Industrial growth lifts Power Integrations (NASDAQ: POWI) Q1 2026 results

Rhea-AI Filing Summary

Power Integrations reported first-quarter 2026 revenue of $108.3 million, up five percent from the prior quarter and three percent year-over-year. GAAP net income was $3.3 million, or $0.06 per diluted share, down from $0.24 in the prior quarter and $0.15 a year earlier.

Non-GAAP net income was $13.9 million, or $0.25 per diluted share, versus $0.23 in the prior quarter and $0.31 in the first quarter of 2025. Cash flow from operations was $20.0 million and free cash flow was $18.0 million. Industrial revenue grew 23 percent year-over-year and represented 41 percent of total revenue.

The company paid a dividend of $0.215 per share on March 31, 2026, and declared another $0.215 per share dividend payable June 30, 2026. Power Integrations also appointed industry veteran Mike Balow as Senior Vice President, Worldwide Sales, effective May 4, 2026.

Insights

Semiconductor earnings analyst

Modest Q1 growth with margin pressure, strong industrial mix, and disciplined cash generation.

Power Integrations posted Q1 2026 revenue of $108.3 million, up 5% sequentially and 3% year-over-year. Industrial revenue rose 23% year-over-year to 41 percent of sales, offsetting softer communications and computer demand, while consumer remained the largest segment at 38 percent.

Profitability was mixed. GAAP net income fell to $3.3 million with a GAAP operating margin of 1.3%, pressured by $6.2 million of restructuring and related charges. On a non-GAAP basis, operating margin improved sequentially to 11.7%, though still below 14.7% a year earlier.

Cash generation stayed healthy, with operating cash flow of $20.0 million and free cash flow of $18.0 million while funding a quarterly dividend of $0.215 per share. Q2 2026 guidance calls for GAAP gross margin of 53.5%–54.5% and non-GAAP operating margin of 13.5%–15.5%, suggesting some margin recovery as restructuring effects normalize.

8-K Event Classification

3 items: 2.02, 5.02, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 revenue: $108.3 million Q1 2026 GAAP net income: $3.3 million Q1 2026 non-GAAP net income: $13.9 million +5 more

8 metrics

Q1 2026 revenue $108.3 million Net revenue for the quarter ended March 31, 2026

Q1 2026 GAAP net income $3.3 million Net income attributable to common stockholders in Q1 2026

Q1 2026 non-GAAP net income $13.9 million Non-GAAP net income for Q1 2026

Q1 2026 operating cash flow $20.0 million Cash flow from operations in Q1 2026

Quarterly dividend per share $0.215 per share Dividends paid March 31, 2026 and payable June 30, 2026

Industrial revenue mix 41% Industrial share of total revenue in Q1 2026

Q2 2026 GAAP gross margin guidance 53.5%–54.5% Forecast GAAP gross margin range for Q2 2026

Q2 2026 non-GAAP operating margin guidance 13.5%–15.5% Forecast non-GAAP operating margin for Q2 2026

Key Terms

non-GAAP, restructuring and related charges, PowiGaN, free cash flow, +2 more

6 terms

non-GAAP financial

"In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

restructuring and related charges financial

"Restructuring and related charges | 6,204 | — | — Total operating expenses"

Restructuring and related charges are one-time costs a company records when it reorganizes operations—such as laying off staff, closing facilities, ending leases, or writing down assets—to become more efficient. Investors watch these charges because they reduce reported profit now but can signal future savings or ongoing risks; like paying for a house remodel, the short-term hit may lead to lower long-term expenses, so distinguishing one-off costs from recurring problems is key.

PowiGaN technical

"innovative solutions like our PowiGaN™ technology but also—by increasing pressure on the power grid"

free cash flow financial

"Free cash flow | $ | 18,047 |"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

effective tax rate financial

"GAAP effective tax rate | 15.8% | 19.2% | 11.1%"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

workforce reductions financial

"a restructuring charge associated with workforce reductions implemented in the first quarter"

Earnings Snapshot

Revenue: $108.3 million · Guidance included

Q1 2026

Revenue $108.3 million +3% year-over-year

GAAP diluted EPS $0.06 down from $0.15 year-over-year

Non-GAAP diluted EPS $0.25 down from $0.31 year-over-year

Operating cash flow $20.0 million Q1 2026 cash flow from operations

Guidance

For Q2 2026, the company forecast GAAP gross margin of 53.5%–54.5% and non-GAAP operating margin of 13.5%–15.5%.

