Part I — Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20-%20Financial%20Statements%20(Unaudited)) Unaudited statements for the period ended June 30, 2025, show significant financial improvement driven by a patent settlement and revenue growth [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $693.5 million, primarily from an increase in cash, while total liabilities and equity also rose compared to year-end 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$693,509** | **$641,118** | | Cash and cash equivalents | $338,541 | $277,273 | | Inventories | $95,493 | $106,032 | | **Total Liabilities** | **$84,643** | **$70,827** | | Total current liabilities | $73,840 | $61,820 | | **Total Equity** | **$608,866** | **$570,291** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of $41.2 million for Q2 2025, a significant turnaround driven by a $45 million patent settlement Q2 and H1 2025 vs 2024 Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total net revenues and patent litigation settlement | $141,046 | $85,854 | $235,014 | $169,726 | | Patent litigation settlement | $45,000 | $— | $45,000 | $— | | Gross Margin | $92,128 | $42,771 | $136,493 | $87,894 | | Income (loss) from operations | $45,385 | $214 | $45,236 | $(15,901) | | Net income (loss) attributable to Vicor | $41,192 | $(1,196) | $43,731 | $(15,669) | | Diluted EPS | $0.91 | $(0.03) | $0.97 | $(0.35) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations substantially increased to $85.4 million for the first six months of 2025, boosted by higher net income Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85,353 | $18,148 | | Net cash used for investing activities | $(10,754) | $(13,411) | | Net cash (used for) provided by financing activities | $(13,469) | $5,138 | | **Net increase in cash and cash equivalents** | **$61,268** | **$9,665** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a $45 million patent settlement, revenue growth in Asia Pacific, and an accrued $26 million liability for ongoing litigation - The company received a **$45 million payment** in May 2025 from the settlement of various lawsuits, arbitrations, and appeals related to certain intellectual property claims[66](index=66&type=chunk) Revenue by Product Line (Six Months Ended June 30, in thousands) | Product Line | 2025 | 2024 | | :--- | :--- | :--- | | Advanced Products | $120,423 | $89,648 | | Brick Products | $69,591 | $80,078 | | **Total** | **$190,014** | **$169,726** | - The company is appealing a judgment in the SynQor patent infringement lawsuit totaling approximately **$26 million**, which has been fully accrued as a litigation liability[59](index=59&type=chunk)[63](index=63&type=chunk) - The company operates as a **single operating and reportable segment**, with performance assessed on a consolidated basis by the CEO[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%20%E2%80%94%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2025 results to a $45 million patent litigation settlement and an 11.9% increase in net revenues [Overview](index=26&type=section&id=Overview) Vicor designs modular power components, focusing investment on its high-growth Advanced Products line for markets like AI and data centers - The company's strategy emphasizes investment in its **Advanced Products line** for high-growth markets, while maintaining its profitable Brick Products business[78](index=78&type=chunk) - Vicor has established a leadership position in the emerging market for powering **high-performance processors used for AI acceleration**[79](index=79&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2025 net revenues rose 11.9% year-over-year, with gross margin surging to 65.3% due to the patent settlement Q2 Revenue by Product Line (in thousands) | Product Line | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Advanced Products | $60,566 | $46,368 | $14,198 | 30.6% | | Brick Products | $35,480 | $39,486 | $(4,006) | (10.1)% | | **Total** | **$96,046** | **$85,854** | **$10,192** | **11.9%** | - Gross margin for Q2 2025 increased to **65.3%** of total net revenues and settlement, up from 49.8% in Q2 2024, primarily due to the **$45 million patent litigation settlement**[87](index=87&type=chunk) - SG&A expenses in Q2 2025 increased by **$4.6 million (19.9%)** YoY, mainly due to **$5.1 million in legal fees** associated with the patent litigation settlement[88](index=88&type=chunk) - For H1 2025, the company reported **net income of $43.7 million** ($0.97 per diluted share) compared to a **net loss of $(15.7) million** ($(0.35) per diluted share) for H1 2024[111](index=111&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong financial position with $338.5 million in cash and equivalents, sufficient for operational and capital needs - As of June 30, 2025, the company had **$338.5 million in cash and cash equivalents** and a current ratio of 7.0:1[112](index=112&type=chunk) - In H1 2025, primary cash uses included **$17.6 million for Common Stock repurchases** and **$10.8 million for property and equipment purchases**[114](index=114&type=chunk) - The company has approximately **$82.0 million remaining available for stock repurchases** under its New Repurchase Authorization as of June 30, 2025[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203%20%E2%80%94%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risks from interest rate changes and foreign currency fluctuations are identified but not considered significant at this time - The company's long-term investment portfolio consists of a single failed auction rate security with a par value of $3.0 million and an estimated fair value of approximately **$2.6 million** as of June 30, 2025[122](index=122&type=chunk) - Exposure to foreign currency exchange rate risk is primarily related to the operations of its **Japanese subsidiary (VJCL)**, whose functional currency is the Japanese Yen[123](index=123&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204%20%E2%80%94%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective, and a new ERP system implementation modified internal controls over financial reporting - Management concluded that **disclosure controls and procedures were effective** as of June 30, 2025[126](index=126&type=chunk) - A new enterprise resource planning (ERP) system was implemented in the first half of 2025, leading to **changes in internal controls over financial reporting**[128](index=128&type=chunk) Part II — Other Information [Legal Proceedings](index=43&type=section&id=Item%201%20%E2%80%94%20Legal%20Proceedings) This section directs readers to Note 11 for details on legal matters, including ongoing litigation and a recent $45 million settlement - For details on legal proceedings, the report refers to **Note 11** of the Condensed Consolidated Financial Statements[130](index=130&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A%20%E2%80%94%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been **no material changes in the risk factors** from those described in the company's 2024 Annual Report on Form 10-K[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202%20%E2%80%94%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased 412,219 shares of its common stock for approximately $17.7 million Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2025 | 72,400 | $42.86 | | May 1 - 31, 2025 | 258,536 | $42.24 | | June 1 - 30, 2025 | 81,283 | $44.31 | | **Total** | **412,219** | **$43.00** | [Other Information](index=43&type=section&id=Item%205%20%E2%80%94%20Other%20Information) No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the second quarter of 2025 - During Q2 2025, **no director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement**[133](index=133&type=chunk) [Exhibits](index=45&type=section&id=Item%206%20%E2%80%94%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required CEO and CFO certifications - The filing includes **certifications from the CEO and CFO** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[134](index=134&type=chunk)

