Diodes (DIOD) investor relations material

Executive summary

• Fourth quarter 2025 revenue grew 15.4% year-over-year to $391.6 million, marking the highest annual growth since 2021 and the fourth consecutive quarter of double-digit year-over-year growth.

• Full year 2025 revenue increased 13%, driven by a 25% rise in the computing market (mainly AI server applications) and double-digit growth in automotive and industrial end markets.

• Automotive revenue reached a record 20% of total revenue in Q4, with content per vehicle increasing to 239 from 213 last year.

• Initial improvements in gross margin were realized due to favorable product mix, particularly from automotive market growth.

• Cash flow from operations for 2025 rose 80% to $215.5 million, and free cash flow per share increased to $2.95 from $1.00 in 2024.

Financial highlights

• Q4 2025 revenue: $391.6 million, up 15.4% year-over-year; full year revenue: $1.5 billion, up 13%.

• Q4 gross profit: $121.9 million (31.1% margin); full year gross profit: $462.4 million (31.3% margin).

• Q4 GAAP net income: $10.2 million ($0.22/diluted share); full year GAAP net income: $66.1 million ($1.43/diluted share).

• Q4 non-GAAP adjusted net income: $15.7 million ($0.34/diluted share); full year non-GAAP adjusted net income: $56.7 million ($1.22/diluted share).

• Q4 EBITDA: $41.9 million (10.7% margin); full year EBITDA: $199.2 million (13.4% margin).

• Q4 free cash flow: $12.4 million; full year free cash flow: $137.2 million.

• Cash, equivalents, and short-term investments at year-end: $382 million; working capital: $879 million; total debt: $56 million.

Outlook and guidance

• Q1 2026 revenue expected at ~$395 million (±3%), up 19% year-over-year and slightly up sequentially.

• Q1 2026 GAAP gross margin expected at 31.5% (±1%); non-GAAP operating expenses at 26.5% (±1%).

• Full year 2026 tax rate expected at 18%–18.5% (±3%).

• Management introduced three-year interim financial targets: $2 billion in annual revenue, $700 million in gross profit (35%+ gross margin), and over $4 in non-GAAP EPS, with long-term targets of $2.5 billion revenue and $1 billion gross profit (40% margin).