Understanding 8-K Material Events →

0000833640false00008336402026-05-042026-05-04

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

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Date of Report (Date of earliest event reported): May 4, 2026

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Power Integrations, Inc.

(Exact name of registrant as specified in its charter)

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Delaware	​	000-23441	​	94-3065014
(State or other jurisdiction	​	(Commission	​	(IRS Employer
of incorporation)	​	File Number)	​	Identification No.)

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5245 Hellyer Avenue

San Jose, California 95138-1002

(Address of principal executive offices, including zip code)

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Registrant's telephone number, including area code (408) 414-9200

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Securities registered pursuant to Section 12(b) of the Act:

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Title of each class	​	Trading Symbol(s)	​	Name of each exchange on which registered
Common Stock, $0.001 Par Value	​	POWI	​	The Nasdaq Global Select Market

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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Emerging growth company	☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	☐

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Item 2.02. Results of Operations and Financial Condition.

On May 7, 2026 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

The Board of Directors of Power Integrations, Inc. (the “Company”) appointed Mike Balow as the Company’s Senior Vice President, Worldwide Sales, effective upon Mr. Balow’s commencement of employment with the Company on May 4, 2026.

Mike Balow brings more than three decades of semiconductor sales and business development experience. From 2021 to 2025 he served as executive vice president of sales for onsemi, a supplier of sensing and power-management semiconductors. Previously, he served as executive vice president of sales at Infineon Technologies after holding a similar position at Cypress Semiconductor from 2015 until its acquisition by Infineon in 2020. His prior industry experience includes roles at Freescale Semiconductor and Integrated Device Technology (IDT). Mr. Balow holds a Bachelor of Science degree in applied mathematics from the University of Wisconsin-Stout.

There are no arrangements or understandings between Mr. Balow and any other persons in connection with Mr. Balow’s appointment as the Senior Vice President, Worldwide Sales. Mr. Balow does not have any family relationships with any directors or officers of the Company. Mr. Balow is not a party to any transaction, or series of transactions, required to be disclosed pursuant to Item 404(a) of Regulation S-K.  

Employment Agreement and Executive Officer Benefits Agreement with Mr. Balow

In connection with the appointment of Mr. Balow as the Company’s Senior Vice President, Worldwide Sales, on April 22, 2026, Mr. Balow entered into each of an employment agreement (the “Employment Agreement”) and an executive officer benefits agreement (the “EOBA,” and together with the Employment Agreement, the “Balow Employment Agreements”), in each case, effective upon Mr. Balow’s commencement of employment with the Company. The Balow Employment Agreements provide Mr. Balow with the following compensation and other benefits:

Employment Agreement

● Base Salary – Mr. Balow will have an annual base salary of $450,000, less applicable withholdings, which shall be payable in accordance with the Company’s normal payroll practices.

● Equity Awards – Mr. Balow will be eligible to receive the following equity awards, each of which will be subject to the Company’s Amended and Restated 2016 Incentive Award Plan or the Amended and Restated 2025 Inducement Award Plan and the applicable grant agreement:

o an annual performance incentive award for 2026 in the form of performance stock units (“PSUs”) in a value pro-rated from a full year target value of $360,000 for the portion of the 2026 calendar year in which he is employed by the Company (“Target PSUs”). The PSUs will be subject to the terms and conditions of the Company’s 2026 PSU program providing for PSU vesting based on achievement of performance conditions for the 2026 calendar year, and the actual number of PSUs that will vest can vary from 0 to 200% of the Target PSUs.

o a restricted stock units (“RSUs”) award in the value of $2,400,000. The RSUs will vest over four years from the date that Mr. Balow commences employment with the Company, with 25% of the RSUs vesting on the first anniversary of Mr. Balow’s start date, and with an additional 25% of the RSUs vesting on each subsequent anniversary of Mr. Balow’s start date, until the RSUs are fully vested after four years, subject in each case to Mr. Balow’s continued full-time service through the applicable vesting date.

o a long-term restricted performance stock units (“PRSUs”) award in the value of $1,600,000 (“Target PRSUs”). The PRSUs will be subject to the terms and conditions of the Company’s 2026 PRSU program providing for

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PRSU vesting based on achievement of performance conditions over the applicable performance period, and the actual number of PRSUs that will vest can vary from 0 to 200% of the Target PRSUs.

o The number of shares that will be granted under each of the equity awards described above, at target performance level in the case of PSUs and PRSUs, will be calculated by dividing the dollar grant value by the closing stock price on the date of grant, which will be the 15th of the month following his start date.

