Navitas Semiconductor (NASDAQ:NVTS) released first-quarter financial results and hosted an earnings call on Tuesday. Read the complete transcript below.
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Access the full call at https://edge.media-server.com/mmc/p/cf4zzfj3/
Summary
Navitas Semiconductor reported an 18% sequential revenue growth in Q1 2026, driven by a strategic shift towards high power markets like AI, data centers, and green infrastructure.
The company achieved a 30 basis point improvement in gross margin to 39.0%, with high power markets now representing a larger majority of total revenue.
Navitas Semiconductor anticipates continued sequential revenue growth and gradual gross margin expansion throughout 2026, supported by increased customer engagement in high power markets.
The company’s leadership team has been revamped with the appointment of a new CFO, Tanya Stevens, and other key positions to support the strategic transformation to Navitas 2.0.
Navitas Semiconductor highlighted its unique position in offering both GaN and high voltage SiC technologies, which are critical for evolving data center architectures and AI infrastructure.
Full Transcript
Tina (Operator)
Thank you for standing by. My name is Tina and I will be your conference operator today. At this time I would like to welcome everyone to the Navitas Semiconductor Q1 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer session. To ask a question, simply press Star one on your telephone keypad. To withdraw your question, press Star one again. It is now my pleasure to turn the call over to Leann Savers. You may begin.
Leann Savers
Good afternoon and welcome to Navitas Semiconductor’s First Quarter 2026 Financial Results Conference Call. Joining us today are Navitas President and CEO Chris Alexander and CFO Tonia Stevens. I’d like to remind our listeners that the results announced today are preliminary as they are subject to the Company finalizing its closing procedures and customary quarterly review by the Company’s independent registered public accounting firm. As such, these results are unaudited and subject to revision until the Company files its Form 10Q for its quarter ended March 31, 2026. In addition, management’s prepared remarks contain forward-looking forward-looking statements which are subject to risks and uncertainties and Management may make additional forward looking statements in response to your questions. Therefore, the Company claims the protection of the safe harbor for forward looking statements that is contained in the Private Securities Litigation Reform act of 1995. Actual results may differ from those discussed today and therefore we refer you to a more detailed discussion of the risks and uncertainties in the Company’s filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q. In addition, any projections as to the Company’s future performance represent Management’s estimates as of today, May 5, 2026. Navitas assumes no obligation to update these projections in the future as market conditions may or may not change except to the extent required by applicable law. Additionally, the Company’s press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the Company’s press release are definitions and reconciliations of GAAP to non GAAP items which provide additional details for those of you unable to listen to the entire call at this time. A recording will be available via webcast for 90 days in the Investor Relations section and Navitas’s website at www.navitasemi.com. and now it’s my pleasure to turn over the call to Navitas President and CEO Chris. Please go ahead.
Chris Alexander
Good afternoon and welcome to everyone on the phone and webcast. We appreciate you joining us on today’s call. I’m pleased to report that Q1 is expecting another quarter of solid progress and growing momentum on our transformation to Navitas 2.0 highlighted by the company’s return to top line sequential growth. For those of you that may be new or still coming up to speed on our story, I want to begin with a brief high level summary of our ongoing strategic transformation and Navitas Supernova vision. Over the past two quarters we have meaningfully reaccelerated our pivot away from the company’s historical mobile and low end consumer business to focus the entire organization on higher power markets where Navitas, GaN and High Voltage 6 products can deliver long term differentiation and value. Today we are singularly focused on four high growth, high value markets: AI, Data Center, Energy and Green Infrastructure, performance computing and industrial execution. Our goal forward objectives are to rapidly achieve scale in these high level markets in support of driving sustainable and profitable growth. Turning to an overview of the quarter, our Q1 financial results demonstrated solid quarter over quarter improvement and we observed growing momentum across our high power markets and expanded customer engagement. Highlighting the quarter we achieved the expected return to growth in Q1 with revenue increasing 18% sequentially. The renewed growth was driven by our high power markets which also represented a growing and larger majority of total revenue as we continue to reduce reliance on the company’s historical mobile and low end consumer business. Although far too early to declare victory, we effectively completed our realignment of the entire organization and Navitas is back to growth