10-Q · May 5, 2026
Navitas Semiconductor (NVTS) reported Q1 2026 revenues of $8.6 million, an 18% sequential increase, but a 38.3% decrease year-over-year. The company posted a diluted EPS of -$0.15, missing the consensus estimate of…
Earnings analysis · 10-Q
NVTS earnings analysis
Filed July 27, 2026 · Our reading of the company's report
The latest report
Navitas delivered Q2 revenue of $10.529 million, down 27% year over year, but improved gross margin to 38.7% from 16.1% as its sales mix shifted toward high-power products. Operating performance remained under pressure:…
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Navitas delivered Q2 revenue of $10.529 million, down 27% year over year, but improved gross margin to 38.7% from 16.1% as its sales mix shifted toward high-power products. Operating performance remained under pressure: operating loss increased to $27.190 million and six-month operating cash outflow reached $48.348 million. A $319.670 million cash increase to $558.272 million improves near-term liquidity, but it was funded largely by ATM equity issuance, while updated litigation disclosures add material execution risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Segment
- No reportable operating-segment revenue was disclosed; geographic revenue: United States $4.018 million (38%), China $3.637 million (35%), Asia excluding China $1.637 million (15%), and Europe $1.237 million (12%).
What stood out
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Gross-margin recovery despite lower revenue
Q2 revenue was $10.529 million. Although down $3.961 million (27%) from $14.490 million a year earlier, gross margin expanded to 38.7% from 16.1% as cost of revenue fell to 61% of sales from 84%, driven partly by a higher-power product mix.
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U.S. mix and revenue improved
U.S. end-customer revenue increased 26% year over year to $4.018 million, representing 38% of Q2 revenue versus 22% a year earlier. This partly offset the $5.347 million decline in China revenue to $3.637 million.
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Equity financing materially strengthened liquidity
Cash, cash equivalents, and restricted cash rose $319.670 million, or 134%, from $238.602 million at December 31, 2025 to $558.272 million at June 30, 2026. Financing activities supplied $370.061 million in the first six months.
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Restructuring actions nearing completion
Restructuring expense was $0.344 million in Q2, and management states the Navitas 2.0 plan was substantially complete as of June 30, 2026. Six-month restructuring expense declined 46% to $0.794 million from $1.469 million.
What to watch
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China/mobile demand contraction persists
Revenue declined 27% year over year to $10.529 million, led by weaker mobile and consumer demand in Asia/China. China revenue fell 60% to $3.637 million from $8.984 million, reducing its mix to 35% from 62%.
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Operating losses and cash burn intensified
Loss from operations widened 26% to $27.190 million from $21.653 million, producing a -258.2% operating margin versus -149.4% a year ago. Six-month operating cash outflow nearly doubled to $48.348 million from $24.765 million.
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New and ongoing IP litigation exposure
The updated IP risk factor identifies Wolfspeed's suit seeking monetary damages and injunctive relief and a new Renesas suit filed on approximately July 22, 2026. The filing states either adverse outcome could materially affect the business; Q2 revenue was $10.529 million.
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ATM funding creates meaningful dilution risk
Liquidity was raised through substantial equity issuance: Navitas sold approximately 6.5 million shares under the completed $125.0 million ATM and approximately 10.9 million shares for $255.8 million gross under a separate $500.0 million ATM program during the first six months.
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Earnout remeasurement drove a large net loss
Other expense increased to $200.957 million from $27.149 million, primarily because the earnout-liability fair-value loss rose to $203.1 million from $28.0 million. This non-cash volatility contributed to the reported $228.2 million Q2 net loss.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management says Navitas 2.0 actions were substantially complete at June 30, 2026, with remaining costs expected by the end of fiscal 2026, and expects continuing operating losses and negative operating cash flow as R&D, G&A, and capital expenditures increase.
Earlier filings 4
10-K · April 30, 2026
Navitas Semiconductor Corporation's 2025 10-K filing highlights ongoing challenges with declining revenues and significant operating losses, indicating an adjustment to their strategic positioning under new leadership.…
10-K · February 27, 2026
Navitas reported a material revenue contraction in 2025 while repositioning the business under a late-2025 strategic pivot called “Navitas 2.0” to prioritize high‑power markets (AI data centers, energy/grid, performance…
10-Q · November 3, 2025
Navitas reported a 3Q25 revenue decline to $10.112M (from $21.681M a year ago) with gross margin ~37.9% and a diluted loss per share of $(0.09). The company raised ~$100.0M via two ATM offerings boosting cash to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.