Power Integrations Q4 Revenue Falls 13%, Posts $13.3M Profit and Guides Q1 at $104M-$109M
Power Integrations reported Q4 2025 net revenue of $103.2 million, down 13% sequentially, with GAAP net income of $13.3 million versus a loss last quarter. Management announced a 7% global workforce reduction, expects a $3.5–4.0 million Q1 2026 restructuring charge, and guided Q1 revenue of $104 million to $109 million.
1. Q4 Financial Results
Power Integrations reported fourth-quarter net revenue of $103.2 million, a 13% sequential decline and a 2% year-over-year decrease. GAAP net income was $13.3 million, or $0.24 per diluted share, compared with a net loss of $0.02 per share in the prior quarter and net income of $0.16 per share in the year-earlier period. Cash flow from operations reached $26.2 million. On a non-GAAP basis, which excludes stock-based compensation, acquisition-related amortization and litigation expenses, net income was $12.7 million, or $0.23 per share, versus $0.36 per share in Q3 2025 and $0.30 per share in Q4 2024.
2. Full-Year 2025 Performance
For the full year, Power Integrations achieved net revenue of $443.5 million, up 6% from 2024, driven by a 15% increase in industrial end-market sales including record high-power gate-driver volumes and strength in metering, power tools, automotive and other applications. GAAP net income was $22.1 million, or $0.39 per share, versus $0.56 per share a year earlier, while cash flow from operations totaled $111.5 million. On a non-GAAP basis, full-year net income was $70.7 million, or $1.25 per share, up from $1.16 per share in 2024. Revenue from PowiGaN™ products surged over 40% for the year.
3. Restructuring and Cost Actions
In response to shifting end-market demand and to align expenses with revenue trends, the company has initiated a global workforce reduction of approximately 7%, with associated charges estimated between $3.5 million and $4.0 million in Q1 2026 for severance and related costs. These actions are designed to create financial flexibility for targeted investments in high-growth areas such as AI data centers, electrification and grid modernization.
4. 2026 First-Quarter Outlook and Dividend
Management projects Q1 2026 revenue in the range of $104 million to $109 million. GAAP gross margin is expected between 52% and 53%, while non-GAAP gross margin is forecast at 53% to 54%. GAAP operating expenses are guided to $54 million to $55.5 million, with non-GAAP operating expenses of $46 million plus or minus $0.5 million. The company declared a quarterly cash dividend of $0.215 per share payable on March 31, 2026, to shareholders of record as of February 27, 2026.