Power Integrations(POWI) - 2025 Q4 - Annual Results

Financial Performance - Full-year revenue for 2025 increased by 6% to $443.5 million compared to the prior year[2] - Fourth-quarter net revenue was $103.2 million, down 13% from the prior quarter and down 2% from Q4 2024[1] - GAAP net income for the fourth quarter was $13.3 million, or $0.24 per diluted share, compared to a net loss of $0.02 per diluted share in the prior quarter[1] - Non-GAAP net income for the fourth quarter was $12.7 million, or $0.23 per diluted share, compared to $0.36 per diluted share in the prior quarter[3] - GAAP net income for Q4 2025 was $13,290 million, translating to a GAAP net income per share of $0.24[17] - Non-GAAP net income for Q4 2025 was $12,732 million, with a non-GAAP net income per share of $0.23[17] - Net income for the three months ended December 31, 2025, was $13.29 million, compared to a loss of $1.36 million in the previous quarter[22] Revenue Growth - The industrial category revenue grew by 15%, driven by record sales in high-power gate-driver business and strength in metering and automotive applications[5] - Total revenue from PowiGaN™ products grew more than 40% for the year[5] Cash Flow and Assets - Cash flow from operations for the full year was $111.5 million[2] - Cash flow from operations for the twelve months ended December 31, 2025, was $111,518 million, resulting in free cash flow of $87,122 million[17] - Operating cash flow for the twelve months ended December 31, 2025, was $111.52 million, an increase from $81.1 million in the previous year[22] - Cash and cash equivalents at the end of the period were $58.76 million, up from $50.97 million a year earlier[22] - Total current assets as of December 31, 2025, were $458,329 million, while total assets were $772,207 million[20] - Total stockholders' equity as of December 31, 2025, was $672,845 million[20] Expenses and Charges - GAAP gross profit for Q4 2025 was $54,609 million, with a gross margin of 52.9%[16] - Non-GAAP gross profit for Q4 2025 was $54,988 million, with a non-GAAP gross margin of 53.3%[16] - GAAP operating expenses for Q4 2025 were $45,835 million, while non-GAAP operating expenses were $44,966 million[16] - GAAP income from operations for Q4 2025 was $8,774 million, resulting in a GAAP operating margin of 8.5%[16] - Non-GAAP income from operations for Q4 2025 was $10,022 million, with a non-GAAP operating margin of 9.7%[16] - Stock-based compensation expense for the twelve months ended December 31, 2025, was $39.69 million, compared to $35.0 million in the previous year[22] - The company reported a depreciation expense of $27.2 million for the twelve months ended December 31, 2025[22] Future Outlook - The company announced a workforce reduction of 7%, expecting a restructuring charge of $3.5 million to $4.0 million in Q1 2026[4] - For Q1 2026, revenue is expected to be in the range of $104 million to $109 million, with GAAP gross margin between 52% and 53%[9] - A dividend of $0.215 per share will be paid on March 31, 2026, to stockholders of record as of February 27, 2026[9] Financing Activities - Net cash used in financing activities for the three months ended December 31, 2025, was $11.62 million, compared to $51.69 million in the previous quarter[22] - Purchases of property and equipment for the three months ended December 31, 2025, totaled $7.05 million, an increase from $5.69 million in the previous quarter[22] - Proceeds from sales and maturities of marketable securities for the twelve months ended December 31, 2025, were $124.94 million, compared to $106.6 million in the previous year[22] - The company had a loss on disposal of property and equipment of $108,000 for the twelve months ended December 31, 2025[22]