Power Integrations, Inc. (NASDAQ: POWI) Q2 2025 Earnings | 08/07/2025

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Power Integrations reported its second-quarter 2025 financial results with revenue of $115.9 million, representing a 9% year-over-year increase and a 10% sequential rise. The company exceeded analyst expectations for revenue while delivering non-GAAP earnings per share (EPS) of $0.35, in line with forecasts. GAAP net income was $1.4 million, or $0.02 per diluted share, down from prior quarters due to non-recurring charges. Revenue growth was driven by a 30% increase in industrial sales, notably in metering, home and building automation, solar energy, and high-voltage DC transmission. Communication revenues rose over 20% sequentially, aided by seasonal trends in cell phones, while computer category sales saw a high single-digit increase, supported by tablet demand. The consumer segment declined mid-single digits sequentially after a strong first quarter bolstered by tariff front-loading. The revenue mix for Q2 was 40% industrial, 37% consumer, 12% computer, and 11% communications. The company’s GaN (gallium nitride) product revenues surged over 50% in the first half of 2025, expanding applications across appliances, industrial, electric vehicles (EVs), AI data centers, notebooks, TVs, and gaming markets. New CEO Jennifer Lloyd emphasized growth opportunities in the automotive and high-power markets, with automotive revenues expected to contribute materially in 2026, backed by multiple global design wins. Non-GAAP gross margin was 55.8%, down slightly from the prior quarter due to higher input costs despite a favorable product mix. Operating expenses were managed with reported share repurchases of 706,000 shares for $32.6 million and a dividend payment of $0.21 per share. Cash flow from operations totaled approximately $29 million. Looking ahead, Power Integrations provided Q3 2025 guidance for revenues between $113 million and $123 million, expecting GAAP gross margins of 54.5% to 55%, and non-GAAP gross margins of 55% to 55.5%. The company highlighted macroeconomic uncertainty as a factor affecting near-term visibility. Risks noted include tariff impacts on consumer appliances and ongoing cost pressures, while growth is underpinned by GaN technology’s strong market adoption and expanding industrial and automotive segments. About Inside Ticker: Inside Ticker delivers timely, in-depth financial news and earnings analysis to empower investors with actionable insights on global companies across sectors. For comprehensive video analysis and real-time updates, visit https://www.insideticker.com/. #PowerIntegrations #POWI #Q22025 #Earnings #FinancialResults #Revenue #NetIncome #EPS #Growth #GaN #Semiconductors #IndustrialAutomation #AutomotiveTech #ElectricVehicles #HighPower #ConsumerElectronics #Metering #HomeAutomation #SolarEnergy #DCTransmission #AIDataCenters #Computers #Communications #Tariffs #Dividend #ShareRepurchase #InvestorUpdates #TechEarnings #InsideTicker #SemiconductorGrowth #EnergyEfficiency #CleanTech #TechStocks #NASDAQ #ElectronicsIndustry