Vicor (VICR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $110.4M, up 18.5% year-over-year but down 21.7% sequentially due to a prior quarter's $45M patent settlement.

• Net income for Q3 2025 was $28.3M ($0.63 per diluted share), up from $11.6M a year ago.

• Gross margin improved to 57.5% from 49.1% year-over-year, but declined sequentially due to the absence of the settlement.

• Advanced product revenue rose 8.2% sequentially to $65.5M; brick product revenue increased 26.6% to $44.9M.

• For the nine months ended September 30, 2025, net revenues grew 14.3% year-over-year to $300.4M, with net income of $72.0M.

Financial highlights

• Gross margin for Q3 was $63.5M (57.5% of revenues), up from $45.7M year-over-year.

• Operating expenses for Q3 2025 were $42.6M, down 8.9% sequentially.

• Cash and equivalents rose to $362.4M, up $23.8M sequentially.

• Operating cash flow was $38.5M; capital expenditures were $4M.

• Book-to-bill ratio was 0.98; one-year backlog increased 1.5% to $152.8M.

Outlook and guidance

• Licensing income is expected to grow at a 50% annual rate, with line of sight to doubling in two years.

• Management expects substantial growth in IP licensing revenue, driven by demand from OEMs and hyperscalers for high-density power systems.

• No quarterly guidance provided due to uncertainty in timing of additional license deals.

• 2025 is projected to be a record year for revenue, profitability, and EPS.

• Cash from operations and current liquidity are expected to fund operational and capital needs for the foreseeable future.