Executive Officer Benefits Agreement

● Mr. Balow will be entitled to receive certain benefits under the terms of the EOBA, which will take effect upon his commencement of employment with the Company. Outside of the change of control period (as defined below), in the event Mr. Balow is terminated without “cause” or resigns for “good reason” his severance benefits include (1) a cash payment equal to one year of his annual base salary then in effect, (2) a cash payment equal to the prorated portion of his then outstanding annual performance award of PSUs measured as of the date of termination at the lesser of (a) the applicable target (i.e., 100%) performance level in effect as of the date of the termination and (b) the actual performance level in effect as of the date of the termination, and (3) a cash payment equal to 100% of the value of his then outstanding annual performance award of PSUs at the applicable target (i.e., 100%) performance level in effect as of the date of termination. Mr. Balow would also be entitled to the Company’s payment of COBRA premiums for up to 12 months following such cessation of employment subject to certain limitations. In the event Mr. Balow is terminated without “cause” or resigns for “good reason” within three months prior to or 12 months following a change of control (the “change of control period”), his severance benefits include (1) a cash payment equal to one year of his annual base salary then in effect, (2) a cash payment equal to the prorated portion of his then outstanding annual performance award of PSUs measured as of the date of termination at the applicable target (i.e., 100%) performance level in effect as of the date of termination, (3) a cash payment equal to 100% of the value of his then outstanding annual performance award of PSUs at the applicable target (i.e., 100%) performance level in effect as of the date of termination, (4) fully accelerated vesting for then outstanding time-based awards (including RSUs), and (5) accelerated vesting of a pro-rated portion of any then outstanding PRSUs at the applicable target (i.e., 100%) performance level (pro-rated based upon the number of days of his employment during the applicable performance period for such awards). Mr. Balow would also be entitled to the Company’s payment of COBRA premiums for up to 12 months following such cessation of employment subject to certain limitations. In addition, Mr. Balow will be entitled to retirement benefits once he has served the Company for 10 years subject to certain conditions on a termination that does not trigger the severance benefits described above. These retirement benefits include a cash payment equal to the prorated portion of his then outstanding annual performance award of PSUs measured as of the date of termination at the applicable target (i.e., 100%) performance level in effect as of the date of termination. In the event of Mr. Balow’s death or permanent disability during employment, Mr. Balow or his legal representative will receive (1) a cash payment equal to the prorated portion of his then outstanding annual performance award of PSUs measured as of the date of termination at the applicable target (i.e., 100%) performance level in effect as of the date of termination, (2) fully accelerated vesting for then outstanding time-based award (including RSUs), and (3) continued vesting of outstanding PRSUs, subject to satisfaction of the specified vesting criteria other than continued employment. The term “change of control” is defined as an acquisition by any person of beneficial ownership of 50% or more of the Company’s outstanding shares of common stock or the combined voting power of the Company’s then-outstanding securities, certain mergers or other business combinations involving the Company, the sale of more than 50% of the Company’s consolidated assets, the dissolution or liquidation of the Company, or a change in the majority of the incumbent members of the Board within a two-year period (except changes in the Board composition approved by a majority of incumbent directors). “Cause” generally includes, among other acts, a material act of theft, dishonesty, fraud, or falsification of records; improper disclosure of confidential information; a material violation of material written Company policy; an action intentionally causing or expected to cause harm to the reputation and standing of the Company; gross negligence or willful misconduct in the performance of assigned duties; or conviction of a crime involving moral turpitude or a felony. “Good reason” generally includes any of the following without Mr. Balow’s written consent: a material decrease in base salary or target opportunity for Mr. Balow’s annual performance award (other than a general decrease that affects a majority of the Company’s then senior executives in substantially the same proportions), a demotion or material reduction in position or responsibilities or duties, relocation of Mr. Balow’s work place to a location increasing his commute time by more than 30 minutes as compared to his

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commute time to his current work place or a material adverse change in working conditions or established working hours which persist for a period of six months or any material breach of the EOBA by the Company. All payments and distributions described in this paragraph are subject to reduction for applicable withholding. In the event that any payments and benefits to be paid or provided to Mr. Balow would constitute “parachute payments” under Section 280G of the Internal Revenue Code of 1986, as amended, they will be subject to reduction to the extent that Mr. Balow would be better off on an after-tax basis after such reduction.

