Power Integrations Reports Fourth-Quarter and Full-Year Financial Results

SAN JOSE, Calif.--( BUSINESS WIRE)--Power Integrations (NASDAQ: POWI) today announced financial results for the quarter and year ended December 31, 2025. Net revenue for the fourth quarter was $103.2 million, down 13 percent from the prior quarter and down two percent from the fourth quarter of 2024. GAAP net income for the fourth quarter was $13.3 million or $0.24 per diluted share compared to a net loss of $0.02 per diluted share in the prior quarter and net income of $0.16 per diluted share in the fourth quarter of 2024. Cash flow from operations for the fourth quarter was $26.2 million.

For the full year 2025, net revenue was $443.5 million, up six percent compared to the prior year. GAAP net income was $22.1 million or $0.39 per diluted share compared to $0.56 per diluted share in the prior year. Cash flow from operations for the year was $111.5 million.

In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets, expenses related to an employment-litigation matter, and the tax effects of these items. Non-GAAP net income for the fourth quarter of 2025 was $12.7 million or $0.23 per diluted share compared to $0.36 per diluted share in the prior quarter and $0.30 per diluted share in the fourth quarter of 2024. Full-year non-GAAP net income was $70.7 million or $1.25 per diluted share compared to $1.16 per diluted share in the prior year. A reconciliation of GAAP to non-GAAP financial results and outlook is included with the tables accompanying this press release.

Power Integrations also today announced that it has carried out a restructuring plan, reducing its global workforce by seven percent. The company expects to incur a charge of between $3.5 million and $4.0 million in the first quarter of 2026 associated with severance benefits and related expenses.

Power Integrations CEO Jen Lloyd commented: “I am pleased that we returned to growth in 2025 with a six-percent increase in total revenue, led by our industrial category which grew 15 percent. The growth in industrial was driven by record sales in our high-power gate-driver business, plus strength in metering, power tools, automotive and broad-based industrial applications. Additionally, total revenue from PowiGaN™ products grew more than 40 percent for the year.”

Dr. Lloyd continued: “Our addressable market continues to expand as AI data centers, electrification, grid modernization and other macro trends drive demand for innovative high-voltage technologies. We are taking steps to align our organization with these opportunities, including a restructuring of our workforce to better align expenses with revenue and create flexibility to invest in the products, people, and markets we expect to drive long-term growth and profitability.”

Financial Outlook / Dividend

The company issued the following forecast for the first quarter of 2026:

Conference Call Today at 1:30 p.m. Pacific Time

Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A webcast of the call will be available on the company's investor web page, http://investors.power.com.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, expenses stemming from an employment litigation matter and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to one measure, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations’ industry, may calculate non-GAAP measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

Note Regarding Forward-Looking Statements

This press release contains 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. Forward-looking statements generally relate to future events or the company’s future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern the company expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, the company’s restructuring plans and anticipated charges, the company’s guidance and outlook for the first quarter of 2026, and the trends and assumptions underlying such guidance and outlook, and the company’s expectations regarding its upcoming dividend, including the timing and amount of such dividend. The company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the company’s ability to forecast its performance; changes in trade policies, in particular the escalation and imposition of new and higher tariffs, which could reduce demand for end products that incorporate our integrated circuits and/or place pressure on our prices as our customers seek to offset the impact of increased tariffs on their own products; the company’s ability to supply products and its ability to conduct other aspects of its business, such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, which may impact the level of demand for the company’s products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company’s revenue to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates; and product development delays and defects and market acceptance of the new products. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the company’s filings with the Securities and Exchange Commission (“SEC”), including the company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 7, 2025 and subsequent Quarterly Reports on Form 10-Q filed with the SEC. The forward-looking statements in this release are based on information available to the company as of the date hereof and the company disclaims any obligation to update or alter its forward-looking statements, except as otherwise required by law.

Power Integrations, PowiGaN and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

103,204

118,919

105,250

443,504

418,973

48,595

54,068

47,983

201,855

194,222

54,609

64,851

57,267

241,649

224,751

24,334

26,696

25,689

101,116

100,790

15,773

17,455

16,931

67,952

67,825

9,472

10,374

10,728

42,701

38,207

(3,744

)

14,279

19,686

45,835

68,804

53,348

231,455

206,822

8,774

(3,953

)

3,919

10,194

17,929

2,373

2,555

3,384

10,785

12,825

11,147

(1,398

)

7,303

20,979

30,754

(2,143

)

(42

)

(1,837

)

(1,114

)

(1,480

)

13,290

(1,356

)

9,140

22,093

32,234

0.24

(0.02

)

0.16

0.39

0.57

0.24

(0.02

)

