Vicor Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 20 October 2026: press release. The quarter’s numbers.

Key takeaways

Revenue rose 78.5% year on year: Product and royalty revenue was $197.1 million, up 37.5% from $143.4 million in the second quarter and 78.5% from $110.4 million a year earlier. Source
Net income and diluted EPS rose: Net income was $63.3 million, or $1.33 per diluted share, against $49.8 million, or $1.04, in the second quarter and $28.3 million, or $0.63, a year earlier. Source
Royalty revenue rose against prior periods: Royalty revenue was $66.6 million, up from $30.4 million in the second quarter and $21.7 million a year earlier. Source
First VPD license at Stage-2 rates: Management said it granted its first VPD license to an AI OEM at Stage-2 unit royalty rates. Source
ITC investigation drawing licensing inquiries: Management said the ITC investigation is prompting inquiries about licenses at royalty rates that strongly favor early adopters. Source
Gross margin rose to 68.3%: Gross margin was 68.3% of revenue, against 58.0% in the second quarter and 57.5% a year earlier. Source
Backlog rose to $406 million: Backlog was $406 million, up 7% from $380 million in the second quarter and up 166% from $153 million a year earlier. Source

“Capacity expansion is necessary in view of demand and industry trends.”
CEO Dr. Patrizio Vinciarelli

What changed from last quarter

New: Management said it bought two additional sites within 30 miles of ChiP Fab-1 in Andover. The prior release had described steps toward a second fab. Source
New: Management said it granted its first VPD license, to an AI OEM, at Stage-2 unit royalty rates. Source
New: Management said the ITC decided to institute an investigation into VPD infringement. Source

Results and growth drivers

Revenue rose 78.5% year on year: Product and royalty revenue was $197.1 million, up 37.5% from $143.4 million in the second quarter and 78.5% from $110.4 million a year earlier. Source
Net income and diluted EPS rose: Net income was $63.3 million, or $1.33 per diluted share, against $49.8 million, or $1.04, in the second quarter and $28.3 million, or $0.63, a year earlier. Source
Cash flow from operations climbed: Cash flow from operations was $69.7 million, compared with $34.0 million in the second quarter and $38.5 million a year earlier. Source
Nine-month revenue rose from prior year: Nine-month net revenue was $453.4 million, against $300.4 million. The prior-year nine-month total including a $45.0 million patent litigation settlement was $345.4 million. Source

Revenue mix by line

Product revenue rose from second quarter: Product revenue was $130.5 million, up from $112.9 million in the second quarter and $88.7 million a year earlier. Source
Royalty revenue rose against prior periods: Royalty revenue was $66.6 million, up from $30.4 million in the second quarter and $21.7 million a year earlier. Source
Nine-month royalty and product revenue: Nine-month royalty revenue was $112.0 million against $42.8 million, and nine-month product revenue was $341.4 million against $257.6 million. Source

“On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates.”
CEO Dr. Patrizio Vinciarelli

Products, licensing and customers

First VPD license at Stage-2 rates: Management said it granted its first VPD license to an AI OEM at Stage-2 unit royalty rates. Source
ITC investigation drawing licensing inquiries: Management said the ITC investigation is prompting inquiries about licenses at royalty rates that strongly favor early adopters. Source
Unlicensed OEMs may not yet know: Management said unlicensed OEMs and hyperscalers may not have realized the implications of importing systems that infringe its VPD patents. Source
2nd Gen VPD demonstrated to customers: Management said it demonstrated 2nd Gen VPD advantages in private presentations and lab sessions, and participants gave positive feedback. Source
Competing VR and IVR barriers cited: Management said VRs and IVRs face electrical, mechanical and thermal barriers to escalating AI processor requirements, and that Open Compute confirmed these challenges. Source

Costs and operating expenses

Operating expenses rose with contingency fees: Operating expenses, which include contingency fees to law firms enforcing Vicor IP, were $62.5 million, up from $48.2 million in the second quarter and $42.6 million a year earlier. Source
SG&A and R&D rose: Selling, general and administrative expense was $38.6 million and research and development was $24.0 million, against $27.6 million and $20.6 million in the second quarter. Source
Income tax provision against prior benefit: The provision for income taxes was $15.4 million, against a benefit of $10.9 million in the second quarter and $5.0 million a year earlier. Source

“The ITC decision to institute an investigation into VPD infringement is catching their attention”
CEO Dr. Patrizio Vinciarelli