The above descriptions of the Balow Employment Agreements do not purport to be complete and are qualified in their entirety by reference to, and should be read in conjunction with, the full text of each of the Balow Employment Agreements to be filed as exhibits to the Company’s quarterly report on Form 10-Q for the quarter ended June 30, 2026.

Item 9.01. Financial Statements and Exhibits.

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​	Exhibit 99.1	Press release dated May 7, 2026
​	Exhibit 104	Cover Page Interactive Data File (Formatted as Inline XBRL)

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SIGNATURES

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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​	​	Power Integrations, Inc.
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Dated:	May 7, 2026	By:	/s/ NANCY ERBA
​	​	​	Nancy Erba
​	​	​	Chief Financial Officer

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Exhibit 99.1

Power Integrations Reports First-Quarter Financial Results

Revenue increased three percent year-over-year to $108.3 million; cash flow from operations was $20.0 million

SAN JOSE, Calif. – May 7, 2026 – Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended March 31, 2026. Net revenue for the first quarter was $108.3 million, up five percent from the prior quarter and up three percent from the first quarter of 2025. GAAP net income for the first quarter was $3.3 million or $0.06 per diluted share compared to $0.24 per diluted share in the prior quarter and $0.15 per diluted share in the first quarter of 2025. Cash flow from operations for the first quarter was $20.0 million.

In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets, a restructuring charge associated with previously announced workforce reductions and the tax effects of these items. Non-GAAP net income for the first quarter of 2026 was $13.9 million or $0.25 per diluted share compared to $0.23 per diluted share in the prior quarter and $0.31 per diluted share in the first quarter of 2025. A reconciliation of GAAP to non-GAAP financial results and outlook is included with the tables accompanying this press release.

Power Integrations CEO Jen Lloyd commented: “Q1 was a good quarter for Power Integrations as we saw improved market demand while remaining focused on delivering innovative solutions based on our customers’ needs.  Our industrial revenue grew 23 percent year-over-year driven by a breadth of applications including renewable energy, battery storage, home automation and automotive.”

Dr. Lloyd continued: “The momentum in our industrial business reflects our strategic focus on markets where our high-voltage technologies help customers solve the most pressing challenges in power. We continue to see confirmation that EVs and AI data centers not only need innovative solutions like our PowiGaN™ technology but also—by increasing pressure on the power grid—drive growth in renewables, battery storage and DC transmission, where our gate driver products excel. We are orienting our strategy and our R&D pipeline around these highly attractive opportunities.”

Power Integrations paid a dividend of $0.215 per share on March 31, 2026. A dividend of $0.215 per share will be paid on June 30, 2026, to stockholders of record as of May 29, 2026.

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Financial Outlook

The company issued the following forecast for the second quarter of 2026:

● Revenue is expected to be in a range of $115 million to $120 million.

● GAAP gross margin is expected to be between 53.5 percent and 54.5 percent, and non-GAAP gross margin is expected to be between 54 percent and 55 percent.

● GAAP operating expenses are expected to be between $55 million and $56 million, and non-GAAP operating expenses are expected to be between $46.5 million and $47.5 million.

● GAAP operating margin is expected to be between 5.5 percent and 7.5 percent. Non-GAAP operating margin is expected to be between 13.5 percent and 15.5 percent.

Conference Call Information and Supplemental Materials

Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the company's investor web page, http://investors.power.com, along with supplemental materials related to today’s earnings release.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, a restructuring charge associated with workforce reductions implemented in the first quarter, and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to non-GAAP operating income, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations’ industry, may calculate non-GAAP measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

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Note Regarding Forward-Looking Statements

This press release contains 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. Forward-looking statements generally relate to future events or the company’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern the company’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, the company’s guidance and outlook for the second quarter of 2026, the trends and assumptions underlying such guidance and outlook, and the company’s expectations regarding its upcoming dividend, including the timing and amount of such dividend. The company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the company’s ability to forecast its performance; changes in trade policies, in particular the escalation and imposition of new and higher tariffs, which could reduce demand for end products that incorporate our integrated circuits and/or place pressure on our prices as our customers seek to offset the impact of increased tariffs on their own products; the company’s ability to supply products and its ability to conduct other aspects of its business, such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, which may impact the level of demand for the company’s products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company’s revenue to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates; and product development delays and defects and market acceptance of the new products. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC. The forward-looking statements in this release are based on information available to the company as of the date hereof and the company disclaims any obligation to update or alter its forward-looking statements, except as otherwise required by law.