Group 1 - Vicor Corporation's power-chip technology is positioned to be essential for future data centers, electric vehicles (EVs), and aerospace equipment [1] - The latest quarterly results were positively impacted by a one-time legal gain of $45 million, but the company is facing a declining order book [1] - The focus on artificial intelligence (AI) and the company's strategy is to produce objective, data-driven research primarily on small- to mid-cap companies, while occasionally analyzing large-cap companies for a broader market perspective [1]

Financial Data and Key Metrics Changes - Vicor recorded product revenues, licensing income, and a patent litigation settlement for Q2 of $141 million, up 50.1% sequentially from $94 million in Q1 2025 and up 64.3% from $85.9 million in Q2 2024 [8] - The gross profit margin for Q2 was 65.3%, an increase of 1810 basis points from the prior quarter, primarily due to the patent litigation settlement [8] - Net income for Q2 totaled $41.2 million, with GAAP diluted income per share at 91 cents based on a fully diluted share count of 45,077,000 shares [9] Business Line Data and Key Metrics Changes - Advanced products revenue increased 1.2% sequentially to $60.6 million, while Brick Products revenue increased 4% sequentially to $35.5 million [8] - Advanced Products' share of total revenue decreased to 63.1% from 63.7% in Q1 2025, with Brick Products' share increasing to 36.9% [8] Market Data and Key Metrics Changes - Shipments to stocking distributors increased 18.9% sequentially but decreased 14.3% year over year [8] - Exports as a percentage of total revenue decreased to approximately 51.9% from 60.8% in the prior quarter [8] Company Strategy and Development Direction - The company is focused on its top 100 customers and enabling high-performance modular power delivery networks, showcasing next-generation products with significant advances in power and current density [14][15] - The Gen five vertical power delivery solution is expected to engage with hyperscalers and AI processor companies, with a market SAM for these solutions expected to exceed $5 billion by 2027 [16][17] - The automotive market is seen as a high growth opportunity, with ongoing audits and collaborations with tier one OEMs [18] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 is a year of uncertainty and opportunity, with a wide range of possible outcomes for quarterly and annual results [11] - The company expects 2025 to be a record year for revenue, despite uncertainties around tariffs and licensing [58] Other Important Information - The company undertook share repurchases totaling approximately $17.5 million during the quarter, with around 200,000 shares repurchased [83] - The book-to-bill ratio came in below one due to order cancellations from customers in China and hesitancy around tariffs [13] Q&A Session Summary Question: Inquiry about the patent litigation settlement and its implications - Management confirmed that the approximate return from the ITC case includes the patent litigation settlement and extends through 2026 [21][23] Question: Book-to-bill ratio and future bookings trend - Management believes the hesitancy around tariffs is now behind them, and customers are adapting to the new expectations [26] Question: Cancellations in end markets - Cancellations were primarily from the industrial market in China, affecting both older and advanced products [30] Question: Future of royalty streams - Management is actively pursuing infringers and expects to see continued growth in licensing streams, although challenges remain [31][63] Question: Dynamics of the new license settlement - Management could not disclose specifics but indicated that there are no ongoing royalties from the recent settlement [36] Question: Automotive market engagement - The company is in the audit phase with several customers, indicating a long-term strategy to establish itself as a supplier in the automotive market [68] Question: Future product delivery timelines - Management confirmed that they are on target with the delivery timelines for the Gen five vertical power delivery solution [46] Question: Operating expenses outlook - Management indicated that operating expenses may fluctuate but are currently balanced with revenue [75]