Margins and profit

Gross margin rose to 68.3%: Gross margin was 68.3% of revenue, against 58.0% in the second quarter and 57.5% a year earlier. Source
Gross margin dollars rose: Gross margin dollars were $134.7 million, up from $83.1 million in the second quarter and $63.5 million a year earlier. Source
Operating income rose to $72.1 million: Income from operations was $72.1 million, against $34.9 million in the second quarter and $20.9 million a year earlier. Source

Demand and order book

Backlog rose to $406 million: Backlog was $406 million, up 7% from $380 million in the second quarter and up 166% from $153 million a year earlier. Source
Receivables and inventories rose: Accounts receivable were $122.5 million, up from $78.9 million at June 30, 2026. Inventories were $110.9 million, up from $104.5 million. Source
Demand cited in prior release: The second-quarter release said rising demand across several end markets was absorbing increased capacity within the first ChiP fab.

Capital, cash and balance sheet

Cash rose to $513.1 million: Cash and cash equivalents were $513.1 million at September 30, 2026, up 13.1% from $453.6 million at June 30, 2026. Source
Capital expenditures rose: Capital expenditures were $16.1 million, against $11.2 million in the second quarter and $4.0 million a year earlier. Source
Retained earnings and treasury stock: Retained earnings were $555.1 million, up from $421.4 million at December 31, 2025. Treasury stock was $(165.9) million, against $(128.1) million at June 30, 2026. Source
Accrued litigation fell to nil: Accrued litigation was nil at September 30, 2026, against $28.3 million at December 31, 2025. Source

Share count and per-share results

Diluted share count rose: Diluted shares were 47.6 million, against 44.9 million a year earlier. Basic shares were 46.1 million, against 44.7 million. Source
Basic EPS for quarter: Basic net income per share was $1.37 for the quarter, against $1.08 in the second quarter and $0.63 a year earlier. Source
Nine-month diluted EPS: Nine-month diluted EPS was $2.81, against $1.59 in the prior-year nine months. Nine-month basic EPS was $2.92, against $1.60. Source

Strategy, leadership and contacts

Licensing described as core model: The release describes Vicor as licensing its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Source
Second fab plan from prior release: The second-quarter release said management was taking steps toward a second fab for high current density 2nd Gen VPD ChiPs as Fab-1 approached full utilization.
ALL-FPA modules for broader adoption: Management said the stage is set for broader adoption of high performance ALL-FPA current multiplier modules that enable 2nd Gen VPD. Source
CEO and CFO named in release: The release names CEO Dr. Patrizio Vinciarelli as the speaker and James F. Schmidt, Chief Financial Officer, as the investor contact. Source

Figures management reported

Figure	Reported
Backlog Source	$406 million
Gross margin Source	68.3%

Risks management discussed

Regulatory: The ITC investigation into VPD infringement is drawing attention from unlicensed OEMs and hyperscalers, according to management. Source
Operational: Management said capacity expansion is necessary in view of demand and industry trends, and the company bought two sites to add capacity. Source
Financial: Operating expenses include contingency fees to law firms enforcing Vicor IP, which rose in the quarter. Source
Demand: Management said unlicensed OEMs and hyperscalers may not yet have recognized the implications of importing systems that infringe its VPD patents. Source

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, 2026

Andover, Mass., October 20, 2026 (GLOBE NEWSWIRE) - Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 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 third quarter ended September 30, 2026 totaled $197.1 million, a 37.5% sequential increase from $143.4 million in the second quarter of 2026, and increased 78.5% from $110.4 million for the corresponding period a year ago.

Gross margin increased sequentially to $134.7 million for the third quarter of 2026, compared to $83.1 million for the second quarter of 2026, and increased from $63.5 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 68.3% for the third quarter of 2026, compared to 58.0% for the second quarter of 2026, and increased from 57.5% for the corresponding period a year ago. Operating expenses, including contingency fees to law firms enforcing Vicor IP, increased sequentially to $62.5 million for the third quarter of 2026, compared to $48.2 million for the second quarter of 2026, and increased from $42.6 million for the corresponding period a year ago.

Net income for the third quarter was $63.3 million, or $1.33 per diluted share, compared to net income of $49.8 million, or $1.04 per diluted share, for the second quarter of 2026 and net income of $28.3 million or $0.63 per diluted share, for the corresponding period a year ago.

Cash flow from operations totaled $69.7 million for the third quarter, compared to cash flow from operations of $34.0 million in the second quarter of 2026, and cash flow from operations of $38.5 million for the corresponding period a year ago. Capital expenditures for the third quarter totaled $16.1 million, compared to $11.2 million for the second quarter of 2026 and $4.0 million for the corresponding period a year ago. Cash and cash equivalents as of September 30, 2026 increased 13.1% sequentially to approximately $513.1 million compared to approximately $453.6 million as of June 30, 2026.

