Vicor (VICR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $113 million, up 5.3% sequentially and 20.2% year-over-year, driven by both Advanced and Brick Products and notable royalty growth.

• Net income was $20.7 million ($0.44 per diluted share), up sharply from $2.5 million ($0.06 per share) a year ago, reflecting higher sales, improved gross margin, and lower SG&A expenses.

• Gross margin improved to 55.2%, up 800 basis points year-over-year, attributed to higher sales volume, favorable mix, and production efficiencies.

• Backlog surged to $301 million, a 75% increase year-over-year and 70% sequentially, with book-to-bill exceeding 2.

• Strong bookings and demand across high-performance computing, industrial, aerospace, and defense markets.

Financial highlights

• Advanced Products revenue rose to $64.92 million, up 8.5% year-over-year; Brick Products up 40.9% to $48.05 million.

• Gross margin was $62.4 million (55.2% of revenue), up from $44.4 million (47.2%) year-over-year.

• Operating expenses increased to $45.5 million, including higher legal costs.

• Cash and equivalents at $404.2 million, up $1.4 million sequentially.

• Operating cash flow was negative $3.9 million, impacted by a $28.6 million litigation settlement.

Outlook and guidance

• Q2 2026 revenue expected near $126 million; full-year 2026 revenue guidance at $570 million.

• Backlog at quarter-end was $300.62 million, up from $176.94 million at the end of Q4 2025, supporting future growth.

• Guidance assumes no new licensing agreements until at least 2027, but existing royalties will increase.

• Margin expansion anticipated alongside revenue growth and capacity expansion.

• Bookings and backlog expected to remain strong, with backlog recognized over the next 12 months.