Diodes (DIOD) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 14–14.5% year-over-year and 10–10.3% sequentially to $366.2M, exceeding expectations and marking the third consecutive quarter of year-over-year growth, driven by strong demand in Asia and the consumer market.

• Non-GAAP earnings increased nearly 70% sequentially, with strong POS growth across all regions, especially Asia.

• Net income attributable to common stockholders was $46.1M (GAAP), up from $8.0M last year and a net loss of $4.4M in the prior quarter, with diluted EPS of $0.99.

• Channel and internal inventory days decreased, indicating improved inventory management and ongoing market recovery.

• Maintained a robust balance sheet with $333M in cash and $54M in total debt.

Financial highlights

• Q2 2025 revenue was $366.2M, up 14–14.5% year-over-year and 10–10.3% sequentially.

• Gross profit was $115.3M (31.5% margin), compared to $107.4M (33.6%) last year and $104.7M (31.5%) last quarter.

• GAAP net income was $46.1M ($0.99 per diluted share), versus $8M ($0.17) last year and a net loss of $4.4M ($0.10) last quarter.

• Non-GAAP adjusted net income was $15M ($0.32 per share), similar to $15.4M ($0.33) last year and up from $8.8M ($0.19) last quarter.

• EBITDA reached $84.5M (23.1% margin), up from $41.1M (12.8%) last year and $26.2M (7.9%) last quarter.

• Cash flow from operations was $41.5M; free cash flow was $21.1M after $20.4M in capex; net cash flow was -$18.2M.

Outlook and guidance

• Q3 2025 revenue expected at ~$392M ±3%, representing 12% year-over-year growth at midpoint.

• GAAP gross margin forecasted at 31.6% ±1%; non-GAAP operating expenses expected at ~26% of revenue.

• Income tax rate projected at 18% ±3%; share count for EPS calculation at ~46.5M.