Vicor (VICR) 2025 profit soars to $118.6M on higher margins

Rhea-AI Filing Summary

Vicor Corporation reported strong fourth-quarter and full-year 2025 results, highlighted by higher revenue, margins and earnings. Q4 2025 product revenue reached $92.7 million, up 15.3% year over year, while total Q4 net income jumped to $46.5 million, or $1.01 per diluted share, helped by a $27.3 million tax benefit. Q4 gross margin rose to 55.4% of revenue and backlog increased to $176.9 million, up 13.8% from a year earlier.

For 2025, product revenue grew 12.1% to $350.3 million and royalty revenue rose 23.2% to $57.4 million. Including a $45 million patent litigation settlement, total revenue reached $452.7 million and net income surged to $118.6 million, or $2.61 per diluted share, versus $6.1 million a year earlier. Cash and cash equivalents climbed to $402.8 million as of December 31, 2025, supported by $139.5 million in operating cash flow. Management expects rising demand and its IP licensing business to drive record product and licensing revenues in 2026.

Positive

• Transformational earnings and cash flow growth: 2025 net income rose to $118.6 million (from $6.1 million), aided by higher product and royalty revenue, a $45 million patent litigation settlement, gross margin expansion to 57.3%, and operating cash flow increasing to $139.5 million.

Negative

• None.

Insights

Equity research analyst

Vicor shows breakout 2025 profitability, strong cash, and upbeat 2026 outlook.

Vicor delivered a major earnings inflection in 2025. Total product and royalty revenue plus a $45 million patent settlement reached $452.7 million, while gross margin expanded to 57.3%. Net income climbed to $118.6 million, or $2.61 per diluted share, versus $6.1 million in 2024.

Operational quality improved alongside growth. Operating cash flow rose to $139.5 million, and cash and cash equivalents increased to $402.8 million as of December 31, 2025, supporting capital expenditures of $5.5 million in Q4 and higher annual investment. Backlog ended 2025 at $176.9 million, up double digits year over year.

Management cites rising demand in high‑performance compute, test, industrial, aerospace and defense, and expects record product and IP licensing revenues in 2026. They also reference a second U.S. International Trade Commission investigation related to Vicor’s power modules and potential exclusion orders, and early planning for a second ChiP fabrication facility. Subsequent disclosures will clarify how these factors translate into future revenue, margins and capital needs.

VICOR CORP false 0000751978 0000751978 2026-02-19 2026-02-19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2026

VICOR CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware		0-18277		04-2742817
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

25 Frontage Road, Andover, Massachusetts 01810

(Address of Principal Executive Offices) (Zip Code)

(978) 470-2900

(Registrant’s telephone number, including area code)

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))

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		VICR		The NASDAQ Stock Market LLC

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

Emerging growth company ☐  

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. ☐

Item 2.02. Results of Operations and Financial Condition

On February 19, 2026, Vicor Corporation issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2025. The full text of that press release is attached as Exhibit 99.1 hereto and incorporated by reference herein. The information furnished under this Item 2.02, including the Exhibit attached hereto, shall not be deemed “filed” for any purpose, including for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(a) Financial statements:

None

(b) Pro forma financial information:

None

(c) Shell company transactions:

None

(d) Exhibits

99.1 Press Release of Vicor Corporation dated February 19, 2026

Exhibit Index

Exhibit No.		Description
99.1		Press Release of Vicor Corporation dated February 19, 2026
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

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.

				VICOR CORPORATION
Date: February 19, 2026				By:		/s/ James F. Schmidt
						James F. Schmidt
						Chief Financial Officer

Exhibit 99.1

NEWS RELEASE

FINANCIAL NEWS BRIEF

February 19, 2026

For Immediate Release

Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2025

Andover, Mass., February 19, 2026 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 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 revenue for the fourth quarter ended December 31, 2025 totaled $92.7 million, a 15.3% increase from $80.4 million for the corresponding period a year ago, and a 4.5% sequential increase from $88.7 million in the third quarter of 2025.

Royalty revenue for the fourth quarter ended December 31, 2025 totaled $14.5 million, a 7.8% decrease from $15.8 million for the corresponding period a year ago, and a 33.1% sequential decrease from $21.7 million in the third quarter of 2025. The sequential decrease in Royalty revenue was the result of a catch up amount included in the Q3 result.

