Vicor Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 21 October 2025: press release. The quarter’s numbers.

Key takeaways

Revenue rose year on year: Product revenues and licensing income were $110.4 million, up 18.5% from a year earlier and down 21.7% from the second quarter. Source
Net income and EPS up year on year: Net income was $28.3 million, or $0.63 per diluted share, against $11.6 million or $0.26 a year earlier. The second quarter was $0.91 per diluted share. Source
Gross margin rose year on year: Gross margin was $63.5 million, or 57.5% of revenue, up from 49.1% a year earlier. Source
OEMs and hyper-scalers need licenses: Management said OEMs and hyper-scalers need a license, need to renew one, or need to expand its scope, linking this to its licensing practice. Source
Backlog $152.8 million year on year: Backlog was $152.8 million at quarter end, up 1.5% from a year earlier and down 1.5% from the second quarter. Source
Operating cash flow higher than last year: Cash flow from operations was $38.5 million, against $22.6 million a year earlier and $65.2 million in the second quarter. Source

“Licensing revenue reached a record rate in Q3 following the litigation settlement for prior infringement recorded in Q2.”
Chief Executive Officer Dr. Patrizio Vinciarelli

Results and growth drivers

Revenue rose year on year: Product revenues and licensing income were $110.4 million, up 18.5% from a year earlier and down 21.7% from the second quarter. Source
Net income and EPS up year on year: Net income was $28.3 million, or $0.63 per diluted share, against $11.6 million or $0.26 a year earlier. The second quarter was $0.91 per diluted share. Source
Operating income above last year: Income from operations was $20.9 million, compared with $5.4 million a year earlier. Source
Year-to-date revenue higher: Total product revenue, royalty revenue and patent litigation settlement was $345.4 million year to date, against $262.9 million a year earlier. Source

Product and royalty revenue

Product revenue up from last year: Product revenue was $88.7 million, against $79.8 million a year earlier. Source
Product revenue up from second quarter: Product revenue rose from $85.7 million in the second quarter.
Royalty revenue more than doubled sequentially: Royalty revenue was $21.7 million, up from $13.4 million a year earlier and $10.4 million in the second quarter. Source

“I expect Vicor’s IP licensing practice to grow substantially.”
Chief Executive Officer Dr. Patrizio Vinciarelli

Gross margin and operating costs

Gross margin rose year on year: Gross margin was $63.5 million, or 57.5% of revenue, up from 49.1% a year earlier. Source
Cost of product revenues versus last year: Cost of product revenues was $46.9 million, against $47.4 million a year earlier. Source
Operating expenses up year on year: Operating expenses were $42.6 million, up from $40.4 million a year earlier and down from $46.7 million in the second quarter. Source
Research and development spending higher: Research and development expense was $19.9 million, against $17.0 million a year earlier. Source
Income tax benefit for the quarter: The company recorded an income tax benefit of $5.0 million for the quarter, against a $2.5 million benefit a year earlier. Source

IP licensing and enforcement

OEMs and hyper-scalers need licenses: Management said OEMs and hyper-scalers need a license, need to renew one, or need to expand its scope, linking this to its licensing practice. Source
Earlier ITC action produced orders: The prior release said the first ITC action had produced cease-and-desist and exclusion orders.

“With foundry processes delivering 98% final test yields for mass produced modules, higher margins await greater absorption of foundry capacity, exceeding $1 Billion per year.”
Chief Executive Officer Dr. Patrizio Vinciarelli

Demand and backlog

Backlog $152.8 million year on year: Backlog was $152.8 million at quarter end, up 1.5% from a year earlier and down 1.5% from the second quarter. Source
Backlog lower over two quarters: Backlog was $171.7 million at the end of the first quarter, so it has declined in each of the last two quarters.
High-density power systems on HPC path: Management said high density power systems, including NBMs and VPD, are on the critical path of high performance computing. Source