Power Integrations, PowiGaN and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

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POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except per-share amounts)

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​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
Net revenue	​	$	108,308	​	$	103,204	​	$	105,529
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Cost of revenue	​	​	51,370	​	​	48,595	​	​	47,294
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Gross profit	​	​	56,938	​	​	54,609	​	​	58,235
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Operating expenses:	​	​	​	​	​	​	​	​	​
Research and development	​	​	26,255	​	​	24,334	​	​	24,095
Selling, general and administrative	​	​	24,444	​	​	25,245	​	​	27,422
Other operating expenses	​	​	(1,419)	​	​	(3,744)	​	​	—
Restructuring and related charges	​	​	6,204	​	​	—	​	​	—
Total operating expenses	​	​	55,484	​	​	45,835	​	​	51,517
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Income from operations	​	​	1,454	​	​	8,774	​	​	6,718
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Other income	​	​	2,466	​	​	2,373	​	​	3,167
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Income before income taxes	​	​	3,920	​	​	11,147	​	​	9,885
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Provision (benefit) for income taxes	​	​	620	​	​	(2,143)	​	​	1,095
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NET INCOME	​	$	3,300	​	$	13,290	​	$	8,790
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Earnings per share:	​	​	​	​	​	​	​	​	​
Basic	​	$	0.06	​	$	0.24	​	$	0.15
Diluted	​	$	0.06	​	$	0.24	​	$	0.15
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Shares used in per share calculation:	​	​	​	​	​	​	​	​	​
Basic	​	​	55,506	​	​	55,329	​	​	56,871
Diluted	​	​	55,874	​	​	55,694	​	​	57,123
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SUPPLEMENTAL INFORMATION:	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
Stock-based compensation expenses included in:	​	​	​	​	​	​	​	​	​
Cost of revenue	​	$	469	​	$	232	​	$	657
Research and development	​	​	1,904	​	​	1,945	​	​	2,250
Selling, general and administrative	​	​	3,526	​	​	2,668	​	​	5,776
Other operating expenses	​	​	(1,419)	​	​	(5,120)	​	​	—
Restructuring and related charges	​	​	1,827	​	​	—	​	​	—
Total stock-based compensation expense	​	$	6,307	​	$	(275)	​	$	8,683
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Cost of revenue includes:	​	​	​	​	​	​	​	​	​
Amortization of acquisition-related intangible assets	​	$	147	​	$	147	​	$	147
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​	​	Three Months Ended
​	​	March 31,  2026		​ ​ ​	December 31,  2025		​ ​ ​	March 31,  2025
Revenue mix by end market:	​	​	​	​	​	​	​	​	​
Communications	​	​	10%	​	​	15%	​	​	10%
Computer	​	​	11%	​	​	14%	​	​	12%
Consumer	​	​	38%	​	​	34%	​	​	44%
Industrial	​	​	41%	​	​	37%	​	​	34%
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POWER INTEGRATIONS, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (Unaudited)
(in thousands, except per-share amounts)
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
RECONCILIATION OF GROSS PROFIT	​	​	​	​	​	​	​	​	​
GAAP gross profit	​	$	56,938	​	$	54,609	​	$	58,235
GAAP gross margin	​	​	52.6%	​	​	52.9%	​	​	55.2%
​	​	​	​	​	​	​	​	​	​
Stock-based compensation included in cost of revenue	​	​	469	​	​	232	​	​	657
