Power Integrations Reports 15% Revenue Growth to $105.5 Million in Q1 2025

Power Integrations, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net revenues reaching $105.5 million, up from $91.7 million in the same period last year, marking a 15% increase. The company's gross profit also rose to $58.2 million, resulting in a gross margin of 55.2%, compared to 52.1% in the prior year. This improvement in gross margin was attributed to favorable exchange rates impacting wafer costs and increased manufacturing volumes. Net income for the quarter was $8.8 million, or $0.15 per diluted share, compared to $4.0 million, or $0.07 per diluted share, in the first quarter of 2024.

The company experienced notable changes in its operational metrics, with total operating expenses increasing to $51.5 million from $47.3 million year-over-year. This rise was primarily driven by higher stock-based compensation and employee-related expenses due to headcount growth. The total headcount at the end of the quarter was 294, slightly down from 299 a year earlier. Power Integrations' top ten customers accounted for 80% of net revenues, with Avnet being the largest customer, contributing 32% of total sales.

In terms of strategic developments, Power Integrations completed the acquisition of Odyssey Semiconductor Technologies on July 1, 2024, for $9.52 million. This acquisition is expected to enhance the company's capabilities in high-power gallium-nitride (GaN) technology, which is crucial for expanding its addressable market in power conversion applications. The company continues to focus on increasing its market penetration and expanding its product offerings, particularly in the electric vehicle sector and other high-growth areas.

Geographically, international sales represented 99% of total revenues, with significant contributions from the Asia-Pacific region, which accounted for 84% of net revenues. The company reported strong sales growth across all end-market categories, particularly in the consumer segment. Power Integrations' products are increasingly being adopted in various applications, including smart utility meters and battery-powered devices, which are expected to drive future growth.

Looking ahead, Power Integrations remains cautious about potential risks, including changes in trade policies and macroeconomic conditions that could impact demand for its products. The company plans to continue leveraging its proprietary GaN technology to enhance energy efficiency and expand its market share. With a solid cash position of $289.3 million as of March 31, 2025, the company is well-positioned to fund its growth initiatives and navigate potential challenges in the market.