Navitas Semiconductor (NASDAQ:NVTS) reported third-quarter revenue at the high end of its guidance range as the company continued shifting its business away from mobile and low-end consumer products toward high-power applications, particularly AI infrastructure.
Revenue rose 33% sequentially and 38% year over year to $14.0 million, marking the company’s first quarter of year-over-year growth since 2024. President and CEO Chris Allexandre said high-power markets grew more than 50% sequentially and by triple digits from a year earlier, while mobile and low-end consumer revenue continued to decline as a share of the business.
Margins expand as product mix changes
Non-GAAP gross margin increased 50 basis points sequentially to 40.0%, Navitas’ third consecutive quarter of sequential expansion. The margin was also 130 basis points above the level reported in the third quarter of 2025, according to management.
CFO Tonya Stevens said the improvement reflected both higher quarterly revenue and a greater contribution from higher-value high-power products. She said the company expects additional gradual expansion in the coming quarters as the revenue mix continues to move toward high-power markets.
Non-GAAP operating expenses were $16.5 million, up from $15.5 million in the prior quarter and $15.4 million a year earlier. Stevens said the increase was consistent with prior guidance and reflected targeted spending on research and development programs intended to support future growth. Navitas reported a non-GAAP operating loss of $10.9 million, improving from losses of $11.4 million in the second quarter and $11.5 million in the year-ago quarter.
Weighted average basic and diluted shares outstanding totaled approximately 261.5 million, producing a loss per share of $0.03, compared with a $0.04 loss in the prior quarter and a $0.05 loss a year earlier.
AI infrastructure becomes central growth focus
Management said AI infrastructure—including data centers and the grid and energy systems needed to support them—is expected to account for more than 40% of Navitas’ revenue exiting 2026. Allexandre said the company believes the AI infrastructure business is positioned to more than triple in calendar 2027 from its 2026 base.
Navitas is targeting power-conversion opportunities across the AI infrastructure chain using gallium nitride, or GaN, silicon carbide, or SiC, and integrated voltage regulator, or IVR, technologies. The company completed its acquisition of Claros in early October, adding IVR technology that management said can support power delivery closer to processors such as GPUs, CPUs and custom accelerators.
Allexandre said the addition of Claros expands the company’s addressable market by more than doubling its 2030 serviceable available market to over $8 billion, including the contribution from JFETs. He described the acquisition as a way for Navitas to address power delivery “from the grid to the XPU.”
During the call, management outlined four AI-related infrastructure inflection points. The first involves silicon replacement in higher-power AC/DC applications, where Navitas said its SiC products are already in production. The second centers on sidecar rack architectures and initial deployments of plus-or-minus 400-volt and 800-volt systems, which the company expects to contribute to 2027 growth. The third involves native 800-volt architectures for high-density racks, which management expects to enter production before the end of 2027 and become material in 2028. The fourth is modernization of grid and energy infrastructure, which Navitas characterized as a 2028-and-beyond opportunity.
The company said it is working on more than a dozen programs related to native 800-volt solutions and has received a large order for system testing from one existing customer. Allexandre also said Navitas has received an order for 1 million GaN devices for an 800-volt DC/DC power-conversion application.
Partnerships and manufacturing strategy
Navitas highlighted several recent customer and technology developments, including collaboration with NVIDIA on 800-volt-to-12-volt power-delivery boards for next-generation AI infrastructure. The company also cited previously announced 800-volt-to-6-volt and 800-volt-to-50-volt conversion boards.
Other developments included licensing GeneSiC technology to Magnachip, selection by the U.S. government to develop next-generation 10-kilovolt SiC power semiconductors, and initial shipments of U.S.-manufactured fifth-generation GaNFast products under its partnership with GlobalFoundries.
Navitas has renamed its “foundry plus” approach Integrated Fabless Manufacturing, or IFM. Allexandre said the model is designed as an alternative to both a traditional integrated device manufacturer and a fully fabless model. Under the approach, the company intends to retain ownership of key intellectual property and selected manufacturing equipment while working with foundry partners for production scale, capacity and supply security.
Fourth-quarter outlook and balance sheet
For the fourth quarter, Navitas forecast revenue of $16.0 million, plus or minus $0.5 million. At the midpoint, the outlook would represent 14% sequential growth and 119% year-over-year growth. The company expects full-year 2026 revenue to increase approximately 7%, with high-power growth offsetting the planned exit from mobile business.
Fourth-quarter non-GAAP gross margin is projected at 40.5%, plus or minus 100 basis points. Non-GAAP operating expenses are expected to rise to $25.0 million, plus or minus $1 million, reflecting Claros-related costs as well as continued R&D and operational investments.
Navitas ended the third quarter with $531.5 million in cash and cash equivalents and no debt. The reported cash balance preceded the October 6 closing of the Claros transaction; after accounting for the approximately $126 million cash payment, Stevens said pro forma cash would have been about $405 million.
Inventory increased to $32.4 million from $19.5 million in the second quarter, largely due to planned buffer inventory of TSMC wafers and other supply-chain investments intended to support anticipated AI data center demand. Management said book-to-bill was approximately two during the third quarter, remained above one for several months, and that backlog extends into mid-2027.
About Navitas Semiconductor (NASDAQ:NVTS)
Navitas Semiconductor Corporation (NASDAQ:NVTS) develops power semiconductor technologies designed to improve the efficiency, performance and size of electronic systems. The company specializes in gallium nitride (GaN) power integrated circuits and silicon carbide (SiC) devices, which are used to convert and manage electrical power.
Its product portfolio includes GaNFast power ICs, GeneSiC silicon carbide products and related power-management solutions. These technologies are used in applications such as mobile and consumer chargers, data centers, solar inverters, electric vehicles, energy storage systems, appliances and industrial equipment.
Founded in 2014, Navitas serves customers and markets globally through its semiconductor products and engineering support.
