Vicor Corporation Reports Results for the Second Quarter Ended June 30, 2025

Rhea-AI Summary

Vicor Corporation (NASDAQ: VICR) reported strong Q2 2025 financial results with total revenue of $141.0 million, up 64.3% year-over-year. The company achieved a significant net income of $41.2 million ($0.91 per diluted share), compared to a net loss of $1.2 million in Q2 2024.

Key highlights include gross margin improvement to 65.3% from 49.8% year-over-year, strong cash flow from operations of $65.2 million, and cash and equivalents increasing to $338.5 million. The company's backlog stood at $155.2 million, showing a slight 0.9% year-over-year increase.

Management highlighted their success in ITC actions and development of high-performance ChiPs and 2nd gen VPD for AI applications, which are expected to drive future product revenues and fab utilization.

Positive

• Revenue increased 64.3% year-over-year to $141.0 million
• Net income improved to $41.2 million from a loss of $1.2 million year-over-year
• Gross margin significantly improved to 65.3% from 49.8% year-over-year
• Cash flow from operations grew to $65.2 million from $15.6 million year-over-year
• Cash and equivalents increased 14.3% sequentially to $338.5 million

Negative

• Operating expenses increased to $46.7 million from $42.6 million year-over-year
• Backlog decreased 9.6% sequentially from $171.7 million to $155.2 million

ANDOVER, Mass., July 22, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2025. These results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

Product revenues, licensing income and a patent litigation settlement for the second quarter ended June 30, 2025 totaled $141.0 million, a 64.3% increase from $85.9 million for the corresponding period a year ago, and a 50.1% sequential increase from $94.0 million in the first quarter of 2025.

Gross margin increased to $92.1 million for the second quarter of 2025, compared to $42.8 million for the corresponding period a year ago, and increased sequentially from $44.4 million for the first quarter of 2025. Gross margin, as a percentage of revenue, increased to 65.3% for the second quarter of 2025, compared to 49.8% for the corresponding period a year ago, and increased from 47.2% for the first quarter of 2025. Operating expenses increased to $46.7 million for the second quarter of 2025, compared to $42.6 million for the corresponding period a year ago, and increased sequentially from $44.5 million for the first quarter of 2025.

Net income for the second quarter was $41.2 million, or $0.91 per diluted share, compared to a net loss of ($1.2) million or ($0.03) per diluted share, for the corresponding period a year ago and net income of $2.5 million, or $0.06 per diluted share, for the first quarter of 2025.

Cash flow from operations totaled $65.2 million for the second quarter, compared to cash flow from operations of $15.6 million for the corresponding period a year ago, and cash flow from operations of $20.1 million in the first quarter of 2025. Capital expenditures for the second quarter totaled $6.2 million, compared to $6.1 million for the corresponding period a year ago and $4.6 million for the first quarter of 2025. Cash and cash equivalents as of June 30, 2025 increased 14.3% sequentially to approximately $338.5 million compared to approximately $296.1 million as of March 31, 2025.

Backlog for the second quarter ended June 30, 2025 totaled $155.2 million, a 0.9% increase from $153.8 million for the corresponding period a year ago, and 9.6% sequential decrease from $171.7 million at the end of the first quarter of 2025.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Having brought to fruition our first ITC action with cease-and-desist and exclusion orders, we are pursuing additional actions to curtail importation into the US of infringing power and computing systems sourced from contract manufacturers by unlicensed OEMs and Hyper-scalers.”

“As importantly, we are bringing to fruition high performance ChiPs and 2^nd gen VPD for AI applications, which should increase product revenues and utilization of our first ChiP fab. Total revenues and margins will thus reflect many patented innovations in the state of the art of high density power systems.”

For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.

Earnings Conference Call

Vicor will be holding its investor conference call today, Tuesday, July 22, 2025 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on July 22, 2025. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2024, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.

Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.
  
