Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2025

Core Viewpoint Vicor Corporation reported strong financial results for the fourth quarter and the year ended December 31, 2025, highlighting significant growth in product revenue and net income, alongside a positive outlook for 2026 driven by rising demand in various sectors. Financial Performance - Product revenue for Q4 2025 was $92.7 million, a 15.3% increase from $80.4 million in Q4 2024 and a 4.5% increase from $88.7 million in Q3 2025 [2] - Royalty revenue for Q4 2025 was $14.5 million, a 7.8% decrease from $15.8 million in Q4 2024 and a 33.1% decrease from $21.7 million in Q3 2025 [3] - Gross margin for Q4 2025 was $59.4 million, up from $50.4 million in Q4 2024, but down from $63.5 million in Q3 2025; gross margin percentage was 55.4% compared to 52.4% in Q4 2024 [4] - Net income for Q4 2025 was $46.5 million, or $1.01 per diluted share, compared to $10.2 million or $0.23 per diluted share in Q4 2024 [5] - Cash flow from operations for Q4 2025 was $15.7 million, up from $10.1 million in Q4 2024, but down from $38.5 million in Q3 2025 [6] Annual Performance - Total product revenue for the year ended December 31, 2025, was $350.3 million, a 12.1% increase from $312.5 million in 2024 [8] - Royalty revenue for the year was $57.4 million, a 23.2% increase from $46.6 million in 2024 [8] - Total revenue, including a $45 million patent litigation settlement, increased 26.1% to $452.7 million for 2025 from $359.1 million in 2024 [8] - Net income for 2025 was $118.6 million, or $2.61 per diluted share, compared to $6.1 million or $0.14 per diluted share in 2024 [8] Operational Highlights - Backlog for Q4 2025 was $176.9 million, a 13.8% increase from $155.5 million in Q4 2024 and a 15.8% increase from $152.8 million in Q3 2025 [7] - The company plans to expand its manufacturing capacity with a second fab as demand rises in high-performance computing and other sectors [9][11] Market Outlook - The CEO indicated that rising demand in high-performance computing, automatic test equipment, and industrial applications is expected to lead to record product revenues in 2026 [9] - Vicor's IP licensing practice is anticipated to achieve record revenues in 2026 due to ongoing investigations into illegal importation of infringing systems [10]