Navitas Semiconductor completed a private placement of 14,814,813 shares of its Class A common stock at $6.75 per share, generating gross proceeds of roughly $100 million. Needham & Company served as the sole placement agent, and the transaction is expected to close on or about November 10, 2025.
The company will use the net proceeds to bolster working capital and support its “Navitas 2.0” strategy, which focuses on high‑power markets such as AI data centers, performance computing, energy and grid infrastructure, and industrial electrification. President and CEO Chris Allexandre said the capital raise “supports Navitas’ transformation and accelerates our momentum into higher‑power markets.”
Navitas’ most recent quarterly results, released on November 3, showed a 53 % year‑over‑year decline in revenue to $10.1 million and a GAAP earnings per share of –$0.09, missing the consensus estimate of –$0.05. The revenue drop was largely driven by the company’s decision to deprioritize its low‑margin China mobile business, which had previously accounted for a significant portion of sales. The earnings miss reflects the combined impact of lower top line growth and higher operating costs associated with ramping up high‑power product development.
The earnings announcement triggered a sharp negative reaction from investors, with the company’s market value falling in after‑hours trading. Analysts cited the revenue miss and the weak guidance for the next quarter—projected revenue of $6.75 million to $7.25 million versus expectations of $10.05 million—as evidence of the challenges Navitas faces in executing its strategic pivot.
Navitas entered the private placement with a strong liquidity position, holding $150.6 million in cash and cash equivalents and no debt as of September 30, 2025. The additional capital will reinforce the company’s balance sheet, support ongoing investments in next‑generation GaN and SiC technology, and enable a partnership with NVIDIA to develop 800 V DC architecture for AI factory computing. While the raise provides much‑needed liquidity, the company’s recent financial performance and market reaction underscore the headwinds it must navigate as it shifts toward higher‑margin, high‑growth markets.
The private placement represents a significant step in Navitas’ transformation plan, but the company’s recent revenue decline, earnings miss, and cautious market reaction highlight the risks associated with its strategic shift. The capital raise will help sustain operations and fund product development, yet investors will likely continue to monitor the company’s ability to reverse the revenue trend and achieve profitability in its targeted high‑power segments.
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