Navitas Semiconductor Net Loss Widens 119.8% in Q2 2025

Navitas Semiconductor (Nasdaq: NVTS) announced its financial results for the second quarter ended June 30, 2025. The company reported revenue of $14.5 million, a decrease of 29.2% compared to $20.5 million in the second quarter of 2024. The net loss for the quarter was $49.075 million, a significant increase from a net loss of $22.328 million in the same period last year, representing a 119.8% wider loss. This revenue figure was below the analyst estimate of $14.43 million.

Strategic Focus on AI Data Centers and Energy Infrastructure

Navitas Semiconductor is increasing its focus on AI data centers and energy infrastructure, building on strategic partnerships with ecosystem leaders such as NVIDIA. CEO Gene Sheridan highlighted the company's intent to create a substantial market for both Gallium Nitride (GaN) and Silicon Carbide (SiC) technologies in these sectors, estimating a potential market of $2.6 billion by 2030. This strategic shift is supported by a recent $100 million capital raise through the sale of approximately 20 million common shares, and the establishment of a new 8-inch, lower-cost GaN foundry relationship with Powerchip to expand capacity.

Key Collaborations and Technology Advancements

The company announced a development collaboration with NVIDIA for next-generation 800V data centers, leveraging Navitas’ full portfolio of GaN and SiC across three power conversion stages. These stages include Solid-State Transformers (SSTs), 800V DC/DC converters, and 48V DC/DC power for AI processors, with significant market potential estimated for each stage by 2030. Initial customer evaluations are complete, with final engineering samples expected in Q4 and supplier selections anticipated in 2026, leading to volume production in 2027. Additionally, Navitas will refine its mobile, consumer, and appliance focus to premium segments, aiming to reduce revenue dependency on these areas and improve margins, allowing for increased investment in the AI data center and energy infrastructure sectors without significantly increasing near-term operating expenses.

Near-Term Business Outlook

For the third quarter of 2025, Navitas Semiconductor anticipates net revenues to be around $10.0 million, with a potential variation of plus or minus $0.5 million. This projection factors in risks associated with China tariffs and a more selective mobile strategy. Non-GAAP gross margin for the third quarter is expected to be 38.5%, plus or minus 50 basis points, and non-GAAP operating expenses are projected to be approximately $15.5 million.