# DIODES INC /DEL/ (DIOD)

Informational only - not investment advice.

CIK: 0000029002
SIC: 3674 Semiconductors & Related Devices
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3674 Semiconductors & Related Devices](/industry/3674/)
Latest 10-K filed: 2026-02-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=29002
Filing source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-10 · accession 0001193125-26-044918 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000029002.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,482,073,000 USD | 2025 | verified |
| Net income | 66,141,000 USD | 2025 | verified |
| Assets | 2,448,100,000 USD | 2025 | verified |
| Free cash flow | 137,151,000 USD | 2025 | computed |
| Net margin | 4.46% | 2025 | computed |
| Operating margin | 2.39% | 2025 | computed |
| Revenue YoY | +13.04% | 2025 | computed |
| ROE | 3.52% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DIOD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.5% | 4.9% | 48 | 59 |
| Operating margin | 2.4% | 3.7% | 47 | 58 |
| Revenue growth | 13.0% | 15.5% | 47 | 61 |
| FCF margin | 9.3% | 8.9% | 51 | 60 |
| ROE | 3.5% | 3.8% | 47 | 58 |
| ROA | 2.7% | 1.6% | 53 | 61 |
| Liabilities / equity | 0.27 | 0.51 | 33 | 59 |
| Current ratio | 3.32 | 2.70 | 60 | 61 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3674 Semiconductors & Related Devices, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1482073000 | USD | 2025 | 2026-02-10 |
| Net income | 66141000 | USD | 2025 | 2026-02-10 |
| Assets | 2448100000 | USD | 2025 | 2026-02-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000029002.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 942,162,000 | 1,054,204,000 | 1,213,989,000 | 1,249,130,000 | 1,229,215,000 | 1,805,162,000 | 2,000,580,000 | 1,661,739,000 | 1,311,120,000 | 1,482,073,000 |
| Net income |  | 15,935,000 | -1,805,000 | 104,021,000 | 153,250,000 | 98,088,000 | 228,763,000 | 331,283,000 | 227,182,000 | 44,024,000 | 66,141,000 |
| Operating income |  | 37,991,000 | 79,409,000 | 154,482,000 | 200,608,000 | 134,332,000 | 275,985,000 | 408,193,000 | 250,571,000 | 50,450,000 | 35,462,000 |
| Gross profit |  | 286,923,000 | 356,776,000 | 435,276,000 | 465,807,000 | 431,121,000 | 670,360,000 | 827,237,000 | 658,182,000 | 435,862,000 | 462,436,000 |
| Diluted EPS |  | 0.32 | -0.04 | 2.04 | 2.96 | 1.88 | 5.00 | 7.20 | 4.91 | 0.95 | 1.43 |
| Operating cash flow |  | 124,742,000 | 181,123,000 | 185,566,000 | 229,772,000 | 187,220,000 | 338,543,000 | 392,501,000 | 280,914,000 | 119,435,000 | 215,513,000 |
| Capital expenditures |  | 58,549,000 | 111,161,000 | 87,507,000 | 98,505,000 | 75,813,000 | 141,195,000 | 211,728,000 | 150,769,000 | 73,024,000 | 78,362,000 |
| Share buybacks | 11,009,000 | 18,014,000 | 8,745,000 |  |  | 296,705,000 | 0.00 | 0.00 | 0.00 | 0.00 | 33,814,000 |
| Assets |  | 1,528,552,000 | 1,488,673,000 | 1,526,371,000 | 1,639,384,000 | 1,979,457,000 | 2,194,495,000 | 2,288,312,000 | 2,367,659,000 | 2,386,281,000 | 2,448,100,000 |
| Liabilities |  | 708,085,000 | 614,755,000 | 548,939,000 | 486,601,000 | 963,334,000 | 891,771,000 | 705,393,000 | 557,982,000 | 517,334,000 | 509,691,000 |
| Stockholders' equity |  | 776,019,000 | 831,504,000 | 931,463,000 | 1,106,424,000 | 963,820,000 | 1,237,242,000 | 1,513,645,000 | 1,740,741,000 | 1,795,301,000 | 1,878,124,000 |
| Cash and cash equivalents |  | 247,802,000 | 203,820,000 | 241,053,000 | 258,390,000 | 268,065,000 | 363,599,000 | 336,732,000 | 315,457,000 | 308,671,000 | 367,212,000 |
