# Navitas Semiconductor Corp (NVTS) Informational only - not investment advice. CIK: 0001821769 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: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1821769 Filing source: https://www.sec.gov/Archives/edgar/data/1821769/000182176926000007/nvts-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001821769-26-000007 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001821769.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 45,916,000 USD | 2025 | verified | | Net income | -116,953,000 USD | 2025 | verified | | Assets | 500,469,000 USD | 2025 | verified | | Free cash flow | -44,369,000 USD | 2025 | computed | | Revenue YoY | -44.88% | 2025 | computed | | ROE | -26.36% | 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. 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 | NVTS | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -101.6% | 4.9% | 0 | 59 | | Operating margin | -148.7% | 3.7% | 0 | 58 | | Revenue growth | -44.9% | 15.5% | 2 | 61 | | FCF margin | -96.6% | 8.9% | 3 | 60 | | ROE | -26.4% | 3.8% | 11 | 58 | | ROA | -23.4% | 1.6% | 7 | 61 | | Liabilities / equity | 0.13 | 0.51 | 10 | 59 | | Current ratio | 4.99 | 2.70 | 78 | 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 | 45916000 | USD | 2025 | 2026-02-27 | | Net income | -116953000 | USD | 2025 | 2026-02-27 | | Assets | 500469000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001821769.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 11,849,000 | 23,736,000 | | 79,456,000 | 83,302,000 | 45,916,000 | | Net income | | -152,685,000 | 72,887,000 | -145,951,000 | -84,599,000 | -116,953,000 | | Operating income | -18,803,000 | -68,508,000 | -123,637,000 | -118,132,000 | -130,675,000 | -107,764,000 | | Diluted EPS | -1.17 | -3.90 | 0.51 | -0.86 | -0.46 | -0.57 | | Operating cash flow | -20,625,000 | -41,700,000 | -44,497,000 | -41,379,000 | -58,823,000 | -42,891,000 | | Capital expenditures | 223,000 | 2,068,000 | 4,644,000 | 4,782,000 | 6,771,000 | 1,478,000 | | Assets | 48,507,000 | 295,601,000 | 425,262,000 | 485,546,000 | 389,978,000 | 500,469,000 | | Liabilities | 11,425,000 | 230,065,000 | 40,502,000 | 104,929,000 | 41,965,000 | 56,808,000 | | Stockholders' equity | -72,424,000 | 65,536,000 | 384,760,000 | 380,617,000 | 348,013,000 | 443,661,000 | | Cash and cash equivalents | 38,869,000 | 268,252,000 | 110,337,000 | 151,892,000 | 86,737,000 | 236,857,000 | | Free cash flow | -20,848,000 | -43,768,000 | -49,141,000 | -46,161,000 | -65,594,000 | -44,369,000 | ### 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 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | -101.56% | | | Operating margin | | | | -148.68% | | | | Return on equity | | -232.98% | 18.94% | -38.35% | -24.31% | -26.36% | | Return on assets | | -51.65% | 17.14% | -30.06% | -21.69% | -23.37% | | Liabilities / equity | | 3.51 | 0.11 | 0.28 | 0.12 | 0.13 | | Current ratio | 7.37 | 27.16 | 6.98 | 4.25 | 5.76 | 4.99 | ## As-reported value updates 4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/NVTS/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001821769.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 | | | -0.24 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.39 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.35 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -58,527,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 21,978,000 | | 0.04 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 26,057,000 | -32,578,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 23,175,000 | -3,681,000 | -0.02 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -3,681,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 20,468,000 | | -0.12 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -22,328,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 21,681,000 | | -0.10 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 17,978,000 | -39,860,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 14,018,000 | -16,829,000 | -0.09 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -16,829,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 14,490,000 | | -0.25 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -49,075,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 10,112,000 | | -0.09 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 7,296,000 | -31,815,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 8,598,000 | -33,785,000 | -0.15 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | -33,785,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 10,529,000 | | -0.95 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from NVTS's latest 10-K: [/company/NVTS/business/](/company/NVTS/business/). ## Risk Factors Verbatim