Revenue surged to $143.4M in 2026Q2 with gross margin expanding to 58.0%, up from 47.2% in 2025Q1, while operating margin jumped to 24.3% from 14.9% sequentially, indicating strong operating leverage.
Vicor Corporation (VICR) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 474.01M | 407.7M | 359.06M | 405.06M | 399.08M | 359.36M | 296.58M | 262.98M | 291.22M | 227.83M | 200.28M | 220.19M | 225.73M | 199.16M | 218.51M | 252.97M | 250.73M | 197.96M | 205.37M | 195.83M | 192.05M | 179.35M | 171.58M | 151.42M | 152.59M | 195.91M | 257.58M | 189.9M | 164.6M | 162.2M | 145M |
| Revenue Growth % | 11.7% | 13.55% | -11.36% | 1.5% | 11.05% | 21.17% | 12.78% | -9.7% | 27.82% | 13.76% | -9.04% | -2.45% | 13.34% | -8.85% | -13.62% | 0.89% | 26.66% | -3.61% | 4.87% | 1.97% | 7.08% | 4.53% | 13.31% | -0.77% | -22.11% | -23.94% | 35.64% | 15.37% | 1.48% | 11.86% | 0.69% |
| Cost of Goods Sold | 205.59M | 193.27M | 175.06M | 200.13M | 218.52M | 181.16M | 165.13M | 140.01M | 152.25M | 126.17M | 109.07M | 120.68M | 128.61M | 117.68M | 126.86M | 146.27M | 136.21M | 110.36M | 119.08M | 116.82M | 110.21M | 107.94M | 108.29M | 112.41M | 114.77M | 137.42M | 129.5M | 92.9M | 79.1M | 69.9M | 58.6M |
| COGS % of Revenue | - | 47.41% | 48.76% | 49.41% | 54.76% | 50.41% | 55.68% | 53.24% | 52.28% | 55.38% | 54.46% | 54.8% | 56.98% | 59.09% | 58.06% | 57.82% | 54.33% | 55.75% | 57.99% | 59.65% | 57.39% | 60.19% | 63.11% | 74.24% | 75.22% | 70.14% | 50.28% | 48.92% | 48.06% | 43.09% | 40.41% |
| Gross Profit | 268.42M | 214.43M | 184M | 204.93M | 180.56M | 178.2M | 131.45M | 122.97M | 138.97M | 101.66M | 91.21M | 99.52M | 97.12M | 81.48M | 91.65M | 106.69M | 114.52M | 87.59M | 86.28M | 79.01M | 81.84M | 71.41M | 63.29M | 39.01M | 37.82M | 58.49M | 128.08M | 97M | 85.5M | 92.3M | 86.4M |
| Gross Margin % | 56.63% | 52.59% | 51.24% | 50.59% | 45.24% | 49.59% | 44.32% | 46.76% | 47.72% | 44.62% | 45.54% | 45.2% | 43.02% | 40.91% | 41.94% | 42.18% | 45.67% | 44.25% | 42.01% | 40.35% | 42.61% | 39.81% | 36.89% | 25.76% | 24.78% | 29.85% | 49.72% | 51.08% | 51.94% | 56.91% | 59.59% |
| Gross Profit Growth % | - | 16.54% | -10.21% | 13.5% | 1.32% | 35.57% | 6.9% | -11.52% | 36.71% | 11.45% | -8.35% | 2.47% | 19.2% | -11.1% | -14.1% | -6.83% | 30.74% | 1.52% | 9.21% | -3.45% | 14.61% | 12.83% | 62.23% | 3.15% | -35.34% | -54.33% | 32.04% | 13.45% | -7.37% | 6.83% | 2.86% |
| Operating Expenses | 180.07M | 177.6M | 185.31M | 153.57M | 153.36M | 122.6M | 114.08M | 109.14M | 106.91M | 103.02M | 97.52M | 99.78M | 111.88M | 101.95M | 94.38M | 93.01M | 85.4M | 79.57M | 87.43M | 77.94M | 115.02M | 68.03M | 67.32M | 64.72M | 62.32M | 63.51M | 82.07M | 72.5M | 67.2M | 56.3M | 49.8M |
