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…
Earnings analysis · 10-Q
VICR earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
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
- Earnings per share
- $1.04
- 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 stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.