Diodes (DIOD) investor relations material

Executive summary

• Q3 2025 revenue was $392.2M, up 12% year-over-year and 7% sequentially, driven by strong demand in computing, especially AI server and data center applications, with Asia leading growth.

• Automotive and industrial segments contributed 41% of Q3 revenue, showing sequential and year-over-year growth, though recovery remains slower than expected.

• Channel inventory levels decreased, with inventory dollars down over 25% from peak, and inventory days improved sequentially.

• Free cash flow per share reached $1.35 for the quarter and $4.02 for the trailing twelve months, nearing historical highs.

• Strategic investments in technology, manufacturing, and advanced packaging are supporting growth and market leadership.

Financial highlights

• Q3 2025 net sales: $392.2M, up from $366.2M in Q2 2025 and $350.1M in Q3 2024.

• Gross profit was $120.5M (30.7% margin), down from 33.7% a year ago.

• GAAP net income was $14.3M ($0.31/share), up from $13.7M ($0.30/share) last year, but down from $46.1M ($0.99/share) last quarter.

• Non-GAAP adjusted net income was $17.2M ($0.37/share), down from $20.1M ($0.43/share) last year, but up from $15M ($0.32/share) last quarter.

• Cash flow from operations was $79.1M, with free cash flow of $62.8M after $16.3M in capital expenditures.

Outlook and guidance

• Q4 2025 revenue expected at ~$380M (±3%), representing 12% year-over-year growth and the fifth consecutive quarter of year-over-year growth.

• GAAP gross margin expected at 31% (±1%), non-GAAP operating expenses at ~27% of revenue.

• Full-year 2025 revenue growth projected at 12%, with 2026 expected to see double-digit growth and margin improvements.

• Management expects liquidity and borrowing capacity to cover working capital, capital expenditures, and acquisitions for at least the next 12 months.