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    NVTS
    Earnings call· Jun 2026(Q2 FY26)

    Navitas Semiconductor Q2 FY26 earnings call NVTS

    Jul 27, 2026 Source

    Executive summary

    Navitas Semiconductor Q2 FY26 — AI Infrastructure Drives Double-Digit Growth and Strategic Transformation

    Navitas Semiconductor delivered strong Q2 FY26 results, driven by a strategic pivot to high-power markets, particularly AI infrastructure, which is expected to comprise over one-third of sales by year-end. The company achieved double-digit sequential revenue growth and expanded gross margins, signaling the successful completion of its "Navitas 2.0" transformation ahead of schedule. Management is prudently increasing investments to capitalize on multi-year growth opportunities in AI data centers and grid energy infrastructure.

    Highlights

    5

    • Total revenue increased 22% sequentially to $10.5 million.

    • High power markets grew more than 50% year-over-year.

    • Non-GAAP gross margin expanded by 50 basis points sequentially and 100 basis points year-over-year to 39.5%.

    • Cash and cash equivalents at quarter end were $567 million, strengthening the balance sheet.

    • Expanding backlog extends beyond 2026 coupled with record book-to-bill, supporting continued double-digit quarterly growth.

    Concerns

    3

    • A noncash charge of $203 million was recognized related to earn-out share provisions.

    • Non-GAAP operating expenses are anticipated to increase by $1.0 million to $1.5 million quarterly starting Q3 FY26.

    • Ongoing litigation with Wolfspeed and Renesas was characterized by management as a 'campaign of harassment and intimidation'.

    Guidance & targets

    8
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $13.5 million, plus or minus $0.5 million
    high materiality
    High
    Q3 FY26 Non-GAAP Gross Margin
    39.7%, plus or minus 100 basis points
    medium materiality
    High
    Q3 FY26 Non-GAAP Operating Expenses
    $15.5 million to $17.5 million
    medium materiality
    High
    Full-year FY26 Revenue Growth
    mid-single-digit revenue growth
    high materiality
    High
    AI Infrastructure Market Revenue Contribution
    more than 1/3 of total sales
    high materiality
    High
    Mobile and Low-End Consumer Business Revenue Contribution
    insignificant
    high materiality
    High
    Quarterly Growth Rate
    continued double-digit quarterly growth
    high materiality
    High
    Operating Expenses Increase
    approximately $1.0 million to $1.5 million
    medium materiality
    High

    Operational metrics

    12
    Revenue
    $10.5 million22% sequential increase from $8.6 million in Q1 FY26
    Q2 FY26

    At the high end of guidance, driven by increased traction in high-power markets.

    Non-GAAP Gross Margin
    39.5%50 bps sequential increase, 100 bps YoY increase
    Q2 FY26

    Expanded due to improved product mix towards higher value, higher power products and improving scale.

    Non-GAAP Operating Expenses
    $15.5 millionvs $15.0 million in Q1 FY26, vs $16.1 million in Q2 FY25
    Q2 FY26

    Reflects commitment to focused and disciplined spending, at the high end of guidance due to incremental investments in R&D programs.

    Non-GAAP EPS
    -$0.04flat to Q1 FY26, vs -$0.05 in Q2 FY25
    Q2 FY26

    Based on approximately 240.7 million weighted average basic and diluted shares outstanding.

    Cash and investments balance
    $567 millionvs $221 million at Q1 FY26 end
    Q2 FY26 end

    Increase primarily reflects $373 million additional capital raised during the quarter. Note: CFO stated $557 million in her prepared remarks, but CEO stated $567 million in his closing remarks and the prompt specifically requested routing $567 million.

    Capital Raised
    $373 million
    Q2 FY26

    Meaningfully strengthened the company's balance sheet and overall financial position.

    Net Debt
    no debt
    Q2 FY26 end

    Company continues to have no debt.

    Inventory
    $19.5 millionsequential increase of $4.6 million from $14.9 million in Q1 FY26
    Q2 FY26 end

    Reflects the start of building appropriate buffers of TSMC wafers to support customers' future anticipated AI data center growth.

    Prepaid Expenses and Other Current Assets
    $15 millionincrease
    Q2 FY26

    Reflects prepaid for future anticipated wafer receipts until wafers are received as inventory in future quarters.

    AI Infrastructure Revenue Growth
    >50%QoQ
    Q1 FY26 and Q2 FY26

    Expected to accelerate, driving the majority of revenue and growth going forward.

    Weighted Average Shares Outstanding
    240.7 million
    Q2 FY26

    Used for basic and diluted EPS calculation.

    Addressable market (TAM)
    $1.3 billionadditional
    by 2030

    The JFET product line expands TAM, with management stating it adds nearly $1 billion and confirming an analyst's reference to $1.3 billion.

    Industry KPIs

    5
    MetricValueDetails
    Book to bill ratiorecordratio
    Ai data center revenuemore than 1/3 of total sales%
    Inventory channel inventory$19.5 millionUSD
    Node platform ramp schedule8-inch GaNinches
    End market segment revenue mixHigh Power markets represent majority of overall revenue mix; mobile and low-end consumer declining

    Product announcements

    5
    ProductTypeDetails
    2.3 kV and 3.3 kV Gen SiC moduleslaunch
    Isolated TO-247 family (1.2 kV to 3.3 kV)launch
    1.2 kV JFET product linelaunch
    6.5 kV SiC technologymilestone
    10 kV SiC devicesroadmap

    Deals & partnerships

    1
    MagnachipStrategic partnership to license Navitas's GeneSiC Gen 4 and Gen 5 trench-assisted planar technology (1.2kV, 2.3kV, 3.3kV).

