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Jun 30
Power Integrations Q2 2025 Earnings Report
Power Integrations reported its second-quarter financial results for 2025, with revenues increasing year-over-year and strong growth in the industrial sector.
Key Takeaways
Power Integrations announced second-quarter 2025 financial results, with net revenues reaching $115.9 million, a 9% increase year-over-year. GAAP net income was $1.4 million, or $0.02 per diluted share, while non-GAAP net income was $19.9 million, or $0.35 per diluted share. The company saw strong growth in the industrial category and repurchased $32.6 million in shares.
Net revenues for Q2 2025 were $115.9 million, up 9% year-over-year.
GAAP net income was $1.4 million ($0.02 per diluted share), and non-GAAP net income was $19.9 million ($0.35 per diluted share).
The industrial segment was a key driver of revenue growth.
The company repurchased 706 thousand shares for $32.6 million during the quarter.
Power Integrations
Power Integrations
Power Integrations Revenue by Segment
Revenue by Segment
Communications Revenue
CapyFin.comComputer Revenue
CapyFin.comConsumer Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, Power Integrations expects revenues to be between $113 million and $123 million. GAAP gross margin is projected to be 54.5% to 55%, and non-GAAP gross margin between 55% and 55.5%. GAAP operating expenses are estimated at $72.5 million, with non-GAAP operating expenses around $47.5 million.
Positive Outlook
- Expected revenue increase for Q3 2025 compared to Q2 2025.
- Non-GAAP gross margin is expected to remain strong, between 55% and 55.5%.
- Long-term growth drivers, including automotive business and GaN-based products, are on track.
- GaN-based product revenues grew over 50% in the first half of the year.
- Developing differentiated system-level products for next-generation AI datacenters.
Challenges Ahead
- Near-term visibility is low due to macroeconomic uncertainty.
- GAAP operating expenses are expected to be significantly higher than non-GAAP due to stock-based compensation and a non-cash charge.
- A net non-cash charge of approximately $15 million reflecting immediate expensing of stock awards to former CEO.
- Potential for changes in trade policies, tariffs, and global economic conditions to impact demand.
- Risks associated with new product introductions and market acceptance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income