0001821769-25-000181
SEC filingRevenue declined 29% YoY due to industrial China weakness, while operating loss narrowed on cost cuts.
For the three months ended June 30, 2025, Navitas reported net revenues of $14.5 million, a decrease of 29% compared to $20.5 million in the same period last year. The decline was attributed to weakness in industrial China markets. Cost of revenues decreased only 3% to $12.2 million, resulting in a gross profit of $2.3 million (16.1% margin) versus $8.0 million (39.0% margin) a year ago. The gross margin compression was primarily due to a $3.2 million inventory reserve related to demand softness in China.
Operating expenses decreased significantly: R&D expense fell 39% to $11.5 million, driven by a $6.8 million reduction in stock-based compensation (including a $4.2 million reversal from a senior management resignation) and a $2.7 million decrease in headcount costs, partially offset by a $2.2 million NRE impairment. SG&A expense dropped 50% to $7.8 million, mainly due to a $7.0 million decrease in stock-based compensation and a $1.1 million reduction in headcount costs, partially offset by $1.6 million in governance costs. Amortization of intangible assets remained flat at $4.7 million. Total operating expenses were $24.0 million, down 39% from $39.1 million. Loss from operations improved to -$21.7 million from -$31.1 million.
Other income/expense swung to a net loss of $27.1 million from a gain of $8.9 million, primarily due to a $28.0 million loss from the change in fair value of earnout liabilities (compared to a $7.6 million gain last year), driven by an increase in the company's stock price. Dividend income decreased to $0.6 million from $1.4 million due to lower investment balances. Net loss widened to $49.1 million from $22.3 million.
For the six months ended June 30, 2025, revenue was $28.5 million, down 35% from $43.6 million, driven by declines in mobile and industrial markets. Gross profit was $7.6 million (26.8% margin) versus $17.5 million (40.1% margin). Operating expenses decreased 32% to $54.6 million, including $1.5 million in restructuring expenses. Loss from operations improved to -$47.0 million from -$62.7 million. Net loss was $65.9 million versus $26.0 million.
The MD&A does not provide segment-level revenue or operating income breakdowns. Revenue is attributed to end customers by geography: for Q2 2025, China accounted for 62% (down from 66%), United States 22% (up from 14%), Asia excluding China 9% (down from 12%), and Europe 7% (down from 8%). The shift reflects relative strength in US markets and weakness in China.
Management expects to continue incurring net operating losses and negative cash flows from operations. R&D, SG&A, and capital expenditures are expected to increase as the company expands operations and customer base. As of June 30, 2025, cash and cash equivalents were $161.2 million, up 86% from year-end 2024, bolstered by $100 million in gross proceeds from ATM offerings. The company believes current cash is sufficient to fund operations for the foreseeable future. No specific revenue or earnings guidance was provided.
Cash and cash equivalents were $161,189 thousand and restricted cash $152 thousand at June 30, 2025. Total assets reached $449,441 thousand. Stockholders' equity was $388,877 thousand, comprising Class A common stock $24 thousand, additional paid-in capital $839,550 thousand, and accumulated deficit $(450,690) thousand.
Note 15 discloses an equipment purchase agreement requiring quarterly $0.8 million payments during 2026. Present value of $2.8 million is split between $1.6 million in current liabilities and $1.4 million in noncurrent liabilities. A separate royalty agreement requires $1.0 million payments through March 2026, with $2.0 million accrued at period end.
No share repurchase programs or dividends are disclosed. Financing activities in the period included $100.0 million gross proceeds from ATM offerings and $3.3 million related costs. Lease obligations include operating lease liabilities of $6,503 thousand and finance lease liabilities of $934 thousand.
Note 14 states the Company operates as a single operating segment. No product-level or geographic segment profit measures are provided in the Notes. Revenue geographic data appears only in Note 11 but is not broken into operating segments.
For the six months ended June 30, 2025, Navitas Semiconductor's net cash used in operating activities was $24.8 million, a 29% improvement compared to the $34.9 million used in the prior-year period. This reduction in cash burn occurred despite a significantly larger net loss of $65.9 million (vs. $26.0 million in 2024), primarily due to a $19.9 million non-cash loss from the change in fair value of the earnout liability, which widened the GAAP loss but did not consume cash. Stock-based compensation, another major non-cash item, fell sharply to $6.1 million from $26.6 million.
Cash flow quality shows some strain from working capital movements, though the impact was modest. Accounts receivable and inventory changes provided a combined $1.1 million in cash, a reversal from the prior year's usage. However, the absence of customer deposits and deferred revenue, which had provided $4.7 million in the prior period, was a headwind.
Investing activities used $0.7 million, a sharp decline from $8.1 million, driven by a significant reduction in capital expenditures to $0.7 million from $5.6 million. This low capex intensity relative to the operating cash burn suggests the company is not currently in a heavy investment cycle for physical assets.
Financing activities provided $98.5 million, almost entirely from $100.0 million in gross proceeds from two at-the-market (ATM) equity offerings, offset by $3.3 million in issuance costs. This capital raise was the primary driver of the $73.1 million net increase in cash, ending the period with $161.3 million in cash, equivalents, and restricted cash. The company did not repurchase shares or pay dividends.