Earnings call transcript: Navitas meets Q1 2025 expectations, stock steady

Navitas Semiconductor Corp (NVTS), with a market capitalization of $381 million, reported its first-quarter 2025 earnings with results aligning with market expectations. The company recorded a loss per share of $0.06, matching analyst forecasts, and achieved revenue of $14 million, also in line with projections. The company maintains a strong balance sheet, holding more cash than debt. Despite a slight decline in stock value during regular trading hours, the price saw a modest 1% increase in aftermarket trading, closing at $2.02.

According to InvestingPro, there are 13 additional key insights available for Navitas Semiconductor, including important metrics on profitability and growth potential.

Key Takeaways

• Navitas’ Q1 2025 earnings met analyst expectations with no surprises.
• The company launched significant innovations, including the first bidirectional GaN IC.
• Market conditions remain challenging with inventory corrections in key sectors.
• Navitas anticipates growth in late 2025, driven by solar and EV applications.

Company Performance

Navitas Semiconductor showed resilience in a challenging market environment. With a healthy current ratio of 5.69, the company maintains strong liquidity to weather market uncertainties. The company maintained its revenue forecast for the quarter, despite facing headwinds in the semiconductor industry, such as inventory corrections and slowing demand in EV and solar markets. The company’s strategic focus on GaN and silicon carbide technologies positions it well for future growth, with a strong pipeline of design wins.

Financial Highlights

• Revenue: $14 million, consistent with the previous guidance.
• Earnings per share: -$0.06, matching analyst forecasts.
• Gross Margin: 38.1%, a decline from 40.2% in Q4 2024.
• Operating Expenses: $17.2 million.
• Cash and Cash Equivalents: $75 million, with no debt.

Earnings vs. Forecast

Navitas’ earnings per share and revenue both met market expectations for Q1 2025. The results reflect the company’s ability to navigate current market challenges without deviating from its financial projections.

Market Reaction

Following the earnings release, Navitas’ stock experienced a 3.41% decline during regular trading hours but rebounded slightly in aftermarket trading, rising by 1% to $2.02. With a beta of 2.23, the stock typically exhibits higher volatility than the broader market. According to InvestingPro’s Fair Value analysis, the stock currently appears undervalued. This movement suggests a neutral to slightly positive investor sentiment, as the results were in line with expectations and no significant surprises were reported.

Outlook & Guidance

Looking ahead, Navitas provided revenue guidance for Q2 2025 in the range of $14 to $15 million, with a gross margin forecast of 38.5% ±50 basis points. Five analysts have recently revised their earnings estimates upward for the upcoming period, showing increased confidence in the company’s prospects. The company expects growth to resume in late 2025, driven by increased demand in solar microinverters and EV applications. Additionally, Navitas is targeting EBITDA breakeven by 2026.

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Executive Commentary

CEO Gene Sheridan highlighted the company’s technological advancements, stating, "GaN BDS eliminates dozens of large and expensive components... resulting in size, weight, cost, and power loss improvements of 30% or more." CFO Todd Glickman expressed confidence in the company’s future growth, saying, "We expect our significant design wins and technology advances to put us in a strong position to drive growth later this year and throughout 2026."

Risks and Challenges

• The semiconductor industry is facing an inventory correction, which could impact short-term demand.
• Slowing growth in EV and solar markets may affect revenue projections.
• The company must manage its cash burn rate effectively to maintain financial stability.
• Potential tariff impacts could affect international sales and profitability.

Q&A

During the earnings call, analysts inquired about the distribution of design wins across markets and the potential revenue impact of the bidirectional GaN technology. Executives noted that bidirectional GaN could generate over $10 million in revenue by 2026 and emphasized their strong position in mobile and emerging markets.

Full transcript - Navitas Semiconductor Corp (NVTS) Q1 2025:

Conference Operator: Good afternoon. Thank you for standing by, and welcome to Nepitas Semiconductor First Quarter twenty twenty five Financial Results Conference Call. Please be advised today’s conference is being recorded and a replay will be available on Navitas Investor Relations website. I would now like to hand the conference over to Lori Barker, Investor Relations. Please go ahead.

Lori Barker, Investor Relations, Navitas Semiconductor: Good afternoon, everyone. I’m Lori Barker, Investor Relations for Navitas. Thank you for joining Navitas Semiconductor’s first quarter twenty twenty five results conference call. I’m joined today by Gene Sheridan, our President, CEO and Co Founder and Todd Glickman, CFO. A replay of this webcast will be available on our website approximately one hour following this conference call and available for approximately thirty days.

