Power Integrations (POWI) Q2 2025 Earnings
How Did POWI Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +2.86%.
Did POWI Beat Earnings? Q2 2025 Results
Yes. Power Integrations reported Q2 2025 earnings of $0.35 a share on Aug 6, 2025, beating the $0.35 consensus estimate by 1.4%. Revenue was $115.9M against a $115.0M estimate.
Power Integrations delivered a modest beat in Q2 2025, with revenue of $115.85 million edging past the $115.02 million consensus by 0.73% and non-GAAP EPS of $0.35 topping the $0.35 estimate by 1.42%, as the company posted 9.1% year-over-year top-line growth on the strength of a resurgent industrial end market that expanded to 40% of the revenue mix, up from 33% a year ago. GaN-based products grew more than 50% in the first half of the year, broadening into appliance, industrial, and EV applications, and management pointed to next-generation AI datacenter opportunities as an emerging growth vector. The headline results masked a GAAP operating loss of $1.34 million, however, as a $9.15 million litigation charge and elevated stock-based compensation pushed GAAP operating expenses to $65.30 million. The stock has faced pressure from investors weighing those one-time charges against the company's elevated valuation. Looking ahead, management guided Q3 revenue to $118 million, plus or minus $5 million, while cautioning that near-term visibility remains limited amid tariff uncertainty and broader macroeconomic conditions.
- Strong growth in the industrial end market category (40% of revenue mix, up from 33% year-over-year)
- GaN-based product revenues grew more than 50% in the first half of 2025
- Non-GAAP gross margin expanded to 55.8% from 54.1% year-over-year
“Revenues increased nine percent year-over-year driven by strong growth in the industrial category. While near-term visibility is low due to macroeconomic uncertainty, our long-term growth drivers are on track. Our automotive business continues to build toward a material revenue contribution in 2026. Revenues from GaN-based products grew more than 50 percent in the first half with adoption broadening into appliance, industrial and EV applications. Our 1250- and 1700-volt GaN technologies are well suited for the requirements of next-generation AI datacenters, and we are developing differentiated, system-level products to capitalize on that opportunity.”
Power Integrations CEO, on the earnings call
What Was Power Integrations's Outlook in Q2 2025?
For Q3 2025, Power Integrations expects revenues of $118 million plus or minus $5 million. GAAP gross margin is expected between 54.5% and 55%, with non-GAAP gross margin between 55% and 55.5%. Non-GAAP operating expenses are expected at approximately $47.5 million. GAAP operating expenses are expected at approximately $72.5 million, including approximately $10 million of stock-based compensation and a net non-cash charge of approximately $15 million for immediate expensing of stock awards previously granted to the former CEO. Management noted low near-term visibility due to macroeconomic uncertainty but stated long-term growth drivers remain on track.
POWI YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $115.9M | $106.2M | +9.1% |
| Gross Profit | $64.0M | $56.5M | +13.1% |
| Net Income | $1.4M | $4.8M | −71.8% |
Figures from SEC filings and company reports. Not investment advice.