Diodes (DIOD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 10% year-over-year to $332.1 million, driven by strong computing and AI-related demand in Asia and improving conditions in Europe and North America.

• Automotive and industrial markets contributed 42% of product revenue, reflecting ongoing content expansion, design wins, and strategic focus on high-margin markets.

• Channel and internal inventory levels continued to decrease, aligning with real demand and supporting future margin expansion.

• Q1 2025 GAAP net loss was $4.4 million, compared to net income of $14 million in Q1 2024; non-GAAP net income was $8.8 million.

• Announced a $100 million stock repurchase program, reflecting confidence in future growth and strong cash flow.

Financial highlights

• Q1 2025 revenue was $332.1 million, up from $302 million in Q1 2024 but down from $339.3 million in Q4 2024.

• Gross profit was $104.7 million (31.5% margin), compared to $99.6 million (33.0%) in Q1 2024 and $110.9 million (32.7%) in Q4 2024.

• Non-GAAP adjusted net income was $8.8 million ($0.19 per share), down from $13 million ($0.28 per share) in Q1 2024.

• EBITDA was $26.2 million (7.9% of revenue), compared to $48.3 million (16%) in Q1 2024.

• Free cash flow was $40.8 million, with $15.9 million in capital expenditures.

Outlook and guidance

• Q2 2025 revenue expected to be ~$355 million (±3%), representing 11% year-over-year growth at midpoint.

• GAAP gross margin expected at 31.8% (±1%), with non-GAAP operating expenses at ~28% of revenue (±1%).

• Full-year tax rate projected at 18% (±3%).

• Management expects further gross margin expansion as channel inventory normalizes and demand improves, especially in automotive and industrial markets.

• Diluted shares for EPS calculation anticipated at 46.4 million.