Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2025

Rhea-AI Summary

Vicor Corporation (NASDAQ: VICR) reported Q3 results for the quarter ended September 30, 2025. Product revenues and licensing totaled $110.4M, up 18.5% YoY and down 21.7% sequentially (Q2 included a $45.0M patent litigation settlement). Gross margin was $63.5M (57.5% of revenue), versus $45.7M (49.1%) a year ago. Net income was $28.3M or $0.63 diluted. Cash from operations was $38.5M; cash and equivalents rose to $362.4M. Backlog totaled $152.8M. Management highlighted record licensing rate and foundry yield targets as growth drivers.

Positive

• Revenue +18.5% YoY to $110.4M in Q3 2025
• Gross margin 57.5% for Q3 2025, up from 49.1% YoY
• Net income $28.3M or $0.63 diluted in Q3 2025
• Cash $362.4M as of Sept 30, 2025 (7.0% sequential increase)
• Stock repurchases $15.6M in Q3 2025

Negative

• Revenue -21.7% sequential from Q2 2025 (Q2 included $45.0M settlement)

Insights

Financial results analyst

Vicor reports stronger year‑over‑year revenue, margin and net income; sequential figures reflect prior‑quarter litigation settlement.

Product and licensing revenues reached $110.4 million for the quarter, up 18.5% year‑over‑year, while gross margin rose to 57.5%, indicating improved unit profitability versus the prior year.

Sequential comparisons show declines driven by the $45.0 million patent litigation settlement recognized in Q2, which inflated Q2 revenue and margin; excluding that item, core operating trends appear steadier. Operating expenses increased slightly to $42.6 million, and cash from operations improved to $38.5 million.

Watch cash, backlog, and foundry absorption over the next 12–18 months: cash and equivalents sit at $362.4 million, backlog is $152.8 million, and management cites higher foundry utilization as a margin driver.

Corporate strategy and IP commercialization expert

Licensing and IP monetization are highlighted as strategic growth levers alongside foundry capacity expansion.

The CEO emphasizes record licensing momentum post‑litigation and a path to higher margins via foundry scale, claiming 98% final test yields and potential for > $1 billion annual capacity absorption; these are management assertions tied to IP enforcement and manufacturing scale.

Key dependencies and risks remain explicit: continued licensing wins, enforcement outcomes, and actual absorption of foundry capacity will determine whether higher margins materialize. Monitor licensing revenue cadence, any further litigation developments, and utilization metrics across the next 12 months.

ANDOVER, Mass., Oct. 21, 2025 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 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 and licensing income for the third quarter ended September 30, 2025 totaled $110.4 million, an 18.5% increase from $93.2 million for the corresponding period a year ago, and a 21.7% sequential decrease from $141.0 million in the second quarter of 2025, which included a $45.0 million patent litigation settlement.

Gross margin increased to $63.5 million for the third quarter of 2025, compared to $45.7 million for the corresponding period a year ago, and decreased sequentially from $92.1 million for the second quarter of 2025. Gross margin, as a percentage of revenue, increased to 57.5% for the third quarter of 2025, compared to 49.1% for the corresponding period a year ago, and decreased from 65.3% for the second quarter of 2025, which benefited from the $45.0 million patent litigation settlement. Operating expenses increased to $42.6 million for the third quarter of 2025, compared to $40.4 million for the corresponding period a year ago, and decreased sequentially from $46.7 million for the second quarter of 2025.

Net income for the third quarter was $28.3 million, or $0.63 per diluted share, compared to net income of $11.6 million or $0.26 per diluted share, for the corresponding period a year ago and net income of $41.2 million, or $0.91 per diluted share, for the second quarter of 2025.

Cash flow from operations totaled $38.5 million for the third quarter, compared to cash flow from operations of $22.6 million for the corresponding period a year ago, and cash flow from operations of $65.2 million in the second quarter of 2025. Capital expenditures for the third quarter totaled $4.0 million, compared to $8.4 million for the corresponding period a year ago and $6.2 million for the second quarter of 2025. Stock repurchases for the third quarter totaled $15.6 million, compared with $17.5 million for the second quarter of 2025. Cash and cash equivalents as of September 30, 2025 increased 7.0% sequentially to approximately $362.4 million compared to approximately $338.5 million as of June 30, 2025.

Backlog for the third quarter ended September 30, 2025 totaled $152.8 million, a 1.5% increase from $150.6 million for the corresponding period a year ago, and 1.5% sequential decrease from $155.2 million at the end of the second quarter of 2025.

Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Licensing revenue reached a record rate in Q3 following the litigation settlement for prior infringement recorded in Q2. As high density power systems pioneered by Vicor, including NBMs and VPD, are on the critical path of high performance computing, I expect Vicor’s IP licensing practice to grow substantially. OEMs and hyper-scalers need a license, or need to renew their license or expand its scope. Vicor is pursuing additional actions to curtail access to infringing computing systems sourced from infringing contract manufacturers relying on infringing power module makers.”