Item 1A Risk Factors from NVTS's latest 10-K: [/company/NVTS/risk-factors/](/company/NVTS/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1821769/000162828026049808/nvts-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: 2026-07-27 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Unless the context otherwise requires, all references in this section to the “Company,” “we,” “us,” or “our” refer to the business of Navitas and its subsidiaries. Throughout this section, unless otherwise noted, “Navitas” refers to Navitas Semiconductor Corporation and its consolidated subsidiaries. This quarterly report includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are attempts to predict or indicate future events or trends or similar statements that are not a reflection of historical fact. Forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions. Forward-looking statements are made based on estimates and forecasts of financial and performance metrics, projections of market opportunity and market share and current indications of customer interest, all of which are based on various assumptions, whether or not identified in this quarterly report. All such statements are based on current expectations of the management of the Company and are not predictions of actual future performance. Forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of the Company, and forward-looking statements are subject to a number of uncertainties. Our business is subject to certain risks that could materially and adversely affect our business, financial condition, results of operations, or the value of our securities. These and other risk factors are discussed in the Risk Factors section beginning on p. 13 of our annual report on Form 10-K for the year ended December 31, 2025, as updated in the Risk Factors section in this quarterly report on Form 10-Q, and in other documents we file. If any of these risks materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements. Overview Navitas Semiconductor Corporation designs, develops and markets next-generation power semiconductors, including gallium nitride (“GaN”) power integrated circuits (“ICs”), high-voltage silicon carbide (“SiC”) devices, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging applications. We focus primarily on high-power markets, including AI data centers, energy and grid infrastructure, performance computing, and industrial electrification. Our products are designed to improve system efficiency, increase power density, enhance thermal performance, and reduce overall system size and cost compared to traditional silicon-based technologies. By leveraging the electrical properties of wide-bandgap (“WBG”) materials such as GaN and SiC, our solutions enable higher switching frequencies, higher voltage operation, and improved energy efficiency. These capabilities are increasingly important in applications such as hyperscale data centers, renewable energy systems, grid modernization infrastructure, and industrial automation. We operate as a fabless semiconductor design company and outsource wafer fabrication, assembly, and testing to qualified third-party manufacturing partners. This business model allows us to operate with relatively low capital expenditure requirements; however, our results depend on the capacity, cost structure, yield performance, and operational execution of our manufacturing partners. We maintain operations around the world, including the United States, Philippines, China, Taiwan, and South Korea, with principal executive offices in Torrance, California. Execution of At-The-Market Sales Agreements On May 11, 2026, we entered into a Sales Agreement with Craig-Hallum Capital Group LLC and UBS Securities LLC (the “First Sales Agreement”) pursuant to which we could offer and sell, from time to time, shares of our Class A common stock having an aggregate offering price of up to $125.0 million. The First Sales Agreement terminated in accordance with its terms on May 12, 2026 in accordance with its terms upon completion of the offering. On June 8, 2026, we entered into an additional Sales Agreement with UBS Securities LLC, Morgan Stanley & Co. LLC and Needham & Company, LLC (the “Second Sales Agreement”). Pursuant to the Second Sales Agreement, we may offer and sell, from 24 TABLE OF CONTENTS time to time, shares of our Class A common stock having an aggregate offering price of up to $500.0 million. During the six months ended June 30, 2026, we sold approximately 6.5 million shares of our Class A common stock and completed our $125.0 million at-the-market offering program in its entirety. We also sold approximately 10.9 million shares of our Class A common stock for gross proceeds of $255.8 million of common stock