Q4 2025 Power Integrations Inc Earnings Call Transcript
Key Points
- Power Integrations Inc (POWI) reported a return to growth in 2025 with full-year revenue up 6% and Non-GAAP EPS growing by 8%.
- The company generated $112 million in cash flow from operations, up $30 million from the prior year.
- Power Integrations Inc (POWI) achieved 10% growth in design win value in 2025, with particular strength in GaN and high power products.
- The industrial market is expected to be the fastest-growing segment in 2026, driven by strong Q1 performance and recent design wins.
- Revenue from PowiGaN products grew more than 40% for the year, indicating strong market acceptance and growth potential.
- Fourth quarter revenue was $103 million, down 13% from the prior quarter, reflecting challenges in the industrial and consumer segments.
- Channel inventory remains high, with 9.4 weeks on hand, indicating potential challenges in inventory management.
- The consumer segment, particularly appliances, continues to face headwinds due to low existing home sales in the US and ongoing softness in China housing.
- Automotive and data center markets are expected to take more time to become significant revenue contributors, with some design ramps experiencing delays.
- Non-GAAP gross margins came in slightly below the expected range at 53.3%, due to an unfavorable revenue mix.
Hello, everyone. Thank you for joining us and welcome to the Power integrations Q4 earnings call.
(Operator Instructions)
I will now hand the call over to Joe Shiffler; senior director of investor relations. Please go ahead.
Thank you, Chelsea. Good afternoon, everyone. Thanks for joining us. With me on the call are Jennifer Lloyd; our CEO, and Nancy Erba, who joined Power Integrations last month as CFO.
After Jen and Nancy's prepared remarks, we'll open it up for questions.
Our discussion today will include forward-looking statements denoted by words like will, expect, should, outlook, forecast, and similar expressions that look toward future events or performance. Such statements are subject to risks that may cause actual results to differ from those projected or implied.
Such risks are discussed in today's press release.
And in our most recent Form 10-k filed with the SEC on February 7, 2025.
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