Additional information related to our business is also posted on the Investor Relations section of our website. Our earnings release includes non GAAP financial measures. Reconciliation of these non GAAP financial measures with most directly comparable GAAP measures are included in our first quarter earnings release and also posted on our website in the Investor Relations section. Non GAAP expenses and operating margin include stock based compensation, amortization of intangible assets, and other non recurring items. In this conference call, we will make forward looking statements about future events or about the future financial performance of Navitas.

You can identify these statements by words like we expect, we believe, or similar terms. We wish to caution you that such forward looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from expectations expressed in our forward looking statements. Important factors that can affect Navitas’ business, including factors that could cause actual results to differ from our forward looking statements, are described in our earnings release. Please also refer to the risk factors sections in our most recent 10 ks and 10 Q. Our estimates or other forward looking statements may change, and Navitas assumes no obligation to update forward looking statements to reflect actual results, changed assumptions or other events that may occur except as required by law.

And now, over to Gene Sheridan, CEO.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Thanks to all of you for joining our Q1 twenty twenty five earnings call. Our Q1 twenty twenty five revenues came in line with guidance at $14,000,000 and 38% gross margin. While the slowdown in channel inventory in ED, solar and industrial continues to present some near term headwinds in our business, I want to walk through a number of important recent market and product developments that I expect will set up for a strong 2026 as the market recovers and many design wins kick in later this year. In Q1, we announced the industry’s first production release of a bidirectional GaN IC. As we described in our online launch event and available video, GaN bidirectional switches or BDS is a revolutionary new technology that creates an ideal switch that the industry has never seen in forty plus years of power semiconductor developments.

No other power semi device in the industry’s history across silicon, GaN or silicon carbide has achieved this ideal combination of capabilities. GaN BDS makes it technically and commercially feasible to reduce traditional two stage converters that are used in over 70% of power electronics into one single stage while enabling bidirectional energy flow. Dan BDS eliminates dozens of large and expensive components in that second stage resulting in size, weight, cost and power loss improvements of 30% or more. When combined with our new ISOFAST family of high frequency isolated drivers, this chipset creates new opportunities to accelerate GaN adoption with these single stage converters into EV onboard chargers, solar microinverters, charging and dust charging of energy storage systems, motor control applications and others. The first customer adopting our GaN VDS is in solar microinverters and expects to ramp later this year.

And we expect others to ramp throughout 2026 in a number of the applications mentioned. In addition, we announced our GAN Safe technology has now been automotive qualified to the challenging AEC Q101 standard and our GAN Safe has been adopted in the industry’s first GaN EV onboard charger design with Chang’an Auto, a top EV maker in China with expected production in early twenty twenty six. This is a major industry first achievement. Additional GaN EV wins are expected to also ramp throughout 2026 as Navitas is pioneering adoption into an entire new mainstream market of electric vehicles. We have released a comprehensive GaN reliability report, which not only highlights this major Q101 automotive qualification achievement, but demonstrates our aggregate field reliability track record, which spans seven years since first and production release in 2018.

Over this time, we’ve advanced the technology and its reliability across four generations and continual design innovations and integrations that have translated into an aggregate two fifty million units shipped and a continuous improvement in field reliability that has now reached an unprecedented 100 parts per billion failure rate far exceeding any industry requirement. In a similar fashion, we have spent the last two years since the Genesec acquisition improving and demonstrating the extraordinary reliability performance of our Genesec technology. We will soon be announcing a new reliability standard we call AEC plus which exceeds the stringent automotive AEC standards by 100% or more for many of the industry standard reliability tests and as compared to our testing of competitive technologies. When we combine this impressive reliability achievement with our demonstrated ultra high voltage capability enabling silicon carbide to support 2.3 kilobytes and up to 6.5 kilobytes, we are pioneering reliability and voltage capabilities essential in enabling new energy markets that include next generation megawatt applications spanning EV fast chargers, energy storage, renewable energy and grid infrastructure upgrades. Stay tuned for many more market developments and customer wins on this front.

Also, while passenger battery electric vehicles have seen some slowdown and inventory corrections, we’re excited to announce adoption of our selling carbide technology with two significant commercial EV customers. While the commercial EV market, which includes long haul trucks, forklift, mining and other commercial applications is a smaller market compared to passenger EVs, it requires much higher power, higher voltage, higher reliability, plus higher silicon carbide content, a perfect fit for our Genesex technology. We’re happy to announce two significant wins in this space, which we expect to enable a multimillion dollar impact in 2026. In data centers, AI continues to drive a dramatic increase in total power, power density and power efficiency. Navitas continues our significant system design progress utilizing our latest Geneseq and GANSAIC ICs, including new IntelliWeave control technology, where we started with a 2.7 kilowatt design last year and then pushed power levels in new system designs to 3.2 kilowatt, 4.5 kilowatt, 8.5 kilowatt.

