Financial Performance - Revenue for Q3 2025 was $392.2 million, a 12% increase year-over-year from $350.1 million in Q3 2024 and a 7% increase sequentially from $366.2 million in Q2 2025[4] - GAAP net income for Q3 2025 was $14.3 million, or $0.31 per diluted share, compared to $13.7 million, or $0.30 per diluted share in Q3 2024 and $46.1 million, or $0.99 per diluted share in Q2 2025[9] - Non-GAAP adjusted net income was $17.2 million, or $0.37 per diluted share, down from $20.1 million, or $0.43 per diluted share in Q3 2024[10] - Net income attributable to common stockholders for Q3 2025 was $14.28 million, a 3.9% increase from $13.75 million in Q3 2024[25] - Net income for Q3 2025 was $14.28 million, up from $13.75 million in Q3 2024, representing a year-over-year increase of approximately 3.9%[46] Profitability Metrics - GAAP gross profit was $120.5 million, representing a gross profit margin of 30.7%, down from 33.7% in Q3 2024 and 31.5% in Q2 2025[4] - EBITDA for Q3 2025 was $46.6 million, or 11.9% of revenue, compared to $46.9 million, or 13.4% of revenue in Q3 2024[12] - Gross profit for Q3 2025 was $120.49 million, compared to $118.01 million in Q3 2024, reflecting a gross margin of 30.7%[25] - EBITDA for Q3 2025 was $46.56 million, compared to $46.94 million in Q3 2024, showing a slight decrease[46] Cash Flow and Liquidity - Cash flow from operations was $79.1 million, with free cash flow of $62.8 million, including $16.3 million in capital expenditures[13] - Free cash flow (FCF) for Q3 2025 was $62.8 million, indicating the cash generated after capital expenditures[43] - As of September 30, 2025, the company had approximately $392 million in cash and cash equivalents, with total debt of approximately $58 million[14] - Cash and cash equivalents increased to $376.59 million as of September 30, 2025, compared to $308.67 million at the end of 2024, reflecting a growth of 22%[48] Expenses and Investments - Research and development expenses increased to $41.86 million in Q3 2025, up from $33.69 million in Q3 2024, indicating a focus on innovation[25] - The company reported a total operating expense of $108.92 million in Q3 2025, up from $96.13 million in Q3 2024, driven by increased R&D and SG&A expenses[25] - The company excluded costs related to the retirement of two executives from its financial measures, which do not reflect ongoing operating expenses[41] Market Position and Future Outlook - The company expects Q4 2025 revenue to be approximately $380 million, representing a 12% year-over-year growth at the mid-point[16] - GAAP gross margin for Q4 2025 is expected to be 31.0%, with non-GAAP operating expenses projected at approximately 27.0% of revenue[16] - The company is gaining market share in the automotive sector with new programs launching early next year, alongside increased content in industrial applications[6] Balance Sheet Highlights - Total assets as of September 30, 2025, were $2.47 billion, an increase from $2.39 billion as of December 31, 2024[48] - Total stockholders' equity rose to $1.89 billion as of September 30, 2025, up from $1.80 billion at the end of 2024[48] - Current liabilities totaled $383.80 million as of September 30, 2025, slightly up from $375.60 million at the end of 2024[48] - The company reported a decrease in inventories to $470.91 million as of September 30, 2025, from $474.95 million at the end of 2024[48] Other Financial Metrics - Interest income for Q3 2025 was $8.49 million, significantly higher than $4.53 million in Q3 2024, indicating improved cash management[25] - The company recorded a foreign currency loss of $3.33 million in Q3 2025, compared to a loss of $4.42 million in Q3 2024, showing some improvement in currency exposure[25] - For the nine months ended September 30, 2025, net income was $55.94 million, a significant increase from $35.78 million in the same period of 2024[28][29]

Financial Performance - Third quarter revenue reached $392.2 million, a 7% sequential increase and a 12% year-over-year increase[23, 30] - GAAP gross profit was $120.5 million, with a GAAP gross margin of 30.7%[23, 31] - Non-GAAP earnings per share (EPS) was $0.37, a 15.6% sequential increase[23, 31] - Cash flow from operations was $79.1 million, representing 20.2% of revenue[23] Balance Sheet and Cash Flow - The company holds a strong balance sheet with $392 million in cash and cash equivalents, and $58 million in total debt[21, 23] - Free cash flow per share was $1.35 for the third quarter and $4.02 for the trailing twelve months[21] Future Outlook - Fourth quarter revenue is projected to be approximately $380 million, plus or minus 3%, representing a 12% year-over-year growth at the mid-point[3, 33] - GAAP gross margin for the fourth quarter is expected to be 31.0%, plus or minus 1%[3, 33] - Non-GAAP operating expenses are expected to be approximately 27.0% of revenue, plus or minus 1%[3, 33] Strategic Goals - The company's next strategic goal is to achieve $1 billion in gross profit[8, 35] - The company aims for profitability growth to drive 20%+ operating profit[35] - Automotive and industrial sectors accounted for approximately 41% and 59% of revenue in Q3 2025, respectively[13]