Amortization of acquisition-related intangible assets	​	​	147	​	​	147	​	​	147
Restructuring and related charges in cost of revenue	​	​	365	​	​	—	​	​	—
​	​	​	​	​	​	​	​	​	​
Non-GAAP gross profit	​	$	57,919	​	$	54,988	​	$	59,039
Non-GAAP gross margin	​	​	53.5%	​	​	53.3%	​	​	55.9%
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
RECONCILIATION OF OPERATING EXPENSES	​	​	​	​	​	​	​	​	​
GAAP operating expenses	​	$	55,484	​	$	45,835	​	$	51,517
​	​	​	​	​	​	​	​	​	​
Less: Stock-based compensation expense included in operating expenses	​	​	​	​	​	​	​	​	​
Research and development	​	​	1,904	​	​	1,945	​	​	2,250
Selling, general and administrative	​	​	3,526	​	​	2,668	​	​	5,776
Other operating expenses	​	​	(1,419)	​	​	(5,120)	​	​	—
Other operating expenses	​	​	—	​	​	1,376	​	​	—
Total	​	​	4,011	​	​	869	​	​	8,026
​	​	​	​	​	​	​	​	​	​
Less: Restructuring and related charges	​	​	6,204	​	​	—	​	​	—
​	​	​	​	​	​	​	​	​	​
Non-GAAP operating expenses	​	$	45,269	​	$	44,966	​	$	43,491
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
RECONCILIATION OF INCOME FROM OPERATIONS	​	​	​	​	​	​	​	​	​
GAAP income from operations	​	$	1,454	​	$	8,774	​	$	6,718
GAAP operating margin	​	​	1.3%	​	​	8.5%	​	​	6.4%
​	​	​	​	​	​	​	​	​	​
Add: Total stock-based compensation unrelated to restructuring	​	​	4,480	​	​	(275)	​	​	8,683
Amortization of acquisition-related intangible assets	​	​	147	​	​	147	​	​	147
Other operating expenses	​	​	—	​	​	1,376	​	​	—
Restructuring and related charges	​	​	6,569	​	​	—	​	​	—
​	​	​	​	​	​	​	​	​	​
Non-GAAP income from operations	​	$	12,650	​	$	10,022	​	$	15,548
Non-GAAP operating margin	​	​	11.7%	​	​	9.7%	​	​	14.7%
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES	​	​	​	​	​	​	​	​	​
GAAP provision (benefit) for income taxes	​	$	620	​	$	(2,143)	​	$	1,095
GAAP effective tax rate	​	​	15.8%	​	​	19.2%	​	​	11.1%
​	​	​	​	​	​	​	​	​	​
Tax effect of adjustments to GAAP results	​	​	(611)	​	​	(1,806)	​	​	239
​	​	​	​	​	​	​	​	​	​
Non-GAAP provision (benefit) for income taxes	​	$	1,231	​	$	(337)	​	$	856
Non-GAAP effective tax rate	​	​	8.1%	​	​	–2.7%	​	​	4.6%
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	March 31,  2026		​	December 31,  2025		​	March 31,  2025
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)	​	​	​	​	​	​	​	​	​
GAAP net income	​	$	3,300	​	$	13,290	​	$	8,790
​	​	​	​	​	​	​	​	​	​
Adjustments to GAAP net income	​	​	​	​	​	​	​	​	​
Total Stock-based compensation unrelated to restructuring	​	​	4,480	​	​	(275)	​	​	8,683
Amortization of acquisition-related intangible assets	​	​	147	​	​	147	​	​	147
Other operating expenses	​	​	—	​	​	1,376	​	​	—
Tax effect of items excluded from non-GAAP results	​	​	(611)	​	​	(1,806)	​	​	239
Restructuring and related charges	​	​	6,569	​	​	—	​	​	—
​	​	​	​	​	​	​	​	​	​
Non-GAAP net income	​	$	13,885	​	$	12,732	​	$	17,859
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
Average shares outstanding for calculation of non-GAAP net income per share (diluted)	​	​	55,874	​	​	55,694	​	​	57,123
​	​	​	​	​	​	​	​	​	​
GAAP net income per share (diluted)	​	$	0.06	​	$	0.24	​	$	0.15
​	​	​	​	​	​	​	​	​	​
Non-GAAP net income per share (diluted)	​	$	0.25	​	$	0.23	​	$	0.31
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended		​	​	​	​	​	​
RECONCILIATION OF FREE CASH FLOW	​	March 31,  2026		​	​	​	​	​	​
Cash flow from operations	​	$	20,045	​	​	​	​	​	​
Purchases of property and equipment	​	​	(1,998)	​	​	​	​	​	​
Free cash flow	​	$	18,047	​	​	​	​	​	​