And today, I’m pleased to announce a new 12 kilowatt design that we will formally launch at Computex later this month. 12 kilowatt represents an industry first for data centers and this platform is only possible with a combination of GaN and silicon carbide technologies, a perfect fit for our pure play wide band gap capabilities. While most initial Blackwell based systems are utilizing power supply designs in the range of 4.5 kilowatt, this 12 kilowatt platform will enable Blackwell, Blackwell Ultra and future Rubin platforms to more than double the total rack power to as much as 500 kilowatts. We already have over 75 customer projects in production or development using either silicon carbide GaN or both and expect this pipeline to accelerate with this 12 kilowatt launch. Last week, we announced some board and executive changes, which we believe will accelerate the company’s transition from early growth stage to much greater scale and profitability.

To enhance our governance, we have separated the Chair and CEO roles and announced Rick Hendrix as our new Independent Chair. Rick has been on the Board since our IPO and brings significant capital markets and executive leadership skills to the role. We also announced our CTO, COO, Dan Kinzer is transitioning into a technical advisory role with the anticipation of a new incoming COO that we expect to announce in the near future. At Navitas and throughout my career, Dan has been a great friend and business partner and has been instrumental in the creation of Navitas over the last ten plus years. While his executive role is changing, we look forward to Dan’s world class innovation contributions going forward in his new advisory role.

Let me summarize the significant market and technology developments that I’ve described today. Our high powered GaN ICs and silicon carbide technologies are very well positioned to open up all new markets for Navitas and in many cases for the industry. GAN Safe and Genesex technologies are ramping into mainstream AI data center applications throughout this year. Bi directional GaN is a game changing technology that we expect will start enabling next generation solar microinverters in the second half of this year. GAN SAFE is now auto qualified and will be the first GaN adopted in mainstream EV applications expected to begin production early next year.

Genesex technology is now qualified to far exceed these automotive reliability standards and is gaining important share in commercial EV applications. Combined with our ultra high voltage capability of 2.3 kilobytes or higher, Geneseq is an enabling technology for a broad range of new energy megawatt applications that are critical to fulfill our mission to electrify our world. Now let me turn it over to Todd to discuss our financial performance and outlook.

Todd Glickman, CFO, Navitas Semiconductor: Thank you, Gene. In my comments today I will take you through our first quarter twenty twenty five financial results and then I’ll walk you through our outlook for the second quarter along with our current view on how recent market and tariff dynamics may impact our business. Revenue in the first quarter of twenty twenty five was at the midpoint of guidance at $14,000,000 As expected, the sequential decline was due to seasonality and soft demand with associated remaining inventory correction. The decline compared to a year ago quarter was primarily the result of lower revenues in the EV and solar markets. Before addressing gross profit and expenses, I’d like to refer you to the GAAP to non GAAP reconciliations in our press release earlier today.

In the rest of my commentary, I will refer to non GAAP measures. Gross margin in the first quarter was 38.1%, which was down sequentially compared to 40.2% in the fourth quarter, primarily due to less favorable market mix. In the first quarter, we executed on further synergies and operational efficiencies associated with prior acquisitions and we reduced operating expenses sequentially to $17,200,000 which is ahead of scheduled cost reductions. Operating expenses were comprised of SG and A expenses of 8,300,000.0 and R and D expenses of $8,800,000

Speaker 4: Consolidating

Todd Glickman, CFO, Navitas Semiconductor: certain support and engineering functions and sites and further streamlining the business demonstrates our ability to balance operational efficiency while we continue investing in next generation GaN and SiC technology and in market developments primarily in the data center, EV and mobile sectors. Adding all this together, the first quarter twenty twenty five loss from operations improved sequentially to $11,800,000 from $12,700,000 in the fourth quarter twenty twenty four, with cost reductions more than offsetting quarter over quarter revenue decline. Our weighted average share count for the first quarter was 188,000,000 shares. Turning to the balance sheet. Accounts receivable sequentially declined to approximately $12,000,000 from $14,000,000 in the prior quarter and inventory remained relatively flat at $16,000,000 Our balance sheet remains very strong as we exit Q1 twenty twenty five with high levels of liquidity and an improved working capital position.