Core Insights - Semiconductor companies are expected to report strong performance in Q3 2025, driven by solid demand and a 15.8% quarter-over-quarter increase in global semiconductor sales to $208.4 billion [1][10] Industry Performance - The semiconductor industry is benefiting from robust sales growth across various products, including microprocessors, memory chips, and advanced driver assistance systems [3] - Demand from hyperscalers, cloud service providers, and AI companies is driving the rise in microchip sales, with significant capital expenditure directed towards acquiring more powerful chips [4] - Inventory normalization among industrial and automotive customers, particularly in the Chinese electric vehicle market, is contributing to sales growth [5] Company-Specific Insights - nLight is expected to report revenues of $62.49 million, an 11.3% increase year-over-year, with strong performance in the Aerospace and Defense market [8][9] - Applied Optoelectronics anticipates revenues of $119.91 million, an 84.1% increase year-over-year, driven by demand in Datacenter and CATV businesses [12][13] - Diodes expects revenues of $392.5 million, a 12.1% increase year-over-year, supported by demand in AI-related applications and the China EV market [15][16][17] - Nova's revenues are projected to increase, benefiting from rising demand in logic and advanced packaging segments, with a bottom line estimate of $2.12 per share, a 21.8% year-over-year increase [18][19][20] - Synaptics anticipates revenues of $289.4 million, a 12.3% increase year-over-year, with strong momentum in its Core IoT business and new product launches [22][23][24]

Core Insights - The article discusses the challenges of managing excess inventory in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials [1] - It promotes a service called "Chip Superman," which has successfully served 21,000 users and offers rapid transaction completion for inventory clearance [7] Inventory Management - The company faces significant costs related to excess inventory, with monthly storage and capital costs amounting to at least 5,000, leading to a potential loss of 30,000 after six months [1] - There is a list of surplus materials available for sale, including various semiconductor components from brands like 安世 and ST, with quantities ranging from 1,317 to 150,000 units [4] Purchase Requests - The article includes a section for requested materials, indicating a demand for specific components such as the Skyworks SE5004L-R and Toshiba TPH2R608NH, with quantities of 12,000 and 30,000 respectively [5] Warehouse and Inventory Details - Chip Superman operates a 1,600 square meter smart warehouse with over 1,000 different models and a total inventory of 50 million chips, valued at over 100 million [6] - The company ensures quality control for each item in its inventory through an independent laboratory located in Shenzhen [6] Service Promotion - The service emphasizes quick inventory turnover, claiming transactions can be completed in as little as half a day, which is a significant advantage for companies struggling with excess stock [7] - The article encourages users to explore the "Factory Surplus" mini-program for better pricing and inventory options [8]

Core Points - Diodes Incorporated will announce its third quarter 2025 financial results on November 6, 2025, at 3:05 p.m. Central Time [1][2] - A conference call to discuss these results will take place on the same day at 4:00 p.m. Central Time, featuring key executives including the CEO and CFO [2][3] - The conference call will be accessible via telephone and will also be broadcast live on the company's Investor Relations website [3] Company Overview - Diodes Incorporated is a publicly traded company on Nasdaq (DIOD) and is part of the Standard and Poor's SmallCap 600 and Russell 3000 Index [4] - The company specializes in high-quality semiconductor products for various markets, including automotive, industrial, computing, consumer electronics, and communications [4] - Diodes leverages an expanded product portfolio of analog and discrete power solutions, along with advanced packaging technology, to meet customer needs [4]

Company Overview - Diodes Incorporated (NASDAQ: DIOD) is a small but diversified semiconductor company with a significant revenue contribution from Asia, while Europe and the Americas provide strategic exposure to automotive OEMs and cloud & data center customers [1]. Revenue Sources - The majority of Diodes' revenue is derived from Asia, indicating a strong market presence in that region [1]. Strategic Exposure - The company has strategic exposure to automotive original equipment manufacturers (OEMs) and cloud & data center customers in Europe and the Americas, which may enhance its market positioning and growth potential [1].

