NVTS · Navitas Semiconductor Corporation

Navitas Semiconductor's first quarter 2026 results mark a pivotal step in the company's strategic transformation, referred to as 'Navitas 2.0,' which involves pivoting away from mobile and consumer markets to focus on high-power applications. This shift drove an 18% sequential revenue increase to $8.6 million, with high-power markets—specifically AI Data Centers, Grid and Energy Infrastructure, and Performance Computing—now representing a large majority of total revenue and growing approximately 35% year-over-year. The strategic realignment resulted in a more favorable revenue mix, contributing to a 30 basis point sequential expansion in non-GAAP gross margin to 39.0%. GAAP gross margin also improved significantly to (9.3%) from (17.2%) in the prior quarter, though it remains negative due to specific accounting dynamics not fully detailed in the press release.

Management highlighted strong engagement in AI power solutions, showcasing new technologies like 800V power delivery boards and a 250 kW solid-state transformer solution at industry conferences. The company appointed Tonya Stevens as CFO to spearhead financial strategy during this transition. Looking forward, Navitas anticipates continued sequential growth, guiding for Q2 2026 revenues of $10.0 million, plus or minus $0.5 million, which implies over 16% sequential growth at the midpoint. Non-GAAP gross margin is expected to expand further to 39.25%, while operating expenses are projected to remain relatively flat sequentially. The company ended the quarter with a solid liquidity position of $221.0 million in cash and cash equivalents.