Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $366.2 million, a 14% increase year-over-year from $319.8 million in Q2 2024 and a 10% increase from $332.1 million in Q1 2025 [10] - Gross profit for Q2 2025 was $115.3 million, representing 31.5% of revenue, compared to 33.6% in the prior year quarter [10] - GAAP net income for Q2 2025 was $46.1 million or $0.99 per diluted share, compared to $8 million or $0.17 per diluted share in the prior year [12] - Non-GAAP adjusted net income was $15 million or $0.32 per diluted share, compared to $15.4 million or $0.33 per diluted share in Q2 2024 [12] - EBITDA for Q2 2025 was $84.5 million or 23.1% of revenue, compared to 12.8% in the prior year period [13] Business Line Data and Key Metrics Changes - The consumer end market experienced the strongest growth, while automotive and industrial markets remained flat as a percentage of total revenue [7] - Automotive market revenue was 19% of total product revenue, showing a year-over-year increase of 23.5% [35] - Industrial market showed gradual demand improvement, particularly in AI robotics and medical applications [22] - Computing market saw strong demand for AI-related applications, with significant opportunities in data centers [23] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% [19] - The company reported double-digit growth in Asia, particularly in AI-related computing applications and EV automotive market in China [9][19] Company Strategy and Development Direction - The company aims to extend strong growth momentum with a projected revenue increase of 7% sequentially and 12% year-over-year in Q3 2025 [9] - Focus on new product initiatives, with over 100 new part numbers introduced, over 50% of which were automotive parts [18] - Emphasis on improving product mix and driving margin expansion through new product introductions and cost improvements [37][58] Management Comments on Operating Environment and Future Outlook - Management noted ongoing improvement in market conditions and demand across end markets, with inventory digestion extending particularly in automotive and industrial sectors [27] - The company is well-positioned with a broadened portfolio of products and increasing design wins to drive continuous growth and future margin expansion [27] Other Important Information - Cash flow provided by operations was $41.5 million for Q2 2025, with free cash flow of $21.1 million [13] - Total debt at the end of Q2 was approximately $54 million, with working capital around $871 million [14] Q&A Session Summary Question: How much of the demand in Asia is related to tariff-driven pull-ins? - Management indicated that tariff pull-ins are minimal, with demand driven by strong market conditions and new designs [33] Question: What is the status of inventory digestion in the automotive sector? - Management acknowledged ongoing inventory digestion but noted overall market improvement, with automotive revenue maintaining 19% quarter-over-quarter [35] Question: How do new products impact margin opportunities? - New products typically offer additional features that allow for premium pricing, which can improve overall cost structure and margins [37] Question: What is the growth expectation for AI-related products? - AI-related products, including PCIe packet switches, are expected to drive significant momentum, with multiple designs across various applications [42] Question: How is the company responding to pricing changes in the industry? - The company is focused on long-term customer relationships rather than short-term pricing strategies, aiming to leverage opportunities for growth [47] Question: What is the timeline for shifting back to in-house capacity? - Management confirmed good progress in qualifying products for internal wafer fabrication, with expectations for continued support from key customers [50]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to . Commission file number: 002-25577 DIODES INCORPORATED (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organiz ...

Exhibit 99.1 FINAL Diodes Incorporated Reports Second Quarter Fiscal 2025 Financial Results Exceeds 2Q Revenue Expectations, Growing 10% Sequentially and 14% Year-over- Year with Continued Double-Digit Year-over-Year Growth Momentum into 3Q Plano, Texas – August 7, 2025 -- Diodes Incorporated (Diodes) (Nasdaq: DIOD) today reported its financial results for the second quarter ended June 30, 2025. Second Quarter Highlights Commenting on the results, Gary Yu, President and CEO of Diodes, stated, "Our above exp ...

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as "expect," "anticipate," "aim," "estimate," and variations thereof, including without limitation statements, whether direct or ...

Financial Performance & Outlook - Diodes Incorporated reported first quarter 2025 revenue of $332.1 million[118] - The GAAP gross profit margin for the first quarter of 2025 was 31.5%[118] - The company anticipates second quarter 2025 revenue to be approximately $355 million, plus or minus 3%[3] - The company expects GAAP gross margin for the second quarter of 2025 to be 31.8%, plus or minus 1%[3] Strategic Goals & Market Focus - Diodes Incorporated aims to achieve $1 billion in gross profit[25] - The company's long-term revenue target is $2.5 billion[25] - Diodes Incorporated is focusing on high-margin automotive and industrial solutions[121] - Automotive and industrial sectors accounted for 42% of the company's product revenue in 2024[13] Automotive Market Growth - The potential revenue per car for Diodes' products is estimated at $213.25[53] - The company's dollar content per car is projected to increase to $213 in 2025[56] Key Products & Applications - Diodes' key products for AI servers include Analog, Power Management, MOS/BJT, and Timing and Connectivity, totaling $90 per box[83] - The company provides total system solutions for various applications, including embedded systems and cloud computing[42, 81]

