Power Integrations reported third‑quarter 2025 revenue of $118.9 million, a 3 % year‑over‑year increase that aligns with analysts’ consensus of roughly $118.5 million. The company posted a GAAP net loss of $1.4 million, translating to a GAAP earnings per share of –$0.02 on diluted shares, while non‑GAAP net income of $20.2 million produced a non‑GAAP EPS of $0.36, matching the consensus estimate of $0.34–$0.35.
The GAAP loss was driven by a $13.6 million one‑time stock‑based compensation charge tied to a former CEO’s equity award modification and additional legal expenses from a California jury verdict. After excluding these items, the company’s operating performance was strong: cash flow from operations reached $29.9 million, and the non‑GAAP gross margin fell to 55.1 %, a 70‑basis‑point decline from the prior quarter, reflecting a less favorable end‑market mix and higher input costs.
Segment analysis shows the industrial business grew 20 % year‑over‑year and accounted for 42 % of total revenue, driving the overall growth. In contrast, consumer‑appliance revenue softened as U.S. tariffs and a sluggish housing market reduced orders, a trend highlighted by CEO Jennifer Lloyd. Lloyd noted that while industrial demand remains robust, consumer orders are “soft after accelerated shipments earlier in the year ahead of U.S. tariffs.”
Management guided Q4 2025 revenue to $100 million–$105 million, a range that falls well below the consensus estimate of about $116 million, signaling caution about near‑term demand. The company also raised its quarterly dividend to $0.215 per share for 2026, repurchased $42.4 million of shares during the quarter, and maintained a healthy liquidity position with $29.9 million in operating cash flow.
CEO Jennifer Lloyd emphasized that the company remains on course for solid 2025 growth despite macro‑economic headwinds. She highlighted continued focus on high‑voltage opportunities—including GaN technology, grid modernization, electric transportation, and data‑center applications—and noted the company’s collaboration with NVIDIA on 800 VDC power architecture for next‑generation AI data centers.
Following the release, the market reacted sharply to the weak Q4 guidance. Investors focused on the significant gap between the company’s revenue forecast and analyst expectations, which outweighed the in‑line non‑GAAP earnings and modest revenue beat. The stock fell 12.3 % in pre‑market trading, reflecting concerns about near‑term demand and the impact of the one‑time charges on profitability.
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