Cash and cash equivalents at quarter end were $75,000,000 and we continue to carry no debt. Moving on to guidance for the first quarter. We currently expect revenues in the range of $14,000,000 to 15,000,000 reflecting continued softness and industry wide inventory corrections in solar, EV and industrial end markets. The impact of tariffs is dynamic and we are continuing to monitor the latest updates, particularly between China and The U. S.

While SIC represents a minority of our total revenue, our products are produced in The U. S. At exFAP and the majority is sold in China. Ultimately, our U. S.

SIC manufacturing location will provide Navitas over time with a significant strategic advantage with our U. S. Customers for EV, solar, energy storage and grid infrastructure. We anticipate GaN revenues, which represent the significant majority of our revenue today to have a very limited direct impact from tariffs as our GaN products are manufactured in Taiwan and are sold predominantly outside The U. S.

Despite the tariff risks in our China SIC revenues in the second half of the year, we continue to anticipate growth to resume toward the end of the year, fueled by our strong design wins across AI data center, solar, EV and mobile sectors. Gross margin for the second quarter is expected to be slightly higher than the first quarter with our guidance at 38.5% plus or minus 50 basis points as our expected mix continues to lean toward the mobile market in the near term. Turning expenses. We anticipate operating expenses of $15,500,000 in the second quarter, down from $17,200,000 in Q1 twenty twenty five as we continue to execute on our plan of streamlining the business across mobile, data center and EV to drive the business to EBITDA breakeven. For the second quarter of twenty twenty five, we expect our weighted average share count to be approximately 194,000,000 shares.

In closing, while we are thoughtfully navigating the near term softness in some of our end markets, we expect our significant design wins and the technology advances that are enabling new market developments in AI data center, solar microinverters, EV and broader new energy markets to put us in a strong position to drive growth later this year and throughout 2026. Operator, let’s begin the Q and A session.

Conference Operator: Thank you. We will now begin the question and answer star one again. If you are called upon to ask a question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your questions. Again, press star one to join the queue. And our first question comes from the line of Ross Seymore with Deutsche Bank.

Ross Seymore, Analyst, Deutsche Bank: Of questions. Gene, I guess the first one is on the visibility into the second half. And generally, the $450,000,000 of design wins you talked about, any change in the timing or magnitude of those? I just hope you could kind of walk us through in the general sense, I know visibility is probably still somewhat limited in the second half, but in a general sense, how you see those rolling out as we look into the second half of this year and then 2026?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yes, definitely. Thanks for your question, Ross. And it’s worth repeating the $450,000,000 design wins was pretty extraordinary last year. Our focus this year is on converting those from wins to production orders. As a reminder, that’s lifetime revenue.

So it can span from one year on mobile to maybe a few years on the high power markets. And that revenue kicks in over three years, either late this year, a good percentage of late this year, the vast majority in ’26 and a little bit of them in ’27. So it does depend on the start time and the ramp time of them all. But we have a good outlook to converting those design wins into purchase orders, which is why we feel despite some headwinds in the overall semiconductor downturn, a little bit of unknowns here with tariffs as Todd described, we feel good about driving solid growth late in the year and setting up a really strong 2026 largely because of those design wins, which we expect will actually accelerate with some of the technology announcements we made in Q1.

Ross Seymore, Analyst, Deutsche Bank: Then I guess one for Todd on the profitability side of things. Anything change as far as how long you’re planning to stick at kind of the $15,500,000 on the OpEx side and the goal to reach EBITDA breakeven sometime, guess the timing might be a little bit different, but the revenues are kind of going to be in, I guess, the mid to upper 30s per quarter. Is that still the bogey and anything has changed on that front?

Speaker 6: Yes, nothing really has changed there. We’re still tracking to that target of 15.5 on OpEx and expect to stay at those levels. And then as we mentioned in the prior call, we’re still tracking to that breakeven in the high 30s, which we expect to happen in 2026.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Got it. Thanks guys. Thank you, Ross.

Conference Operator: Our next question comes from the line of Jack Egan with Charter Equity Research. Your line is open.

