Vicor (VICR) Q4 2025 earnings summary

Executive summary

• Q4 2025 product revenue reached $92.7 million, up 4.5% sequentially and 15.3% year-over-year.

• Full-year 2025 product revenue rose 12.1% to $350.3 million; royalty revenue grew 23.2% to $57.4 million.

• Total revenue, including a $45 million patent litigation settlement, increased 26.1% to $452.7 million.

• Net income for 2025 surged to $118.6 million ($2.61 per diluted share) from $6.1 million ($0.14) in 2024, aided by a $24.0 million tax benefit.

• Book-to-bill ratio exceeded 1.2x in Q4 and continued to rise in Q1 2026.

Financial highlights

• Q4 gross margin was 55.4%, down 2.1% sequentially due to a Q3 royalty catch-up, but up year-over-year.

• Full-year gross margin improved to 57.3% from 51.2% in 2024.

• Q4 operating income was $15.7 million (14.6% margin); full-year operating income reached $81.8 million (18.1% margin).

• Q4 net income was $46.5 million ($1.01 per diluted share), up from $10.2 million ($0.23) a year ago, aided by a $27.3 million tax benefit.

• Cash and equivalents at year-end were $402.8 million; operating cash flow for Q4 was $15.7 million.

Outlook and guidance

• 2026 expected to bring record bookings, revenues, and profitability, with high utilization of the first ChiP fab.

• Product revenue run rate projected to double, potentially reaching $800 million as fab utilization approaches 80%.

• IP licensing revenues are projected to reach record levels in 2026 due to enforcement actions and new licensing opportunities.

• Plans are underway for a second fab and expanded capacity for high current density modules.

• No quarterly guidance provided due to unpredictability in licensing outcomes.