Summary of Diodes (DIOD) 2025 Conference Call Company Overview - Diodes is a leading supplier of analog and discrete semiconductor solutions, serving various end markets including automotive, industrial, compute, communications, and consumer [3][4] - The company has been profitable for 33 consecutive years and reported $1.3 billion in revenue for 2024 [4] Market Segments and Performance - Diodes has consistently exceeded its goal of generating 40% of revenue from automotive and industrial segments, achieving a combined 42% in recent quarters [5][7] - The automotive segment has grown at a CAGR of 22% since 2013, with content per car increasing from $28 in 2013 to $213 in 2025 [6] - The computing segment is the largest, growing 27% from the previous quarter [7] Inventory and Demand Insights - Current inventory levels are slightly above the normal range of 11 to 14 weeks, but there has been a decrease in both internal and channel inventory [13][14] - The company expects a stronger second half of 2025, with indications of recovery in demand across various segments, particularly automotive and industrial [17][19] Pricing Strategy and Market Position - Diodes has focused on long-term relationships with customers rather than short-term pricing gains, which has resulted in a solid market position [23][25] - Pricing trends are stabilizing, with a historical model of 1.5% to 2% quarterly price erosion [27] Competition and Market Dynamics - Competition from local Chinese suppliers remains, but there is a belief that consolidation will occur in the market [30][32] - Diodes is focusing on differentiated, higher-end products to maintain competitiveness in the Chinese market [33] Product Development and Innovation - The company introduced over 300 new products for the automotive segment last year, with ongoing development in power management and silicon carbide technologies [16][56] - The Pericom product line is expanding into automotive and industrial applications, with a focus on timing and signal integrity products [49][50] Gross Margin and Production Strategy - The company is working to improve gross margins through increased internal production and a better product mix, with a current hybrid model of 55% internal and 45% external production [63][64] - Focus on higher-margin products in automotive and industrial segments is expected to enhance overall margins [65] Conclusion - Diodes is well-positioned for growth with a strong focus on innovation, customer relationships, and strategic market positioning, particularly in the automotive and industrial sectors [25][65]

Revenue Performance - Revenue for Q1 2025 was $332.1 million, a 10% increase from $302.0 million in Q1 2024[4] - Net sales for Q1 2025 increased to $332.1 million, up 10% from $302.0 million in Q1 2024[27] - The company expects Q2 2025 revenue to increase to approximately $355 million, representing an 11% year-over-year growth[17] Profitability Metrics - GAAP net loss was $4.4 million, or a loss of $0.10 per diluted share, compared to a net income of $14.0 million, or $0.30 per diluted share in Q1 2024[9] - Non-GAAP adjusted net income was $8.8 million, or $0.19 per diluted share, down from $13.0 million, or $0.28 per diluted share in Q1 2024[10] - GAAP gross profit margin was 31.5%, compared to 33.0% in Q1 2024[4] - EBITDA for Q1 2025 was $26.2 million, or 7.9% of revenue, compared to $48.3 million, or 16.0% of revenue in Q1 2024[13] - Free cash flow (FCF) for Q1 2025 was $40.8 million, indicating strong cash generation after capital expenditures[42] - EBITDA for Q1 2025 was $26.2 million, down from $48.3 million in Q1 2024, highlighting a decrease in operational profitability[45] Operating Expenses - Research and development expenses increased to $38.6 million in Q1 2025, up from $34.0 million in Q1 2024, reflecting ongoing investment in new technologies[27] - Total operating expenses for Q1 2025 were $103.4 million, compared to $86.6 million in Q1 2024, indicating a rise in operational costs[27] - Non-GAAP operating expenses for Q2 2025 are expected to be approximately 28.0% of revenue, plus or minus 1%[18] Cash Flow and Liquidity - Cash flow from operations for Q1 2025 was $56.7 million, with free cash flow of $40.8 million[14] - As of March 31, 2025, the company had approximately $349 million in cash and cash equivalents[15] - Cash and cash equivalents increased from $308,671 million to $335,754 million, reflecting a growth of about 8.5%[47] Balance Sheet Highlights - Total assets decreased from $2,386,281 million on December 31, 2024, to $2,356,341 million on March 31, 2025, a decline of approximately 1.25%[47] - Current assets remained relatively stable, totaling $1,224,890 million as of March 31, 2025, compared to $1,224,153 million at the end of 2024[47] - Accounts receivable decreased from $325,517 million to $302,241 million, a reduction of approximately 7.1%[47] - Total liabilities decreased from $517,334 million to $484,507 million, a decline of about 6.34%[47] - Total stockholders' equity increased from $1,868,947 million to $1,871,834 million, showing a slight growth of approximately 0.15%[47] - Retained earnings slightly decreased from $1,719,298 million to $1,714,861 million, a decline of about 0.26%[47] Shareholder Information - The number of common shares issued and outstanding increased from 46,332,891 to 46,395,345[47] - Treasury stock remained unchanged at a cost of $338,100 million[47] Other Comprehensive Income - The company recorded an impairment of equity investment of $5.8 million in Q1 2025, which negatively impacted net income[27] - The company reported a decrease in accumulated other comprehensive loss from $146,724 million to $141,902 million, indicating an improvement[47]