0.16

0.39

0.56

55,329

55,796

56,848

56,063

56,820

55,694

55,796

57,097

56,324

57,130

232

517

541

1,998

2,090

1,945

2,850

3,280

10,235

12,587

1,042

1,910

2,074

6,460

8,064

1,626

2,374

3,394

12,563

12,335

(5,120

)

13,554

8,434

(275

)

21,205

9,289

39,690

35,076

147

587

1,034

54,609

64,851

57,267

241,649

224,751

52.9

54.5

54.4

54.5

53.6

232

517

541

1,998

2,090

147

587

1,034

54,988

65,515

57,955

244,234

227,875

53.3

55.1

54.4

45,835

68,804

53,348

231,455

206,822

1,945

2,850

3,280

10,235

12,587

1,042

1,910

2,074

6,460

8,064

1,626

2,374

3,394

12,563

12,335

(5,120

)

13,554

8,434

1,376

725

11,252

869

21,413

8,748

48,944

32,986

44,966

47,391

44,600

182,511

173,836

8,774

(3,953

)

3,919

10,194

17,929

8.5

-3.3

3.7

2.3

4.3

(275

)

21,205

9,289

39,690

35,076

147

587

1,034

1,376

725

11,252

10,022

18,124

13,355

61,723

54,039

9.7

15.2

12.7

13.9

12.9

(2,143

)

(42

)

(1,837

)

(1,114

)

(1,480

)

-19.2

-3.0

-25.2

-5.3

-4.8

(1,806

)

(527

)

(1,366

)

(2,965

)

(2,153

)

(337

)

485

(471

)

1,851

673

-2.7

2.3

-2.8

2.6

1.0

13,290

(1,356

)

9,140

22,093

32,234

(275

)

21,205

9,289

39,690

35,076

147

587

1,034

1,376

725

11,252

(1,806

)

(527

)

(1,366

)

(2,965

)

(2,153

)

12,732

20,194

17,210

70,657

66,191

55,694

56,162

57,097

56,324

57,130

0.23

0.36

0.30

1.25

1.16

0.24

(0.02

)

0.16

0.39

0.56

Twelve Months Ended

111,518

(24,396

)

87,122

52.0

53.0

0.6

0.1

0.3

53.0

54.0

55.5

(5.3

)

(5.3

)

(3.2

)

(3.7

)

45.5

46.5

58,755

48,646

50,972

190,755

193,214

249,023

18,254

31,515

27,172

166,887

164,618

165,612

23,678

18,070

21,260

458,329

456,063

514,039

146,536

147,915

149,562

7,244

7,452

8,075

95,271

35,594

37,125

36,485

29,233

28,704

25,394

772,207

772,530

828,826

33,963

37,459

29,789

13,840

14,233

13,987

962

890

961

21,596

18,513

10,580

70,361

71,095

55,317

3,663

4,556

3,871

25,338

24,903

19,866

99,362

100,554

79,054

18,734

(1,105

)

(1,262

)

(3,023

)

673,930

673,218

734,039

672,845

671,976

749,772

772,207

772,530

828,826

13,290

(1,356

)

9,140

22,093

32,234

6,407

6,542

7,743

27,195

33,303

208

831

1,279

(108

)

(108

)

240

(275

)

21,205

9,289

39,690

35,076

(216

)

(198

)

(385

)

(1,135

)

(1,637

)

1,759

)

336

898

(8,352

)

214

(342

)

(245

)

13,222

(3,932

)

(10,752

)

9,260

(12,253

)

(2,269

)

3,778

2,068

(1,275

)

(2,448

)

(4,566

)

(1,204

)

(1,613

)

635

4,001

(2,762

)

5,767

1,540

3,253

3,454

1,369

(841

)

(3,086

)

10,523

(3,471

)

26,206

29,854

14,726

111,518

81,181

(7,050

)

(5,694

)

(3,045

)

(24,396

)

(17,286

)

150

(5,709

)

(11,079

)

(8,135

)

(64,484

)

(105,716

)

8,279

20,166

2,796

124,937

106,602

(9,520

)

(4,480

)

3,543

(8,384

)

36,207

(25,920

)

2,539

5,326

5,700

(42,440

)

(1,902

)

(98,098

)

(27,881

)

(11,617

)

(11,785

)

(11,937

)

(47,170

)

(46,037

)

13,000

(13,000

)

(11,617

)

(51,686

)

(13,839

)

(139,942

)

(68,218

)

10,109

(18,289

)

(7,497

)

7,783

(12,957

)

48,646

66,935

58,469

50,972

63,929

58,755

48,646

50,972

58,755

50,972