Core Insights - Diodes Incorporated (NASDAQ: DIOD) is a small but diversified semiconductor company with a significant revenue contribution from Asia, while Europe and the Americas provide strategic exposure to automotive OEMs and cloud & data center customers [1]. Group 1 - The company has a stable revenue base primarily driven by its operations in Asia [1].

Core Insights - Diodes Incorporated (NASDAQ:DIOD) has launched a new high-voltage power switch named AP22950, which is designed with multiple protection features to enhance its functionality and safety [1][2]. Product Features - The AP22950 includes several protection features such as reverse-current protection (RCP), undervoltage lockout (UVLO), overvoltage lockout (OVP), and overtemperature protection (OTP), making it suitable for USB Power Delivery (PD) 3.1 Standard Power Range (SPR) ports [2]. - It features a built-in TVS diode on the VBUS pin, which, along with a 22µF input capacitor, protects the switch and downstream systems from surges up to 110 volts, complying with IEC61000-4-5 surge ratings [3]. - The switch can handle continuous load currents up to 5 amps and output power up to 100 watts, providing robust protection against USB-C VBUS surges [4]. Market Position - Diodes Incorporated supplies high-quality semiconductor products across various sectors, including automotive, industrial, computing, consumer electronics, and communications [4].

[Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Diodes Incorporated achieved better-than-expected revenue in Q2 FY2025, marking the third consecutive quarter of year-over-year growth, indicating continuous market and demand improvement - Company revenue exceeded expectations, achieving third consecutive quarter of year-over-year growth, indicating continuous market and demand improvement[3](index=3&type=chunk)[5](index=5&type=chunk) - Point-of-sale (POS) grew sequentially in all regions, with **double-digit growth in Asia**[5](index=5&type=chunk) - Channel and internal inventory days further reduced[5](index=5&type=chunk) - Strong growth in the consumer end market led to an unfavorable product mix, with high-margin automotive and industrial markets' percentage of total revenue remaining largely flat[6](index=6&type=chunk)[7](index=7&type=chunk) - Channel inventory consumption limited manufacturing facility load increase, causing underutilized capacity costs to hinder gross margin expansion[7](index=7&type=chunk) - Non-GAAP adjusted net income grew nearly **70% sequentially** through strict expense management[7](index=7&type=chunk) Key Financial Data for Q2 FY2025 | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Sequential Change (vs Q1 2025) | Year-over-Year Change (vs Q2 2024) | | :-------------------------------- | :--------------- | :--------------- | :-------------------------------- | :-------------------------------- | | **Revenue** | $366.2 | $319.8 | +10% (vs $332.1M) | +14% | | **GAAP Gross Profit** | $115.3 | $107.4 | +10.12% (vs $104.7M) | +7.36% | | **GAAP Gross Margin** | 31.5% | 33.6% | 0.0 ppt (vs 31.5%) | -2.1 ppt | | **GAAP Net Income** | $46.1 | $8.0 | Significant improvement (vs -$4.4M) | +476.25% | | **Non-GAAP Adjusted Net Income** | $15.0 | $15.4 | +70.45% (vs $8.8M) | -2.6% | | **GAAP Diluted EPS** | $0.99 | $0.17 | Significant improvement (vs -$0.10) | +482.35% | | **Non-GAAP Diluted EPS** | $0.32 | $0.33 | +68.42% (vs $0.19) | -3.03% | | **EBITDA** | $84.5 | $41.1 | +222.5% (vs $26.2M) | +105.6% | | **Cash Flow from Operations** | $41.5 | N/A | N/A | N/A | | **Free Cash Flow** | $21.1 | N/A | N/A | N/A | | **Net Cash Flow** | -$18.2 | N/A | N/A | N/A | [Business Outlook (Q3 2025 Guidance)](index=2&type=section&id=Business%20Outlook) Diodes anticipates continued strong growth in Q3 2025, with revenue projected to increase 7% sequentially and 12% year-over-year, driven