0001628280-26-030524
SEC filingRevenue fell 39% YoY to $8.6M, driven by mobile and consumer declines in Asia, while operating loss widened to $27.8M.
For the three months ended March 31, 2026, Navitas reported net revenues of $8.6 million, a 39% decline from $14.0 million in the same period of 2025. The decrease was primarily driven by lower sales in mobile and consumer markets, particularly in Asia (China down 46%, Asia ex-China down 50%). Gross profit decreased to $3.2 million (62.4% of revenue) from $5.3 million (62.1% of revenue) in the prior year, with gross margin remaining relatively flat as the decline in sales was offset by higher stock-based compensation.
Operating expenses totaled $31.0 million, up slightly from $30.6 million. Research and development expenses increased 15% to $14.6 million, driven by higher stock-based compensation and R&D materials, partially offset by headcount reductions. Selling, general and administrative expenses decreased 4% to $11.3 million due to lower sales commissions and professional fees, partially offset by higher stock-based compensation. Amortization of intangible assets remained flat at $4.7 million. Restructuring expense decreased to $0.5 million from $1.5 million due to timing of restructuring plans.
Loss from operations widened to $27.8 million from $25.3 million. Other income (expense), net swung to a loss of $6.0 million from income of $8.8 million, primarily due to a $16.0 million unfavorable change in fair value of earnout liabilities. Net loss was $33.8 million compared to $16.6 million in the prior year.
Revenue by end-customer geography: United States $3.5M (41% of total, down 19% YoY), China $3.1M (36%, down 46%), Europe $1.1M (12%, down 49%), Asia excluding China $0.9M (11%, down 50%). The decline was broad-based, with the steepest drops in Asia and Europe, reflecting weakness in mobile and consumer end markets.
Management expects to continue incurring net operating losses and negative cash flows from operations. R&D, G&A, and capital expenditures are expected to remain relatively flat. The company believes current cash and cash equivalents of $223.4 million are sufficient to finance operations for the foreseeable future. The Navitas 2.0 restructuring plan continues, focusing on portfolio realignment, technology roadmap execution, and disciplined investment in high-power markets such as AI data centers, energy infrastructure, and industrial electrification. No specific revenue or earnings guidance was provided.
As of March 31, 2026, Navitas Semiconductor reported total assets of $481.4 million, down from $500.5 million at year-end 2025. Cash and cash equivalents stood at $221.0 million, with an additional $2.4 million in restricted cash, providing a total liquidity position of $223.4 million. The company carries no traditional debt; total liabilities were $61.3 million, dominated by a $30.5 million earnout liability (Level 3 fair value) and $18.4 million in accounts payable and accrued expenses. Shareholders' equity decreased to $420.0 million from $443.7 million, driven by a net loss of $33.8 million, partially offset by $9.4 million in stock-based compensation. Inventory increased to $14.9 million from $13.3 million, with work-in-process representing the largest component at $7.2 million. Intangible assets, net of amortization, declined to $48.5 million from $53.3 million, reflecting $4.7 million in quarterly amortization. Goodwill remained unchanged at $163.2 million.
The company's primary contractual obligations consist of operating and finance leases totaling $5.6 million and $0.7 million in lease liabilities, respectively, with a weighted-average remaining lease term of 3.0 years for operating leases. Additionally, Navitas entered into a non-cancellable equipment purchase agreement in December 2024, with $2.3 million recorded in accounts payable as of March 31, 2026, payable in quarterly installments of $0.8 million throughout 2026. No other material purchase commitments or long-term supply obligations were disclosed beyond standard lease commitments. The earnout liability of $30.5 million represents contingent consideration tied to stock price milestones, valued using a Monte Carlo simulation with 100% equity volatility and a 3.72% risk-free rate.
Navitas has no share repurchase program or dividend policy in place. Capital expenditures for the quarter were minimal at $0.4 million, primarily for property and equipment. Financing activities generated $1.5 million, consisting of $0.8 million from stock option exercises and $0.8 million from the employee stock purchase plan. The company issued 1.5 million shares under equity award plans and granted 2.8 million restricted stock units during the quarter. Unrecognized stock-based compensation expense related to unvested RSUs totaled $50.2 million, to be recognized over a weighted-average period of 2.7 years.
Navitas operates as a single reportable segment focused on next-generation power semiconductors (GaN, SiC). Net revenues declined 38.7% year-over-year to $8.6 million. Geographic concentration is heavily skewed toward Hong Kong, which accounted for 76% of revenues ($6.6 million), followed by the United States at 13% ($1.1 million). Customer concentration is significant: Distributor A represented 59% of net revenues and 58% of accounts receivable. Cost of revenues was $5.4 million, yielding a gross margin of approximately 37.6% before intangible amortization. Total operating expenses of $31.0 million included $14.6 million in R&D and $11.3 million in SG&A, resulting in an operating loss of $27.8 million.
Operating cash use widened to $16.4M from $13.5M despite a larger net loss, driven by working-capital swings including a $4.7M reduction in payables and a $1.6M inventory build. Non-cash add-backs such as $10.3M stock-based compensation and $7.9M earnout liability loss partially offset the loss. Capex intensity remained low at $0.4M. No share repurchases or dividends were paid. Cash balance declined $15.2M to $223.4M, supported by $1.5M in equity issuances. No one-time tax or interest anomalies noted beyond modest payments of $25K taxes and $9K interest.