Navitas Semiconductor — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $14.0 million, representing 33% sequential growth and 38% year-over-year growth compared to $10.1 million in Q3 2025.
• GAAP gross margin improved to 21.5% from 0.4% in Q2 2026 and (2.0)% in Q3 2025; non-GAAP gross margin was 40.0%, up from 39.5% in Q2 2026 and 38.7% in Q3 2025.
• GAAP loss from operations was $34.4 million, compared to a loss of $27.2 million in Q2 2026 and $19.4 million in Q3 2025.
• Non-GAAP loss from operations was $10.9 million, compared to a loss of $11.4 million in Q2 2026 and $11.5 million in Q3 2025.
• GAAP net loss was $37.1 million, compared to a net loss of $228.2 million in Q2 2026 (which included a $203.1 million non-cash charge for earnout liability remeasurement) and $19.2 million in Q3 2025.
• Non-GAAP net loss was $6.9 million, compared to a loss of $9.3 million in Q2 2026 and $10.2 million in Q3 2025.
• Cash and cash equivalents increased to $531.5 million as of September 30, 2026, from $236.9 million as of December 31, 2025.
• High-power market revenue contribution grew more than 50% sequentially.

Guidance and Future Outlook:

• Q4 2026 net revenue is expected to be $16.0 million (±$0.5 million), representing 14% sequential growth and 119% year-over-year growth.
• Q4 2026 non-GAAP gross margin is expected to be 40.5% (±100 basis points).
• Q4 2026 non-GAAP operating expenses are expected to be $25.0 million (±$1.0 million).
• The midpoint of Q4 guidance implies full-year 2026 revenue growth of 7%.
• High-power markets are projected to represent more than 40% of total sales by year-end 2026.
• The company anticipates exiting the mobile and low-end consumer market by year-end 2026, with this segment effectively eliminated from the revenue mix.
• Core high-power business is expected to deliver triple-digit growth in 2026.
• Momentum is expected to continue into 2027, driven by AI Infrastructure markets.

Business Segments and Product Lines:

• The company is transitioning to a high-power business model focused on AI Data Centers and energy grid infrastructures.
• Closed the acquisition of Claros, Inc., adding an IVR technology stack serving Vertical Power Delivery (VPD) and Embedded Power Delivery (EPD) architectures to its portfolio.
• Collaborated with NVIDIA on an 800 V-to-12 V power delivery board for next-generation AI infrastructure.
• Partnered with Microchip to deliver an 800 V reference design for next-generation AI data centers.
• Selected by the U.S. government to develop next-generation 10 kV SiC power semiconductors.
• Announced first shipments of Gen 5 GaNFast devices manufactured in the U.S. through GlobalFoundries.
• Formed a strategic partnership with Magnachip to accelerate adoption of high-voltage and ultra-high-voltage SiC, including licensing of GeneSiC technology.

Market and Competitive Landscape:

• AI Infrastructure markets, including AI Data Centers and Grid/Energy Infrastructure, are driving growth and record backlogs.
• Power is identified as the single largest constraint to AI compute growth, creating demand for efficiency and new technologies like 800 V architectures and IVR.
• The company positions itself at the forefront of a multi-year secular growth opportunity as customers seek to convert megawatts into useful AI compute.
• The company competes against established incumbents with substantial R&D and manufacturing resources in high-power segments.

Risks and Challenges:

• Strategic transition risks include the ability to successfully execute the shift to high-power markets and integrate the Claros acquisition.
• Integration challenges may involve personnel, operations, technologies, and systems, with potential for unanticipated expenses or operational disruptions.
• Market acceptance and addressable market uncertainty exist regarding new use cases and evolving system architectures like 800 V systems.
• Competitive dynamics may evolve with new competitors emerging or incumbents offering competitive GaN, SiC, or IVR solutions.
• Risks include dependence on key customers, supply chain reliance on single sources, and potential quality or yield issues from suppliers.

Management Commentary and Tone:

• CEO Chris Allexandre stated that results reflect successful execution of the "Navitas 2.0 transformation" and that the company is positioning itself as a high-power business.
• CFO Tonya Stevens highlighted sustained momentum, noting the first quarter of year-over-year revenue growth since 2024 and gross margin expansion above guidance.
• Management expressed confidence that the Claros acquisition completes the strategic portfolio for powering AI infrastructure from grid-to-xPU.
• The tone indicates strong confidence in the secular growth opportunity of AI infrastructure power delivery.

Other Key Points:

• The company announced the acquisition of Claros, Inc., closed on October 6, 2026.
• The company has over 450 patents issued or pending.
• The company is a leader in 800 VDC and the advanced AI power infrastructure ecosystem.
• The backlog extends into mid-2027 with a book-to-bill ratio well above one.
• GAAP gross margin includes approximately $2.5 million of intangible asset amortization in Q3 2026, down from $4.0 million in prior periods, due to certain assets becoming fully amortized.
• Q2 2026 GAAP net loss included a $203.1 million non-cash charge from the final remeasurement of earnout liabilities.