by robust demand from AI-related computing applications, consumer electronics, and the Chinese EV market in Asia - Q3 2025 revenue is projected to reach approximately **$392 million (±3%)**, with the midpoint representing a **12% year-over-year increase**, marking the fourth consecutive quarter of YoY growth[8](index=8&type=chunk)[19](index=19&type=chunk) - Growth is primarily driven by strong demand from AI-related computing applications, consumer electronics, and the Chinese electric vehicle market in Asia[8](index=8&type=chunk) Q3 2025 Financial Guidance | Metric | Expectation | | :-------------------------------- | :-------------------------------- | | **Revenue** | Approximately $392 Million (±3%) | | **GAAP Gross Margin** | 31.6% (±1%) | | **Non-GAAP Operating Expenses as % of Revenue** | Approximately 26.0% (±1%) | | **Net Interest Income** | Approximately $1.0 Million | | **Income Tax Rate** | 18.0% (±3%) | | **Shares for Diluted EPS Calculation** | Approximately 46.5 Million Shares | [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive overview of Diodes Incorporated's financial performance, including GAAP and non-GAAP metrics, cash flow, and balance sheet highlights [Q2 2025 Financial Performance](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Diodes Incorporated reported revenue of $366.2 million in Q2 2025, with GAAP gross profit of $115.3 million and a gross margin of 31.5% Q2 2025 GAAP Financial Data | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Q1 2025 (Million USD) | | :------------------- | :--------------- | :--------------- | :--------------- | | **Revenue** | $366.2 | $319.8 | $332.1 | | **GAAP Gross Profit** | $115.3 | $107.4 | $104.7 | | **GAAP Gross Margin** | 31.5% | 33.6% | 31.5% | | **GAAP Operating Expenses** | $105.9 | $103.7 | $103.4 | | **GAAP Operating Expenses as % of Revenue** | 28.9% | 32.4% | 31.1% | | **GAAP Net Income** | $46.1 | $8.0 | -$4.4 | | **GAAP Diluted EPS** | $0.99 | $0.17 | -$0.10 | [Non-GAAP Adjusted Net Income and EPS](index=2&type=section&id=Non-GAAP%20Adjusted%20Net%20Income%20and%20EPS) Non-GAAP adjusted net income for Q2 2025 was $15.0 million, with diluted EPS of $0.32, excluding $23.4 million in non-cash unrealized investment mark-to-market gains, $12.7 million in gain on disposition of a subsidiary, and $4.8 million in acquisition-related intangible asset amortization Q2 2025 Non-GAAP Adjusted Net Income and EPS | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Q1 2025 (Million USD) | | :------------------- | :--------------- | :--------------- | :--------------- | | **Non-GAAP Adjusted Net Income** | $15.0 | $15.4 | $8.8 | | **Non-GAAP Diluted EPS** | $0.32 | $0.33 | $0.19 | - Non-GAAP adjustments excluded **$23.4 million** in non-cash unrealized investment mark-to-market gains, **$12.7 million** in gain on disposition of a subsidiary, and **$4.8 million** in acquisition-related intangible asset amortization[12](index=12&type=chunk) - Includes approximately **$4.6 million** (after tax) of non-cash share-based compensation expense, which would increase GAAP and non-GAAP diluted EPS by **$0.10** if excluded[14](index=14&type=chunk) [EBITDA](index=3&type=section&id=EBITDA) EBITDA (a non-GAAP metric) for Q2 2025 was $84.5 million, representing 23.1% of revenue, showing significant growth compared to both the prior year and previous quarter EBITDA Performance | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Q1 2025 (Million USD) | | :----- | :--------------- | :--------------- | :--------------- | | **EBITDA** | $84.5 | $41.1 | $26.2 | | **EBITDA as % of Revenue** | 23.1% | 12.8% | 7.9% | [Cash Flow and Balance Sheet Summary](index=3&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Summary) In Q2 2025, net cash flow from operating activities was $41.5 million, and free cash flow was $21.1 million Q2 2025 Cash Flow | Metric | Amount (Million USD) | | :------------------- | :--------------- | | **Net Cash Flow from Operations** | $41.5 | | **Free Cash Flow** | $21.1 | | **Net Cash Flow** | -$18.2 | | **Capital Expenditures** | $20.4 | - Net cash flow was **negative $18.2 million**, primarily including approximately **$49.2 million** in increased equity investments and **$10 million** for the stock repurchase program[16](index=16&type=chunk) Key Balance Sheet Data as of June 30, 2025 | Metric | Amount (Million USD) | | :------------------- | :--------------- | | **Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments** | Approximately $333 | | **Total Debt** | Approximately $54 | | **Working Capital** | Approximately $871 | [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides essential corporate details, including information on the conference call, an overview of Diodes Incorporated, a safe harbor statement, and contact information for investor relations [Conference Call](index=4&type=section&id=Conference%20Call) Diodes Incorporated held a conference call on August 7, 2025, to discuss its second-quarter financial results, providing dial-in information and webcast details for investors and analysts - The conference call was held on **August 7, 2025**, at 4:00 PM CT (5:00 PM ET)[20](index=20&type=chunk) - Dial-in information and a webcast link were provided, with a telephone replay service available until **August 14, 2025**[20](index=20&type=chunk)[21](index=21&type=chunk) [About Diodes Incorporated](index=4&type=section&id=About%20Diodes%20Incorporated) Diodes Incorporated is a provider of high-quality semiconductor products for automotive, industrial, computing, consumer, and communications markets, leveraging its extensive analog and discrete power solutions and advanced packaging technologies - Diodes Incorporated, an S&P SmallCap 600 and Russell 3000 Index company, supplies high-quality semiconductor products to leading global companies in the automotive, industrial, computing, consumer, and communications markets[22](index=22&type=chunk) - The company leverages its expanded analog and discrete power solutions product portfolio and leading-edge packaging technologies to meet customer needs[22](index=22&type=chunk) [Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995](index=4&type=section&id=Safe%20Harbor%20Statement%20Under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This statement warns investors that forward-looking statements in the report involve risks and uncertainties that could cause actual results to differ materially from expectations, including market, acquisition, operational, and economic factors - Forward-looking statements in the report involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements[23](index=23&type=chunk) - Potential risks and uncertainties include: failure to achieve expectations, failure to realize anticipated benefits of acquisitions or slower-than-expected integration, inability to maintain current growth strategies or performance, inability to increase automotive, industrial, or other revenue and market share, risks of domestic and international operations, cyclical downturns in the semiconductor industry, changes in end-market demand or product mix, unfavorable exchange rates, inaccurate future outlook or guidance, global economic weakness or unstable financial markets, trade restrictions, and vulnerabilities in information technology systems[24](index=24&type=chunk) [Company and Investor Relations Contact Information](index=5&type=section&id=Company%20Contact) Provides detailed contact information for Diodes Incorporated's company contact (Gurmeet Dhaliwal, Director of Investor Relations and Corporate Marketing) and investor relations contact (Leanne Sievers, President of Shelton Group) - Company Contact: Gurmeet Dhaliwal (Director, Investor Relations and Corporate