    The technology will be reported, qualified, and internalized in Magnachip's fab in South Korea, focusing on markets Navitas does not currently serve.

    Risks & headwinds

    3
    Noncash charge related to earn-out share provisionsQ2 FY26

    $203 million

    Mitigation: Fully recognized and settled by the end of Q2 FY26, with no further charges expected.

    Litigation from Wolfspeed and RenesasOngoing

    Not quantified financially, described as a 'campaign of harassment and intimidation' and a 'desperate move'.

    Mitigation: Company respects IP and technology, will defend itself, and highlighted suspicious timing of lawsuits.

    Exit from mobile and low-end consumer marketsFY26

    Massive headwind, revenue contribution expected to be 'insignificant' by year-end FY26.

    Mitigation: Strategic pivot to high-power markets, with AI infrastructure growth compensating for the exit.

    What to watch in Q3 FY26

    5

    AI Infrastructure Revenue Contribution

    Q4 FY26
    Current>50% QoQ growth in Q1 & Q2 FY26
    Target>1/3 of total sales by year-end FY26

    Why it matters

    Verifies the success of the Navitas 2.0 transformation and the primary growth driver.

    We expect AI infrastructure market will represent more than 1/3 of our total sales by year-end, setting the stage for continued momentum in 2027.

    Q&A highlights

    6

    Concerns about potential delays in 800V architectures (e.g., NVIDIA's Kyber Rack) and their effect on Navitas's 2027 revenue projections.

    Chris Allexandre stated that Navitas's dual GaN and SiC technology allows growth ahead of 800V. He clarified that 800V adoption is a multi-step process with several inflection points, not a single digital switch. He emphasized that the ramp will happen in steps throughout 2027 and accelerate in 2028 across multiple GPUs, xPUs, and platforms, and therefore, they do not see a change in their 2027 outlook.

    “The short answer to your earlier question, do we see that as a change in the outlook of [indiscernible]? The answer is no. And I think that goes back to multiple times you heard me saying that having both GaN and SiC is a strategic advantage for us to capitalize to capture content and is even more so today.”

    asked by Quinn Bolton · answered by Chris Allexandre

    2 min read6 chapters

    Detailed Narrative

    01

    Navitas 2.0 Transformation & Market Focus

    Navitas has substantially completed its strategic transformation to "Navitas 2.0," pivoting to high-power markets, particularly AI infrastructure. This shift has resulted in mobile and low-end consumer revenue becoming insignificant, with high-power markets now representing the majority of overall revenue. The company is ahead of schedule on this transition, with AI infrastructure (AI data centers and grid energy) becoming the primary growth driver, expected to exceed one-third of total sales by year-end.

    02

    AI Infrastructure Growth & Inflection Points

    The rapid adoption of AI is driving immense demand for high-power solutions, benefiting Navitas's GaN and high-voltage SiC technologies. Management outlined four inflection points for AI data center growth: SiC adoption in AC/DC PSUs (H2 FY26 ramp), 800V bus bar introduction with power sidecars (mid-2027), GaN integration into GPU/xPU trays for DC/DC conversion (mid to late 2027), and solid-state transformers for full 800V DC evolution (2028 and beyond). The company is growing ahead of the 800V transition, with multiple programs across various hyperscalers and power levels.

    03

    Technology Leadership & Product Expansion

    Navitas continues to invest diligently in GaN and high-voltage SiC innovation. Key developments include advancing GaN preface platform solutions for 800V data centers, the industry's lowest RDS(on) 650V GaN FET, and new 100V GaN for secondary side applications. In SiC, the GeneSiC technology offers best-in-class reliability. New products include an isolated TO-247 family (1.2kV to 3.3kV) and a 1.2kV JFET product line, which is expected to add $1.3 billion of incremental TAM by 2030. Ultra-high voltage SiC (6.5kV and 10kV) is also in development.

    04

    Strategic Partnerships & Operational Efficiency

    A strategic partnership with Magnachip was announced to license GeneSiC Gen 4 and Gen 5 technology, expanding market reach and strengthening supply chain resilience by establishing another foundry source in South Korea. Navitas is also on track for U.S.-based GaN manufacturing with GlobalFoundries by early 2027 and has secured buffer capacity at TSMC. The company is consolidating OSAT partners and leveraging AI tools internally to accelerate execution and improve efficiency.

    05

    Financial Discipline & Capital Allocation

    Despite strategic investments, Navitas maintained operating expenses essentially flat over the past nine months. The company recently raised $373 million in additional capital, bringing cash and cash equivalents to $567 million at quarter-end, with no debt. This capital provides increased flexibility to fund strategic investments in Foundry Plus initiatives, capacity expansion, supply reservation agreements, and potential strategic inorganic opportunities, while maintaining focus on top-line growth and gradual gross margin expansion towards profitability.

    06

    Litigation Context

    Management addressed ongoing litigation with Wolfspeed and Renesas, characterizing it as a 'campaign of harassment and intimidation' and a 'desperate move' given Navitas's market momentum and technological advancements. They highlighted the suspicious timing of📎 the lawsuits (week before earnings, Renesas owning a stake in Wolfspeed) and asserted Navitas's commitment to IP and technology, while letting observers draw their own conclusions on the motives behind the lawsuits.

    AI-generated summary of the company’s earnings call. Not investment advice.