Power Integrations (POWI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached $106 million, up 15% year over year, with all four end markets growing, led by consumer and computer segments each up over 20%.

• Gross margin improved to 55.2% GAAP and 55.9% non-GAAP, benefiting from favorable FX and higher manufacturing volumes.

• Non-GAAP EPS was $0.31; GAAP net income was $8.8M ($0.15 per share), both up year over year.

• Cash flow from operations was $26.4M, supporting share repurchases and dividends amid market volatility.

• Notable design wins in consumer, computer (AI server power), industrial (HVDC, renewables), and first high-voltage GaN automotive win in the U.S.

Financial highlights

• Q1 revenue was $106M, up 15% year over year and flat sequentially; gross profit was $58.2M.

• Non-GAAP gross margin was 55.9%; GAAP gross margin was 55.2%.

• Non-GAAP operating expenses were $43.5M; GAAP operating expenses were $51.5M, mainly due to stock-based compensation.

• Non-GAAP EPS was $0.31; GAAP EPS was $0.15; cash from operations was $26.4M.

• $12M paid in dividends and $23M used for share repurchases in Q1.

Outlook and guidance

• Q2 revenue guidance is $115M ±$5M, up 8% year over year and 9% sequentially at midpoint.

• Non-GAAP gross margin expected at 55.5% in Q2; GAAP at ~55%.

• Non-GAAP operating expenses for Q2 projected at $46M; GAAP at ~$56M.

• Sequential growth expected in industrial, computer, and communications; consumer to be sequentially lower after strong Q1.

• Management expects healthy sequential growth in Q2 but notes trade policy uncertainty for H2.