Core Points - Diodes Incorporated held its First Quarter 2025 Financial Results Conference Call on May 8, 2025, with key participants including the President, CFO, and Senior VP of Worldwide Sales and Marketing [1][3]. - The financial results announced are preliminary and subject to finalization and review by the independent registered public accounting firm, indicating that they are unaudited and may be revised before the filing of Form 10-Q for the quarter ended March 31, 2025 [4]. Company Overview - The conference call featured Leanne Sievers from Shelton Group, who introduced the company’s leadership team, including Gary Yu (President), Brett Whitmire (CFO), and Emily Yang (SVP, Worldwide Sales and Marketing) [2][3].

Group 1: Earnings Performance - Diodes reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $0.28 per share a year ago, representing an earnings surprise of 5.56% [1] - The company posted revenues of $332.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.47%, compared to year-ago revenues of $301.97 million [2] - Over the last four quarters, Diodes has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Diodes shares have declined approximately 36.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $354.9 million, and for the current fiscal year, it is $1.82 on revenues of $1.43 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Diodes belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Diodes is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $332.1 million, a 10% increase year-over-year compared to $302 million in Q1 2024, but a decrease of 2.1% sequentially from $339.3 million in Q4 2024 [12][19] - Gross profit for Q1 2025 was $104.7 million, representing 31.5% of revenue, down from 33% in the prior year quarter and 32.7% in the previous quarter [12] - GAAP net loss for Q1 2025 was $4.4 million, or a loss per share of $0.10, compared to net income of $14 million or $0.30 per diluted share in the prior year quarter [14] Business Line Data and Key Metrics Changes - Automotive and industrial markets accounted for 42% of Q1 product revenue, maintaining the same level as the previous quarter [8][20] - The computing market showed strong performance, particularly in AI-related applications, contributing significantly to revenue growth [8][26] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 13%, and North America 9% in Q1 2025, with improvements noted across all regions [19] - Channel inventory levels decreased, indicating a better alignment with actual demand [9][19] Company Strategy and Development Direction - The company announced a $100 million stock repurchase program, reflecting confidence in future growth prospects [10] - The hybrid manufacturing model allows the company to adapt to changing market conditions and customer needs, mitigating tariff impacts [10][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth, expecting Q2 2025 to show both year-over-year and sequential growth [9][30] - The company is closely monitoring the impact of tariffs and adjusting its strategies accordingly [29] Other Important Information - Cash flow from operations was $56.7 million for Q1 2025, with free cash flow of $40.8 million [16] - Total inventory days decreased to approximately 187 days, down from 193 days in the previous quarter [17] Q&A Session Summary Question: Demand Pull Forward and Stability - Management noted that while tariffs create uncertainty, they do not see significant demand pull forward but rather an improvement in channel inventory and backlog [35][38] Question: Manufacturing Footprint and Tariff Impact - The hybrid manufacturing model remains a priority, and the company will continue to port products from external to internal manufacturing without changing its strategy due to tariffs [40][41] Question: AI CapEx Trends - Demand for AI-related products is strong, particularly in data centers and edge computing, with ongoing design wins expected to drive future growth [43][45] Question: Gross Margin Catalysts - Management highlighted that while there are pressures on margins, improvements in internal loading and product mix are expected to drive margin expansion in the second half of the year [48][51] Question: Inventory Normalization - Current inventory levels are slightly above the target range of 11 to 14 weeks, but management is comfortable with the levels supporting anticipated growth [59][60]