Vicor Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2025

ANDOVER, Mass., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the fourth quarter and year ended December 31, 2025. These results will be discussed later today at 5:00 p.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below. Product revenue for the fourth quarter ended December 31, 2025 totaled $92.7 million, a 15.3% increase from $80.4 million for the corresponding period a year ago, and a 4.5% sequential increase from $88.7 million in the third quarter of 2025. Royalty revenue for the fourth quarter ended December 31, 2025 totaled $14.5 million, a 7.8% decrease from $15.8 million for the corresponding period a year ago, and a 33.1% sequential decrease from $21.7 million in the third quarter of 2025. The sequential decrease in Royalty revenue was the result of a catch up amount included in the Q3 result. Gross margin increased to $59.4 million for the fourth quarter of 2025, compared to $50.4 million for the corresponding period a year ago, and decreased sequentially from $63.5 million for the third quarter of 2025. Gross margin, as a percentage of revenue, increased to 55.4% for the fourth quarter of 2025, compared to 52.4% for the corresponding period a year ago, and decreased from 57.5% for the third quarter of 2025. The sequential decrease in gross margin percentage was the result of a reduction in royalty revenue due to the Q3 catch up amount. Operating expenses increased to $43.7 million for the fourth quarter of 2025, compared to $41.2 million for the corresponding period a year ago, and increased sequentially from $42.6 million for the third quarter of 2025. Net income for the fourth quarter was $46.5 million, or $1.01 per diluted share, compared to net income of $10.2 million or $0.23 per diluted share, for the corresponding period a year ago and net income of $28.3 million, or $0.63 per diluted share, for the third quarter of 2025. Net income in the fourth quarter included $27.3 million of tax benefit due to the partial recognition of certain deferred tax assets in the period.  Cash flow from operations totaled $15.7 million for the fourth quarter, compared to cash flow from operations of $10.1 million for the corresponding period a year ago, and cash flow from operations of $38.5 million in the third quarter of 2025. Capital expenditures for the fourth quarter totaled $5.5 million, compared to $1.7 million for the corresponding period a year ago and $4.0 million for the third quarter of 2025. Stock repurchases for the fourth quarter totaled $2.2 million, compared with $15.4 million for the third quarter of 2025. Cash and cash equivalents as of December 31, 2025 increased 11.2% sequentially to approximately $402.8 million compared to approximately $362.4 million as of September 30, 2025. Backlog for the fourth quarter ended December 31, 2025 totaled $176.9 million, a 13.8% increase from $155.5 million for the corresponding period a year ago, and a 15.8% sequential increase from $152.8 million at the end of the third quarter of 2025. Product revenue for the year ended December 31, 2025 totaled $350.3 million, a 12.1% increase from $312.5 million for the year ended December 31, 2024. Royalty revenue for the year ended December 31, 2025 totaled $57.4 million, a 23.2% increase from $46.6 million for the year ended December 31, 2024. Total product revenue, royalty revenue, and a $45 million patent litigation settlement increased 26.1% to $452.7 million for the year ended December 31, 2025 from total product and royalty revenue of $359.1 million for the prior year. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 57.3% for the year ended December 31, 2025, compared to 51.2% for the prior year. Net income for 2025 was $118.6 million, or $2.61 per diluted share and 26.2% of net revenues and patent litigation settlement, compared to $6.1 million, or $0.14 per diluted share and 1.7% of revenue in the prior year. Net income for 2025 included $24.0 million of tax benefit due to the partial recognition of certain deferred tax assets in the period. Cash flows from operations totaled $139.5 million for the year ended December 31, 2025, a 174.5% increase from cash flows from operations of $50.8 million for the prior year. Commenting on the outlook for 2026, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Rising demand