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- **Consumer decline confirmed**: Q4 consumer down 30% to $100M, industrial also lower, but 2026 recovery expected.
- **Data center opportunity**: NVIDIA collaboration validates GaN leadership in 800-volt architecture.
- **Cash return focus**: $150M returned this year, dividend increase signals capital allocation priority.
- **Growth drivers**: Industrial (20% YTD), automotive (40+ EV models), and data center (2027 product launches).

**【CEO Summary Section】**
- Q3 revenue of $119 million, down 40% in appliances due to tariffs and weak housing markets, offset by 20% growth in industrial and automotive sectors.
- Consumer category expected to decline 30% in Q4 to $100-105 million, with industrial also lower due to seasonality.
- Data center collaboration with NVIDIA for 800-volt DC architecture; 1,250-volt GaN technology for aux power supplies.
- Automotive wins include 6 new EV models and heavy vehicle gate drivers.
- Free cash flow of $30M in Q3, total $80M+ for the year; $150M returned to shareholders via buybacks and dividend increase.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $0.36, up 3% sequentially on industrial growth.
- Gross margin 55.1%, down 70bps due to input costs and weaker dollar.
- Q4 guidance: $100-105M revenue, 53.5-54% gross margin, $47M opex.
- Channel inventory reduced to 8 weeks post-Q3 sell-through; 2026 outlook for appliances normalization.

**【Q&A Key Highlights】**
- Consumer recovery in 2026 as preloaded inventory clears; 2026 appliance demand tied to housing rates.
- Data center strategy: GaN vs. SiC; POWI positioned for aux power and DC-DC conversion sockets.
- Automotive design wins in EVs and heavy vehicles; SAM expanding with EV adoption.
- Free cash flow margin focus; disciplined OpEx to accelerate cash flow growth.

Power Integrations, Inc. (POWI) Q3 2025 Earnings Call Transcript

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POWI

POWI fundamentals

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