“At the core of Vicor’s IP licensing practice, Vicor’s high density power module business leverages its first ChiP foundry with its distinct growth opportunity. With foundry processes delivering 98% final test yields for mass produced modules, higher margins await greater absorption of foundry capacity, exceeding $1 Billion per year. The current density of 5th generation ChiPs and 2nd Generation VPD, surpassing handicapped multi-phase VRs, or IVRs and their inefficient power distribution networks, will bring about greater foundry capacity utilization.”

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, October 21, 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 October 21, 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)
	SEPT 30,				SEPT 30,				SEPT 30,			SEPT 30,
		2025				2024			2025				2024
Product revenue	$	88,698			$	79,796			$	257,597		$	232,071
Royalty revenue		21,725				13,370				42,840			30,821
Patent litigation settlement		-				-				45,000			-
Total product revenue, royalty revenue and patent litigation settlement		110,423				93,166				345,437			262,892
Cost of product revenues		46,910				47,422				145,431			129,254
Gross margin		63,513				45,744				200,006			133,638
Operating expenses:
Selling, general and administrative		22,747				23,398				75,836			72,715
Research and development		19,859				16,960				58,027			51,938
Litigation-contingency expense		-				-				-			19,500
Total operating expenses		42,606				40,358				133,863			144,153
Income (loss) from operations		20,907				5,386				66,143			(10,515	)
Other income (expense), net		2,407				3,713				9,198			9,244
Income (loss) before income taxes		23,314				9,099				75,341			(1,271	)
Less: (Benefit) provision for income taxes		(4,988	)			(2,455	)			3,278			2,832
Consolidated net income (loss)		28,302				11,554				72,063			(4,103	)
Less: Net income attributable to noncontrolling interest		10				2				40			14
Net income (loss) attributable to Vicor Corporation	$	28,292			$	11,552			$	72,023		$	(4,117	)
Net income (loss) per share attributable to Vicor Corporation:
Basic	$	0.63			$	0.26			$	1.60		$	(0.09	)
Diluted	$	0.63			$	0.26			$	1.59		$	(0.09	)
Shares outstanding:
Basic		44,734				45,117				44,986			44,829
Diluted		44,930				45,174				45,167			44,829

VICOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Thousands)
	SEPT 30,				DEC 31,
		2025				2024
	(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	362,382			$	277,273
Accounts receivable, net		53,252				52,948
Inventories		92,294				106,032
Other current assets		25,985				26,781
Total current assets		533,913				463,034
Long-term deferred tax assets		275				261
Long-term investment, net		2,406				2,641
Property, plant and equipment, net		152,526				152,705
Other assets		21,127				22,477
Total assets	$	710,247			$	641,118
Liabilities and Equity
Current liabilities:
Accounts payable	$	15,391			$	8,737
Accrued compensation and benefits		13,438				10,852
Accrued expenses		5,437				6,589
Accrued litigation		27,919				26,888
Sales allowances		2,569				1,667
Short-term lease liabilities		1,584				1,716
Income taxes payable		154				59
Short-term deferred revenue and customer prepayments		4,197				5,312
Total current liabilities		70,689				61,820
Long-term income taxes payable		3,430				3,387
Long-term lease liabilities		5,775				5,620
Total liabilities		79,894				70,827
Equity:
Vicor Corporation stockholders' equity:
Capital stock		429,542				408,187
Retained earnings		374,826				302,803
Accumulated other comprehensive loss		(1,561	)			(1,495	)
Treasury stock		(172,728	)			(139,424	)
Total Vicor Corporation stockholders' equity		630,079				570,071
Noncontrolling interest		274				220
Total equity		630,353				570,291
Total liabilities and equity	$	710,247			$	641,118

FAQ

What were Vicor (VICR) product and licensing revenues for Q3 2025?

Vicor reported $110.4M in product revenues and licensing for Q3 ended Sept 30, 2025.

How did Vicor's Q3 2025 net income and EPS compare year-over-year?

Net income was $28.3M and diluted EPS was $0.63, versus $11.6M and $0.26 in Q3 2024.

Why did Vicor's revenue fall sequentially in Q3 2025?

Revenue was 21.7% lower sequentially because Q2 2025 included a $45.0M patent litigation settlement.

What was Vicor's cash position and cash from operations in Q3 2025?

Cash and equivalents were $362.4M and cash flow from operations was $38.5M in Q3 2025.

How large was Vicor's backlog at the end of Q3 2025 and how did it change?

Backlog totaled $152.8M, up 1.5% year-over-year and down 1.5% sequentially.

What operational improvement did Vicor highlight for future margins?

Management cited foundry processes delivering 98% final test yields and higher foundry absorption to drive margins.