Navitas Semiconductor (NVTS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $14.0 million, down 40% year-over-year, with a 38% non-GAAP gross margin amid inventory headwinds in EV, solar, and industrial markets.

• Major technology milestones include the industry's first production bidirectional 650V GaN IC, automotive qualification of GaNSafe technology, and a 12kW AI data center platform.

• Over 75 customer projects are in production or development, with $450 million in design wins positioning for strong growth in 2026.

• Company executed a 19% workforce reduction in January 2025 as part of a cost-reduction plan focused on AI data center, EV, and mobile applications.

• Significant exposure to China persists, with 41% of Q1 2025 revenues from Chinese end customers.

Financial highlights

• Q1 2025 revenue was $14.0 million, down from $23.2 million in Q1 2024 and $18.0 million in Q4 2024.

• Non-GAAP gross margin was 38.1% in Q1 2025, down from 41.1% in Q1 2024; GAAP gross margin was 9.1%.

• Non-GAAP loss from operations was $11.8 million, improved from $12.7 million in Q4 2024; GAAP net loss was $16.8 million ($0.09/share).

• Operating expenses reduced to $17.2 million, with a 26% year-over-year decline.

• Cash and cash equivalents stood at $75.1 million as of March 31, 2025, with no debt.

Outlook and guidance

• Q2 2025 revenue is expected between $14.0–15.0 million, reflecting ongoing softness and inventory corrections.

• Non-GAAP gross margin guidance for Q2 is 38.5% ± 50 bps, with operating expenses expected to decline to ~$15.5 million.

• Growth is anticipated to resume late in 2025 and accelerate in 2026 as design wins ramp to production.