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POWER INTEGRATIONS, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands)

​

​	​	​	​	​	​	​	​
​	​	​	March 31, 2026		​	December 31, 2025
ASSETS		​	​	​	​	​	​
​	Current assets:	​	​	​	​	​	​
​	Cash and cash equivalents	​	$	63,390	​	$	58,755
​	Short-term investments	​	​	193,814	​	​	190,755
​	Accounts receivable, net	​	​	14,407	​	​	18,254
​	Inventories	​	​	162,982	​	​	166,887
​	Prepaid expenses and other current assets	​	​	23,747	​	​	23,678
​	Total current assets	​	​	458,340	​	​	458,329
​	​	​	​	​	​	​	​
​	Property and equipment, net	​	​	143,630	​	​	146,536
​	Intangible assets, net	​	​	7,061	​	​	7,244
​	Goodwill	​	​	95,271	​	​	95,271
​	Other non-current assets	​	​	66,385	​	​	64,827
​	TOTAL ASSETS	​	$	770,687	​	$	772,207
​	​	​	​	​	​	​	​
LIABILITIES AND STOCKHOLDERS’ EQUITY		​	​	​	​	​	​
​	Current liabilities:	​	​	​	​	​	​
​	Accounts payable	​	$	31,407	​	$	33,963
​	Accrued payroll and related expenses	​	​	13,224	​	​	13,840
​	Other accrued liabilities	​	​	21,958	​	​	22,558
​	Total current liabilities	​	​	66,589	​	​	70,361
​	​	​	​	​	​	​	​
​	Long-term liabilities:	​	​	​	​	​	​
​	Other liabilities	​	​	32,292	​	​	29,001
​	TOTAL LIABILITIES	​	​	98,881	​	​	99,362
​	​	​	​	​	​	​	​
​	STOCKHOLDERS' EQUITY:	​	​	​	​	​	​
​	Common stock	​	​	20	​	​	20
​	Additional paid-in capital	​	​	8,997	​	​	—
​	Accumulated other comprehensive loss	​	​	(2,491)	​	​	(1,105)
​	Retained earnings	​	​	665,280	​	​	673,930
​	TOTAL STOCKHOLDERS' EQUITY	​	​	671,806	​	​	672,845
​	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	​	$	770,687	​	$	772,207

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POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

​

​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​ ​ ​ ​ ​ ​ ​	March 31,  2026		​ ​ ​	December 31,  2025		​ ​ ​	March 31,  2025
CASH FLOWS FROM OPERATING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Net income	​	$	3,300	​	$	13,290	​	$	8,790
Adjustments to reconcile net income to cash provided by operating activities	​	​	​	​	​	​	​	​	​
Depreciation	​	​	6,380	​	​	6,407	​	​	7,244
Amortization of intangible assets	​	​	183	​	​	208	​	​	207
Loss on disposal of property and equipment	​	​	49	​	​	—	​	​	—
Stock-based compensation expense	​	​	6,307	​	​	(275)	​	​	8,683
Accretion of discount on investments	​	​	(156)	​	​	(216)	​	​	(346)
Increase (decrease) in accounts receivable allowance for credit losses	​	​	—	​	​	39	​	​	(381)
Change in operating assets and liabilities:	​	​	​	​	​	​	​	​	​
Accounts receivable	​	​	3,847	​	​	13,222	​	​	4,747
Inventories	​	​	3,905	​	​	(2,269)	​	​	(3,456)
Prepaid expenses and other assets	​	​	3,414	​	​	(2,807)	​	​	832
Accounts payable	​	​	(4,072)	​	​	(2,762)	​	​	4,002
Other accrued liabilities	​	​	(3,112)	​	​	1,369	​	​	(3,936)
Net cash provided by operating activities	​	​	20,045	​	​	26,206	​	​	26,386
​	​	​	​	​	​	​	​	​	​
CASH FLOWS FROM INVESTING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Purchases of property and equipment	​	​	(1,998)	​	​	(7,050)	​	​	(5,726)
Purchases of investments	​	​	(14,807)	​	​	(5,709)	​	​	(5,630)
Proceeds from sales and maturities of investments	​	​	10,655	​	​	8,279	​	​	15,882
Net cash provided by (used in) investing activities	​	​	(6,150)	​	​	(4,480)	​	​	4,526
​	​	​	​	​	​	​	​	​	​
CASH FLOWS FROM FINANCING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Issuance of common stock under employee stock plans	​	​	2,690	​	​	—	​	​	2,787
Repurchase of common stock	​	​	—	​	​	—	​	​	(23,098)
Payments of dividends to stockholders	​	​	(11,950)	​	​	(11,617)	​	​	(11,959)
Net cash used in financing activities	​	​	(9,260)	​	​	(11,617)	​	​	(32,270)
​	​	​	​	​	​	​	​	​	​
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	​	​	4,635	​	​	10,109	​	​	(1,358)
​	​	​	​	​	​	​	​	​	​
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	​	​	58,755	​	​	48,646	​	​	50,972
​	​	​	​	​	​	​	​	​	​
CASH AND CASH EQUIVALENTS AT END OF PERIOD	​	$	63,390	​	$	58,755	​	$	49,614

