Navitas Semiconductor (NVTS) Q1 2026 earnings summary

Executive summary

• Revenue grew 18% sequentially to $8.6 million in Q1 2026, driven by high-power markets such as AI data centers, grid infrastructure, performance computing, and industrial electrification, while mobile and low-end consumer business continued to decline.

• High-power market revenue grew approximately 35% year-over-year and now constitutes the majority of total revenue.

• Completed organizational realignment and leadership transformation, including appointment of a new CFO and Board member.

• Strategic shift away from mobile and consumer segments continues, with expanded customer engagements and order backlog.

• Operations remain global, with a fabless model and reliance on third-party manufacturing partners.

Financial highlights

• Q1 2026 revenue was $8.6 million, up from $7.3 million in Q4 2025 but down from $14.0 million in Q1 2025.

• Non-GAAP gross margin improved to 39.0% in Q1 2026, up from 38.7% in Q4 2025 and 38.1% in Q1 2025; GAAP gross margin was (9.3)%.

• Non-GAAP operating loss was $11.7 million, slightly better than $12.1 million in Q4 2025 and $11.8 million in Q1 2025; GAAP loss from operations was $27.8 million.

• Cash and cash equivalents stood at $221 million as of March 31, 2026, down from $236.9 million at year-end 2025, with no debt.

• Inventory increased to $14.9 million to support future growth.

Outlook and guidance

• Q2 2026 revenue expected at $10.0 million (±$0.5 million), representing over 16% sequential growth.

• Non-GAAP gross margin projected at 39.25% (±75 bps), with operating expenses expected to remain flat at $14.5–$15.5 million.

• Management anticipates continued sequential revenue growth and margin expansion throughout 2026, driven by high-power markets.

• Expects to reach profitability as revenue scales into the high $30 million range, with break-even a key objective.

• Current cash levels are considered sufficient to fund operations and capital requirements for the foreseeable future.