under our $500.0 million at-the-market offering program. Navitas 2.0 Restructuring Plan We continue to execute the Navitas 2.0 Restructuring Plan, which was initiated in the fourth quarter of 2025 to reposition the Company as a focused high-power semiconductor provider serving large, durable, higher-margin markets. The plan remains centered on portfolio and organizational realignment, technology roadmap execution, go-to-market optimization, and disciplined investment in strategic end markets. As of June 30, 2026, the actions under the Restructuring Plan were substantially complete, with remaining costs expected to be recognized by the end of fiscal year 2026. Results of Operations The tables and discussion below present our results for the three months ended June 30, 2026 and 2025 (in thousands): [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","Change $","","Change %"],["","","2026","2025"],["Net revenues","","$","10,529","","","","$","14,490","","","","","$","(3,961)","","","(27)","%"],["Cost of revenues (exclusive of amortization of intangible assets included below)","","6,451","","","","12,162","","","","","(5,711)","","","(47)","%"],["Operating expenses:"],["Research and development","","13,152","","","","11,496","","","","","1,656","","","14","%"],["Selling, general and administrative","","13,038","","","","7,751","","","","","5,287","","","68","%"],["Amortization of intangible assets","","4,734","","","","4,734","","","","","\u2014","","","\u2014","%"],["Restructuring expense","","344","","","","\u2014","","","","","344","","","\u2014","%"],["Total operating expenses","","31,268","","","","23,981","","","","","7,287","","","30","%"],["Loss from operations","","$","(27,190)","","","","$","(21,653)","","","","","(5,537)","","","26","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","","Six Months Ended June 30,","","Change $","","Change %"],["","","2026","","2025"],["Net revenues","","$","19,127","","","$","28,508","","","$","(9,381)","","","(33)","%"],["Cost of revenues (exclusive of amortization of intangible assets included below)","","11,813","","","20,873","","","(9,060)","","","(43)","%"],["Operating expenses:"],["Research and development","","27,719","","","24,164","","","3,555","","","15","%"],["Selling, general and administrative","","24,290","","","19,491","","","4,799","","","25","%"],["Amortization of intangible assets","","9,468","","","9,468","","","\u2014","","","\u2014","%"],["Restructuring expense","","794","","","1,469","","","(675)","","","(46)","%"],["Total operating expenses","","62,271","","","54,592","","","7,679","","","14","%"],["Loss from operations","","$","(54,957)","","","$","(46,957)","","","(8,000)","","","17","%"]] [[/GREPCENT_TABLE]] Revenue We design, develop and manufacture GaN FETs, GaN ICs, SiC MOSFETs and modules, and Schottky diodes that deliver best-in-class performance, ruggedness, and quality. Our revenue represents the sale of semiconductors through specialized distributors to original equipment manufacturers (“OEMs”), their suppliers, and other end customers. We consider the domicile of our end customers, rather than the distributors we sell to directly, to be the basis of attributing 25 TABLE OF CONTENTS revenues from external customers to individual countries. Revenues for the three and six months ended June 30, 2026 and 2025 (in thousands) were attributable to end customers in the following countries: [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Three Months Ended June 30,"],["Country","2026","","2025"],["China","$","3,637","","","35","%","","$","8,984","","","62","%"],["United States","4,018","","","38","","","3,188","","","22"],["Asia excluding China","1,637","","","15","","","1,304","","","9"],["Europe","1,237","","","12","","","1,014","","","7"],["Total","$","10,529","","","100","%","","$","14,490","","","100","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","Six Months Ended June 30,","","Six Months Ended June 30,"],["Country","2026","","2025"],["China","$","6,746","","","35","%","","$","14,824","","","52","%"],["United States","7,531","","","40","","","7,412","","","26"],["Asia excluding China","2,541","","","13","","","3,421","","","12"],["Europe","2,308","","","12","","","2,851","","","10"],["Total","$","19,127","","","100","%","","$","28,508","","","100","%"]] [[/GREPCENT_TABLE]] The decline in sales of $4.0 million or 27% for the three months ended June 30, 2026, and $9.4 million or 33% for the six months ended June 30, 2026, was primarily due to the decrease in sales of mobile in the Asia region, primarily China, and consumer markets. Cost of Revenues [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","","","","","","","Six Months Ended June 30,"],["$ in