| Free cash flow |  | 66,193,000 | 69,962,000 | 98,059,000 | 131,267,000 | 111,407,000 | 197,348,000 | 180,773,000 | 130,145,000 | 46,411,000 | 137,151,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 1.69% | -0.17% | 8.57% | 12.27% | 7.98% | 12.67% | 16.56% | 13.67% | 3.36% | 4.46% |
| Operating margin |  | 4.03% | 7.53% | 12.73% | 16.06% | 10.93% | 15.29% | 20.40% | 15.08% | 3.85% | 2.39% |
| Return on equity |  | 2.05% | -0.22% | 11.17% | 13.85% | 10.18% | 18.49% | 21.89% | 13.05% | 2.45% | 3.52% |
| Return on assets |  | 1.04% | -0.12% | 6.81% | 9.35% | 4.96% | 10.42% | 14.48% | 9.60% | 1.84% | 2.70% |
| Liabilities / equity |  | 0.91 | 0.74 | 0.59 | 0.44 | 1.00 | 0.72 | 0.47 | 0.32 | 0.29 | 0.27 |
| Current ratio |  | 3.95 | 2.68 | 2.89 | 2.84 | 2.01 | 2.52 | 2.69 | 3.02 | 3.26 | 3.32 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000029002.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.88 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.54 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.77 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 404,647,000 | 48,720,000 | 1.05 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 322,699,000 | 25,292,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 301,972,000 | 14,038,000 | 0.30 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 319,771,000 | 8,000,000 | 0.17 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 350,079,000 | 13,745,000 | 0.30 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 339,298,000 | 8,241,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 332,113,000 | -4,437,000 | -0.10 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 366,212,000 | 46,098,000 | 0.99 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 392,170,000 | 14,278,000 | 0.31 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 391,578,000 | 10,202,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 405,467,000 | 14,961,000 | 0.32 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 445,529,000 | 46,649,000 | 1.00 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DIOD's latest 10-K: [/company/DIOD/business/](/company/DIOD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DIOD's latest 10-K: [/company/DIOD/risk-factors/](/company/DIOD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/29002/000119312526335450/diod-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Except for the historical information contained herein, the matters addressed in this Item 2 constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as identified under the heading “Cautionary Statement for Purposes of the “Safe Harbor” Provision of the Private Securities Litigation Reform Act of 1995” herein. Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed in the subsection “Risk Factors” set forth in Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of our most recent Annual Report on Form 10-K, and similar discussions elsewhere in this Quarterly Report on Form 10-Q and in other reports we file with the SEC from time to time, that could cause actual results to differ materially from those anticipated by our management. The Private Securities Litigation Reform Act of 1995 (the “PSLRA”) provides certain “safe harbor” provisions for forward-looking statements. All forward-looking statements made in this Quarterly Report on Form 10-Q are made pursuant to the PSLRA. We undertake no obligation to publicly release the results of any revisions to our forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events. Unless the context otherwise requires, the words “Diodes,” the “Company,” “we,” “us,” and “our” refer to Diodes Incorporated and its subsidiaries. Dollar amounts and share amounts are presented in thousands, except per share amounts, unless otherwise noted.