Marketing), Phone: **408-232-9003**, Email: Gurmeet_Dhaliwal@diodes.com[27](index=27&type=chunk) - Investor Relations Contact: Leanne Sievers (President, Shelton Group), Phone: **949-224-3874**, Email: lsievers@sheltongroup.com[27](index=27&type=chunk) [Supplemental Financial Information](index=6&type=section&id=Supplemental%20Financial%20Information) This section provides detailed consolidated financial statements, including statements of operations, reconciliations of GAAP to non-GAAP metrics, and balance sheets, offering a comprehensive view of the company's financial position and performance [Consolidated Condensed Statements of Operations](index=6&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20OPERATIONS) This section presents Diodes Incorporated's consolidated condensed statements of operations, detailing GAAP financial data for the three and six months ended June 30, 2025 and 2024, including net sales, cost of sales, gross profit, operating expenses, and net income Consolidated Condensed Statements of Operations (Unaudited, in Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | **Net Sales** | $366,212 | $319,771 | $698,325 | $621,743 | | **Cost of Sales** | $250,888 | $212,385 | $478,307 | $414,773 | | **Gross Profit** | $115,324 | $107,386 | $220,018 | $206,970 | | **Operating Expenses** | $105,935 | $103,678 | $209,333 | $190,314 | | **Operating Income** | $9,389 | $3,708 | $10,685 | $16,656 | | **Other Income (Expense)** | $43,834 | $9,096 | $39,771 | $14,954 | | **Income Before Income Taxes and Noncontrolling Interests** | $53,223 | $12,804 | $50,456 | $31,610 | | **Income Tax Expense** | $9,063 | $2,643 | $9,083 | $6,180 | | **Net Income** | $44,160 | $10,161 | $41,373 | $25,430 | | **Net Income Attributable to Common Stockholders** | $46,098 | $8,000 | $41,661 | $22,038 | | **Diluted EPS** | $0.99 | $0.17 | $0.90 | $0.48 | [Reconciliation of Net Income to Adjusted Net Income](index=7&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20TO%20ADJUSTED%20NET%20INCOME) This section provides detailed reconciliations of GAAP net income to non-GAAP adjusted net income, outlining various adjustments made across different reporting periods to offer a clearer view of operational performance [For the three months ended June 30, 2025](index=7&type=section&id=For%20the%20three%20months%20ended%20June%2030%2C%202025) This reconciliation details adjustments for acquisition-related intangible asset amortization, acquisition-related costs, restructuring charges, gain on disposition of a subsidiary, unrealized investment gains, and board member retirement benefits for the three months ended June 30, 2025 Q2 2025 Reconciliation of Net Income to Adjusted Net Income (Unaudited, in Thousands of USD) | Metric | Amount | | :------------------------------------- | :--------------- | | **GAAP Net Income** | $46,098 | | **Diluted EPS (GAAP)** | $0.99 | | **Adjustments:** | | | Acquisition-related intangible asset amortization | $4,805 | | Acquisition-related costs | $61 | | Restructuring charges | $54 | | Gain on disposition of a subsidiary | $(12,693) | | Unrealized investment gains | $(23,383) | | Board member retirement benefits | $92 | | **Non-GAAP Adjusted Net Income** | $15,034 | | **Non-GAAP Diluted EPS** | $0.32 | [For the three months ended June 30, 2024](index=8&type=section&id=For%20the%20three%20months%20ended%20June%2030%2C%202024) This reconciliation for the three months ended June 30, 2024, primarily includes adjustments for acquisition-related intangible asset amortization, executive retirement benefits, restructuring charges, and unrealized investment gains Q2 2024 Reconciliation of Net Income to Adjusted Net Income (Unaudited, in Thousands of USD) | Metric | Amount | | :------------------------------------- | :--------------- | | **GAAP Net Income** | $8,000 | | **Diluted EPS (GAAP)** | $0.17 | | **Adjustments:** | | | Acquisition-related intangible asset amortization | $3,147 | | Executive retirement benefits | $509 | | Restructuring charges | $7,244 | | Unrealized investment gains | $(3,480) | | **Non-GAAP Adjusted Net Income** | $15,420 | | **Non-GAAP Diluted EPS** | $0.33 | [For the six months ended June 30, 2025](index=9&type=section&id=For%20the%20six%20months%20ended%20June%2030%2C%202025) This reconciliation for the six months ended June 30, 2025, includes adjustments for acquisition-related intangible asset amortization, acquisition-related costs, restructuring charges, impairment of equity investment, gain on disposition of a subsidiary, unrealized investment gains, and board member retirement benefits H1 2025 Reconciliation of Net Income to Adjusted Net Income (Unaudited, in Thousands of USD) | Metric | Amount | | :------------------------------------- | :--------------- | | **GAAP Net Income** | $41,661 | | **Diluted EPS (GAAP)** | $0.90 | | **Adjustments:** | | | Acquisition-related intangible asset amortization | $9,598 | | Acquisition-related costs | $196 | | Restructuring charges | $280 | | Impairment of equity investment | $4,849 | | Gain on disposition of a subsidiary | $(12,693) | | Unrealized investment gains | $(20,157) | | Board member retirement benefits | $92 | | **Non-GAAP Adjusted Net Income** | $23,826 | | **Non-GAAP Diluted EPS** | $0.51 | [For the six months ended June 30, 2024](index=10&type=section&id=For%20the%20six%20months%20ended%20June%2030%2C%202024) This reconciliation for the six months ended June 30, 2024, includes adjustments for acquisition-related intangible asset amortization, executive retirement benefits, restructuring charges, unrealized investment gains, and manufacturing facility insurance proceeds H1 2024 Reconciliation of Net Income to Adjusted Net Income (Unaudited, in Thousands of USD) | Metric | Amount | | :------------------------------------- | :--------------- | | **GAAP Net Income** | $22,038 | | **Diluted EPS (GAAP)** | $0.48 | | **Adjustments:** | | | Acquisition-related intangible asset amortization | $6,258 | | Executive retirement benefits | $509 | | Restructuring charges | $7,244 | | Unrealized investment gains | $(3,776) | | Manufacturing facility insurance proceeds | $(3,843) | | **Non-GAAP Adjusted Net Income** | $28,430 | | **Non-GAAP Diluted EPS** | $0.61 | [Explanation of Adjusted Net Income and Adjusted EPS](index=11&type=section&id=ADJUSTED%20NET%20INCOME%20AND%20ADJUSTED%20EARNINGS%20PER%20SHARE) This section explains the various adjustments made to calculate non-GAAP adjusted net income and EPS, including acquisition-related intangible asset amortization, board member retirement benefits, acquisition-related costs, manufacturing facility insurance proceeds, unrealized investment gains, restructuring charges, gain on disposition of a subsidiary, and impairment of equity investment, along with their rationales - The company excludes acquisition-related intangible asset amortization to ensure comparability of operating results between newly acquired and long-held businesses, and to eliminate the significant variability and unpredictability of this expense across companies[39](index=39&type=chunk) - Excludes board member retirement-related costs (cash payments and accelerated vesting of equity awards) as they do not represent ongoing operating expenses[40](index=40&type=chunk) - Excludes acquisition-related costs (consulting, legal, and other professional fees) to more accurately reflect costs without special events like acquisitions and to facilitate comparison with periods without such costs[41](index=41&type=chunk) - Excludes manufacturing facility insurance proceeds to more accurately reflect the company's ongoing operations[42](index=42&type=chunk) - Excludes unrealized mark-to-market adjustments for various equity-related