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Navitas Stock Declines 15.7% on Q2 Loss, Revenues Down Y/Y

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Key Takeaways

  • {\"0\":\"Navitas posted Q2 loss, in line with estimates, but revenues fell 29.2% year over year to $14.5M.\",\"1\":\"NVIDIA tapped Navitas tech for 800V data centers, unlocking large SiC and GaN market potential.\",\"2\":\"Navitas partnered with Powerchip for 200mm GaN manufacturing to cut costs and boost capacity.\"}

Navitas Semiconductor (NVTS - Free Report) shares have dropped 15.7% since second-quarter 2025 results reported on Monday (Aug. 4). Shares closed at $6.79 on Aug. 7, up 6.93%. Year to date, Navitas shares have appreciated 90.2%, outperforming the broader Zacks Computer and Technology sector’s return of 12.3%.

The decline in share prices can be attributed to sluggish results and an unimpressive outlook. Navitas reported a second-quarter 2025 non-GAAP loss of 5 cents per share, which was in line with the Zacks Consensus Estimate. The figure was narrower than the company’s year-ago quarter loss of 7 cents per share.

Revenues decreased 29.2% year over year to $14.5 million, lagging the Zacks Consensus Estimate by 0.23%. 

Navitas expects third-quarter 2025 revenues of $10 million (+/- $0.5 million). The Zacks Consensus Estimate for revenues is currently pegged at $9.99 million, indicating a 53.94% decline from the year-ago reported quarter.

NVTS Collaborates With NVIDIA & Powerchip

NVIDIA has selected Navitas to support next-generation 800V data centers. In stage 1, Solid-State Transformers are expected to replace antiquated Low-Frequency Transformers, leveraging Navitas’ unique Ultra-High Voltage SiC to improve the efficiency and robustness of the power grid. This creates $500 million per year SiC market potential by 2030.
 

 

In stage 2, 800V DC/DC can leverage Navitas’ high-voltage GaN and SiC, which, combined with new 80-200V GaN, can support the highest efficiency and density. This creates a $1 billion per year GaN and SiC market potential by 2030. 

In stage 3, a 48V DC/DC to power an AI processor can utilize Navitas’ new 80-200V GaN to support the highest efficiency and density. This creates a $1.2 billion per year market potential by 2030.

Navitas also inked a partnership deal with Powerchip for manufacturing 200mm (8”) 180nm GaN to support plans for higher levels of integration at a lower cost and greater capacity.

In the high-end mobile GaN charger market, Xiaomi and Navitas announced the world’s smallest and fastest charger to date, delivering 90W in the size of a typical 12W silicon charger.

NVTS’ Operating Details

The non-GAAP gross margin was 38.5%, contracting 180 basis points (bps) year over year.

Research and development expenses as a percentage of revenues increased 240 bps year over year to 63.7%. Selling, General and Administrative expenses increased 370 bps year over year to 47.7% in the reported quarter. 

Navitas reported a non-GAAP operating loss of $10.6 million, narrower than $13.3 million loss reported in the year-ago quarter.

NVTS’ Balance Sheet Details

As of June 30, 2025, cash and cash equivalents were $161.2 million.

The company raised $100 million in additional capital through the sale of approximately 20 million common shares.

Navitas’ Q3 Guidance in Details

Navitas’ third-quarter non-GAAP gross margin is expected to be 38.5% (+/- 50 bps). Operating expenses are expected to be roughly $15.5 million in the third quarter. 

The consensus mark for third-quarter 2025 loss is pegged at 4 cents per share, unchanged over the past 30 days and narrower than the 6 cents NVTS reported in the year-ago quarter.

Zacks Rank & Stocks to Consider

Navitas currently carries a Zacks Rank #4 (Sell).

Lumentum (LITE - Free Report) , Cisco Systems (CSCO - Free Report) , and Vipshop (VIPS - Free Report) are some stocks worth considering in the broader Zacks Computer and Technology sector. While Vipshop currently sports a Zacks Rank #1, Cisco and Lumentum carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lumentum shares have jumped 32.3% year to date. Lumentum is set to report its second-quarter 2025 results on Aug. 12.

Cisco Systems shares have appreciated 18.2% year to date. Cisco is set to report its fourth-quarter fiscal 2025 results on Aug. 13.

Vipshop shares are up 12.3% year to date. Vipshop is set to report its second-quarter 2025 results on Aug. 14.

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