Navitas Semiconductor (US:NVTS)2025-11-03 21:19Financial Performance - Net revenues for the three months ended September 30, 2025, were $10.1 million, a decrease of 53% compared to $21.7 million in the same period of 2024[141] - Revenue for the nine months ended September 30, 2025 was $38.6 million, a decrease of $26.7 million or 41% compared to $65.3 million in the same period of 2024[153] - The net loss for the three months ended September 30, 2025, was $19.2 million, slightly higher than the net loss of $18.7 million in the prior year[141] - Net loss for the nine months ended September 30, 2025 was $85.1 million, an increase of $40.4 million or 90% compared to a net loss of $44.7 million in 2024[162] Expenses - Cost of revenues for the same period was $6.3 million, down 52% from $13.1 million year-over-year[141] - Cost of revenues for the nine months ended September 30, 2025 was $27.2 million, down $12.0 million or 31% from $39.2 million in 2024[154] - Research and development expenses were $13.3 million, a reduction of 26% from $17.8 million in the prior year[141] - Research and development expenses for the nine months ended September 30, 2025 were $37.4 million, a decrease of $19.6 million or 34% compared to $57.0 million in 2024[155] - Selling, general and administrative expenses decreased by 65% to $5.2 million from $15.0 million in the previous year[141] - Selling, general and administrative expenses for the nine months ended September 30, 2025 were $24.7 million, down $21.8 million or 47% from $46.5 million in 2024[156] - The total operating expenses for the three months ended September 30, 2025, were $23.2 million, down 38% from $37.6 million in 2024[141] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025 were $150.6 million, an increase of $63.8 million or 74% compared to December 31, 2024[168] - Net cash used in operating activities for the nine months ended September 30, 2025 was $34.8 million, reflecting a net loss adjusted for non-cash items[169] - Net cash used in investing activities for the nine months ended September 30, 2025 was $1.4 million, a decrease from $8.7 million in the same period of 2024[171][172] - Net cash provided by financing activities for the nine months ended September 30, 2025 was $99.1 million, primarily from an ATM offering of $100.0 million[172] - The cost of ATM offerings for the nine months ended September 30, 2025 was $3.3 million, partially offsetting financing activities[172] - The company may seek additional liquidity to support its transition towards high-power markets, which may require additional capital[166] Market and Economic Conditions - Revenue from China accounted for 52% of total revenue for the three months ended September 30, 2025, compared to 54% in 2024[132] - Adverse changes in the global economic landscape have impacted demand for the company's products, affecting customer order behaviors[179] - The company faces exposure to market price fluctuations of commodity raw materials, notably gold, which can increase costs passed on by suppliers[180] Research and Development - The company spent approximately 131% of its revenue on research and development in the three months ended September 30, 2025[128] - Navitas has established mass production relationships with all top 10 global mobile OEMs for smartphones and is in development with all 10 for laptops[127] - The company expects to continue incurring net operating losses and negative cash flows from operations while increasing research and development expenses[165] Accounting Policies - There have been no material changes to critical accounting policies and estimates from the previous annual report[178] - Management's estimates and judgments in accounting policies significantly impact reported results[177] - The company’s management bases its estimates on historical experience and current economic conditions, which may differ from actual results[176] - The company recognized a $20.7 million loss from the change in fair value of earnout liabilities during the nine months ended September 30, 2025[161] Vendor Agreements - The company entered into a vendor agreement in December 2024 for equipment purchase, requiring quarterly installment payments[174] - As of September 30, 2025, the company had no off-balance sheet arrangements[175]