investments, as they do not reflect ongoing operations[43](index=43&type=chunk) - Excludes restructuring charges to provide an enhanced view of the company's cost structure and to facilitate comparison with periods without such charges[44](index=44&type=chunk) - Excludes gain on disposition of a subsidiary, as it does not reflect ongoing operations[45](index=45&type=chunk) - Excludes impairment of equity investment, as it does not reflect ongoing operations[46](index=46&type=chunk) [Cash Flow Items](index=12&type=section&id=CASH%20FLOW%20ITEMS) This section defines Free Cash Flow (FCF) as a non-GAAP financial measure and provides FCF data for Q2 2025, highlighting its role in supporting new product development, acquisitions, and debt reduction - Free Cash Flow (FCF) is a non-GAAP financial measure calculated by subtracting capital expenditures from cash flow from operations[48](index=48&type=chunk) - Q2 2025 FCF was **$21.1 million**, representing the cash and cash equivalents the company can generate after cash expenditures required to maintain or expand property, plant, and equipment[48](index=48&type=chunk) [Consolidated Reconciliation of Net Income to EBITDA](index=12&type=section&id=CONSOLIDATED%20RECONCILIATION%20OF%20NET%20INCOME%20TO%20EBITDA) This section provides a reconciliation of GAAP net income to EBITDA (a non-GAAP metric) and explains EBITDA's utility as a tool for evaluating company profitability and operational performance, especially when comparing with other companies in the industry - EBITDA, representing earnings before interest, taxes, depreciation, and amortization, is considered useful by management for investors as it is frequently used by securities analysts, investors, and financial institutions to evaluate companies within the industry and provides further clarity on profitability[50](index=50&type=chunk) Reconciliation of Net Income to EBITDA (Unaudited, in Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | **Net Income (GAAP)** | $46,098 | $8,000 | $41,661 | $22,038 | | **Add:** | | | | | | Net interest expense | $(6,518) | $(3,385) | $(11,864) | $(7,467) | | Income tax expense | $9,063 | $2,643 | $9,083 | $6,180 | | Depreciation and amortization | $35,895 | $33,794 | $71,813 | $68,649 | | **EBITDA (Non-GAAP)** | $84,538 | $41,052 | $110,693 | $89,400 | [Consolidated Condensed Balance Sheets](index=13&type=section&id=CONSOLIDATED%20CONDENSED%20BALANCE%20SHEETS) This section presents Diodes Incorporated's consolidated condensed balance sheets, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 Consolidated Condensed Balance Sheets (Unaudited, in Thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :--------------- | :--------------- | | **Assets:** | | | | Cash and cash equivalents | $317,049 | $308,671 | | Short-term investments | $10,285 | $7,464 | | Accounts receivable, net | $313,492 | $325,517 | | Inventories | $482,701 | $474,948 | | **Total current assets** | $1,244,614 | $1,224,153 | | Property, plant and equipment, net | $680,042 | $684,259 | | Goodwill | $185,292 | $181,555 | | Intangible assets, net | $56,328 | $67,397 | | **Total assets** | $2,471,555 | $2,386,281 | | **Liabilities:** | | | | Line of credit | $27,562 | $31,429 | | Accounts payable | $148,269 | $133,765 | | **Total current liabilities** | $373,633 | $375,596 | | Long-term debt, net | $24,865 | $19,563 | | **Total liabilities** | $537,384 | $517,334 | | **Stockholders' Equity:** | | | | Common stock | $37,142 | $37,083 | | Retained earnings | $1,760,959 | $1,719,298 | | Treasury stock | $(348,104) | $(338,100) | | **Total stockholders' equity** | $1,877,103 | $1,795,301 | | **Noncontrolling interests** | $57,068 | $73,646 | | **Total equity** | $1,934,171 | $1,868,947 | | **Total liabilities and stockholders' equity** | $2,471,555 | $2,386,281 |

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]