Key Points
Sales to high-power markets are driving growth as the company leaves mobile and low-end consumer chips behind.
The fourth-quarter outlook includes operating costs from Claros, a newly acquired power-delivery business.
Cash is up sharply from year-end, though the release does not explain where it came from.
Navitas Semiconductor (NASDAQ:NVTS) grew third-quarter revenue 38% to $14.0 million, its first year-over-year gain since 2024. Shares rose about 5% in after-hours trading. The growth is real. Fourth-quarter guidance, though, has costs rising much faster than revenue, so losses should widen before they narrow.
Key Numbers
- Revenue: $14.0 million, up from $10.1 million a year earlier
- GAAP gross margin: 21.5%, versus negative 2% a year earlier
- GAAP loss from operations: $34.4 million, versus $19.4 million a year earlier
- Cash and cash equivalents: $531.5 million, versus $236.9 million at year-end 2025
What It Means
Fourth-quarter guidance puts non-GAAP operating expenses about 50% above this quarter, and the release says that includes the newly acquired Claros business. An acquisition adds its costs on day one, while its revenue usually takes longer to arrive. Revenue is guided up much less, so the non-GAAP operating loss should grow at the midpoint.
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The jump in GAAP gross margin is mostly an accounting effect. Some acquired technology finished amortizing, which cut a charge that sits in cost of revenue. On a non-GAAP basis, gross margin barely moved, at 40%.
Cash more than doubled since year-end, but the release has no cash flow statement, so it does not show where the money came from. Weighted shares outstanding are up 23% from a year ago.
What to Watch Next
Watch whether fourth-quarter revenue lands in the guided range while non-GAAP operating expenses stay near $25 million. The release also gives no current AI infrastructure revenue figure, so check whether that share is on track for the 40% target.
David Kretzmann has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.