driven by a high power market. In fact, revenue from our high power business grew up 25% year over year with all four of our five high end markets increasing sequentially in Q1. The increased contribution from a high power market also drove the high level mix in our overall revenue mix resulting in improved Q1 gross margin. Consistent with our previously communicated expectations, we anticipate continued sequential top line growth and gradual gross margin expansion throughout the year. The ultimate success of our strategic transformation continues to be grounded in four market focus, technology leadership, operational efficiency and financial discipline. With respect to market focus, we continue to see new technology adoption accelerating across multiple end markets and customers, both of which are increasingly driving towards GaN and High Voltage SiC solutions. Without question, AI is the primary catalyst driving this momentum and leading to the broadening adoption of GaN solutions across all four of our target markets. Collectively these markets represent a serviceable addressable market of $3.5 billion by 2030. This ratio 50:50 between GaN and hybrid solutions will combine heavier exceeding 60%. We are definitely focused on the largest portion of the time, which I’d like to refer as the AI infrastructure comprised of unique but relative growth opportunity across the AI data center and the grid and energy infrastructure, each of which are fundamentally to enabling the AI revolution. Today the aggressive increase in compute power density is accelerating GaN and SiC adoption in their centers while the required mobilization of the energy green infrastructure to support these data centers is driving increased needs for high voltage. Navitas is uniquely positioned as one of the very few companies that can inflame deep long term experience in both GaN and high voltage technologies. We’re also agnostic and readily offer customers the ability to choose the optimal solution for the specific application. As a result of our proven capability in both SiC and GaN, we believe it allows us to address more of the power chain and estimate capture without consent persistence, briefly providing the trends and opportunities specific to each of our four targeted end markets starting with AI data centers and the technology. Here in both GaN and SiC Power delivery we support all major AI data center architectures with industry leading power density and efficiency. Again, adding both technology is a strategic differentiator and our ability to fully support a given customer’s chosen approach opens up more opportunities across more applications and greater potential lower content for analytics. I’ve conveyed at the recent Nvidia GTC event in March, AI data center is rapidly evolving towards memorable HVDC architectures leading to expanding content opportunity driven by the need for exponential power levels, increased density and top tier efficiency. Our immediate focus remains on expanding sampling of our newest GaN and SiC products, enabling qualifications, preparing for scale ramp and supporting high volume customers in their ongoing design and development efforts. Spanning from AC DC PSUs and DC DC PSUs and 800 volt HVDC bridge designs at higher power level and density in bridge infrastructure, we continue to advance active engagement across a series of new and existing customers with notable acceleration in design activity in the asset space. AI remained prominent underlying catalyst as all industry participants increasingly acknowledge the existing energy green is not capable of supporting the project in future rollout of AI development. This market where technology and scale are equally important, they present a large and long term secular growth opportunity for our current and future high voltage products. Navitas Genesis technology position us as a leading enabler of the great energy transportation modernization efforts providing customers with more reliable and higher density power through our recently introduced 2.3 KV and 3.3 KV modules and a roadmap to even higher voltage in performance computing. We are seeing sustained healthy adoption of GaN in higher power chargers solution for high end laptops and mobile workstations used for gaming and reality development. Our opportunity in this market continues to be driven by the dramatic increase in power requirements with CPU moving from 15 to 30 watts to 45 to 80 watts in ultra AI notebooks with the integration of GPU requiring up to 120175 watts. As a result, we expect to benefit from growing demand and momentum in performance computing market applications throughout 2026 and beyond. Finally, in industrial electrification we are continuing to see customer traction in both GaN and high voltage SiC in high performance applications such as DC DC converter and megawatt chargers, industrial pump motor control and heavy equipment specification. With respect to our second pillar technology leadership, we remain fully committed to ongoing innovation in GaN and High Voltage SiC driven by focused R&D assistance and demonstrated by expanding customer engagement and co-development project on GaN. We have continued to accelerate sampling of our Android and 650 volt devices to more OEMs and ODM customer pursuing the 800 watt HVD3 architect today of testing GaN and we believe most of this testing with magnetized devices. We are focused on