This management’s discussion should be read in conjunction with the management’s discussion included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“Form 10-K”), previously filed with Securities and Exchange Commission (“SEC”) on February 10, 2026.

Overview

Diodes Incorporated (Nasdaq: DIOD), delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and power solutions combined with a flexible hybrid manufacturing model that meet customers’ needs. Our broad range of application-specific products, delivered through a total solutions sales approach and supported by global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-growth markets.

The Company’s diverse product portfolio covers diodes; rectifiers; transistors; MOSFETs; SiC diodes and MOSFETs; protection devices; logic; voltage translators; amplifiers and comparators; sensors; and power management devices such as AC-DC converters, digital isolators and isolated gate drivers, DC-DC switching, photocoupler, linear voltage regulators, voltage references, LED drivers, power switches, and voltage supervisors. We also have timing and connectivity solutions including clock ICs, crystal oscillators, PCIe packet switches, multi-protocol switches, interface products, and signal integrity solutions for high-speed signals.

Summary for the three months ended June 30, 2026

•
Net sales were $445.5 million, an increase of 21.7% from the $366.2 million in the three months ended June 30, 2025 and an increase of 9.9% from the $405.5 million in three months ended March 31, 2026;

•
Gross profit was $147.6 million, an increase of 28.0% from the $115.3 million in the three months ended June 30, 2025 and an increase of 14.6% from the $128.8 million in the three months ended March 31, 2026;

•
Gross profit margin was 33.1%, compared to 31.5% in the three months ended June 30, 2025 and 31.8% in the three months ended March 31, 2026;

•
Net income attributable to common stockholders was $46.6 million, compared to net income attributable to common stockholders of $46.1 million in the three months ended June 30, 2025 and net income attributable to common stockholders of $15.0 million in the three months ended March 31, 2026;

•
Earnings per share attributable to common stockholders was $1.00 per diluted share, compared to $0.99 per diluted share in the three months ended June 30, 2025 and $0.32 per diluted share in the three months ended March 31, 2026; and

•
Cash flow provided by operations was $68.5 million. We had $33.6 million of capital expenditures. Net cash flow was $32.9 million.

As of June 30, 2026, our cash, cash equivalents, and short-term investments were $440.0 million, and we had access to unused borrowing capacity of $225.0 million under the revolving portion of our U.S. Credit Agreement. We believe our liquidity and our borrowing capacity will allow us to cover our cash needs for working capital, capital expenditures, and acquisitions for at least the next 12 months.

On July 10, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire 100% of ElevATE Semiconductor, Inc. (“ElevATE”) in an all-cash transaction, which we expect to fund from available cash and our unused borrowing capacity. ElevATE is a fabless semiconductor company based in San Diego, California that specializes in the development of integrated circuits for the automated test equipment industry. Under the terms of the Merger Agreement, the aggregate merger consideration is based on a $250.0 million base purchase price, subject to customary adjustments for cash, indebtedness, transaction costs, taxes, and net working capital. In addition, the Merger Agreement provides for potential earnout payments of up to $50.0 million

-23-

in the aggregate based on the achievement of specified post-closing revenue and gross margin thresholds for calendar years 2027 through 2030.

The transaction, which is still subject to customary closing conditions, including regulatory approvals, is expected to close during the second half of 2026.

In the three months and six months ended June 30, 2026, the Company extended its momentum with revenue again increasing more than 20% when compared to the three and six months ended June 30, 2025, driven by growth across regions. Revenue also increased 10% sequentially coupled. The continued growth this quarter serves as further confirmation of strengthening demand in the overall market combined with the Company’s expanding content across our analog and power solutions in our key focus areas of automotive, industrial and artificial intelligence server-related applications.

The cost and operating initiatives previously implemented during the semiconductor market slowdown are producing measurable benefits to gross margin and net income, with margin increasing 160 basis points year-over-year. These actions have also contributed to increased cash flow that has enabled the Company to reinvest in growth and innovation, while also looking for inorganic opportunities to expand our technology portfolio, such as the recent proposed acquisition of ElevATE.

Results of operations for the three months ended June 30, 2026 and 2025

The table below sets forth the condensed consolidated statement of operations line items as a percentage of net sales:

[[GREPCENT_TABLE]]
[["For the three months ended June 30,"],["","","2026","","","2025"],["Net sales","","","100","%","","","100","%"],["Cost of goods sold","","","(67",")","","","(68",")"],["Gross profit","","","33","","","","32"],["Total operating expense","","","(26",")","","","(29",")"],["Interest income","","","1","","","","2"],["Foreign currency (loss), net","","","-","","","","(2",")"],["Unrealized gain on investments","","","4","","","","8"],["Gain on disposal of subsidiary","","","-","","","","4"],["Income tax provision","","","(2",")","","","(3",")"],["Equity in net earnings of equity investments","","","(1",")","","","-"],["Net income attributable to common stockholders","","","10","","","","13"]]
[[/GREPCENT_TABLE]]

The following table and discussion explains in greater detail our consolidated operating results and financial condition for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.

[[GREPCENT_TABLE]]
[["","For the three months ended June 30,"],["","2026","","","2025","","","Increase/(Decrease)","","","% Change"],["Net sales","$","445,529","","","$","366,212","","","$","79,317","","","","21.7","%"],["Cost of goods sold","","297,963","","","","250,888","","","","47,075","","","","18.8","%"],["Gross profit","","147,566","","","","115,324","","","","32,242","","","","28.0","%"],["Total operating expense","","114,276","","","","105,935","","","","8,341","","","","7.9","%"],["Interest income","","5,548","","","","7,024","","","","(1,476",")","","","(21.0","%)"],["Interest expense","","(334",")","","","(506",")","","","(172",")","","","(34.0","%)"],["Foreign currency (loss), net","","(1,017",")","","","(6,432",")","","","(5,415",")","","","84.2","%"],["Unrealized gain on investments","","20,018","","","","29,645","","","","(9,627",")","","","(32.5","%)"],["Gain on disposal of subsidiary","","-","","","","13,730","","","","(13,730",")","","N/A"],["Other income","","470","","","","362","","","","108","","","","29.8","%"],["Income tax provision","","6,847","","","","9,063","","","","(2,216",")","","","(24.5","%)"],["Equity in net earnings of equity investments","","(2,362",")","","","11","","","","(2,373",")","","","(21572.7","%)"],["Net income attributable to common stockholders","","46,649","","","","46,098","","","","551","","","","1.2","%"]]
[[/GREPCENT_TABLE]]

