Navitas Semiconductor Reports 27% Revenue Decline and Increased Losses in Q2 2026

Navitas Semiconductor Corporation reported a significant decline in financial performance for the second quarter of 2026, with net revenues of $10.5 million, down 27% from $14.5 million in the same period last year. For the first half of 2026, revenues totaled $19.1 million, a decrease of 33% compared to $28.5 million in the first half of 2025. The company attributed this decline primarily to reduced sales in mobile and consumer markets, particularly in China. The cost of revenues also decreased, falling to $6.5 million for the second quarter, a 47% reduction from $12.2 million in the prior year, reflecting a shift in sales mix towards higher-margin products.

Navitas's operating expenses increased to $31.3 million for the second quarter, up from $24 million in the same period last year, driven by higher research and development costs and increased selling, general, and administrative expenses. The company reported a loss from operations of $27.2 million for the quarter, compared to a loss of $21.7 million in the prior year. The net loss for the second quarter was $228.2 million, significantly higher than the $49.1 million loss reported in the same quarter of 2025, largely due to a $203.1 million loss from the change in fair value of earnout liabilities.

In terms of strategic developments, Navitas executed a successful at-the-market offering, raising approximately $380.7 million in gross proceeds during the first half of 2026. The company also completed a restructuring plan aimed at streamlining operations and focusing on high-margin markets, which has been substantially completed as of June 30, 2026. The restructuring included a 19% reduction in workforce, which is expected to enhance operational efficiency and financial discipline.

Operationally, Navitas reported an increase in cash and cash equivalents, which rose to $557.4 million as of June 30, 2026, compared to $236.9 million at the end of 2025. The company’s total assets increased to $832.4 million, up from $500.5 million at the end of the previous fiscal year. The employee headcount was reduced as part of the restructuring efforts, and the company continues to focus on expanding its presence in high-power markets, including AI data centers and renewable energy systems.

Looking ahead, Navitas anticipates continued challenges in the market, particularly due to adverse economic conditions affecting demand for its products. The company expects to incur net operating losses and negative cash flows in the near term but believes that its current cash reserves are sufficient to support operations and strategic investments. The management remains focused on executing its restructuring plan and optimizing its product offerings to improve financial performance in the future.