Jack Egan, Analyst, Charter Equity Research: Great. Thanks for taking the questions. So because of Navitas, you know, there’s a lot of applications like, automotive and data center that can use both silicon carbide and or GaN. I was just curious, how do your total design wins and pipeline break down between the two materials? Is it similar to how your actual revenue is today where it’s predominantly GaN or is it a bit more balanced?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, great question Jack and that’s a really important point because EV, specifically onboard chargers are really ideal for a combination of silicon carbide in the first stage, GaN in the second stage, almost identical situation for AI data centers. Ideal, in fact the 12 kilowatt, the 8.5 kilowatt, almost all of our designs are using silicon carbide in the first stage for PFC, gallium nitride where you want to go kind of screaming fast and high efficiency in that second stage. And then we’re really growing nicely silicon carbide into more commercial EV, higher power industrial. I really highlighted the high reliability, high voltage and high power capability of our silicon carbide that’s winning in its own right in certain high power markets, just like GaN is doing really well in the low power markets like appliance and the mobile of course, as our traditional strength. So when you apply that back to the pipeline, it was $2,400,000,000 last year, four fifty million design wins, lifetime wins.

While we don’t break it out by GANASIC, it’s very well balanced between the two. It’s going to vary of course by segment, but it’s quite well balanced and not at all indicative of the near term revenue split where we’ve seen that silicon carbide drop because of the industry slowdown and pockets of channel inventory, while GAN is kind of at all time highs. So we see them much more balanced going forward based on that pipeline.

Jack Egan, Analyst, Charter Equity Research: Okay, that makes sense. And then I noticed that R and D declined quite a bit where SG and A was actually up or MG and A was up a bit in the quarter. Could you just discuss that a bit? Is that going to limit your ability to invest in next generation tech at all?

Speaker 6: Q1 was, I think if you look at Q1 in a nutshell, SG and A is a little bit higher as we have one time expenses related to the cost reductions and audit fees. So that’s not our typical spend there. I think as you look forward into 2025 compared to ’twenty four, you’re gonna see that split being around 55% R and D versus 45% SG and A. So there shouldn’t be a change in our split, we’re just bringing the levels down proportionally from where we were before.

Jack Egan, Analyst, Charter Equity Research: Okay, great. Thanks for clearing that up.

Conference Operator: Next question comes from the line of John Tanwanteng with CJS Securities. Your line is open.

John Tanwanteng, Analyst, CJS Securities: Hi, good afternoon. Thank you for taking my questions. I was wondering if you could give us a little bit more specific details on your exposure to China, maybe the ASP per unit you’re selling into China. And if the tariff situation has been enough to cause customers to maybe dial back their plans or pause them or maybe even try to, I don’t know, second source or design you out of prior design wins?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, yeah, thanks John. Well first as Todd described on the GaN, we don’t see much risk or impact Taiwan manufacturing isn’t a target or impacted by China tariffs. Our US exposure there is pretty small, even if there was an eventual Taiwan tariff to kick in. So I think the conversation is mainly around silicon carbide. As Todd described, silicon carbide today is a minority of our total revenue.

But a majority of that minority, if you will, is silicon carbide shipping into China. So that’s where the rest could be. Actually, the country of origin today defined by China tariffs is based on the packaging location. We have a very strong China for China strategy that I think serves us really well in these geopolitically complicated times. Most of our packaging is in China.

So as it’s literally defined today, we shouldn’t be exposed to tariffs and we’re not having an immediate impact to tariffs. There is speculation though that if that country of origin should change to fab location, that could have an impact because our fab location is US. So that’s a little speculative and that’s why we emphasize it’s dynamic, we’re keeping an eye on it, maybe it could have an adverse impact later in the year. Well, that’s really what we’re trying to judge. The flip side of that is actually a really good strength.

We have US country of origin manufacturing in The United States. That’s a strategic region. We see a lot of growth in the future. And there, not only will we be avoiding tariffs, we see that as a really positive for US customers.

John Tanwanteng, Analyst, CJS Securities: Got it. Thanks, Gene. And maybe just to expand on the subject a little bit more and looking forward, let’s say the tariffs stay in place or they stayed fairly high. Is there any plans out in the horizon to maybe expand your foundry base to other places that you can produce SIC outside of The US or GaN inside?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yes, that’s exactly right. Nothing to formally announce, but we have things well underway that could move us into different territories. Should that kind of worst case scenario happen that would work around those China tariffs over time.

John Tanwanteng, Analyst, CJS Securities: Okay, great, thank you.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Thanks, John.

Conference Operator: Our next question comes from the line of Madison DePaula with Rosenblatt Securities. Your line is open. Hi, guys. Could you guys just provide some more color on the traction that you’re seeing in the data center vertical?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, definitely, Maddie. Thanks for the question. We’ve come a long way from 2.7 kilowatts to 3.2, four point five, most recently 8.5 and now today for the first time announcing 12 kilowatts, the details of which will be fully rolled out at Computex later this month. So that’s a lot of progress. On the one hand, we’ve been pleased that a lot of customers have adopted GaN or silicon carbide, even when they didn’t really have to for performance reasons.