Gross margin increased to $59.4 million for the fourth quarter of 2025, compared to $50.4 million for the corresponding period a year ago, and decreased sequentially from $63.5 million for the third quarter of 2025. Gross margin, as a percentage of revenue, increased to 55.4% for the fourth quarter of 2025, compared to 52.4% for the corresponding period a year ago, and decreased from 57.5% for the third quarter of 2025. The sequential decrease in gross margin percentage was the result of a reduction in royalty revenue due to the Q3 catch up amount. Operating expenses increased to $43.7 million for the fourth quarter of 2025, compared to $41.2 million for the corresponding period a year ago, and increased sequentially from $42.6 million for the third quarter of 2025.

Net income for the fourth quarter was $46.5 million, or $1.01 per diluted share, compared to net income of $10.2 million or $0.23 per diluted share, for the corresponding period a year ago and net income of $28.3 million, or $0.63 per diluted share, for the third quarter of 2025. Net income in the fourth quarter included $27.3 million of tax benefit due to the partial recognition of certain deferred tax assets in the period.

Cash flow from operations totaled $15.7 million for the fourth quarter, compared to cash flow from operations of $10.1 million for the corresponding period a year ago, and cash flow from operations of $38.5 million in the third quarter of 2025. Capital expenditures for the fourth quarter totaled $5.5 million, compared to $1.7 million for the corresponding period a year ago and $4.0 million for the third quarter of 2025. Stock repurchases for the fourth quarter totaled $2.2 million, compared with $15.4 million for the third quarter of 2025. Cash and cash equivalents as of December 31, 2025 increased 11.2% sequentially to approximately $402.8 million compared to approximately $362.4 million as of September 30, 2025.

Backlog for the fourth quarter ended December 31, 2025 totaled $176.9 million, a 13.8% increase from $155.5 million for the corresponding period a year ago, and a 15.8% sequential increase from $152.8 million at the end of the third quarter of 2025.

Product revenue for the year ended December 31, 2025 totaled $350.3 million, a 12.1% increase from $312.5 million for the year ended December 31, 2024. Royalty revenue for the year ended December 31, 2025 totaled $57.4 million, a 23.2% increase from $46.6 million for the year ended December 31, 2024. Total product revenue, royalty revenue, and a $45 million patent litigation settlement increased 26.1% to $452.7 million for the year ended December 31, 2025 from total product and royalty revenue of $359.1 million for the prior year. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 57.3% for the year ended December 31, 2025, compared to 51.2% for the prior year. Net income for 2025 was $118.6 million, or $2.61 per diluted share and 26.2% of net revenues and patent litigation settlement, compared to $6.1 million, or $0.14 per diluted share and 1.7% of revenue in the prior year. Net income for 2025 included $24.0 million of tax benefit due to the partial recognition of certain deferred tax assets in the period. Cash flows from operations totaled $139.5 million for the year ended December 31, 2025, a 174.5% increase from cash flows from operations of $50.8 million for the prior year.

Commenting on the outlook for 2026, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications, should lead to a record year for Vicor’s product revenues.

The U.S. International Trade Commission has recently instituted a second investigation into illegal importation of power modules and computing systems infringing Vicor’s IP to Non-isolated Bus Converters (“NBMs”). Suppliers of infringing systems will, once again, be subject to an exclusion order affecting some of their customers, specifically unlicensed OEMs and Hyper-scalers. Vicor’s IP licensing practice is set to achieve record revenues in 2026.

As Vicor’s first ChiP fab approaches high utilization, we are planning a second fab. We are also exploring opportunities to expand total capacity by enabling an alternate source of high current density 2^nd Gen VPD modules to give licensed OEMs and Hyper-scalers access to best-in-class power system technology from more than one source.”

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, Thursday, February 19, 2026 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 February 19, 2026. 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 (Unaudited)								YEAR ENDED (Unaudited)
		DEC 31, 2025				DEC 31, 2024				DEC 31, 2025				DEC 31, 2024
Product revenue		$	92,720			$	80,392			$	350,317			$	312,463
Royalty revenue			14,544				15,774				57,384				46,595
Patent litigation settlement			—				—				45,000				—
Total product revenue, royalty revenue and patent litigation settlement			107,264				96,166				452,701				359,058
Cost of product revenues			47,841				45,806				193,272				175,060
Gross margin			59,423				50,360				259,429				183,998
Operating expenses:
Selling, general and administrative			23,195				24,171				99,031				96,886
Research and development			20,543				16,984				78,570				68,922
Litigation-contingency expense			—				—				—				19,500
Total operating expenses			43,738				41,155				177,601				185,308
Income (loss) from operations			15,685				9,205				81,828				(1,310	)
Other income (expense), net			3,545				2,553				12,743				11,797
Income before income taxes			19,230				11,758				94,571				10,487
Less: (Benefit) provision for income taxes			(27,303	)			1,516				(24,025	)			4,348
Consolidated net income			46,533				10,242				118,596				6,139
Less: Net income (loss) attributable to noncontrolling interest			—				(4	)			40				10
Net income attributable to Vicor Corporation		$	46,533			$	10,246			$	118,556			$	6,129
Net income per share attributable to Vicor Corporation:
Basic		$	1.03			$	0.23			$	2.63			$	0.14
Diluted		$	1.01			$	0.23			$	2.61			$	0.14
Shares outstanding:
Basic			45,203				45,161				45,040				44,912
Diluted			46,297				45,296				45,450				45,168

