Navitas Q3 2025 slides: Strategic pivot to high-power markets amid revenue challenges

Introduction & Market Context

Navitas Semiconductor Corp (NASDAQ:NVTS) presented its Q3 2025 earnings on November 3, revealing a strategic pivot toward high-power markets despite falling short of analyst expectations. The company reported revenue of $10.1 million, missing the forecast of $10.79 million, while posting an EPS of -$0.09 against expectations of -$0.05. Following the announcement, Navitas shares dropped 9.14% to $12.23, with an additional 2.3% decline in after-hours trading.

The presentation, led by CEO Chris Allexandre, outlined a comprehensive transformation strategy dubbed "Navitas 2.0," focusing on high-growth markets including AI data centers and energy infrastructure while reducing exposure to mobile and consumer segments.

Executive Summary

Navitas is undergoing a significant business transformation, shifting from its original focus on GaN technology for power chargers to targeting high-power applications in AI, data centers, and energy infrastructure. The company delivered on its Q3 revenue, gross margin, and operating expense targets while maintaining a strong cash position of approximately $150 million.

As shown in the following strategic transformation slide, the company is evolving from "Navitas 1.0" to "Navitas 2.0" with a clear focus on high-power markets:

The company's leadership emphasized that Q4 2025 and Q1 2026 will serve as transition periods, with Q4 revenue projected at $7 million, representing what management describes as a revenue bottom before sequential growth begins in 2026.

Strategic Initiatives

Navitas outlined decisive actions to enable its pivot to high-power markets, including new leadership, resource reallocation, consolidation of distribution partners, and enhanced financial discipline. The company is expanding its U.S. presence while reducing its footprint in the mobile segment and China market.

The strategic initiatives are detailed in this comprehensive action plan:

CEO Chris Allexandre emphasized that "Navitas 2.0 is a high-power company built for scale and profitability," noting that AI is serving as "a catalyst that drives change across all markets." This strategic repositioning leverages the company's expertise in GaN and SiC technologies to address growing demand in data centers and energy infrastructure.

The company's positioning in high-power markets is illustrated in this market focus slide:

Quarterly Performance Highlights

Navitas reported Q3 2025 revenue of $10.1 million, at the midpoint of its guidance but below analyst expectations of $10.79 million. Non-GAAP gross margin reached 38.7%, slightly improved from 38.5% in the previous quarter. Operating expenses were reduced to $15.4 million from $16.1 million in Q2, reflecting the company's commitment to financial discipline.

The financial performance and outlook are summarized in this slide:

Despite meeting its own guidance, the company's EPS of -$0.09 missed analyst forecasts of -$0.05, contributing to the negative market reaction. Navitas maintains a strong balance sheet with approximately $150 million in cash and no debt, which management views as critical to funding its transformation strategy.

Forward-Looking Statements

For Q4 2025, Navitas projects revenue of $7 million ± $250,000 with a gross margin of 38.5% ± 0.5%. Management characterized this as a reset quarter, positioning the company for sequential growth beginning in Q1 2026 and continuing throughout the year.

The company's product roadmap highlights key developments in high-voltage technology, as shown in this slide:

Navitas is sampling new 2.3kV and 3.3kV high-voltage SiC modules to energy storage and grid infrastructure customers, while also introducing new 100V GaN FETs for AI power applications. The company highlighted its partnership with NVIDIA, positioning Navitas at the center of next-generation power innovation for AI data centers.

Competitive Industry Position

Navitas emphasized its unique position in the high-power semiconductor market, highlighting its pioneering role in GaN technology, SiC leadership, and extensive patent portfolio. The company is leveraging deep partnerships with hyperscalers and OEMs to deliver complete solutions with system expertise.

The investor takeaways from the presentation underscore the company's transformation strategy:

During the earnings call, analysts questioned Navitas' transition strategy and its engagement with hyperscalers. Management expressed confidence in the company's competitive advantages and technology differentiation in the high-power market, though investors appeared skeptical given the stock's negative reaction.

While Navitas positions 2026 as a transition year for stronger growth, the company faces execution challenges in shifting from mobile to high-power markets. Competition in high-power sectors, macroeconomic pressures, and supply chain disruptions remain potential risks to the company's transformation strategy.

Full presentation:

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