Vicor Corporation Reports 11.9% Revenue Growth and $41.2 Million Net Income in Q2 2025

Vicor Corporation reported significant financial improvements in its latest quarterly results, driven by a combination of increased revenues and a notable patent litigation settlement. For the second quarter of 2025, the company achieved total net revenues of $96.0 million, an increase of 11.9% from $85.9 million in the same period last year. This growth was bolstered by a $45 million settlement from patent litigation, which contributed to a gross margin of $92.1 million, up from $42.8 million year-over-year. The net income for the quarter was $41.2 million, or $0.91 per diluted share, compared to a net loss of $1.2 million, or $(0.03) per diluted share, in the prior year.

In comparison to the first quarter of 2025, Vicor's revenues increased by 2.2%, with Brick Products seeing a 4% rise due to improved market demand. However, Advanced Products revenues only grew by 1.2%, impacted by lower royalty revenue. The company’s gross margin percentage also improved significantly, rising to 65.3% from 47.2% in the previous quarter, primarily due to the patent litigation settlement and a favorable sales mix, despite facing production inefficiencies and increased costs related to tariffs.

Operationally, Vicor's total current assets increased to $514.8 million as of June 30, 2025, up from $463.0 million at the end of 2024. The company reported a working capital increase of $39.7 million, reflecting a strong liquidity position with cash and cash equivalents totaling $338.5 million. The company’s backlog, representing orders scheduled for shipment within the next 12 months, was approximately $155.2 million, down from $171.7 million at the end of the previous quarter.

Vicor continues to focus on strategic growth, particularly in its Advanced Products line, which targets high-growth market segments such as data centers and artificial intelligence applications. The company is also navigating challenges related to supply chain disruptions and fluctuating customer demand, which have historically impacted its operational efficiency. Looking ahead, Vicor remains optimistic about its ability to leverage its technological advancements and market position to drive future growth, while also managing the risks associated with its business environment.