across high-performance compute, automatic test equipment, and industrial, aerospace and defense applications, should lead to a record year for Vicor’s product revenues. The U.S. International Trade Commission has recently instituted a second investigation into illegal importation of power modules and computing systems infringing Vicor’s IP to Non-isolated Bus Converters (“NBMs”). Suppliers of infringing systems will, once again, be subject to an exclusion order affecting some of their customers, specifically unlicensed OEMs and Hyper-scalers. Vicor’s IP licensing practice is set to achieve record revenues in 2026. As Vicor’s first ChiP fab approaches high utilization, we are planning a second fab. We are also exploring opportunities to expand total capacity by enabling an alternate source of high current density 2nd Gen VPD modules to give licensed OEMs and Hyper-scalers access to best-in-class power system technology from more than one source.” For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com. Earnings Conference Call Vicor will be holding its investor conference call today, Thursday, February 19, 2026 at 5:00 p.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on February 19, 2026. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2024, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments. Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics. For further information contact: James F. Schmidt, Chief Financial Officer Office: (978) 470-2900 Email: [email protected] VICOR CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Thousands except for per share amounts) QUARTER ENDED YEAR ENDED (Unaudited) (Unaudited) DEC 31, DEC 31, DEC 31, DEC 31, 2025 2024 2025 2024 Product revenue $ 92,720 $ 80,392 $ 350,317 $ 312,463 Royalty revenue 14,544 15,774 57,384 46,595 Patent litigation settlement - - 45,000 - Total product revenue, royalty revenue and patent litigation settlement 107,264 96,166 452,701 359,058 Cost of product revenues 47,841 45,806 193,272 175,060 Gross margin 59,423 50,360 259,429 183,998 Operating expenses: Selling, general and administrative 23,195 24,171 99,031 96,886 Research and development 20,543 16,984 78,570 68,922 Litigation-contingency expense - - - 19,500 Total operating expenses 43,738 41,155 177,601 185,308 Income (loss) from operations 15,685 9,205 81,828 (1,310 ) Other income (expense), net 3,545 2,553 12,743 11,797 Income before income taxes 19,230 11,758 94,571 10,487 Less: (Benefit) provision for income taxes (27,303 ) 1,516 (24,025 ) 4,348 Consolidated net income 46,533 10,242 118,596 6,139 Less: Net income (loss) attributable to noncontrolling interest - (4 ) 40 10 Net income attributable to Vicor Corporation $ 46,533 $ 10,246 $ 118,556 $ 6,129 Net income per share attributable to Vicor Corporation: Basic $ 1.03 $ 0.23 $ 2.63 $ 0.14 Diluted $ 1.01 $ 0.23 $ 2.61 $ 0.14 Shares outstanding: Basic 45,203 45,161 45,040 44,912 Diluted 46,297 45,296 45,450 45,168 VICOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (Thousands) DEC 31, DEC 31, 2025 2024 (Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents $ 402,805 $ 277,273 Accounts receivable, net 60,716 52,948 Inventories 91,340 106,032 Other current assets 32,502 26,781 Total current assets 587,363 463,034 Long-term deferred tax assets 27,463 261 Long-term investment, net 2,462 2,641 Property, plant and equipment, net 147,690 152,705 Other assets 20,853 22,477 Total assets $ 785,831 $ 641,118 Liabilities and Equity Current liabilities: Accounts payable $ 12,290 $ 8,737 Accrued compensation and benefits 12,031 10,852 Accrued expenses 3,691 6,589 Accrued litigation 28,275 26,888 Sales allowances 3,136 1,667 Short-term lease liabilities 1,568 1,716 Income taxes payable 904 59 Short-term deferred revenue and customer prepayments 3,426 5,312 Total current liabilities 65,321 61,820 Long-term income taxes payable 3,086 3,387 Long-term lease liabilities 5,608 5,620 Total liabilities 74,015 70,827 Equity: Vicor Corporation stockholders' equity: Capital stock 462,805 408,187 Retained earnings 421,359 302,803 Accumulated other comprehensive loss (1,672 ) (1,495 ) Treasury stock (170,935 ) (139,424 ) Total Vicor Corporation stockholders' equity 711,557 570,071 Noncontrolling interest 259 220 Total equity 711,816 570,291 Total liabilities and equity $ 785,831 $ 641,118 Source: Vicor Corporation