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Sep 30
Vicor Q3 2025 Earnings Report
Vicor Corporation reported higher gross margin and net income in Q3 2025, despite a sequential decline in revenue following a one-time patent settlement in Q2.
Key Takeaways
Vicor delivered strong profitability in Q3 2025 with improved gross margin and a substantial year-over-year increase in net income. Revenue declined sequentially due to the absence of a prior quarter's one-time litigation settlement, but core product and royalty revenues remained solid.
Total revenue reached $110.4 million, up 18.5% YoY.
Gross margin expanded to 57.5%, compared to 49.1% last year.
Net income rose to $28.3 million, more than double the prior year's result.
Backlog increased to $152.8 million, up from $150.6 million a year ago.
Vicor
Vicor
Vicor Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comRoyalty Revenue
CapyFin.com Forward Guidance
Vicor anticipates continued growth in IP licensing and increased foundry utilization driven by demand for high-density power solutions in computing markets.
Positive Outlook
- Record-level licensing revenue in Q3.
- High-density power modules gaining traction across OEMs and hyperscalers.
- Foundry operations achieving 98% yield for mass production.
- Cash position improved 7% sequentially to $362.4 million.
- Backlog remains strong above $150 million.
Challenges Ahead
- Sequential revenue declined due to absence of $45M patent settlement from Q2.
- Operating expenses increased YoY to $42.6 million.
- Capital expenditures decreased YoY, possibly indicating lower investment pace.
- Stock repurchase volume slightly down from previous quarter.
- Royalty revenue may normalize after Q3 surge post-litigation settlement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income