Vicor Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 21 July 2026: press release. The quarter’s numbers.

Key takeaways

Revenue rose 26.9% sequentially: Product and royalty revenues were $143.4 million, up 26.9% from $113.0 million in the first quarter. The year-earlier $141.0 million included a $45.0 million patent litigation settlement. Source
Gross margin reached 58.0%: Gross margin was $83.1 million, or 58.0% of revenue, against $62.4 million and 55.2% in the first quarter. The year-earlier 65.3% included the $45.0 million settlement. Source
Net income rose to $1.04 per diluted share: Net income was $49.8 million, or $1.04 per diluted share, against $20.7 million or $0.44 in the first quarter and $41.2 million or $0.91 a year earlier. Operating income was $34.9 million. Source
Operating cash flow turned positive: Cash flow from operations was $34.0 million, against negative $3.9 million in the first quarter, which included a $28.6 million payment of an award for past litigation. Year-earlier was $65.2 million. Source
Cash balance rose 12.2% to $453.6M: Cash and cash equivalents were $453.6 million at June 30, 2026, up 12.2% from $404.2 million at March 31, 2026. Source
Backlog reached $380 million: Backlog was $380 million at June 30, 2026, up 26% from $301 million at March 31, 2026 and 145% from $155 million a year earlier. Source
Second fab moves toward action: Management said it is taking steps toward a second fab for high current density 2nd Gen VPD ChiPs as the first fab nears full utilization. No timing or cost was given. Source

“Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab.”
Chief Executive Officer Dr. Patrizio Vinciarelli

What changed from last quarter

New: The first-quarter release said the company was planning a second fab. The second-quarter release says it is taking steps toward a second fab for high current density 2nd Gen VPD ChiPs. Source

Revenue and royalty growth

Revenue rose 26.9% sequentially: Product and royalty revenues were $143.4 million, up 26.9% from $113.0 million in the first quarter. The year-earlier $141.0 million included a $45.0 million patent litigation settlement. Source
Royalty revenue doubled sequentially: Royalty revenue was $30.4 million, against $15.0 million in the first quarter and $10.4 million a year earlier. Product revenue was $112.9 million, against $85.7 million a year earlier. Source
Six-month revenue rose to $256.3 million: Six-month total net revenues were $256.3 million, against $190.0 million a year earlier. The year-earlier six-month figure including the settlement was $235.0 million. Source

Margins, costs and profit

Gross margin reached 58.0%: Gross margin was $83.1 million, or 58.0% of revenue, against $62.4 million and 55.2% in the first quarter. The year-earlier 65.3% included the $45.0 million settlement. Source
Net income rose to $1.04 per diluted share: Net income was $49.8 million, or $1.04 per diluted share, against $20.7 million or $0.44 in the first quarter and $41.2 million or $0.91 a year earlier. Operating income was $34.9 million. Source
Operating expenses rose sequentially: Operating expenses were $48.2 million, up from $45.5 million in the first quarter and $46.7 million a year earlier. Source
R&D fell while SG&A rose: Research and development was $20.6 million, down from $22.3 million in the first quarter. Selling, general and administrative expense was $27.6 million, up from $23.2 million. Source

“AI OEMs and Hyper-scalers are at a loss dealing with the current density and PDN limitations of 1 st Gen. VPD systems.”
Chief Executive Officer Dr. Patrizio Vinciarelli

Cash flow and balance sheet

Operating cash flow turned positive: Cash flow from operations was $34.0 million, against negative $3.9 million in the first quarter, which included a $28.6 million payment of an award for past litigation. Year-earlier was $65.2 million. Source
Cash balance rose 12.2% to $453.6M: Cash and cash equivalents were $453.6 million at June 30, 2026, up 12.2% from $404.2 million at March 31, 2026. Source
Capital spending was $11.2 million: Capital expenditures were $11.2 million, against $12.4 million in the first quarter and $6.2 million a year earlier. Source
Receivables and inventories increased: Accounts receivable were $78.9 million and inventories $104.5 million at June 30, 2026, up from $60.7 million and $91.3 million at December 31, 2025. Source

Backlog and end-market demand

Backlog reached $380 million: Backlog was $380 million at June 30, 2026, up 26% from $301 million at March 31, 2026 and 145% from $155 million a year earlier. Source
Rising demand in four end markets: Management cited rising demand in high-performance compute, automatic test equipment, and industrial, aerospace and defense applications, which it said is absorbing capacity in the first fab. Source
First fab capacity being expanded: The first-quarter release said capacity was being expanded with additional equipment in the first fab while a second fab was being planned.

