Diodes(US:DIOD)2025-11-06 22:05Financial 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]