Navitas Semiconductor's Q2 2025: Navigating Contradictions in Market Focus, Margins, and Demand

Shift in market focus and revenue impact, gross margin expectations and impact of market shifts, market strategy and gross margin expectations, GaN market adoption and customer demand, gross margin expectations amid market transitions are the key contradictions discussed in Navitas Semiconductor's latest 2025Q2 earnings call.



Revenue Stable Despite Headwinds:
- Navitas Semiconductor reported Q2 2025 revenues of $14.5 million, aligning with guidance despite industry downturns.
- The stability was achieved due to strategic investments in AI data centers and a successful capital raise.

Transition to AI Data Centers:
- Navitas decided to focus on leadership in AI data centers, expecting significant growth and market opportunities.
- This transition aims to leverage their expertise in gallium nitride and silicon carbide technologies to capitalize on increasing power demands.

Gross Margin Stability:
- The company maintained a gross margin of 38.5% in Q2, with expectations to remain consistent in Q3.
- This was primarily due to favorable product mix and operational efficiencies, although tariff pressures are impacting silicon carbide margins.

Operating Expense Reduction:
- Navitas reduced operating expenses sequentially from $17.2 million to $16.1 million in Q2.
- This was achieved through consolidation of support groups and streamlining day-to-day functions, contributing to a $10.6 million loss from operations improvement.