Power Integrations (POWI) Q4 2025 earnings summary

Executive summary

• Full-year revenue grew 6% to $443.5 million, with Q4 revenue at $103.2 million and non-GAAP EPS of $0.23; non-GAAP EPS rose 8% year-over-year.

• Cash flow from operations for the year was $112 million, up $30 million from the prior year.

• A restructuring reduced the global workforce by 7% to align expenses with revenue, with a $3.5–$4.0 million restructuring charge expected in Q1 2026.

• Bookings improved significantly in Q4, especially in industrial and consumer segments.

• Non-GAAP net income for 2025 was $70.7 million ($1.25 per share), up from $66.2 million ($1.16 per share) in 2024.

Financial highlights

• Q4 revenue was $103.2 million, down 13% sequentially; full-year revenue up 6% year-over-year.

• Q4 non-GAAP net income was $12.7 million ($0.23 per share); Q4 GAAP net income was $13.3 million ($0.24 per share).

• Non-GAAP gross margin for Q4 was 53.3%; full-year non-GAAP gross margin was 55.1%, up 70 bps.

• Free cash flow for the year was $87.1 million.

• Returned $145 million to shareholders via buybacks and dividends, 167% of free cash flow.

Outlook and guidance

• Q1 2026 revenue expected between $104 million and $109 million.

• Q1 non-GAAP gross margin projected at 53%-54%; GAAP gross margin at 52–53%.

• Q1 non-GAAP OpEx expected at $46 million ± $500,000; GAAP OpEx at $54–$55.5 million; restructuring charge of $3.5–$4.0 million expected.

• Effective tax rate for 2026 expected to be 7%-8%.

• Planning for similar year-over-year growth in 2026, with cautious investment until bookings materialize.