Vicor (VICR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $143.4 million, up 26.9% sequentially and 49.3% year-over-year, driven by advanced products and new licensing income.

• Net income for Q2 2026 was $49.8 million ($1.04 per diluted share), up from $41.2 million ($0.91 per share) in Q2 2025 and $20.7 million ($0.44 per share) in Q1 2026.

• Royalty income from a new license agreement contributed $15 million to Q2 revenue, with future quarterly contributions expected.

• Backlog increased 26% sequentially and 145% year-over-year, reaching $380 million.

• Strategic focus on advanced power modules and IP licensing, targeting $2.5 billion revenue and 70% gross margins.

Financial highlights

• Advanced products revenue rose 45% sequentially to $94.2 million; brick products up 2.4% to $49.2 million.

• Gross margin for Q2 2026 was 58.0%, up from 55.2% in Q1 2026 but down from 65.3% in Q2 2025 due to a prior year litigation settlement.

• Operating expenses increased 6.1% sequentially to $48.2 million, mainly due to legal and SG&A expenses.

• Cash and equivalents at quarter-end were $453.6 million, up $49.4 million sequentially and 12.2% from Q1.

• Operating cash flow was $34 million; capital expenditures totaled $11.2 million.

Outlook and guidance

• Q3 revenue expected to increase nearly 10% sequentially; 2026 revenue projected to exceed $600 million.

• Double-digit sequential growth anticipated for advanced products.

• Margin expansion expected as capacity utilization rises.

• Royalty revenue from the new license agreement to be $5 million in Q3 and $10 million per quarter for the next four quarters.

• Management preparing for further capacity expansion with a second fab for next-generation products.