Nordic Semiconductor (NOD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $155 million, up 108% year-over-year and 3% sequentially, driven by strong demand from large and broad market customers and recovery from prior inventory adjustments.

• Gross margin improved to 49.5%, in line with guidance and reflecting favorable product mix and scale effects.

• EBITDA turned positive at $14.7 million (9.5% margin), a significant turnaround from negative EBITDA in Q1 2024.

• The company reorganized into four business units: Short Range, Long Range, Power Management, and Wi-Fi, with a new reporting structure starting this quarter.

• Strong design activity and product innovation, including the launch of nRF54 Series, nRF9151 SiP, and nPM2100 PMIC, are expected to drive future growth.

Financial highlights

• Revenue: $155 million in Q1 2025, up 108% year-over-year and 3% sequentially.

• Gross margin: 49.5%, up 1.6 percentage points year-over-year.

• EBITDA margin: 9.5%, up from -30.7% in Q1 2024.

• Operating cash flow was $35 million, with capex intensity at 1.8% of revenue and inventories down to $144 million.

• Net profit after tax was $1.1 million, compared to a loss of $25.7 million year-over-year.

Outlook and guidance

• Q2 2025 revenue guidance is $145–$165 million, representing 13%–29% year-over-year growth, with gross margin expected to remain around 50%.

• OPEX targeted to remain flat in 2025 versus 2024, with strict cost control to offset inflation.

• Long-term ambition: average annual revenue growth above 20% and EBITDA margin target of ~25% within five years.

• Management notes increased risk from global trade tensions, tariffs, and supply chain uncertainties.