Power Integrations(US:POWI)2025-11-05 13:17Financial Performance - Revenues for Q3 2025 were $118.9 million, a 3% increase year-over-year and quarter-over-quarter[1] - GAAP net loss for Q3 2025 was $1.4 million, or $0.02 per diluted share, compared to net income of $0.25 per diluted share in Q3 2024[1][2] - Non-GAAP net income for Q3 2025 was $20.2 million, or $0.36 per diluted share, down from $0.40 per diluted share in Q3 2024[2] - GAAP gross profit for Q3 2025 was $64,851 million, with a gross margin of 54.5%[15] - Non-GAAP gross profit for Q3 2025 was $65,515 million, with a non-GAAP gross margin of 55.1%[15] - GAAP net loss for Q3 2025 was $1,356 million, while non-GAAP net income was $20,194 million[16] - Non-GAAP net income per share (diluted) for Q3 2025 was $0.36, compared to $0.40 in Q3 2024[16] - Net income for the three months ended September 30, 2025, was a loss of $1,356 million, compared to a profit of $1,369 million in the previous quarter[20] Cash Flow and Assets - Cash flow from operations for Q3 2025 was $29.9 million[1] - Cash provided by operating activities for the nine months ended September 30, 2025, was $85,312 million, an increase from $66,450 million in the same period of 2024[20] - Cash and cash equivalents decreased to $48,646 million from $50,972 million at the end of 2024[18] - Cash and cash equivalents at the end of the period on September 30, 2025, were $48,646 million, down from $66,935 million at the end of the previous quarter[20] - Total current assets as of September 30, 2025, were $456,063 million, down from $514,039 million at the end of 2024[18] - Total liabilities as of September 30, 2025, were $100,554 million, an increase from $79,054 million at the end of 2024[18] - Retained earnings as of September 30, 2025, were $673,218 million, down from $734,039 million at the end of 2024[18] Operational Metrics - The industrial business saw a 20% year-over-year growth in Q3 2025, while consumer appliance orders remained soft[3] - GAAP operating expenses for Q3 2025 increased to $68,804 million, compared to $51,589 million in Q3 2024[15] - Non-GAAP income from operations for Q3 2025 was $18,124 million, resulting in a non-GAAP operating margin of 15.2%[15] - Depreciation expense for the three months ended September 30, 2025, was $6,542 million, down from $7,002 million in the previous quarter[20] - Stock-based compensation expense increased to $21,205 million for the three months ended September 30, 2025, compared to $10,077 million in the previous quarter[20] Shareholder Returns - Power Integrations repurchased 919 thousand shares for $42.4 million during the quarter[4] - The company announced a quarterly dividend increase to $0.215 per share for each quarter of 2026[4] Future Projections - For Q4 2025, revenues are expected to be between $100 million and $105 million[8] - GAAP gross margin for Q4 2025 is projected to be between 53% and 53.5%[8] - GAAP operating expenses for Q4 2025 are expected to be approximately $56 million[8] Investment Activities - Net cash provided by investing activities for the three months ended September 30, 2025, was $3,543 million, compared to $32,618 million in the previous quarter[20] - Purchases of property and equipment for the three months ended September 30, 2025, totaled $5,694 million, slightly lower than $5,926 million in the previous quarter[20] - Proceeds from sales and maturities of marketable securities for the nine months ended September 30, 2025, were $116,658 million, up from $103,800 million in the same period of 2024[20] Credit and Allowance - The company reported a decrease in accounts receivable allowance for credit losses of $381 million for the nine months ended September 30, 2025, compared to a decrease of $459 million in the same period of 2024[20]