For further information contact:
        
James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com

VICOR CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Thousands except for per share amounts)
	QUARTER ENDED							YEAR ENDED
	(Unaudited)							(Unaudited)
	JUN 30,			JUN 30,				JUN 30,			JUN 30,
	2025			2024				2025			2024
Product revenue	$	85,693		$	76,583			$	168,899		$	152,275
Royalty revenue		10,353			9,271				21,115			17,451
Patent litigation settlement		45,000			-				45,000			-
Total product revenue, royalty revenue and patent litigation settlement		141,046			85,854				235,014			169,726
Cost of product revenues		48,918			43,083				98,521			81,832
Gross margin		92,128			42,771				136,493			87,894
Operating expenses:
Selling, general and administrative		27,952			23,318				53,089			49,317
Research and development		18,791			16,939				38,168			34,978
Litigation-contingency expense		-			2,300				-			19,500
Total operating expenses		46,743			42,557				91,257			103,795
Income (loss) from operations		45,385			214				45,236			(15,901	)
Other income (expense), net		3,657			2,807				6,791			5,531
Income (loss) before income taxes		49,042			3,021				52,027			(10,370	)
Less: Provision for income taxes		7,842			4,216				8,266			5,287
Consolidated net income (loss)		41,200			(1,195	)			43,761			(15,657	)
Less: Net income attributable to
noncontrolling interest		8			1				30			12
Net income (loss) attributable to
Vicor Corporation	$	41,192		($	1,196	)		$	43,731		($	15,669	)
Net income (loss) per share attributable
to Vicor Corporation:
Basic	$	0.92		$	(0.03	)		$	0.97		$	(0.35	)
Diluted	$	0.91		$	(0.03	)		$	0.97		$	(0.35	)
Shares outstanding:
Basic		45,007			44,855				45,112			44,686
Diluted		45,077			44,855				45,286			44,686

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	JUN 30,				DEC 31,
		2025				2024
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	338,541			$	277,273
Accounts receivable, net		55,085				52,948
Inventories		95,493				106,032
Other current assets		25,662				26,781
Total current assets		514,781				463,034
Long-term deferred tax assets		281				261
Long-term investment, net		2,584				2,641
Property, plant and equipment, net		154,285				152,705
Other assets		21,578				22,477
Total assets	$	693,509			$	641,118
Liabilities and Equity
Current liabilities:
Accounts payable	$	16,805			$	8,737
Accrued compensation and benefits		13,351				10,852
Accrued expenses		3,351				6,589
Accrued litigation		27,563				26,888
Sales allowances		2,639				1,667
Short-term lease liabilities		1,699				1,716
Income taxes payable		2,926				59
Short-term deferred revenue and customer prepayments		5,506				5,312
Total current liabilities		73,840				61,820
Long-term income taxes payable		4,809				3,387
Long-term lease liabilities		5,994				5,620
Total liabilities		84,643				70,827
Equity:
Vicor Corporation stockholders' equity:
Capital stock		420,385				408,187
Retained earnings		346,534				302,803
Accumulated other comprehensive loss		(1,291	)			(1,495	)
Treasury stock		(157,033	)			(139,424	)
Total Vicor Corporation stockholders' equity		608,595				570,071
Noncontrolling interest		271				220
Total equity		608,866				570,291
Total liabilities and equity	$	693,509			$	641,118

FAQ

What were Vicor Corporation's (VICR) Q2 2025 earnings results?

Vicor reported Q2 2025 revenue of $141.0 million (up 64.3% YoY) and net income of $41.2 million ($0.91 per diluted share), compared to a net loss of $1.2 million in Q2 2024.

How much cash does Vicor (VICR) have as of Q2 2025?

Vicor reported cash and cash equivalents of $338.5 million as of June 30, 2025, representing a 14.3% increase from $296.1 million in Q1 2025.

What was Vicor's (VICR) gross margin in Q2 2025?

Vicor's gross margin was 65.3% in Q2 2025, improving from 49.8% in Q2 2024 and 47.2% in Q1 2025.

What is Vicor's (VICR) current backlog status?

Vicor's backlog was $155.2 million in Q2 2025, showing a 0.9% increase year-over-year but a 9.6% decrease from Q1 2025's $171.7 million.

What are Vicor's (VICR) future growth initiatives?

Vicor is focusing on high-performance ChiPs and 2nd gen VPD for AI applications to increase product revenues and fab utilization, while pursuing ITC actions to protect against patent infringement.