enabling and supporting customers in this transition from silicon to GaN like we have always successfully done in our past. More recently we have seen some customers detail internal reality system level testing on our newest GaN devices. During the first quarter we continue to deepen our collaboration with ODL and hyperscales including direct demonstration of enabling new GaN beam architecture that feature high power efficiency and availability, all of which is leveraging Navitas’s more than 10 years of GaN experience and system experience. One of those highlights was our recent release of the 20kW 800v to 6 volt T DCDC platform using our latest 8×8 650V GaN Fan Fest aiming at 97.5% peak efficiency. This platform solution was formally unveiled in March at GDC and showcased at Nvidia ngx. As a reminder, we also previously released an industry leading 800 volt to 50 volt AI DCDC power brick fully GaN six years ago and on the board delivering best in class efficiency and density. These respective platforms are generating strong interest and prospective customer engagement due to their demonstrated ability to deliver the highest power density, efficiency and performance for next generation AI designer architecture. Today our team remains focused on execution including product delivery, qualification and qualification of rustic tightening the strategic growth for CAMS based head on board HVDC architecture in 2027 on high voltage. We continue to strengthen our technology with a focus on high power density and LVD which represent both the primary market drivers and our key differentiators in terms of silicon and packaging. Following the introduction earlier this year of our new industry leading Gen 5 Genesis technology based on our patented French Assisted Planner architecture, in March we released our 1.2 KV Gen5.6 product tailored in packages to address the higher power density, DCDC and ACDC needed in PSU acquisition. We have since delivered samples to OEM and OEL and they are currently being evaluated by most PSU vendors. Initial customer feedback has been excellent with up to 50% increase in power density at greater than 98% system efficiency and improved cooling. Turning to operational efficiency, the prior restructuring action initiated late last year which I discussed in detail last quarter had been substantially complete. As President mentioned today the entire organization and its resources are fully aligned to focus on the high power market. We triggered a substantial strategic repositioning from where the company was just nine months ago. Our team is moving fast and working very hard and their collective dedication is impressive. Recognizing the tremendous opportunities ahead, we plan to continue adding selective engineering skills and competencies to accelerate customer support over the following quarters. Also during the quarter we completed our leadership transformation with the appointment of our new CFO Sonia Stevens who formally joined the team in late March. We now have the full leadership team in place including new leaders in operations, engineering, execution, sales and marketing, business units and finance, all of whom joined the company in recent weeks and months from larger companies with strong track records in execution and scale. Importantly, this new athletic team and our employees are demonstrating strong buying and excitement for Navitas 2.0 and it’s a privilege to lead this transformation alongside each other. We also continue to make progress on our strategic technology and sponsoring partnership with Global Foundry on GaN. We are confident this will enable our planned 8 inch pivot in 2027 for GaN manufacturing in the United States. At the same time we are starting to build appropriate buffers with TSMC to ensure a smooth transition for all existing customers. Additionally, we have begun actively scaling our supply chain to support upcoming growth and demand and we leverage AI internally across design and most of the functions to allow us to scale even faster. Our fourth pillar is financial discipline which we are committed to as we execute our scale up plan and transformation to Navitas 2.0, a consistently growing and profitable high power company. This includes remaining diligent with respect to privatizing of investment in a high power program, maintaining leverage OPEX and focusing on high margin long term engagement that build multi international customer credit features. We made significant progress in Q1 with our previous restructuring effort and full arrows high power market now substantially complete. Going forward, we’ll continue to drive efficiency across the organization and are committed to disciplined investments in the business even as we target a much larger market opportunity. Our focus remains on top line growth and margin expansion driven by improving scale and mix of our high power business in support of achieving long term profitability. In summary, I am very pleased with the continuous progress and growing momentum we have achieved in such a short period of time. We are taking further steps toward positioning Navitas as a high power company. We anticipate continued sequential revenue growth in the second quarter and throughout the rest of 2026. Q1 was the first clear proof point and the growth in high power market demonstrate the momentum of our Navitas 2.0 …
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