Backlog for the third quarter ended September 30, 2026 totaled $406 million, a 7% sequential increase from $380 million at the end of the second quarter of 2026, and increased 166% from $153 million for the corresponding period a year ago.

Commenting on recent developments, CEO Dr. Patrizio Vinciarelli stated: “With the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover, we will be able to provide a nearly 5X increase in capacity from 3 Fabs, relative to Fab-1. Capacity expansion is necessary in view of demand and industry trends.

Open Compute confirmed the challenges of VRs and IVRs. In addition to infringing patents to 1 GEN VPD, VRs and IVRs face electrical, mechanical and thermal barriers to escalating AI processor requirements. In private presentations and lab sessions with OEMs and Hyperscalers, we demonstrated the distinct advantages of Vicor’s 2 GEN VPD. Participants paid attention, providing positive feedback and interest in engaging. The stage is set for broader adoption of high performance ALL-FPA current multiplier modules which enable 2 GEN VPD.

On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates. Unlicensed OEMs and Hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD. The ITC decision to institute an investigation into VPD infringement is catching their attention, prompting inquiries about licenses at royalty rates that strongly favor early adopters.”

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 20, 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 October 20, 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 designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.

VICOR CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Thousands except for per share amounts)

	QUARTER ENDED (Unaudited)		NINE MONTHS ENDED (Unaudited)
	SEPT 30, 2026	SEPT 30, 2025	SEPT 30, 2026	SEPT 30, 2025
Product revenue	$130,501	$88,698	$341,431	$257,597
Royalty revenue	66,613	21,725	112,004	42,840
Total net revenues	197,114	110,423	453,435	300,437
Patent litigation settlement	-	-	-	45,000
Total net revenues and patent litigation settlement	197,114	110,423	453,435	345,437
Cost of product revenues	62,434	46,910	173,269	145,431
Gross margin	134,680	63,513	280,166	200,006
Operating expenses:
Selling, general and administrative	38,563	22,747	89,356	75,836
Research and development	23,969	19,859	66,900	58,027
Total operating expenses	62,532	42,606	156,256	133,863
Income from operations	72,148	20,907	123,910	66,143
Other income (expense), net	6,585	2,407	14,149	9,198
Income before income taxes	78,733	23,314	138,059	75,341
Less: Provision (benefit) for income taxes	15,401	(4,988)	4,265	3,278
Consolidated net income	63,332	28,302	133,794	72,063
Less: Net income attributable to noncontrolling interest	11	10	37	40
Net income attributable to Vicor Corporation	$63,321	$28,292	$133,757	$72,023
Net income per share attributable to Vicor Corporation:
Basic	$1.37	$0.63	$2.92	$1.60
Diluted	$1.33	$0.63	$2.81	$1.59
Shares outstanding:
Basic	46,129	44,734	45,845	44,986
Diluted	47,609	44,930	47,524	45,167

VICOR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Thousands)

	SEPT 30, 2026 (Unaudited)	DEC 31, 2025 (Unaudited)
Assets
Current assets:
Cash and cash equivalents	$513,137	$402,805
Accounts receivable, net	122,488	60,716
Inventories	110,922	91,340
Other current assets	13,594	32,502
Total current assets	760,141	587,363
Long-term deferred tax assets	23,439	27,463
Long-term investment, net	-	2,462
Property, plant and equipment, net	177,987	147,690
Other assets	20,053	20,853
Total assets	$981,620	$785,831
Liabilities and Equity
Current liabilities:
Accounts payable	$24,334	$12,290
Accrued compensation and benefits	14,047	12,031
Accrued expenses	22,223	3,691
Accrued litigation	-	28,275
Sales allowances	3,512	3,136
Short-term lease liabilities	1,733	1,568
Income taxes payable	208	904
Short-term deferred revenue and customer prepayments	418	3,426
Total current liabilities	66,475	65,321
Long-term income taxes payable	3,143	3,086
Long-term lease liabilities	5,427	5,608
Total liabilities	75,045	74,015
Equity:
Vicor Corporation stockholders’ equity:
Capital stock	518,247	462,805
Retained earnings	555,116	421,359
Accumulated other comprehensive loss	(1,174)	(1,672)
Treasury stock	(165,909)	(170,935)
Total Vicor Corporation stockholders’ equity	906,280	711,557
Noncontrolling interest	295	259
Total equity	906,575	711,816
Total liabilities and equity	$981,620	$785,831

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