Financial Data and Key Metrics Changes - Vicor recorded product revenues, licensing income, and a patent litigation settlement for Q2 of $141 million, up 50.1% sequentially from $94 million in Q1 2025 and up 64.3% from $85.9 million in Q2 2024 [7] - The gross profit margin for Q2 was 65.3%, an increase of 1810 basis points from the prior quarter, primarily due to the patent litigation settlement [7] - Net income for Q2 totaled $41.2 million, with GAAP diluted income per share at 91 cents based on a fully diluted share count of 45,077,000 shares [9] Business Line Data and Key Metrics Changes - Advanced products revenue increased 1.2% sequentially to $60.6 million, while Brick Products revenue increased 4% sequentially to $35.5 million [7] - Advanced Products' share of total revenue decreased to 63.1% from 63.7% in Q1 2025, with Brick Products' share increasing to 36.9% [7] Market Data and Key Metrics Changes - Shipments to stocking distributors increased 18.9% sequentially but decreased 14.3% year over year [7] - Exports as a percentage of total revenue decreased sequentially to approximately 51.9% from 60.8% in the prior quarter [7] Company Strategy and Development Direction - The company is focused on its top 100 customers and enabling high-performance modular power delivery networks, with next-generation products being sampled to lead customers across four target markets [14] - The strategy includes pursuing additional actions against companies infringing on its intellectual property while continuing to innovate and expand customer engagements [16][19] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 is a year of uncertainty and opportunity, with a wide range of possible outcomes for quarterly and annual results [11] - The company expects 2025 to be a record year for revenue, despite uncertainties related to tariffs and market conditions [56][58] Other Important Information - The company reported a cash and cash equivalents total of $338.5 million in Q2, an increase of $42.4 million sequentially [10] - The one-year backlog decreased by 9.6% from the prior quarter, closing at $155.2 million [11] Q&A Session Summary Question: Clarification on the patent litigation settlement and its financial implications - The settlement amount is part of the expected return through 2026, which includes royalties from OEM and hyperscaler licenses [22][24] Question: Book to bill ratio and future bookings trends - Management believes the hesitancy around tariffs is now behind them, and they expect improvements in bookings moving forward [27] Question: Details on order cancellations and affected markets - Cancellations were primarily from the industrial market in China, affecting both older and advanced products [31] Question: Future royalty streams and licensing growth - The company is actively pursuing infringers and expects to see growth in royalty streams as they enforce existing licenses [32] Question: Dynamics of the new licensing settlement - The settlement does not include ongoing royalties, and the company is focused on enforcing its intellectual property rights [39] Question: Progress on Gen five vertical power delivery solutions - The company is on target with the delivery timeline for Gen five solutions to lead customers, with significant progress reported [46][48] Question: Expectations for operating expenses going forward - Operating expenses are expected to remain balanced, with potential lumpiness due to ongoing legal actions [77]

Exhibit 99.1 Gross margin increased to $92.1 million for the second quarter of 2025, compared to $42.8 million for the corresponding period a year ago, and increased sequentially from $44.4 million for the first quarter of 2025. Gross margin, as a percentage of revenue, increased to 65.3% for the second quarter of 2025, compared to 49.8% for the corresponding period a year ago, and increased from 47.2% for the first quarter of 2025. Operating expenses increased to $46.7 million for the second quarter of 202 ...