thousands","","2026","","2025","","","","","","","2026","","2025","","% Change"],["Cost of revenues (exclusive of amortization of intangible assets)","","6,451","","","12,162","","","","","","","","","","11,813","","","20,873","","","(43)","%"],["Percentage of revenue","","61","%","","84","%","","","","","","","","","62","%","","73","%"]] [[/GREPCENT_TABLE]] For the three and six months ended June 30, 2026, cost of revenue decreased by $5.7 million or 47% and $9.1 million or 43% respectively. This was primarily driven by a decline in sales as well as a shift in sales mix toward high-power products. Research and Development Expense [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,","","","","","","Six Months Ended June 30,"],["$ in thousands","","2026","","2025","","","","","","2026","","2025","","% Change"],["Research and development","","13,152","","","11,496","","","","","","","","","27,719","","","24,164","","","15","%"],["Percentage of revenue","","125","%","","79","%","","","","","","","","145","%","","85","%"]] [[/GREPCENT_TABLE]] For the three and six months ended June 30, 2026, the increase of $1.7 million or 14% and $3.6 million or 15% respectively, was primarily driven by an increase in stock-based compensation as well as research and development materials, partially offset by a decrease in headcount related cost as a result of the Company’s reductions in force. 26 TABLE OF CONTENTS Selling, General and Administrative Expense [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/1821769/000182176926000007/nvts-20251231.htm Complete FY 2025 MD&A: /company/NVTS/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Unless the context otherwise requires, all references in this section to the “Company,” “we,” “us” or “our” refer to the business of Navitas and its subsidiaries. Throughout this section, unless otherwise noted, “Navitas” refers to Navitas Semiconductor Corporation and its consolidated subsidiaries. You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes appearing elsewhere in this annual report on Form 10-K. This discussion contains forward-looking statements that reflect our plans, estimates, and beliefs and that involve risks and uncertainties. As a result of many factors, such as those set forth under the “Risk Factors” and “Cautionary Statement About Forward-Looking Statements” sections and elsewhere in this annual report, our actual results may differ materially from those anticipated in these forward-looking statements. Overview Navitas Semiconductor Corporation designs, develops and markets next-generation power semiconductors, including gallium nitride (“GaN”) power integrated circuits (“ICs”), high-voltage silicon carbide (“SiC”) devices, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging applications. We focus primarily on high-power markets, including AI data centers, energy and grid infrastructure, performance computing and industrial electrification. Our products are designed to improve system efficiency, increase power density, enhance thermal performance, and reduce overall system size and cost compared to traditional silicon-based technologies. 36 TABLE OF CONTENTS By leveraging the electrical properties of wide bandgap (“WBG”) materials such as GaN and SiC, our solutions enable higher switching frequencies, higher voltage operation, and improved energy efficiency. These capabilities are increasingly important in applications such as hyperscale data centers, renewable energy systems, grid modernization infrastructure, and industrial automation. We operate as a fabless semiconductor design company and outsource wafer fabrication, assembly, and testing to qualified third-party manufacturing partners. This business model allows us to operate with relatively low capital expenditure requirements; however, our results depend on the capacity, cost structure, yield performance, and operational execution of our manufacturing partners. We maintain operations around the world, including the United States, Ireland, Germany, Italy, Belgium, China, Taiwan, South Korea, and the Philippines, with principal executive offices in Torrance, California. Private Placement of Common Stock (“PIPE” Offering) On November 7, 2025, we entered into the Purchase Agreement with accredited investors for a private placement of approximately 14.8 million shares of Class A common stock at $6.75 per share. The transaction closed on November 10, 2025, with Needham & Company as sole placement agent, resulting in gross proceeds of approximately $100.0 million and offering-related costs of $4.4 million. Net proceeds are being used for working capital and general corporate purposes, including support of strategic initiatives in high-power markets. All shares were delivered and settled in the fourth quarter