VICR earnings analysis
What we found in VICR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Vicor delivered a strong Q2, with revenue of $143.352 million up 26.9% sequentially and 49.3% year over year, driven by 55.5% Advanced Products growth and a $30.426 million royalty contribution. Gross margin improved 2.8 percentage points sequentially to 58.0%, while diluted EPS rose to $1.04 from $0.44, although the quarter benefited from a $10.863 million tax benefit. Backlog increased to $379.736 million and cash reached $453.582 million, but free cash flow was constrained by $23.560 million of six-month capex and a $28.557 million litigation payment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially and year over year
- Q2 revenue reached $143.352 million, increasing $30.383 million (26.9%) from $112.969 million in Q1 and $47.306 million (49.3%) from $96.046 million a year earlier. Results exceeded the reported $138.440 million revenue consensus.
- Both product portfolios grew; royalties surged
- Advanced Products, including royalties, generated $94.161 million, up $33.595 million (55.5%) year over year; a new license agreement helped lift royalty revenue to $30.426 million from $10.353 million. Brick Products also grew $13.711 million (38.6%) to $49.191 million.
- Sequential gross-margin expansion
- Gross margin expanded sequentially to 58.0% from 55.2%, while gross profit rose $20.754 million (33.3%) to $83.120 million. The sequential improvement reflected higher volume and royalty revenue, partly offset by $704,000 of freight-in and tariff spending.
- EPS more than doubled sequentially
- Diluted EPS was $1.04, up from $0.44 in Q1 and $0.91 in Q2 2025; net income attributable to Vicor increased to $49.772 million from $20.664 million sequentially. EPS also beat the reported $0.65 consensus estimate.
- Backlog rose sharply to $379.736 million
- Product backlog increased $79.120 million to $379.736 million at June 30 from $300.616 million at March 31, supporting near-term shipment visibility. Inventory rose $9.659 million sequentially to $104.489 million in anticipation of fulfilling this backlog.
- Cash and working capital strengthened
- Liquidity remained substantial: cash and cash equivalents increased $50.777 million from year-end to $453.582 million, and working capital increased $97.709 million to $619.751 million. The current ratio improved to 13.2x from 9.0x.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Year-over-year margins face settlement comparison
- Year-over-year margin comparisons are distorted and weaker on the reported basis: gross margin was 58.0% versus 65.3% in Q2 2025 when the prior period included a $45.000 million patent-litigation settlement. Operating margin was 24.3% versus 47.3% on the same reported-revenue basis.
- Cash conversion reduced by litigation and capex
- Operating cash flow was $30.197 million for the first six months, down from $85.353 million a year earlier, after a $28.557 million SynQor judgment payment. Capital expenditures were $23.560 million, leaving six-month free cash flow of only $6.637 million.
- EPS benefited materially from tax items
- The $1.04 diluted EPS included a $10.863 million income-tax benefit, producing a negative 27.9% effective tax rate, primarily from excess share-based-compensation deductions. This tax benefit may not recur at the same level.
- Tariffs and capacity investment pressure costs
- Tariff and freight costs remain a headwind: Q2 freight-in and tariff spending increased $1.328 million year over year, despite only about $11,000 of duty-drawback recovery. The company also has $22.745 million of capital-expenditure commitments, principally manufacturing equipment.
- Revenue mix is increasingly royalty-driven
- Revenue concentration and licensing variability may rise as royalty revenue reached $30.426 million in Q2, compared with $10.353 million a year earlier. Management states its strategy is to serve relatively fewer, larger-volume customers and expand IP licensing.
- No new risk-factor disclosures; insider sale plan
- No material risk-factor changes were reported versus the 2025 Form 10-K. Separately, the CEO adopted a Rule 10b5-1 plan for sales of up to 1,000,000 shares at prices from $404 to $800 per share through December 31, 2028.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.04
- Gross margin
- 58.0%
- Operating margin
- 24.3%
- Segment
- Single reportable segment; Advanced Products including royalties revenue was $94.161 million, up $33.595 million (55.5%) year over year and 45.0% sequentially.
- Segment
- Brick Products revenue was $49.191 million, up $13.711 million (38.6%) year over year and 2.4% sequentially.
What they said about what is next.
The 10-Q contains no new quantitative revenue or EPS outlook. Management states that $453.582 million of cash and cash equivalents plus cash generated from operations should fund planned operating needs and capital-equipment purchases in the short and long term.
The filing reads better than the one before it.
What came before.
- 10-Q · April 30, 2026
- Vicor Corporation reported a strong first quarter of 2026 with revenue of $112.97 million, reflecting a significant increase of 20.3% year-over-year and a modest 3.7% rise quarter-over-quarter. The company delivered a…
- 10-K · March 2, 2026
- Vicor describes a strategic pivot toward higher‑growth, higher‑performance "Advanced Products" (61.0% of 2025 revenue) driven by its Factorized Power Architecture (FPA) and Power‑on‑Package offerings. Financially, 2025…
- 10-Q · August 1, 2025
- Vicor reported a materially stronger quarter driven by a $45.0M patent litigation settlement and higher product/royalty revenue, producing consolidated net income of $41.2M ($0.91 diluted) for Q2 2025 versus a net loss…
- 10-Q · July 31, 2024
- Vicor reported Q2 net revenues of $85,854,000 (down from $106,747,000 a year ago) and a GAAP diluted loss per share of $(0.03). Gross margin was $42,771,000 (49.8% of revenue) and income from operations was $214,000…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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