What were the key takeaways from Diodes’s earnings call?

What were the key takeaways from Diodes's earnings call?

What is the revenue and EPS growth rate for Diodes year over year?

What is Diodes's latest dividend and current dividend yield?

What does Diodes do and what are its main business segments?

What is Diodes's gross profit margin?

What is the market's earnings forecast for Diodes next quarter?

What guidance did Diodes's management provide for the next earnings period?

- **Revenue Growth:** Q3 2025 revenue up 12% YoY to $392.2 million, driven by AI computing and Asia.
- **Gross Margin Challenge:** 30.7% margin due to product mix, but 2026 improvement expected from automotive/industrial recovery.
- **Cash Flow Strength:** $79.1 million from operations, $62.8 million free cash flow.
- **2026 Outlook:** 10%+ revenue growth, 20% operating margin target, automotive share to exceed 20%.
- **Key Drivers:** AI server applications, automotive new programs, and inventory normalization.

**【CEO Summary Section】**
- Q3 2025 revenue reached $392.2 million, up 12% year-over-year and 7% sequentially, driven by strong demand in computing (AI server applications) and Asia.
- Product mix negatively impacted gross margin due to higher growth in computing compared to automotive/industrial markets.
- Full-year guidance for 12% revenue growth, with confidence in automotive and industrial recovery.
- Automotive market share gains with new programs ramping in 2026, targeting 20%+ of revenue.

**【CFO Financial Commentary】**
- Gross profit margin 30.7% (down 270bps YoY) due to product mix and cost pressures.
- Operating expenses rose 13% YoY to $108.9 million, driven by R&D and SG&A investments.
- GAAP net income $14.3 million ($0.31 EPS), Non-GAAP $17.2 million ($0.37 EPS).
- Cash flow from operations $79.1 million, free cash flow $62.8 million.
- Inventory days improved to 162 (down 11 days QoQ), finished goods days 62 (down 9 days).

**【Sales & Marketing Breakdown】**
- **Automotive (19% of revenue):** +8.5% QoQ growth, new SiC MOSFETs, LDOs, and Hall effect sensors gaining traction.
- **Industrial (22%):** +4% QoQ, AI robotics, medical, and factory automation driving demand.
- **Computing (28%):** +17% QoQ, AI server applications dominate, with PCIe 5/6 and USB4 solutions ramping.
- **Consumer (18%):** +8.5% QoQ, gaming systems and AR glasses boost demand.
- **Communication (13%):** Flat QoQ, AI interconnects offset weakness in traditional telecom.

**【Q&A Highlights】**
- **Gross Margin Outlook:** 2026 improvement from automotive/industrial mix shift and in-sourcing manufacturing.
- **Tariff Management:** Minimal impact via flexible manufacturing in Mexico/Canada.
- **2026 Growth Drivers:** Automotive (new programs), AI computing, and inventory normalization.
- **Margin Target:** 20% operating margin achievable through revenue growth and cost control.
- **Free Cash Flow:** $4.02 per share TTM, approaching 2021 highs of $4.34 per share.

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