Navitas Semiconductor (NASDAQ:NVTS) reported second-quarter 2026 revenue of $10.5 million, up 22% sequentially from $8.6 million in the first quarter, as growth in higher-power markets offset the company’s continued exit from mobile and low-end consumer applications.
President and CEO Chris Allexandre said the company’s “Navitas 2.0” transformation is substantially complete, with the business increasingly centered on gallium nitride, or GaN, and high-voltage silicon carbide, or SiC, products for artificial intelligence infrastructure, grid and energy systems, performance computing and industrial electrification.
Revenue Mix Shifts Toward AI Infrastructure
Management said AI infrastructure, including data centers and the grid and energy systems needed to power them, is expected to account for more than one-third of total revenue by the end of the year. The company said both its GaN and SiC product lines contributed to sequential growth during the second quarter, with particular acceleration in SiC.
Allexandre said Navitas is seeing demand before the broader transition to native 800-volt DC data-center architectures. Higher power requirements in AC/DC power supplies are increasing demand for higher-density solutions and accelerating the replacement of silicon with SiC, he said.
The company outlined several anticipated stages in the evolution of AI data-center power systems:
- Higher-power AC/DC power supply units using SiC are already ramping and are expected to continue through 2027.
- Power sidecar architectures with 800-volt DC output are expected to add SiC and GaN content beginning in 2027.
- Native 800-volt systems, in which DC/DC conversion moves closer to GPU and XPU compute trays, are expected to ramp from mid- to late 2027 and accelerate into 2028.
- Solid-state transformers and broader grid-to-rack 800-volt DC systems represent a longer-term opportunity beginning in 2028 and beyond.
During the question-and-answer session, Allexandre said the company does not expect market discussion surrounding potential changes to certain 800-volt data-center platforms to alter its outlook. He said adoption will occur through multiple customers, platforms and stages rather than through a single transition.
Margins Improve as Operating Spending Set to Rise
Chief Financial Officer Tonya Stevens said non-GAAP gross margin expanded to 39.5%, up 50 basis points sequentially and 100 basis points from the prior-year quarter. The improvement reflected a more favorable mix of higher-value, high-power products and increased revenue scale.
Non-GAAP operating expenses were $15.5 million, compared with $15.0 million in the first quarter and $16.1 million a year earlier. The company reported a non-GAAP operating loss of $11.4 million, compared with a $11.7 million loss in the prior quarter. Non-GAAP loss per share was $0.04, unchanged sequentially and improved from a $0.05 loss a year earlier.
Stevens said the company plans to increase quarterly operating expenses by approximately $1 million to $1.5 million beginning in the third quarter, primarily for research and development, customer engineering support and operational readiness for expected production ramps. She said the planned increase remains below the company’s expected revenue-growth rate.
On a GAAP basis, Navitas recorded a non-cash charge of $203 million associated with earn-out share provisions from its 2021 business combination. Stevens said the earn-out was fully recognized and settled by the end of the second quarter, and the company does not expect further charges related to that liability.
Third-Quarter Outlook Calls for Continued Growth
For the third quarter, Navitas forecast revenue of $13.5 million, plus or minus $500,000. At the midpoint, the outlook would represent 28% sequential growth and a return to year-over-year revenue growth, according to management.
The company projected non-GAAP gross margin of 39.7%, plus or minus 100 basis points, and non-GAAP operating expenses of $15.5 million to $17.5 million.
Allexandre said record book-to-bill levels and backlog extending beyond 2026 support management’s expectation for continued double-digit quarterly growth during the second half of 2026. Management did not quantify how much anticipated 2027 growth is covered by committed programs versus programs still moving through qualification.
Balance Sheet, Product and Supply-Chain Developments
Navitas ended the quarter with $557 million in cash and cash equivalents, up from $221 million at the end of the first quarter. The increase primarily reflected approximately $373 million of capital raised during the quarter at an average stock price of $21.89. The company said it has no debt.
Inventory rose to $19.5 million from $14.9 million in the prior quarter, while prepaid expenses and other current assets increased by about $15 million for anticipated wafer receipts. Stevens said the inventory build is intended to support expected AI data-center demand and help ensure continuity for customers during the company’s transition to 8-inch GaN manufacturing.
Allexandre said lead products from Navitas’ GlobalFoundries partnership are on track for customer sampling and qualification before year-end, with initial qualified products expected in early 2027. He said Navitas has also secured buffer capacity at TSMC to support existing customers through 2029 and beyond.
The company also announced a SiC technology licensing partnership with Magnachip. Allexandre said the arrangement is intended to expand adoption of Navitas’ GeneSiC technology in markets Navitas does not directly serve and could eventually provide an additional foundry source for SiC wafers.
Navitas plans to introduce a 1.2-kilovolt SiC JFET product line early next year, targeting AI data centers, solid-state transformers and energy-grid infrastructure. Management said the new product family could address an additional $1 billion of serviceable available market by 2030.
About Navitas Semiconductor (NASDAQ:NVTS)
Navitas Semiconductor is a fabless semiconductor company specialized in gallium nitride (GaN) power integrated circuits. The company’s core mission centers on delivering high-efficiency, high-power-density power solutions that address the needs of modern electronic devices, ranging from fast chargers for consumer electronics to industrial and automotive power systems.
Navitas offers a portfolio of GaNFast power ICs designed to replace traditional silicon-based power components. These products integrate GaN transistors, drivers and protection features into single-chip solutions, enabling faster charging, reduced energy loss and smaller power supply footprints.
