Vicor (VICR) investor relations material

Executive summary

• Q2 2025 revenue reached $141 million, up 50.1% sequentially and 64.3% year-over-year, driven by product sales, licensing, and a $45 million patent litigation settlement.

• Net income for Q2 was $41.2 million, or $0.91 per diluted share, compared to a net loss of $1.2 million in Q2 2024.

• Gross margin rose to 65.3%, an 1810 basis point sequential increase, primarily due to the patent litigation settlement and improved sales mix.

• Backlog at quarter-end was $155.2 million, down 9.6% sequentially but up 0.9% year-over-year.

• CEO highlighted successful ITC action, ongoing IP protection, and new AI product launches.

Financial highlights

• Product, royalty, and litigation settlement revenue totaled $141 million, up from $85.9 million a year ago.

• Gross margin was $92.1 million, up from $42.8 million year-over-year; gross margin percentage increased to 65.3%.

• Operating expenses increased to $46.7 million, mainly from $5.1 million in legal fees tied to the settlement.

• Cash and cash equivalents ended at $338.5 million, up $42.4 million sequentially after $17.5 million in share repurchases.

• Operating cash flow was $65.2 million; capital expenditures were $6.2 million.

Outlook and guidance

• No quarterly guidance provided due to ongoing uncertainties and a wide range of possible outcomes for 2025.

• Management expects 2025 to be a record revenue year, with continued upside potential from licensing, settlements, and new AI-focused products.

• Royalty income is expected to remain variable, with significant upside possible but ongoing unpredictability.

• Revenues and margins anticipated to benefit from patented innovations in high-density power systems.

• Cash from operations and current liquidity are expected to fund operational needs and capital expenditures for the foreseeable future.