Net sales increased approximately $79.3 million, or 21.7%, for the three months ended June 30, 2026, compared to the same period last year, primarily due to strong demand in the computing market, especially for artificial intelligence related server applications as well as data center and edge computing. During the three months ended June 30, 2026, weighted-average sales price decreased 2.5%

-24-

and volume increased 24.8%, when compared to the same period in 2025. The decrease in weighted-average sales price was primarily due to lower market pricing.

The table below sets forth our product revenue as a percentage of total product revenue by end-user market for the three months ended June 30, 2026 and 2025:

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","June 30,"],["","2026","","2025"],["Industrial","23%","","23%"],["Automotive","21%","","19%"],["Computing","28%","","26%"],["Consumer","17%","","18%"],["Communications","11%","","14%"]]
[[/GREPCENT_TABLE]]

For the three months ended June 30, 2026, gross profit increased approximately 28.0% when compared to the same period last year primarily due to higher net sales. Gross profit margin for the three months ended June 30, 2026 and 2025 was 33.1% and 31.5%, respectively.

Operating expenses for the three months ended June 30, 2026, increased $8.3 million when compared to the three months ended June 30, 2025. Operating expenses as a percentage of net sales were 25.6% and 28.9% for the three months ended June 30, 2026 and 2025, respectively. SG&A increased approximately $10.3 million as compared to the same period last year reflecting an increase in salaries and wages of $8.6 million and freight and duty expense of $1.7 million. SG&A, as a percentage of net sales, was 15.7% and 16.2% for the three months ended June 30, 2026 and 2025 respectively. For the three months ended June 30, 2026, research and development expenses (“R&D”) was flat when compared to the three months ended June 30, 2025. R&D, as a percentage of net sales, was 9.1% and 11.1% for the three months ended June 30, 2026 and 2025, respectively.

Inte

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/29002/000119312526044918/diod-20251231.htm
Complete FY 2025 MD&A: /company/DIOD/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-10
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following section discusses management’s view of the financial condition, results of operations and cash flows of Diodes Incorporated and its subsidiaries (collectively, “the Company,” “our Company,” “we,” “our,” “ours,” or “us”) and should be read together with the consolidated financial statements and the notes to consolidated financial statements included elsewhere in this Annual Report on Form 10-K.

The following discussion contains forward-looking statements and information relating to our Company. We generally identify forward-looking statements by the use of terminology such as “may,” “will,” “could,” “should,” “potential,” “continue,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” or similar phrases or the negatives of such terms. We base these statements on our beliefs as well as assumptions we made using information currently available to us. Such statements are subject to risks, uncertainties and assumptions, including those identified in Part I, Item 1A.“Risk Factors,” as well as other matters not yet known to us or not currently considered material by us. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements do not guarantee future performance and should not be considered as statements of fact.

You should not unduly rely on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. Unless required by law, we undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise. The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements. All forward-looking statements made in this Annual Report on Form 10-K are made pursuant to the Act.

A discussion of our results of operations for the year ended December 31, 2025 compared to December 31, 2024 is included below. For a discussion and comparison of the results of our operations for the year ended December 31, 2024 with the year ended December 31, 2023, refer to “Management's Discussion and Analysis of Financial Conditions and Results of Operations” in our Form 10-K for the year ended December 31, 2024 filed with the SEC on February 14, 2025.

General

Diodes Incorporated, together with its subsidiaries (collectively the “Company,” “we,” or “our” (Nasdaq: DIOD)), delivers high-quality semiconductor products to the world’s leading companies in the automotive, industrial, computing, consumer electronics, and communications markets. We leverage our expanded product portfolio of analog and power solutions combined with a flexible hybrid manufacturing model that meet customers’ needs. Our broad range of application-specific products, delivered through a total solutions sales approach and supported by global operations including engineering, testing, manufacturing, and customer service, enable us to be a premier provider for high-growth markets. For more information, visit www.diodes.com.