I think even at the lower power levels, don’t have to have GaN or silicon carbide. Some have tried it out because they know that’s the future and they better get on with learning the design, maturing the design, proving it out in their production. A lot of black well has gone to production with four to five kilowatt designs. Many of those can be done with silicon today. Again, you don’t have to have gallium nitride and silicon carbide.

So I think that’s probably slowed down what we hope to be a bigger ramp this year. On the other hand, once you get to 8.5, I think that’s a real turning point. Very, very difficult to design the 8.5 kilowatt with the density, with the efficiencies that are required without going to GaN and silicon carbide, And I would venture to say impossible to deliver the 12 kilowatt that we just announced without GaN and silicon carbide technologies and even uniquely ours arguably. So I think that gives you some color. I also mentioned the other way to look at this is rack power, not just the power supply itself.

Each one of these power supplies I’m talking about, you can put six across the shelf or tray and then you can have multiple shelves assigned to power. The rest of the rack or the rest rest of the shelves would go towards the processing, Blackwell, etcetera. So while some of the Blackwells have started with four or five kilowatts, that might get you to a 50 or 100 kilowatt type of rack power. But if you listen to Nvidia and anybody else where this is headed, we’re very quickly going to two fifty to 400 to 500 kilowatts and then maybe headed towards a megawatt over the next few years. Those are pretty crazy numbers and it’s hard to imagine achieving those without going to at least 8.5 and now I think frankly 12 kilowatt, which as I said, gets you really close to that half a megawatt.

So I think that sets us up really well for any new Blackwell or Blackwell Ultra designs, and of course, really well positioned for Rubin, which would come late next year.

Conference Operator: Okay, great. Thanks for taking my question.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, thank you, Maddie.

Conference Operator: We’ll take our next question comes from the line of Richard Shannon with Craig Hallum Capital Group. Your line is open.

Ross Seymore, Analyst, Deutsche Bank: Great. Thanks, Gene and Todd,

John Tanwanteng, Analyst, CJS Securities: for taking my questions. I guess I’ll ask the first one on solar. Kind

Jack Egan, Analyst, Charter Equity Research: of

John Tanwanteng, Analyst, CJS Securities: a multiparter here. Can you give us a better sense of when you’re expecting to see this ramp at some point later this year? And as I recall, at least in the past when you’ve talked about this, this has been a design you expect to be multi source. Maybe you can discuss where your position there is? And then lastly, are you seeing any other microinverter customers moving towards SCAN and a possibility using Navitas?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, yeah. Thank you, Rich, for bringing it up. We didn’t put a spotlight on it too much. But number one, it’s super exciting to see GaN going into three new markets in the next twelve months. AI data centers already ramping, solar microinverters in particular, as you pointed out, ramping the second half of the year, GaN going into EV early next year.

So we’ve got quite a sequence of events in opening up new mainstream markets. And not only is microinverters adopting GaN, it’s adopting GaN bidirectional switches, which is, as I highlighted, really the most ideal switch the industry’s ever seen. It can handle high currents and high voltages, delivering those currents and blocking those voltages inherently in both directions, but does it with super high frequency and high efficiency of GaN. That’s pretty exciting stuff and makes a ton of sense for microinverters. So yes, those are still on track for the second half.

We are seeing Q3 ramp a little lower than expected. More of that revenue starts in Q4 and the really big numbers are next year. I think we feel good. It will be multi source as you pointed out. Those final commercial negotiations are not done.

They’ll be done over the next quarter. But I think we feel good about our position being the first GaN bidirectional switch actually production released in Q1. As I highlighted, that’s another major first. We’ve got a really important advantage in our proprietary substrate clamp, which makes the part really reliable and really robust. So I think all that positions us well to take a good share and ramp that up as expected late in the year.

And again, pretty big numbers next year. We already have other microinverter companies that have approached us in the last six months, starting new designs. I don’t think any of them will get to production this year, but expect to see other solar microinverter guys starting next year. And to the broader message, GaN, BDS again will go into EV onboard chargers and other energy storage systems. And I think we’ll see some of those going into production next year as well.

Ross Seymore, Analyst, Deutsche Bank: Okay, thanks for that, Gene.

