Navitas chips.
Looking Ahead: Guidance and Focus Areas
For the next quarter, management guided to revenue near $10.0 million, plus or minus $0.5 million, reflecting a further sequential decline in revenue. The company expects non-GAAP gross margin to hold steady near 38.5%. Management cited continued China tariff risks and a shift to a more selective strategy in its mobile business as reasons for the weaker short-term outlook. Longer term, Navitas plans to resume growth as new design wins in AI data centers and energy infrastructure transition to production in late 2025 and 2026.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