We operate from the following locations, with additional support offices throughout the world:

•
Corporate Headquarters

Plano, Texas, United States

•
Design, Engineering, and Marketing

Shanghai, Yangzhou, Shenzhen, and Hong Kong, China

Oldham, England

Greenock, Scotland

Bratislava, Slovakia

New Taipei City, Hsinchu, and Tainan, Taiwan

Milpitas, California, and Plano, Texas, United States

•
Wafer Fabrication

Shanghai and Wuxi, China

Oldham, England

Greenock, Scotland

Hsinchu, Taiwan

South Portland, Maine, United States

•
Assembly and Test

Shanghai, Chengdu, and Wuxi, China

Neuhaus am Rennweg, Germany

Chongli, Taiwan

•
Sales, Warehouse, and Logistics

Hong Kong, Shanghai, Beijing, Shenzhen, Wuhan, Qingdao, and Xiamen, China

Oldham, England

Frankfurt and Munich, Germany

32

Milan, Italy

Tokyo, Japan

Singapore

Seongnam-si, South Korea

New Taipei City, Taiwan

Milpitas, California and Plano, Texas, United States

The Company’s manufacturing facilities have achieved certifications in the internationally recognized standards of ISO 9001:2015, ISO 14001:2015, and, for automotive products, IATF 16949:2016 and the Company is also C-TPAT certified. We believe these quality awards reflect the superior quality-control techniques established at the Company and further enhance our credibility as a vendor-of-choice to original equipment manufacturers (“OEMs”) increasingly concerned with quality and consistency.

Our market focus is on high-growth, end-user applications in the following areas:

•
Automotive: connected driving, comfort/style/safety, electrification/powertrain;

•
Industrial: embedded systems, industrial automation, medical, energy management, smart buildings;

•
Computing: Artificial Intelligence (“AI”) data center including AI server, storage, and edge AI;

•
Consumer: Internet of things (“IoT”): wearables, home automation, home appliances, and charging solutions, and

•
Communications: smart phones, telecom, enterprise networking, smart infrastructure including space-based connectivity.

This discussion summarizes the significant factors affecting the consolidated operating results, financial condition, and liquidity of the Company for the twelve months ended December 31, 2025. This discussion should be read in conjunction with Item 8, the consolidated financial statements and the notes to consolidated financial statements.

Summary for the Twelve Months Ended December 31, 2025

•
Net sales were $1.5 billion, an increase of 13.0% over the $1.3 billion in 2024;

•
Gross profit was $462.4 million, a 6.1% increase from $435.9 million in 2024;

•
Gross profit margin was 31.2% compared to 33.2% in 2024;

•
Operating income decreased 29.7% to $35.5 million, or 2.4% of net sales, compared to $50.5 million, or 3.8% of net sales, in 2024;

•
Net income was $66.1 million, an increase of 50.2% from the $44.0 million in 2024;

•
Earnings per share was $1.43 per diluted share, a 50.5% increase from the $0.95 per diluted share in 2024;

•
We achieved $215.5 million of cash flow from operations. We had cash capital expenditures of $78.4 million, or 5.3% of net sales. Net cash flow was $57.6 million, which includes the net pay-down of $1.2 million of total debt.

Summary for the Twelve Months Ended December 31, 2024

•
Net sales were $1.3 billion, a decrease of 21.1% over the $1.7 billion in 2023;

•
Gross profit was $435.9 million, a 33.8% decrease from $658.2 million in 2023;

•
Gross profit margin declined to 33.2% compared to 39.6% in 2023;

•
Operating income decreased 79.9% to $50.5 million, or 3.8% of net sales, compared to $250.6 million, or 15.1% of net sales, in 2023;

•
Net income was $44.0 million, a decrease of 80.6% from the $227.2 million in 2023;

•
Earnings per share was $0.95 per diluted share, a 80.6% decrease from the $4.9 per diluted share in 2023;

•
We achieved $119.4 million of cash flow from operations. We had cash capital expenditures of $73.0 million, or 5.6% of net sales. Net cash flow was a negative $3.8 million, which includes the net pay-down of $7.6 million of total debt.