“With its 2 nd Gen VPD IP, Vicor is uniquely equipped to overcome the power system challenges standing in the way of future advances in TPUs, GPUs and Wafer Scale Engines.”
Chief Executive Officer Dr. Patrizio Vinciarelli

Second fab and IVR applications

Second fab moves toward action: Management said it is taking steps toward a second fab for high current density 2nd Gen VPD ChiPs as the first fab nears full utilization. No timing or cost was given. Source
Industry shift to IVRs trades off: Management said moving from VRs to IVRs swaps low current density for low current gain. It described feeding IVRs with a current multiplier as an added application for the company. Source
AI OEMs face 1st Gen VPD limits: Management said AI OEMs and hyperscalers face current density and PDN limits with 1st Gen VPD systems. Source

Share count, tax and treasury stock

Treasury stock fell to $128.1 million: Treasury stock was $128.1 million at June 30, 2026, against $170.9 million at December 31, 2025. The release does not describe the transactions behind the change. Source
Diluted share count rose to 47.7M: Diluted shares were 47.7 million, against 45.1 million a year earlier. Basic shares were 45.9 million, against 45.0 million a year earlier. Source
Income tax benefit of $10.9 million: Income tax was a $10.9 million benefit for the quarter, against a $7.8 million provision a year earlier. Consolidated net income was $49.8 million. Source

Figures management reported

Figure	Reported
Backlog Source	$380 million
Gross margin Source	58.0%

Risks management discussed

Operational: Management said the first fab is nearing full capacity utilization, which is why it is taking steps toward a second fab. Source

Earlier plans management reported on

Not stated: The first-quarter release described a second fab and an alternate source of 2nd Gen VPD modules for redundant access. The second-quarter release says steps toward a second fab are being taken.
Not stated: The first-quarter release tied the 70% sequential backlog increase to revenue growth. Second-quarter revenue rose 26.9% sequentially from the first quarter.

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 Second Quarter Ended June 30, 2026

Andover, Mass., July 21, 2026 (GLOBE NEWSWIRE) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the second quarter ended June 30, 2026. These results will be discussed at 8:00 a.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.

Product and royalty revenues for the second quarter ended June 30, 2026 totaled $143.4 million, a 26.9% sequential increase from $113.0 million in the first quarter of 2026, compared to $141.0 million from product revenues, royalty revenues and a patent litigation settlement of $45.0 million for the corresponding period a year ago.

Gross margin increased sequentially to $83.1 million for the second quarter of 2026, compared to $62.4 million for the first quarter of 2026, and decreased from $92.1 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 58.0% for the second quarter of 2026, compared to 55.2% for the first quarter of 2026. Gross margin decreased from 65.3% for the corresponding period a year ago which included the aforementioned $45.0 million patent litigation settlement. Operating expenses increased sequentially to $48.2 million for the second quarter of 2026, compared to $45.5 million for the first quarter of 2026, and increased from $46.7 million for the corresponding period a year ago.

Net income for the second quarter was $49.8 million, or $1.04 per diluted share, compared to net income of $20.7 million, or $0.44 per diluted share, for the first quarter of 2026 and net income of $41.2 million or $0.91 per diluted share, for the corresponding period a year ago.

Cash flow from operations totaled $34.0 million for the second quarter, compared to cash flow used for operations of $(3.9) million in the first quarter of 2026, which included the impact of a $28.6 million payment of an award for past litigation, and cash flow from operations of $65.2 million for the corresponding period a year ago. Capital expenditures for the second quarter totaled $11.2 million, compared to $12.4 million for the first quarter of 2026 and $6.2 million for the corresponding period a year ago. Cash and cash equivalents as of June 30, 2026 increased 12.2% sequentially to approximately $453.6 million compared to approximately $404.2 million as of March 31, 2026.

