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 litigation settlement inflating Q2 results.

• Net income for Q3 2025 was $28.3M ($0.63 per diluted share), up from $11.6M ($0.26 per share) a year ago.

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

• Advanced product revenue rose 8.2% sequentially and 32.6% year-over-year; brick product revenue increased 26.6% sequentially and 2.6% year-over-year.

• Licensing income reached a $90M annualized run rate, with expectations to double within a couple of years.

Financial highlights

• Gross margin for Q3 was $63.5M (57.5% of revenues), up from $45.7M (49.1%) year-over-year.

• Operating expenses for Q3 2025 were $42.6M, down 8.9% sequentially but up from $40.4M year-over-year.

• Cash and equivalents rose to $362.4M, up $23.8M sequentially and 7.0% sequentially.

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

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

Outlook and guidance

• Licensing income expected to grow at ~50% annually, with line of sight to doubling in two years.

• Management expects substantial growth in IP licensing revenue and greater foundry capacity utilization as next-gen products ramp.

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

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

• Ongoing focus on high-growth market segments, especially AI and data center applications.