Navitas (NVTS) shifts focus to high-power markets with NVIDIA partnership

by MarketNewsData

Key Points

  • Revenue: $10.1M (vs est. $10M)
  • Non-GAAP EPS: –$0.05 (inline with est. –$0.05)
  • GAAP EPS: –$0.09
  • GAAP Gross Margin: –2.0%
  • Non-GAAP Gross Margin: 38.7%
  • Non-GAAP Operating Loss: $11.5M (vs $12.7M YoY)
  • Cash: $150.6M as of September 30, 2025

Quarter Highlights

Revenue fell 53% YoY and 30% sequentially, driven by Navitas’ planned exit from low-power mobile and consumer markets.
Despite top-line pressure, gross margins held steady near 39% on a non-GAAP basis, reflecting improved product mix and cost discipline.
The company emphasized a strategic transition—dubbed “Navitas 2.0”—toward AI data centers, performance computing, energy grid, and industrial electrification.

Strategic Developments

  • Partnership with NVIDIA: Navitas was recognized as a power semiconductor partner for NVIDIA’s next-generation 800V DC AI factory architecture, validating its GaN and SiC leadership.
  • Technology Expansion: Introduced new 100V and 650V GaNFast™ FETs and began sampling 2.3kV and 3.3kV SiC modules for grid and energy storage applications.
  • Restructuring: CEO Chris Allexandre led a sharp realignment, consolidating distribution, trimming mobile exposure, and reallocating resources to higher-margin, high-power markets.

Outlook (Q4 FY25)

  • Revenue: $7.0M ± $0.25M
  • Non-GAAP Gross Margin: 38.5% ± 0.5%
  • Non-GAAP Operating Expenses: ~$15M
    Management described Q4 as a “reset baseline” before sequential growth and margin expansion through 2026 as high-power demand ramps.

What Stood Out

  • The pivot to high-power markets marks a strategic transformation, not a mere restructuring.
  • Despite steep revenue decline, Navitas maintained liquidity ($150M cash) to fund its transition without raising capital.
  • Partnership with NVIDIA anchors its relevance in AI-driven power infrastructure, a potentially major growth engine.
  • Gross margins remain resilient even with volume contraction — a notable sign of product quality and pricing power.

Key Takeaways

Navitas is sacrificing near-term revenue to reorient toward high-value, high-power markets.
The company’s alignment with NVIDIA’s 800V AI ecosystem, combined with strong cash reserves, suggests a long-term bet on AI, grid, and electrification markets.
Execution on cost control and new design wins will determine how fast “Navitas 2.0” translates into sustainable profitability.

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