Business Outlook and Factors Relevant to Our Results of Operations

The Company ended 2025 with net sales growing 13% for the full year, which is the highest level of annual growth since 2021. Additionally, the fourth quarter of 2025 represented the fourth consecutive quarter of double-digit growth year-over-year, further highlighting the success of the Company’s design win initiatives and content expansion over the past year. The Company has continued to see demand improvements across all target markets and geographies, with the most significant growth for the full year driven by strength in the computing market for AI server-related applications as well as increases in our automotive and industrial end markets.

33

More recently, we have been strategically supporting key customers on new opportunities and orders specifically in the automotive and communications markets, while also further extending our design-in momentum across all end markets.

The success of our business depends on, among other factors, the strength of the global economy and the stability of the financial markets, our customers’ demand for our products, the ability of our customers to meet their payment obligations, customers not canceling or deferring existing orders, and the strength of consumers’ demand for items containing our products in the end-markets we serve. We believe the long-term outlook for our business remains generally favorable despite the uncertainties in the global economy as we continue to execute on the strategy that has proven successful for us over the years. See “Risk Factors – The success of our business depends on the strength of the global economy and the stability of the financial markets, and any weaknesses in these areas may have a material adverse effect on our net sales, operating results, and financial condition.” in Part I, Item 1A of this Annual Report for additional information.

Description of Sales and Expenses

Net sales

The principal factors that have affected or could affect our net sales from period to period are:

•
The condition of the economy in general and of the semiconductor industry in particular;

•
The continued hostilities between Ukraine and Russia, the conflict in the Middle East, and the resulting and continuing global impact;

•
Political tension, including the implementation of tariffs, among and between the countries in which we do business;

•
Our customers’ adjustments in their order levels;

•
Changes in our pricing policies or the pricing policies of our competitors or suppliers;

•
The addition or termination of key supplier relationships;

•
The rate of introduction and acceptance by our customers of new products;

•
Our ability to compete effectively with our current and future competitors;

•
Our ability to enter into and renew key corporate and strategic relationships with our customers, vendors, and strategic alliances;

•
Changes in foreign currency exchange rates;

•
A major disruption of our information technology infrastructure;

•
Unforeseen catastrophic events, such as pandemics, armed conflict, terrorism, fires, typhoons, and earthquakes;

•
Any other disruptions, such as change in the political or governmental policies, labor shortages, unplanned maintenance, or other manufacturing problems; and

•
Other risks, uncertainties, and assumptions identified in item 1A, “Risk Factors,” of this Annual Report and risks, uncertainties, and assumptions reflected in other documents we file with the SEC.

Cost of goods sold

Cost of goods sold includes manufacturing costs for our semiconductors and our wafers. These costs include raw materials used in our manufacturing processes as well as labor costs and overhead expenses. Cost of goods sold is also impacted by yield improvements, capacity utilization, and manufacturing efficiencies. In addition, cost of goods sold includes the cost of products that we purchase from other manufacturers and sell to our customers. Cost of goods sold is also affected by inventory obsolescence if our inventory management is not efficient.

Selling, general, and administrative

Selling, general, and administrative expenses relate primarily to compensation and associated expenses for personnel in general management, sales and marketing, information technology, engineering, human resources, procurement, planning and finance, and sales commissions, as well as outside legal, investor relations, accounting, consulting and other operating ex

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/DIOD/mda/fy2025/
All MD&A years: /company/DIOD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/DIOD/mda/fy2024/): filed 2025-02-14; accession 0000950170-25-021400 (https://www.sec.gov/Archives/edgar/data/29002/000095017025021400/diod-20241231.htm)
- [FY 2023 MD&A](/company/DIOD/mda/fy2023/): filed 2024-02-09; accession 0000950170-24-013363 (https://www.sec.gov/Archives/edgar/data/29002/000095017024013363/diod-20231231.htm)
- [FY 2022 MD&A](/company/DIOD/mda/fy2022/): filed 2023-02-10; accession 0000950170-23-002499 (https://www.sec.gov/Archives/edgar/data/29002/000095017023002499/diod-20221231.htm)
- [FY 2021 MD&A](/company/DIOD/mda/fy2021/): filed 2022-02-18; accession 0000950170-22-001438 (https://www.sec.gov/Archives/edgar/data/29002/000095017022001438/diod-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3674 Semiconductors & Related Devices) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DIOD.md · JSON record: /company/DIOD.json · verified financials: /company/DIOD/financials.json / /company/DIOD/financials.csv · machine TOC for the whole site: /llms.txt