Core Viewpoint - Vicor Corporation reported strong financial results for the second quarter of 2025, showcasing significant growth in revenues and net income compared to the previous year and the first quarter of 2025 [2][4]. Financial Performance - Total revenues for the second quarter reached $141.0 million, marking a 64.3% increase from $85.9 million in the same period last year and a 50.1% sequential increase from $94.0 million in the first quarter of 2025 [2]. - Gross margin increased to $92.1 million, up from $42.8 million year-over-year and from $44.4 million sequentially, with gross margin percentage rising to 65.3% from 49.8% year-over-year and 47.2% sequentially [3]. - Operating expenses rose to $46.7 million, compared to $42.6 million a year ago and $44.5 million in the first quarter of 2025 [3]. Profitability - The net income for the second quarter was $41.2 million, or $0.91 per diluted share, a significant turnaround from a net loss of $1.2 million or $0.03 per diluted share in the same period last year and an increase from $2.5 million or $0.06 per diluted share in the first quarter of 2025 [4]. Cash Flow and Capital Expenditures - Cash flow from operations totaled $65.2 million, compared to $15.6 million in the same period last year and $20.1 million in the first quarter of 2025 [5]. - Capital expenditures for the second quarter were $6.2 million, slightly up from $6.1 million year-over-year and from $4.6 million in the first quarter of 2025 [5]. Backlog and Future Outlook - The backlog for the second quarter was $155.2 million, a 0.9% increase from $153.8 million year-over-year but a 9.6% sequential decrease from $171.7 million at the end of the first quarter of 2025 [6]. - The CEO highlighted ongoing efforts to enhance product offerings, particularly in AI applications, which are expected to drive future revenue growth [7]. Balance Sheet Highlights - As of June 30, 2025, cash and cash equivalents increased by 14.3% sequentially to approximately $338.5 million from $296.1 million as of March 31, 2025 [5]. - Total assets as of June 30, 2025, were $693.5 million, up from $641.1 million at the end of 2024 [14][15]. Equity Position - Vicor Corporation's stockholders' equity totaled $608.6 million as of June 30, 2025, compared to $570.3 million at the end of 2024 [15].

Company Announcement - Vicor Corporation will hold its second quarter 2025 earnings conference call and webcast on July 22, 2025, at 5:00 p.m. Eastern Time [1] - The financial and operational results for the three and six months ended June 30, 2025, will be discussed during the call [1] Financial Results Release - Results for the second quarter will be released over GlobeNewswire at the close of the NASDAQ Market Session on July 22, 2025 [2] - A press release and summary of the company's financial statements will be available shortly thereafter on the Investor Relations page of Vicor's website [2] Conference Call Participation - Investors and analysts wishing to ask questions during the conference call must register with Notified, the service provider hosting the call [3] - Registration can be completed at any time prior to 5:00 p.m. on July 22, 2025 [3] Webcast Information - The conference call will be available in listen-only mode via a webcast link posted on the Investor Relations page of Vicor's website [4] - Participants are advised to access the website at least 15 minutes prior to the call to register and download any necessary software [4] Replay Availability - A webcast replay of the conference call will be available on the Investor Relations page of Vicor's website for those unable to participate live [5] Company Overview - Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based on patented technologies [6] - The company is headquartered in Andover, Massachusetts, and serves various markets including enterprise computing, industrial equipment, telecommunications, and aerospace [6]

Investment Strategy - A well-diversified portfolio should be constructed with a core foundation of a high-quality low-cost S&P 500 fund [1] - For those who can tolerate short-term risks, an over-weight position in the technology sector is recommended, as it is believed to be in the early stages of a long-term secular bull market [1] - Large oil and gas companies that provide strong dividend income and growth are suggested for dividend income, reflecting the author's background in the oil and gas industry [1] Portfolio Management Approach - A top-down capital allocation approach is recommended, tailored to each investor's personal situation, including factors such as age, retirement status, risk tolerance, income, net worth, and goals [1] - Suggested investment categories include S&P 500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash [1]

Core Viewpoint - Vicor's shares plummeted over 23% following a disappointing quarterly earnings report, despite a generally positive day for the stock market overall [1] Financial Performance - Vicor reported first-quarter revenue of nearly $94 million, which is a 12% increase compared to the same period in 2024, but fell short of the average analyst estimate of over $97 million [2] - The company's GAAP net income was $2.5 million ($0.06 per share), a significant improvement from a $14.5 million loss in the same quarter last year, yet it missed the consensus estimate of $0.29 per share profit [3] Operational Challenges - CEO Patrizio Vinciarelli noted that revenue and gross margins declined sequentially, attributed to reduced income from a licensee transitioning to new unlicensed products [4] - The ongoing trade war raises concerns for device makers like Vicor, who may face increased component costs, adding to investor anxiety [4]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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 March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________________ Commission File Number 0-18277 VICOR CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-2742817 (Stat ...