Backlog for the second quarter ended June 30, 2026 totaled $380 million, a 26% sequential increase from $301 million at the end of the first quarter of 2026, and increased 145% from $155 million for the corresponding period a year ago.

Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications is absorbing increased capacity within our first ChiP fab. As we get closer to full capacity utilization, we are taking steps toward a second fab for high current density 2 Gen VPD ChiPs.

AI OEMs and Hyper-scalers are at a loss dealing with the current density and PDN limitations of 1 Gen. VPD systems. The industry’s fixation with PoL regulators (replacing VRs, operating from 12V or 6V, with IVRs, operating from 1.8V) merely trades off one handicap (low current density) for another (low current gain). Feeding IVRs with a current multiplier is an incremental opportunity for Vicor.

With its 2 Gen VPD IP, Vicor is uniquely equipped to overcome the power system challenges standing in the way of future advances in TPUs, GPUs and Wafer Scale Engines.”

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, July 21, 2026 at 8:00 a.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 8:00 a.m. on July 21, 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.

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, 2025, 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)		SIX MONTHS ENDED (Unaudited)
	JUN 30, 2026	JUN 30, 2025	JUN 30, 2026	JUN 30, 2025
Product revenue	$112,926	$85,693	$210,930	$168,899
Royalty revenue	30,426	10,353	45,391	21,115
Total net revenues	143,352	96,046	256,321	190,014
Patent litigation settlement	-	45,000	-	45,000
Total net revenues and patent litigation settlement	143,352	141,046	256,321	235,014
Cost of product revenues	60,232	48,918	110,835	98,521
Gross margin	83,120	92,128	145,486	136,493
Operating expenses:
Selling, general and administrative	27,601	27,952	50,793	53,089
Research and development	20,641	18,791	42,931	38,168
Total operating expenses	48,242	46,743	93,724	91,257
Income from operations	34,878	45,385	51,762	45,236
Other income (expense), net	4,045	3,657	7,564	6,791
Income before income taxes	38,923	49,042	59,326	52,027
Less: (Benefit) provision for income taxes	(10,863)	7,842	(11,136)	8,266
Consolidated net income	49,786	41,200	70,462	43,761
Less: Net income attributable to noncontrolling interest	14	8	26	30
Net income attributable to Vicor Corporation	$49,772	$41,192	$70,436	$43,731
Net income per share attributable to Vicor Corporation:
Basic	$1.08	$0.92	$1.54	$0.97
Diluted	$1.04	$0.91	$1.48	$0.97
Shares outstanding:
Basic	45,936	45,007	45,703	45,112
Diluted	47,708	45,077	47,481	45,286

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

	JUN 30, 2026 (Unaudited)	DEC 31, 2025 (Unaudited)
Assets
Current assets:
Cash and cash equivalents	$453,582	$402,805
Accounts receivable, net	78,929	60,716
Inventories	104,489	91,340
Other current assets	33,346	32,502
Total current assets	670,346	587,363
Long-term deferred tax assets	38,746	27,463
Long-term investment, net	2,525	2,462
Property, plant and equipment, net	162,536	147,690
Other assets	20,009	20,853
Total assets	$894,162	$785,831
Liabilities and Equity
Current liabilities:
Accounts payable	$20,415	$12,290
Accrued compensation and benefits	15,321	12,031
Accrued expenses	7,662	3,691
Accrued litigation	-	28,275
Sales allowances	4,414	3,136
Short-term lease liabilities	1,767	1,568
Income taxes payable	141	904
Short-term deferred revenue and customer prepayments	875	3,426
Total current liabilities	50,595	65,321
Long-term income taxes payable	3,132	3,086
Long-term lease liabilities	5,841	5,608
Total liabilities	59,568	74,015
Equity:
Vicor Corporation stockholders’ equity:
Capital stock	472,396	462,805
Retained earnings	491,795	421,359
Accumulated other comprehensive loss	(1,733)	(1,672)
Treasury stock	(128,139)	(170,935)
Total Vicor Corporation stockholders’ equity	834,319	711,557
Noncontrolling interest	275	259
Total equity	834,594	711,816
Total liabilities and equity	$894,162	$785,831

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