John Tanwanteng, Analyst, CJS Securities: My follow on question here is just kind of getting a top down understanding here of of dollar growth as we go over the next year, year plus. What are you kind of you pick your time frame in 2026 as some of these new applications develop. But if we look at EV, solar, industrial, and I’m probably forgetting the other data center, like is there ones that have a more disproportionate contribution to the dollar growth from the starting point of second quarter?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, it’s a good question. Certainly, you look at the pipeline, you look at the design wins, know we didn’t break it down in incredible detail, but it’s really well distributed. I mean, solid wins, we gave the total of $450,000,000 of lifetime wins last year. That was pretty solidly distributed. We had 40 wins in data center, that’s now up to 75 in total, as I mentioned in the call.

We had 40 wins in EV e mobility, we had 28 in appliance industrial, we actually had 100 in solar and energy storage, the biggest being that GaN VDS for solar microinverters and another 180, which has a long tail in the mobile consumer. So they all have different dollar values of course, but it points to the diversity. So it’s really hard to pick one. Clearly we put a strategic focus on mobile, EV and AI data centers. So I think those are the three that are going to be the biggest drivers, but you’ve got to give a lot of credit to that solar microinverter, which is gonna be material as kind of the fourth driver for next year.

So hard to pick one to be far above the other. Certainly we expect the new markets to be growing even faster than mobile, which is why we expect greater market diversification next year and commensurate regional diversification as we continue to grow outside China faster than some of these other, with some of these other regions. So hopefully that gives you a little color recognizing of course we’re not predicting next year’s revenue or how that would break up by market or technology.

John Tanwanteng, Analyst, CJS Securities: Just want to get a general sense, that’s very helpful, Gene. That’s all for me. Thank you.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Thanks.

Conference Operator: Next question comes from the line of Jack Egan with Charter Equity Research. Your line is open.

Jack Egan, Analyst, Charter Equity Research: Thanks for taking the follow-up. I was hoping you could update us on the at the market offering that was announced at the end of the March. Your cash burn was about the same rate as it was last quarter. So did you actually execute the offering or was it just to have it on hand in case you need it? And then will it be for anything in particular or is it just to give Navitas more runway?

Speaker 6: Yes, that’s a great question. Correct. So we have the offering out there. We have not executed upon it. It’s there in case we want to use it for strategic reasons, if we need some extra strategic capital.

As you noticed, right, our cash usage in Q1 was only $11,000,000 and we have $75,000,000 on our balance sheet. So that provides us quite a runway going forward, seven plus quarters if we maintain this level. But as we expect revenue to grow in the second half towards the end of the year, we expect our cash usage to go down. So right now we are just having the ATM out there for strategic purposes.

Jack Egan, Analyst, Charter Equity Research: Okay, great. That’s helpful. And then I guess I’ll just get a quick second one here. With bidirectional GaN switches ramping this year, Jean, could you just give us a general sense of the total revenue potential for next year for bidirectional GaN?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, again we’re not guiding, but certainly revenue potential, I would certainly put it north of 10,000,000, I think that’s a conservative view across the different applications and things. It’s pretty dynamic, obviously it’s new, we’ve got over a dozen new opportunities, many dozens have been sampled. So it’s definitely growing by the day, I would put it certainly north of double digit millions for next year.

Jack Egan, Analyst, Charter Equity Research: Okay, great. Thanks, Gene.

Speaker 6: Thanks, Jack.

Conference Operator: Our next question comes from the line of Joe Moore with Morgan Stanley. Your line is open.

Joe Moore, Analyst, Morgan Stanley: Great. Thank you. Going back to the AI data center, I mean, guess I just wanted to understand the timing. It seems like when you sort of say Blackwell designs from here could use your technology, just I would think a lot of the Blackwell current generation designs are done already. Give us a sense for how that can layer in and how much of this is kind of more of a Rubin play?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, definitely, Joe. So we’re seeing a lot of different configurations, a lot of ongoing new Blackwell designs. So obviously people have not moved on to Blackwell Ultra and Rubin sometime next year. So we still see a lot of opportunity to intersect into Blackwell. Case in point, we had 40 wins last year, it’s now up to 75, including things that are already starting to ramp minimally here in the first half, including that 40 wins from last year.

And then we see a lot of different configurations, it’s still pretty dynamic. How many black walls are you going to put in the rack? How much do you want to upgrade that rack from 50 kilowatts to 100 or 100 to 150? And how much do you want to move away from traditional power supply designs that use silicon that might be three, four, five kilowatts to where you’re pushing at 8.5 or now 12 kilowatts, which are inevitably going to use GaN and silicon carbide. So I think it’s quite dynamic.

We still see a lot of opportunities for intersection with Blackwell. I think it will grow from there to Ultra, and then I’m sure we’ll see even better opportunities with Rubin.

