Navitas Semiconductor Reports 29% Revenue Decline and $49.1 Million Net Loss in Q2 2025

Navitas Semiconductor Corporation reported a significant decline in financial performance for the second quarter of 2025, with net revenues of $14.5 million, down 29% from $20.5 million in the same period last year. For the first half of 2025, revenues totaled $28.5 million, a decrease of 35% compared to $43.6 million in the first half of 2024. The company attributed this decline primarily to reduced demand in the mobile and industrial markets, particularly in China. Despite the drop in revenue, the cost of revenues decreased by 3% to $12.2 million for the second quarter, reflecting a $3.2 million inventory reserve due to demand softness.

Navitas's operating expenses also saw a notable reduction, with total operating expenses for the second quarter falling to $24.0 million, down 39% from $39.1 million in the prior year. This decrease was driven by a significant reduction in research and development expenses, which dropped 39% to $11.5 million, largely due to a decrease in stock-based compensation following the resignation of a senior management member. Selling, general, and administrative expenses also decreased by 50% to $7.8 million, reflecting similar trends in reduced headcount and costs.

The company reported a net loss of $49.1 million for the second quarter, compared to a loss of $22.3 million in the same quarter of 2024, marking a 120% increase in losses. This was primarily influenced by a $28.0 million loss from changes in the fair value of earnout liabilities, which was a significant factor in the overall financial results. For the first half of 2025, the net loss reached $65.9 million, a substantial increase from a loss of $26.0 million in the first half of 2024.

In terms of strategic developments, Navitas completed two At-the-Market (ATM) offerings, raising approximately $100 million in gross proceeds. The company sold 11.1 million shares under ATM One and 8.7 million shares under ATM Two, with offering-related costs totaling $3.3 million. This capital infusion is expected to support ongoing operations and product development initiatives. As of June 30, 2025, Navitas had cash and cash equivalents of $161.2 million, a significant increase from $86.7 million at the end of 2024.

Looking ahead, Navitas plans to continue focusing on its core markets, including electric vehicles and renewable energy sectors, while also addressing supply chain risks. The company is expanding its collaboration with Powerchip Semiconductor Manufacturing Corporation to mitigate the impact of its sole supplier of gallium nitride wafers ceasing production in 2027. Despite the current challenges, Navitas remains committed to its growth strategy and aims to enhance its product offerings and market presence in the semiconductor industry.