of 2025. Execution of At-The-Market Agreement On March 19, 2025, we entered into an Open Market Sale AgreementSM (the “Sale Agreement”) with Jefferies LLC (“Jefferies”). We subsequently completed two “At the Market” (ATM) offerings referred to as ATM One and ATM Two, respectively. Pursuant to each agreement, we could offer and sell, from time to time, shares of our Class A common stock, par value $0.0001 per share, having an aggregate offering price of up to $50.0 million through Jefferies as sales agent. As of June 30, 2025, we completed the sale of shares under both ATM One and ATM Two resulting in approximately 11.1 million shares under ATM One and 8.7 million shares under ATM Two, with gross proceeds of approximately $100.0 million and offering-related costs of $3.3 million in total. All sales were completed in the second quarter of 2025. Navitas 2.0 Restructuring Plan During the fourth quarter of 2025, we have undertaken a strategic transformation (“Navitas 2.0 Restructuring Plan”) to reposition the Company as a focused high-power semiconductor company serving large, durable, higher-margin markets. The fourth quarter 2025 total restructuring expense and impairment charges incurred by us were $16.6 million. See Note - 18 “Restructuring and Impairment” to the Consolidated Financial Statements in Item 8 of this report for further details on the restructuring expense and impairment charges. The Navitas 2.0 Restructuring Plan shifts the Company away from consumer-oriented, short-life-cycle segments toward long-term programs in AI data centers, energy and grid infrastructure, performance computing and industrial electrification. This pivot is expected to improve business predictability, expand gross margin, and support a scalable and sustainable operating model. To enable this transition, we took several decisive actions focusing on 1) distributor rationalization, 2) resource realignment, 3) technology roadmap acceleration, and 4) go-to-market restructuring. Additionally, these actions support a disciplined operating model centered on four strategic pillars: 1.Market focus: AI data centers, energy and grid infrastructure, performance computing and industrial electrification. 2.Technology leadership: continuous innovation in GaN, GaN power ICs, and high-voltage silicon carbide, informed by customer requirements and co-design. 37 TABLE OF CONTENTS 3.Operational efficiency: a streamlined and rebalanced geographically deployed organization, a scalable foundry, and packaging and module partnerships. 4.Financial discipline: prioritized investments, leverageable operating expenses, and a mix shift toward high-margin programs. Equity Method Investment In October 2024, we began applying the equity method of accounting for our related party investment, in accordance with Accounting Standards Codification (“ASC”) 323, Investments—Equity Method and Joint Ventures. Under ASC 323, an investor must use the equity method when it has significant influence over the investee, typically indicated by ownership of 20% to 50% of the voting stock or other qualitative factors (e.g. board representation). We hold a 13.1% ownership stake in the investment and as part of the October 2024 transaction, received the option to appoint a representative to the investee’s board of directors. As a result, we remeasured our investment to its fair value of $5.55 per share as of the change in accounting and recognized its proportionate share of the investee’s earnings and losses for the period from November through December 2024, resulting in a net gain of $3.9 million for the year ended December 31, 2024. We recorded our share of losses for the year ended December 31, 2025, resulting in a net loss of $1.1 million, which was recorded in “Equity method investment gain (loss)” on the Statements of Operations. Results of Operations Revenue We design, develop and manufacture GaN power ICs and SiC MOSFETs for a variety of end-uses and applications. Our revenue represents the sale of semiconductors through specialized distributors to original equipment manufacturers (“OEMs”), their suppliers and other end customers. Our revenues fluctuate in response to a combination of factors. In addition, our revenues may fluctuate in response to the Company’s announced transition to high-power markets. Some of the factors that may cause these revenue fluctuations include the following: •our overall product mix and sales volumes; •gains and losses in market share and design win traction, including the Company’s ability to ramp new high-power products; •pace at which technology is adopted in our end markets; •the stage of our products in their respective life cycles; •the effects of competition and competitive pricing strategies, particularly