Joe Moore, Analyst, Morgan Stanley: Great, thank you. And then just going back to the balance sheet question you were just asked. In terms of there’s a scenario where revenue picks up quite a bit and you’re fine. I guess if we sort of remain in kind of a tariff malaise, things like that, just can you talk about contingency plans and the ability to improve the cash burn under different revenue scenarios?

Speaker 6: Yeah. Right now we’re keeping our cash pretty tight on the working capital elements there. Because of that and because of the reduction in OpEx, we’re able to keep that cash really much smaller going forward and we expect that to happen in a sort of slower growth element as well as an accelerated growth in Q4. So we really don’t see any concerns there today given our cash levels and our ability to sort of keep our working capital in check.

Joe Moore, Analyst, Morgan Stanley: Great, thank you.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Thanks,

Lori Barker, Investor Relations, Navitas Semiconductor0: Joe. We have

Conference Operator: a follow-up question from Ross Seymore with Deutsche Bank. Your line is open.

Ross Seymore, Analyst, Deutsche Bank: Hi, guys. Let me thanks for asking a follow-up. Just want to talk about the inventory burn in the general market. We’ve heard some green shoots from some of the industrial end markets. Just Jean, what’s your view on the level of inventory in the channel for you?

Are you seeing that starting to normalize so you could get growth more the cyclical side of the equation than the company specific design wins?

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yes, yes, definitely, Ross. Yes, certainly it was more broad spread last year, and this is mainly a silicon carbide phenomenon. The three markets slowed down simultaneous with a lot of capacity coming on, and it happened relatively quickly, creating a decent amount of widespread silicon carbide inventory in the channels throughout the globe. Now we’ve talked about really specific pockets of silicon carbide inventory. It’s definitely declined.

We’re seeing good sell through and healthy channel inventory in many parts of the world, but we’re still not there yet. We’re not in the healthy place. So we think it’s a quarter or two away where I think this remaining overhang is behind us and just adds to our bullishness for resuming growth, not only on silicon carbide, but of course continuing growth on GaN later in the year. Got it, thank you.

Speaker 4: Thanks, Ross.

Conference Operator: And our last question comes from the line of Quinn Bolton with Needham. Your line is open.

Ross Seymore, Analyst, Deutsche Bank: Hi. This is

Lori Barker, Investor Relations, Navitas Semiconductor1: Nick Doyle on for Quinn. Thanks for taking my question. Just wanted to know how your customers are looking at the smartphone market in terms of unit growth in 2025? And how does that compare to your own mobile outlook? And really, have you seen any signs of pull in or push out related to tariffs?

Thanks.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, thanks, Nick. Yeah, thanks for bringing it up. We obviously didn’t put a spotlight on mobile. It continues to be an important, stable and growing part of our business. Last year, we estimated the adoption rate around 10% globally.

Of particular note, Xiaomi and Oppo jumped up quite a bit. I think they doubled their GaN adoption to around 30% of all of their phones being with GaN as they’re pushing the power levels to 65 watts and higher faster than the rest of the regions and suppliers. We think that same trend continues to suppliers around the world. We don’t see huge jumps this year, or we would have reflected that in our outlook. But mobile’s pretty dynamic.

So I think the end market, to your question, the end market’s not growing a ton and it doesn’t need to. More than smartphones growing 2% or 5%, we want to know when are they gonna double their GaN lineup to go from 10% share to 20 or 20 to 30. And this is inevitably going to happen, at least for all chargers. We believe 30 watts and higher, especially where we’re in a very strong leadership position at 65 watts and higher. So it’s dynamic.

I think the trends are strong. If we can confirm big jump ups later in the year, that would only add to our bullish outlook for resuming more solid growth later in the year.

Lori Barker, Investor Relations, Navitas Semiconductor1: Thanks. As a follow-up, you talked about a channel slowdown in EV industrial and ESS. Is that more demand related or we’re still seeing pockets of inventory like you kind of talked about earlier? Thanks.

Gene Sheridan, President, CEO and Co-Founder, Navitas Semiconductor: Yeah, Nick, I think it was a combination of both and the typical semiconductor stuff. I mean, we’re in a classic semiconductor downturn selling carbide like a lot of things were growing like crazy, they were in short supply. Once all of a sudden the capacity kicks up, the demand slows down, it’s kind of a double whammy and it’s hard for the entire industry to adjust quickly and you get these inventory overhangs or channel inventory excesses, and then the whole industry has got to work on working through those. And I think we’re near the end, as I said earlier, a quarter or two to go, and hopefully that’s completely behind us.

Speaker 4: Thank you. Thank you, Nick.

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