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POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP MEASURES TO GAAP IN SECOND-QUARTER 2026 FORECAST

(dollar amounts in millions)

​

​	​	​	​	​	​	​	​	​
RECONCILIATION OF GROSS MARGIN FORECAST	​	LOW			​	HIGH
GAAP gross margin forecast	​	53.5		%	​	54.5		%
​	​	​		​	​	​		​
Adjustments to reconcile GAAP to non-GAAP	​	​		​	​	​		​
Stock-based compensation included in cost of revenue	​	0.4		%	​	0.4		%
Amortization of acquisition-related intangible assets	​	0.1		%	​	0.1		%
​	​	​	​	​	​	​	​	​
Non-GAAP gross margin forecast	​	54.0		%	​	55.0		%
​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​
RECONCILIATION OF OPERATING EXPENSE FORECAST	​	LOW			​	HIGH
GAAP operating-expense forecast	​	$	55.0		​	$	56.0
​	​	​	​		​	​	​
Adjustments to reconcile GAAP to non-GAAP	​	​	​		​	​	​
Stock-based compensation	​	​	(8.5)		​	​	(8.5)
​	​	​	​		​	​	​
Non-GAAP operating-expense forecast	​	$	46.5		​	$	47.5
​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​
RECONCILIATION OF OPERATING MARGIN FORECAST	​	LOW			​	HIGH
GAAP operating margin forecast	​	5.5		%	​	7.5		%
​	​	​		​	​	​		​
Adjustments to reconcile GAAP to non-GAAP	​	​		​	​	​		​
Stock-based compensation	​	7.9		%	​	7.9		%
Amortization of acquisition-related intangible assets	​	0.1		%	​	0.1		%
​	​	​	​		​	​	​
Non-GAAP operating margin forecast	​	13.5		%	​	15.5		%

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Contact:

Joe Shiffler
Power Integrations, Inc.
(408) 414-8528
joe@power.com

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FAQ

How did Power Integrations (POWI) perform in Q1 2026?

Power Integrations generated Q1 2026 revenue of $108.3 million, up 5% sequentially and 3% year-over-year. GAAP net income was $3.3 million, or $0.06 per diluted share, while non-GAAP net income reached $13.9 million, or $0.25 per diluted share.

What were Power Integrations (POWI) Q1 2026 margins and profitability?

GAAP gross margin in Q1 2026 was 52.6% and GAAP operating margin was 1.3%, reflecting restructuring charges. On a non-GAAP basis, operating margin was 11.7%. GAAP diluted EPS was $0.06, while non-GAAP diluted EPS was $0.25.

How did Power Integrations’ (POWI) end markets mix change in Q1 2026?

In Q1 2026, industrial revenue reached 41% of total sales, up from 34% a year earlier, driven by applications like renewables and battery storage. Consumer accounted for 38%, computer 11%, and communications 10%, reflecting a shift toward industrial and consumer demand.

What guidance did Power Integrations (POWI) provide for Q2 2026 margins?

For Q2 2026, Power Integrations forecast GAAP gross margin of 53.5% to 54.5% and non-GAAP gross margin of 54.0% to 55.0%. The company also guided to GAAP operating margin of 5.5% to 7.5% and non-GAAP operating margin of 13.5% to 15.5%.

What dividends is Power Integrations (POWI) paying in 2026?

Power Integrations paid a $0.215 per share dividend on March 31, 2026. It also declared another $0.215 per share dividend payable on June 30, 2026, to stockholders of record as of May 29, 2026, continuing its regular cash-return policy.

Who is the new Senior Vice President of Worldwide Sales at Power Integrations (POWI)?

The company appointed Mike Balow as Senior Vice President, Worldwide Sales, effective May 4, 2026. He brings more than three decades of semiconductor sales and business development experience, including executive roles at onsemi, Infineon Technologies, Cypress Semiconductor, Freescale Semiconductor, and IDT.

What was Power Integrations’ (POWI) cash flow and balance sheet position in Q1 2026?

In Q1 2026, Power Integrations generated $20.0 million in cash flow from operations and $18.0 million in free cash flow. It ended the quarter with $63.4 million in cash and cash equivalents, $193.8 million in short-term investments, and total assets of $770.7 million.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 556.0 KB

Other Documents

• EX-101 EX-101.SCH 2.8 KB
• EX-101 EX-101.LAB 15.0 KB
• EX-101 EX-101.PRE 10.1 KB