Navitas Semiconductor (NASDAQ:NVTS) Releases Earnings Results, Beats Expectations By $0.01 EPS

by · The Markets Daily

Navitas Semiconductor (NASDAQ:NVTS – Get Free Report) released its quarterly earnings results on Tuesday. The company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.01, FiscalAI reports. Navitas Semiconductor had a negative return on equity of 13.13% and a negative net margin of 856.85%. The company had revenue of $13.99 million for the quarter, compared to analyst estimates of $13.42 million. During the same quarter last year, the firm posted ($0.05) earnings per share. Navitas Semiconductor’s revenue was up 38.4% compared to the same quarter last year.

Here are the key takeaways from Navitas Semiconductor’s conference call:

  • Q3 revenue reached $14.0 million, up 33% sequentially and 38% year over year, driven by more than 50% sequential growth in high-power markets. Management expects Q4 revenue of $16.0 million at the midpoint, representing 14% sequential and 119% year-over-year growth.
  • Navitas said its strategic shift away from mobile and low-end consumer is essentially complete, with high-power markets expected to represent nearly all revenue by year-end and AI infrastructure exceeding 40% of sales. The company expects AI infrastructure revenue to more than triple in 2027, supported by backlog extending into mid-2027 and book-to-bill ratios well above one.
  • The Claros acquisition adds an integrated intermediate-voltage regulation platform for high-current, high-density power delivery directly to AI processors, expanding Navitas’ grid-to-XPU technology offering. Management said the deal more than doubles its estimated 2030 serviceable addressable market to over $8 billion, although meaningful anchor-customer revenue is expected primarily in late 2028 and 2029.
  • Non-GAAP gross margin rose to 40.0% in Q3 and is guided to 40.5% in Q4, while operating expenses are expected to increase to approximately $25 million due to Claros-related costs and additional R&D investment. Cash was $531.5 million before the $126 million cash payment for Claros, leaving pro forma cash of roughly $405 million and no debt.
  • Management expects continued double-digit sequential growth through 2027 as successive AI power-architecture transitions ramp, including silicon-carbide replacement, sidecar racks, native 800-volt systems, and eventually grid modernization. It also outlined a potential long-term path to profitability through scale and gross-margin expansion, targeting a blended margin above 50% and break-even revenue in the low-$60 million quarterly range.

Navitas Semiconductor Price Performance

NVTS opened at $8.56 on Wednesday. The company has a market capitalization of $2.23 billion, a price-to-earnings ratio of -6.44 and a beta of 4.04. The business’s 50-day moving average price is $10.73 and its two-hundred day moving average price is $13.23. Navitas Semiconductor has a 1 year low of $6.85 and a 1 year high of $34.17.

Analyst Ratings Changes

NVTS has been the subject of several research analyst reports. Rosenblatt Securities upgraded Navitas Semiconductor from a “neutral” rating to a “buy” rating and set a $13.00 price objective for the company in a research report on Wednesday. Needham & Company LLC dropped their target price on shares of Navitas Semiconductor from $21.00 to $15.00 and set a “buy” rating on the stock in a report on Wednesday. Morgan Stanley restated an “underweight” rating and set a $12.60 target price on shares of Navitas Semiconductor in a report on Tuesday, July 28th. Craig Hallum raised shares of Navitas Semiconductor from a “hold” rating to a “buy” rating and set a $13.00 price target on the stock in a research note on Wednesday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Navitas Semiconductor in a report on Monday, September 14th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $14.43.

Check Out Our Latest Analysis on Navitas Semiconductor

Key Headlines Impacting Navitas Semiconductor

Here are the key news stories impacting Navitas Semiconductor this week:

  • Positive Sentiment: Navitas reported a third-quarter loss of $0.03 per share, narrower than analysts’ expected $0.04 loss and the $0.05 loss a year earlier. Revenue of $13.99 million topped the $13.42 million consensus and rose 38% year over year. Zacks earnings article
  • Positive Sentiment: Management expects another quarter of double-digit sequential revenue growth in Q4, which would make it the company’s highest quarterly revenue in seven quarters. Gross margins also continued to expand. Third-quarter results and outlook
  • Positive Sentiment: AI data centers and grid and energy infrastructure are driving growth and backlog. Navitas expects these markets to exceed 40% of sales by year-end; high-power-market revenue is projected to grow 125% for the year, supporting the company’s pivot toward these markets. Third-quarter results and outlook
  • Neutral Sentiment: Despite the improving results, Navitas remains loss-making. Its Q4 outlook implies full-year revenue growth of about 7%, as gains in high-power markets are partly offset by its exit from mobile and low-end consumer business. Third-quarter results and outlook

About Navitas Semiconductor

(Get Free Report)

Navitas Semiconductor Corporation (NASDAQ:NVTS) develops power semiconductor technologies designed to improve the efficiency, performance and size of electronic systems. The company specializes in gallium nitride (GaN) power integrated circuits and silicon carbide (SiC) devices, which are used to convert and manage electrical power.

Its product portfolio includes GaNFast power ICs, GeneSiC silicon carbide products and related power-management solutions. These technologies are used in applications such as mobile and consumer chargers, data centers, solar inverters, electric vehicles, energy storage systems, appliances and industrial equipment.

Founded in 2014, Navitas serves customers and markets globally through its semiconductor products and engineering support.

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