Cash flow and balance sheet

Operating cash flow higher than last year: Cash flow from operations was $38.5 million, against $22.6 million a year earlier and $65.2 million in the second quarter. Source
Cash balance increased sequentially: Cash and cash equivalents were about $362.4 million at September 30, up 7.0% from June 30. Source
Inventories below year-end level: Inventories were $92.3 million, down from $106.0 million at December 31, 2024 and $95.5 million at June 30, 2025. Source
Accrued litigation balance higher: Accrued litigation was $27.9 million at September 30, against $26.9 million at December 31, 2024. Source

Capital spending and shareholder returns

Capital expenditures lower than last year: Capital expenditures were $4.0 million, against $8.4 million a year earlier and $6.2 million in the second quarter. Source
Share repurchases of $15.6 million: Stock repurchases totaled $15.6 million in the quarter, compared with $17.5 million in the second quarter. Source
Treasury stock and diluted share count: Treasury stock was $172.7 million at September 30, up from $139.4 million at December 31, 2024. Diluted weighted shares were 44.9 million, against 45.2 million a year earlier. Source

Foundry, products and patented technology

AI chips and VPD products in progress: The prior release said the company was bringing high performance ChiPs and second-generation VPD for AI applications to fruition.
Patented innovations reflected in revenue: The prior release said total revenues and margins would reflect many patented innovations in the state of the art of high density power systems.
Foundry capacity utilization expected to rise: Management said the density of 5th generation ChiPs and second-generation VPD, compared with multi-phase VRs and IVRs, will bring greater foundry capacity utilization. Source

Figures management reported

Figure	Reported
Backlog Source	$152.8 million
Gross margin Source	57.5% of revenue

Risks management discussed

Regulatory: Management described continuing action to curtail access to computing systems it says infringe, sourced from contract manufacturers and power module makers. Source

Earlier plans management reported on

Not stated: The second-quarter release said the company was pursuing further actions. The third-quarter release says it is still pursuing additional actions. No status is given.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

FINANCIAL NEWS BRIEF

For Immediate Release

Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2025

Andover, Mass., October 21, 2025 (GLOBE NEWSWIRE) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 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 revenues and licensing income for the third quarter ended September 30, 2025 totaled $110.4 million, an 18.5% increase from $93.2 million for the corresponding period a year ago, and a 21.7% sequential decrease from $141.0 million in the second quarter of 2025, which included a $45.0 million patent litigation settlement.

Gross margin increased to $63.5 million for the third quarter of 2025, compared to $45.7 million for the corresponding period a year ago, and decreased sequentially from $92.1 million for the second quarter of 2025. Gross margin, as a percentage of revenue, increased to 57.5% for the third quarter of 2025, compared to 49.1% for the corresponding period a year ago, and decreased from 65.3% for the second quarter of 2025, which benefited from the $45.0 million patent litigation settlement. Operating expenses increased to $42.6 million for the third quarter of 2025, compared to $40.4 million for the corresponding period a year ago, and decreased sequentially from $46.7 million for the second quarter of 2025.

Net income for the third quarter was $28.3 million, or $0.63 per diluted share, compared to net income of $11.6 million or $0.26 per diluted share, for the corresponding period a year ago and net income of $41.2 million, or $0.91 per diluted share, for the second quarter of 2025.

Cash flow from operations totaled $38.5 million for the third quarter, compared to cash flow from operations of $22.6 million for the corresponding period a year ago, and cash flow from operations of $65.2 million in the second quarter of 2025. Capital expenditures for the third quarter totaled $4.0 million, compared to $8.4 million for the corresponding period a year ago and $6.2 million for the second quarter of 2025. Stock repurchases for the third quarter totaled $15.6 million, compared with $17.5 million for the second quarter of 2025. Cash and cash equivalents as of September 30, 2025 increased 7.0% sequentially to approximately $362.4 million compared to approximately $338.5 million as of June 30, 2025.

Backlog for the third quarter ended September 30, 2025 totaled $152.8 million, a 1.5% increase from $150.6 million for the corresponding period a year ago, and 1.5% sequential decrease from $155.2 million at the end of the second quarter of 2025.

Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Licensing revenue reached a record rate in Q3 following the litigation settlement for prior infringement recorded in Q2. As high density power systems pioneered by Vicor, including NBMs and VPD, are on the critical path of high performance computing, I expect Vicor’s IP licensing practice to grow substantially. OEMs and hyper-scalers need a license, or need to renew their license or expand its scope. Vicor is pursuing additional actions to curtail access to infringing computing systems sourced from infringing contract manufacturers relying on infringing power module makers.”

