Vicor (VICR) Q4 2025 earnings summary

Executive summary

• Q4 2025 product revenue rose 4.5% sequentially and 15.3% year-over-year to $92.7M; full-year product revenue up 12.1% to $350.3M.

• Royalty revenue for Q4 was $14.5M, down 33.1% sequentially due to a Q3 catch-up, but full-year royalty revenue increased 23.2% to $57.4M.

• Including a $45M patent litigation settlement, total 2025 revenue reached $452.7M, up 26.1% year-over-year.

• Net income for Q4 was $46.5M ($1.01 per diluted share), with full-year net income surging to $118.6M ($2.61 per diluted share) from $6.1M ($0.14) in 2024, aided by a significant tax benefit.

• Book-to-bill ratio exceeded 1.2x in Q4 and backlog at year-end was $176.9M, up 15.8% sequentially and 13.8% year-over-year.

Financial highlights

• Q4 gross margin was 55.4%, down 2.1% sequentially but up year-over-year; full-year gross margin improved to 57.3% from 51.2%.

• Q4 operating income was $15.7M (14.6% margin); full-year operating income reached $81.8M (18.1% margin), reversing a prior year loss.

• Q4 tax benefit of $27.3M led to an effective tax rate of -142%; full-year tax benefit was $41M, with a -25.4% effective rate.

• Cash and equivalents at Q4 end were $402.8M; operating cash flow for Q4 was $15.7M, and full-year operating cash flow totaled $139.5M, up 174.5% year-over-year.

• Backlog at year-end was $176.9M, up 13.8% year-over-year and 15.8% sequentially.

Outlook and guidance

• 2026 expected to bring record bookings, revenues, and profitability, with fab utilization approaching 80%.

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

• Product revenue run rate could approach $800M within a year, more than doubling 2025 levels.

• Licensing revenue expected to expand significantly, with hundreds of millions in potential annual revenue.

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