Navitas Semiconductor Reports 40% Revenue Decline in Q1 2025

Navitas Semiconductor Corporation reported a significant decline in financial performance for the first quarter of 2025, with net revenues of $14.0 million, down 40% from $23.2 million in the same period of 2024. The decrease in revenue was attributed to reduced demand in mobile, electric vehicle (EV), and industrial markets. The company's cost of revenues also fell to $8.7 million, a 36% decrease from the previous year, reflecting the lower sales volume and changes in product mix. Despite the drop in revenue, Navitas managed to reduce its loss from operations to $25.3 million, compared to a loss of $31.6 million in the prior year, indicating some operational improvements.

In terms of strategic developments, Navitas has been actively restructuring its operations to enhance efficiency and focus on high-growth areas such as artificial intelligence data centers and EV applications. The company announced a 19% reduction in workforce as part of its 2025 Restructuring Plan, incurring $1.5 million in related costs during the quarter. Additionally, Navitas entered into an At-The-Market Offering Agreement with Jefferies LLC on March 19, 2025, allowing for the potential sale of up to $50 million in Class A common stock, although no shares had been sold under this agreement as of the end of the reporting period.

Operationally, Navitas reported a decrease in research and development expenses to $12.7 million, down 37% from $20.2 million in the previous year, primarily due to reduced stock-based compensation and a decrease in headcount. Selling, general, and administrative expenses also fell by 27% to $11.7 million, reflecting similar cost-cutting measures. The company’s total assets decreased to $370.8 million from $390.0 million at the end of 2024, with cash and cash equivalents at $75.1 million, down from $86.7 million.

Navitas continues to face challenges in its market, particularly with customer concentration, as a significant portion of its revenue is derived from a few key distributors. For the three months ended March 31, 2025, one distributor accounted for 51% of net revenues. The company is also navigating the impacts of a disengagement with a significant distributor in late 2024, which has affected its ability to replace lost volumes. Looking ahead, Navitas expects to continue incurring net operating losses and negative cash flows, with plans to fund operations through existing cash reserves and potential equity financing. The company remains focused on expanding its product offerings and customer base while managing costs effectively.