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Sep 30
Power Integrations Q3 2025 Earnings Report
Power Integrations reported its third-quarter financial results, with revenues increasing three percent year-over-year to $119 million and cash flow from operations at $30 million.
Key Takeaways
Power Integrations delivered a solid third quarter in 2025, with net revenues reaching $118.9 million, a three percent increase both sequentially and year-over-year. Despite a GAAP net loss of $1.4 million, non-GAAP net income was $20.2 million, or $0.36 per diluted share. The industrial business showed strong growth, while consumer appliance orders were soft. The company also repurchased $42.4 million in shares and announced a dividend increase for 2026.
Net revenues for Q3 2025 were $118.9 million, up three percent year-over-year.
GAAP net loss was $1.4 million ($0.02 per diluted share), while non-GAAP net income was $20.2 million ($0.36 per diluted share).
The industrial business segment experienced a 20 percent year-over-year increase in the third quarter.
The company repurchased $42.4 million of shares and increased its quarterly dividend to $0.215 per share for 2026.
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 fourth quarter of 2025, Power Integrations expects revenues to be between $100 million and $105 million. GAAP gross margin is projected to be 53% to 53.5%, and non-GAAP gross margin between 53.5% and 54%. GAAP operating expenses are anticipated to be approximately $56 million, with non-GAAP operating expenses around $47 million.
Positive Outlook
- Anticipated non-GAAP gross margin of 53.5% to 54% for Q4 2025.
- Continued focus on secular growth opportunities in high voltage, including GaN, grid modernization, electric transportation, and data centers.
- Collaboration with NVIDIA on 800 VDC power architecture for next-gen AI data centers.
- Board of directors increased the quarterly dividend to $0.215 per share for each of the four quarters of 2026.
- Industrial business remains on track for strong growth in 2025.
Challenges Ahead
- Expected revenue decline in Q4 2025, with a range of $100 million to $105 million, compared to $118.9 million in Q3 2025.
- Consumer appliance orders continue to be soft.
- Challenging economic backdrop impacting overall growth.
- GAAP operating expenses are expected to be approximately $56 million, indicating significant overhead.
- Potential risks from changes in trade policies, tariffs, and global economic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income