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

		DEC 31,				DEC 31,
		2025				2024
		(Unaudited)				(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	402,805			$	277,273
Accounts receivable, net			60,716				52,948
Inventories			91,340				106,032
Other current assets			32,502				26,781
Total current assets			587,363				463,034
Long-term deferred tax assets			27,463				261
Long-term investment, net			2,462				2,641
Property, plant and equipment, net			147,690				152,705
Other assets			20,853				22,477
Total assets		$	785,831			$	641,118
Liabilities and Equity
Current liabilities:
Accounts payable		$	12,290			$	8,737
Accrued compensation and benefits			12,031				10,852
Accrued expenses			3,691				6,589
Accrued litigation			28,275				26,888
Sales allowances			3,136				1,667
Short-term lease liabilities			1,568				1,716
Income taxes payable			904				59
Short-term deferred revenue and customer prepayments			3,426				5,312
Total current liabilities			65,321				61,820
Long-term income taxes payable			3,086				3,387
Long-term lease liabilities			5,608				5,620
Total liabilities			74,015				70,827
Equity:
Vicor Corporation stockholders’ equity:
Capital stock			462,805				408,187
Retained earnings			421,359				302,803
Accumulated other comprehensive loss			(1,672	)			(1,495	)
Treasury stock			(170,935	)			(139,424	)
Total Vicor Corporation stockholders’ equity			711,557				570,071
Noncontrolling interest			259				220
Total equity			711,816				570,291
Total liabilities and equity		$	785,831			$	641,118

FAQ

How did Vicor (VICR) perform financially in the fourth quarter of 2025?

Vicor reported strong Q4 2025 results, with product revenue of $92.7 million, up 15.3% year over year. Total net income reached $46.5 million, or $1.01 per diluted share, and gross margin improved to 55.4% of revenue, reflecting better profitability and mix.

What were Vicor’s full-year 2025 revenue and net income results?

For 2025, Vicor generated $350.3 million in product revenue and $57.4 million in royalty revenue. Including a $45 million patent litigation settlement, total revenue reached $452.7 million, and net income surged to $118.6 million, or $2.61 per diluted share, a sharp increase versus 2024.

How did Vicor’s profitability and gross margins change in 2025?

Vicor’s profitability improved significantly in 2025. Gross margin as a percentage of net revenues and the patent settlement increased to 57.3%, up from 51.2% in 2024. Higher margins, combined with revenue growth and the settlement, drove a large jump in net income and earnings per share.

What was Vicor’s cash position and cash flow at year-end 2025?

As of December 31, 2025, Vicor held $402.8 million in cash and cash equivalents, up from $277.3 million a year earlier. Operating cash flow for 2025 totaled $139.5 million, compared with $50.8 million in 2024, supporting increased capital investment and financial flexibility.

How did Vicor’s backlog and future demand indicators look exiting 2025?

Backlog at December 31, 2025 was $176.9 million, up 13.8% from the prior year and 15.8% sequentially. Management highlighted rising demand across high-performance computing, automatic test equipment, industrial, aerospace and defense markets, supporting expectations for a record product revenue year in 2026.

What role did patent-related items play in Vicor’s 2025 results?

Vicor’s 2025 results included a $45 million patent litigation settlement, which contributed to total revenue and higher reported gross margin. Management also noted that Vicor’s IP licensing practice is expected to achieve record revenues in 2026, reflecting the strategic importance of its patent portfolio.

What guidance or outlook did Vicor’s management provide for 2026?

Management stated that rising demand in high-performance compute, test, industrial, aerospace and defense should lead to a record year for product revenues in 2026. They also expect Vicor’s IP licensing practice to achieve record revenues and are planning a second ChiP fabrication facility to expand capacity.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 78.2 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 2.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 16.8 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 10.6 KB