in the mobile and consumer markets impacted by our announced transition to high-power markets; •availability of specialized field application engineering resources supporting demand creation and end customer adoption of new products; •achieving acceptable yields and obtaining adequate production capacity from our wafer foundries and assembly and test subcontractors; •market acceptance of our end customers’ products; governmental regulations influencing our markets; and •the global and regional economic cycles; •declines in average selling prices due product advances and market competition; •the availability, and fluctuations in the price of, the raw materials required for our products •changes in customer and distributor relationships including the Company’s announced consolidation of its distribution network in connection with its transition to high-power markets; and 38 TABLE OF CONTENTS •seasonal demand patterns in certain markets. We consider the domicile of our end customers, rather than the distributors we sell to directly to be the basis of attributing revenues from external customers to individual countries. Revenue for the twelve months ended December 31, 2025 and 2024, excluding channel inventories, were attributable to end customers in the following countries: [[GREPCENT_TABLE]] [["","","Year Ended December 31,"],["Country","","2025","","2024"],["China","","47","%","","60","%"],["United States","","28","%","","16","%"],["Asia excluding China","","11","%","","15","%"],["Europe*","","14","%","","8","%"],["All others","","\u2014","%","","1","%"],["Total","","100","%","","100","%"]] [[/GREPCENT_TABLE]] *Impractical to disclose revenue percentages by individual countries within Europe and therefore is presented in total. Cost of Revenues Cost of revenues consists primarily of the cost of semiconductors purchased from subcontractors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead (which includes depreciation and amortization) associated with such purchases, final test and wafer level yield fallout, inventory impairments, consumables, system and shipping costs. Cost of revenues also includes compensation related to personnel associated with manufacturing, including costs related to cash and stock-based employee compensation. Research and Development Expense Costs related to research, design and development of our products are expensed as incurred. Research and development expense consists primarily of pre-production costs related to the design and development of our products and technologies, including costs related to cash and stock-based employee compensation, benefits and related costs of sustaining our engineering teams, project material costs, third-party fees paid to consultants, prototype development expenses, write-offs of material to be utilized in research and development, and other costs incurred in the product design and development process.     Selling, General and Administrative Expense Selling, general and administrative expense includes employee compensation, including cash and stock-based compensation and benefits for executive, finance, business operations, sales, field application engineers and other administrative personnel. In addition, it includes marketing and advertising, IT, outside legal professional fees and legal settlements, tax and accounting services, insurance, and occupancy costs and related overhead based on headcount. Selling, general and administrative costs are expensed as incurred. Interest Income (Expense), net Interest income (expense), net primarily consists of interest earned on bank deposits and interest expense on our royalty agreement. Dividend Income Dividend income consists of [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/NVTS/mda/fy2025/ All MD&A years: /company/NVTS/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/NVTS/mda/fy2024/): filed 2025-03-19; accession 0001821769-25-000021 (https://www.sec.gov/Archives/edgar/data/1821769/000182176925000021/nvts-20241231.htm) - [FY 2023 MD&A](/company/NVTS/mda/fy2023/): filed 2024-03-06; accession 0001821769-24-000024 (https://www.sec.gov/Archives/edgar/data/1821769/000182176924000024/nvts-20231231.htm) - [FY 2022 MD&A](/company/NVTS/mda/fy2022/): filed 2023-04-03; accession 0001821769-23-000049 (https://www.sec.gov/Archives/edgar/data/1821769/000182176923000049/nvts-20221231.htm) - [FY 2021 MD&A](/company/NVTS/mda/fy2021/): filed 2022-03-31; accession 0001628280-22-008077 (https://www.sec.gov/Archives/edgar/data/1821769/000162828022008077/nvts-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/NVTS.md · JSON record: /company/NVTS.json · verified financials: /company/NVTS/financials.json / /company/NVTS/financials.csv · machine TOC for the whole site: /llms.txt