“At the core of Vicor’s IP licensing practice, Vicor’s high density power module business leverages its first ChiP foundry with its distinct growth opportunity. With foundry processes delivering 98% final test yields for mass produced modules, higher margins await greater absorption of foundry capacity, exceeding $1 Billion per year. The current density of 5th generation ChiPs and 2nd Generation VPD, surpassing handicapped multi-phase VRs, or IVRs and their inefficient power distribution networks, will bring about greater foundry capacity utilization.”

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, Tuesday, October 21, 2025 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 October 21, 2025. 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.

Forward-looking statements notice

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.

VICOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Thousands except for per share amounts)

	QUARTER ENDED (Unaudited)		YEAR ENDED (Unaudited)
	SEPT 30, 2025	SEPT 30, 2024	SEPT 30, 2025	SEPT 30, 2024
Product revenue	$88,698	$79,796	$257,597	$232,071
Royalty revenue	21,725	13,370	42,840	30,821
Patent litigation settlement	-	-	45,000	-
Total product revenue, royalty revenue and patent litigation settlement	110,423	93,166	345,437	262,892
Cost of product revenues	46,910	47,422	145,431	129,254
Gross margin	63,513	45,744	200,006	133,638
Operating expenses:
Selling, general and administrative	22,747	23,398	75,836	72,715
Research and development	19,859	16,960	58,027	51,938
Litigation-contingency expense	-	-	-	19,500
Total operating expenses	42,606	40,358	133,863	144,153
Income (loss) from operations	20,907	5,386	66,143	(10,515)
Other income (expense), net	2,407	3,713	9,198	9,244
Income (loss) before income taxes	23,314	9,099	75,341	(1,271)
Less: (Benefit) provision for income taxes	(4,988)	(2,455)	3,278	2,832
Consolidated net income (loss)	28,302	11,554	72,063	(4,103)
Less: Net income attributable to noncontrolling interest	10	2	40	14
Net income (loss) attributable to Vicor Corporation	$28,292	$11,552	$72,023	($4,117)
Net income (loss) per share attributable to Vicor Corporation:
Basic	$0.63	$0.26	$1.60	($0.09)
Diluted	$0.63	$0.26	$1.59	($0.09)
Shares outstanding:
Basic	44,734	45,117	44,986	44,829
Diluted	44,930	45,174	45,167	44,829

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

	SEPT 30, 2025 (Unaudited)	DEC 31, 2024 (Unaudited)
Assets
Current assets:
Cash and cash equivalents	$362,382	$277,273
Accounts receivable, net	53,252	52,948
Inventories	92,294	106,032
Other current assets	25,985	26,781
Total current assets	533,913	463,034
Long-term deferred tax assets	275	261
Long-term investment, net	2,406	2,641
Property, plant and equipment, net	152,526	152,705
Other assets	21,127	22,477
Total assets	$710,247	$641,118
Liabilities and Equity
Current liabilities:
Accounts payable	$15,391	$8,737
Accrued compensation and benefits	13,438	10,852
Accrued expenses	5,437	6,589
Accrued litigation	27,919	26,888
Sales allowances	2,569	1,667
Short-term lease liabilities	1,584	1,716
Income taxes payable	154	59
Short-term deferred revenue and customer prepayments	4,197	5,312
Total current liabilities	70,689	61,820
Long-term income taxes payable	3,430	3,387
Long-term lease liabilities	5,775	5,620
Total liabilities	79,894	70,827
Equity:
Vicor Corporation stockholders’ equity:
Capital stock	429,542	408,187
Retained earnings	374,826	302,803
Accumulated other comprehensive loss	(1,561)	(1,495)
Treasury stock	(172,728)	(139,424)
Total Vicor Corporation stockholders’ equity	630,079	570,071
Noncontrolling interest	274	220
Total equity	630,353	570,291
Total liabilities and equity	$710,247	$641,118

Contacts
James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: invrel@vicorpower.com