Vicor Corporation Reports Robust Q4 and Record Full Year 2025 Financial Results

Significant Growth, Strong Margins, and Positive Outlook for 2026

Andover, Mass., February 19, 2026 – Vicor Corporation (NASDAQ: VICR) has released its financial results for the fourth quarter and full year ended December 31, 2025. The company reported significant improvements across key financial metrics, operational highlights, and strategic initiatives that are likely to be closely watched by investors.

Key Financial Highlights

• Q4 2025 Product Revenue: \$92.7 million, up 15.3% year-over-year, and a 4.5% increase from Q3 2025.
• Q4 2025 Royalty Revenue: \$14.5 million, a 7.8% decline year-over-year and a substantial 33.1% sequential decrease, attributed to a catch-up amount in Q3.
• Q4 2025 Gross Margin: \$59.4 million (55.4% of revenue), up from \$50.4 million (52.4%) a year ago, but down sequentially from \$63.5 million (57.5%) in Q3 2025 due to lower royalty revenue.
• Q4 2025 Net Income: \$46.5 million, or \$1.01 per diluted share, a dramatic increase from \$10.2 million (\$0.23/share) in Q4 2024 and \$28.3 million (\$0.63/share) in Q3 2025. This quarter’s net income includes a material tax benefit of \$27.3 million from partial recognition of deferred tax assets.
• Q4 2025 Cash Flow from Operations: \$15.7 million, up from \$10.1 million in Q4 2024, but down from \$38.5 million in Q3 2025.
• Q4 2025 Capital Expenditures: \$5.5 million, up from \$1.7 million in Q4 2024 and \$4.0 million in Q3 2025.
• Q4 2025 Stock Repurchases: \$2.2 million, compared to \$15.4 million in Q3 2025.
• Cash and Cash Equivalents (Dec 31, 2025): \$402.8 million, an 11.2% increase from \$362.4 million at September 30, 2025.
• Q4 2025 Backlog: \$176.9 million, up 13.8% year-over-year and 15.8% sequentially.

Full Year 2025 Performance

• Product Revenue: \$350.3 million, up 12.1% from 2024.
• Royalty Revenue: \$57.4 million, up 23.2% from 2024.
• Patent Litigation Settlement: \$45 million recognized in 2025.
• Total Revenue (including settlement): \$452.7 million, up 26.1% from \$359.1 million in 2024.
• Gross Margin (including settlement): 57.3%, compared to 51.2% in 2024.
• Net Income: \$118.6 million, or \$2.61 per diluted share, versus \$6.1 million (\$0.14/share) in 2024. Includes a \$24.0 million tax benefit from partial recognition of deferred tax assets.
• Cash Flow from Operations: \$139.5 million, up 174.5% from \$50.8 million in 2024.
• Year-end Cash and Cash Equivalents: \$402.8 million, up from \$277.3 million as of December 31, 2024.

Strategic and Price-Sensitive Updates

• Record Backlog and Revenue Outlook: The company’s backlog and management commentary suggest continued strong demand in 2026, especially in high-performance compute, automated test equipment, and aerospace and defense sectors.
• Patent Enforcement Actions: The U.S. International Trade Commission has launched a second investigation into illegal importation of power modules and computing systems infringing Vicor’s IP related to Non-isolated Bus Converters (NBMs). This could lead to exclusion orders impacting unlicensed OEMs and Hyper-scalers, which may significantly boost Vicor’s IP licensing revenues.
• Capacity Expansion: As its first ChiP fab nears high utilization, Vicor is planning a second fabrication facility and is exploring additional capacity by enabling alternate sources of high current density 2nd Gen VPD modules. This will provide licensed OEMs and Hyper-scalers with multiple sources for Vicor’s best-in-class technology.
• Tax Benefits: Both Q4 and full-year results were materially enhanced by the partial recognition of deferred tax assets, which may not recur at the same magnitude in future periods.
• Patent Litigation Settlement: The recognition of a \$45 million settlement contributed significantly to 2025 results. Investors should note this non-recurring item.

Operational Details and Balance Sheet Strength

• Operating Expenses: Q4 operating expenses rose to \$43.7 million from \$41.2 million a year ago. Full-year operating expenses were \$177.6 million, down from \$185.3 million in 2024 due to the absence of a litigation contingency expense recorded in the prior year.
• Share Repurchases: The company repurchased \$2.2 million of stock in Q4, significantly less than the \$15.4 million in Q3, indicating a potential change in capital allocation.
• Strong Balance Sheet: As of December 31, 2025, Vicor boasts \$785.8 million in total assets versus \$641.1 million at year-end 2024, and equity attributable to stockholders increased from \$570.1 million to \$711.6 million.

Management Outlook for 2026

CEO Dr. Patrizio Vinciarelli expressed confidence in achieving record product and licensing revenues in 2026, bolstered by strong demand in core markets and proactive IP enforcement. The company’s expansion plans signal readiness for sustained growth, with strategic investments in manufacturing and technology partnerships.

Risks and Forward-Looking Statements

Investors should note that Vicor’s management has highlighted various risks, including economic and operational challenges, legal proceedings, and potential variability in demand. The company’s commentary on future performance constitutes forward-looking statements subject to uncertainty.

Conclusion: Potential Share Price Catalysts

• The combination of record revenue, substantial margin expansion, a \$45 million legal settlement, strong cash generation, an active patent enforcement program, and expansion plans are all potentially price-sensitive and could move Vicor’s share price in the near to medium term.
• The substantial tax benefit and non-recurring litigation settlement should be factored into future earnings expectations.
• Investors should monitor developments related to patent enforcement and capacity expansion, as both could materially affect market share, licensing revenues, and future financial performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should review Vicor Corporation’s filings with the Securities and Exchange Commission and consult with their financial advisors before making any investment decisions.

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