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 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 ($0.10 per share), compared to net income of $14 million last year, due to higher expenses and impairment charges.

• 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%) last year and $110.9 million (32.7%) last quarter.

• Non-GAAP adjusted net income was $8.8 million ($0.19 per share), down from $13 million ($0.28) last year and $12.5 million ($0.27) last quarter.

• EBITDA was $26.2 million (7.9% of revenue), compared to $48.3 million (16%) last year and $40.7 million (12%) last quarter.

• Cash flow from operations was $56.7 million; free cash flow was $40.8 million after $15.9 million in capex.

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%); non-GAAP operating expenses targeted at ~28% of revenue (±1%).

• Full-year tax rate expected to be 18% (±3%).

• Shares used for Q2 EPS calculation anticipated at 46.4 million.

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