| OpEx % of Revenue | - | 43.56% | 51.61% | 37.91% | 38.43% | 34.12% | 38.47% | 41.5% | 36.71% | 45.22% | 48.69% | 45.32% | 49.56% | 51.19% | 43.19% | 36.77% | 34.06% | 40.19% | 42.57% | 39.8% | 59.89% | 37.93% | 39.24% | 42.74% | 40.84% | 32.42% | 31.86% | 38.18% | 40.83% | 34.71% | 34.34% |
| Selling, General & Admin | 96.73M | 99.03M | 96.89M | 85.71M | 86.26M | 69.48M | 63.16M | 62.56M | 62.22M | 58.09M | 55.67M | 58.31M | 68.2M | 60.74M | 55.66M | 54.04M | 49.42M | 47.93M | 56.21M | 48.92M | 46.44M | 40.81M | 41.11M | 41.27M | 41.84M | 43.31M | 43.18M | 36.8M | 34.9M | 30.3M | 27.2M |
| SG&A % of Revenue | - | 24.29% | 26.98% | 21.16% | 21.62% | 19.34% | 21.3% | 23.79% | 21.37% | 25.5% | 27.8% | 26.48% | 30.21% | 30.5% | 25.47% | 21.36% | 19.71% | 24.21% | 27.37% | 24.98% | 24.18% | 22.75% | 23.96% | 27.26% | 27.42% | 22.11% | 16.76% | 19.38% | 21.2% | 18.68% | 18.76% |
| Research & Development | 83.33M | 78.57M | 68.92M | 67.86M | 60.59M | 53.11M | 50.92M | 46.59M | 44.29M | 44.92M | 41.85M | 41.47M | 41.48M | 39.85M | 38.74M | 38.97M | 35.98M | 31.64M | 31.4M | 30.37M | 31.38M | 29.47M | 26.21M | 23.45M | 20.48M | 20.19M | 20.56M | 19.9M | 20.7M | 17.7M | 14.3M |
| R&D % of Revenue | - | 19.27% | 19.2% | 16.75% | 15.18% | 14.78% | 17.17% | 17.72% | 15.21% | 19.72% | 20.89% | 18.83% | 18.38% | 20.01% | 17.73% | 15.4% | 14.35% | 15.98% | 15.29% | 15.51% | 16.34% | 16.43% | 15.28% | 15.48% | 13.42% | 10.31% | 7.98% | 10.48% | 12.58% | 10.91% | 9.86% |
| Other Operating Expenses | 0 | 0 | 19.5M | 0 | 6.5M | 0 | 0 | 0 | 402K | 0 | 0 | 0 | 2.21M | 1.36M | 0 | 0 | 0 | 0 | 0 | 0 | 37.2M | 0 | 0 | 0 | 0 | 0 | 18.33M | 15.8M | 11.6M | 8.3M | 8.3M |
| Operating Income | 88.35M | 36.83M | -1.31M | 51.36M | 27.2M | 55.6M | 17.37M | 13.82M | 32.06M | -1.36M | -6.31M | -267K | -14.76M | -20.47M | -2.75M | 13.69M | 29.12M | 4.77M | -1.14M | 1.07M | -33.18M | 3.38M | -4.04M | -25.7M | -24.5M | -5.02M | 46.01M | 24.5M | 18.3M | 36M | 36.6M |
| Operating Margin % | 18.64% | 9.03% | -0.36% | 12.68% | 6.82% | 15.47% | 5.86% | 5.26% | 11.01% | -0.6% | -3.15% | -0.12% | -6.54% | -10.28% | -1.26% | 5.41% | 11.61% | 2.41% | -0.56% | 0.55% | -17.28% | 1.88% | -2.35% | -16.97% | -16.06% | -2.56% | 17.86% | 12.9% | 11.12% | 22.19% | 25.24% |
| Operating Income Growth % | - | 2911.3% | -102.55% | 88.81% | -51.08% | 220.14% | 25.66% | -56.89% | 2457.28% | 78.46% | -2264.79% | 98.19% | 27.87% | -644.8% | -120.08% | -53% | 510.14% | 517.95% | -206.63% | 103.23% | -1081.72% | 183.77% | 84.3% | -4.9% | -388.38% | -110.9% | 87.8% | 33.88% | -49.17% | -1.64% | -13.88% |
| EBITDA | 108.14M | 57.61M | 17.32M | 68.6M | 40.98M | 67.31M | 28.42M | 24.16M | 41.31M | 7.53M | 2.12M | 8.88M | -4.96M | -10.46M | 7.67M | 24.69M | 39.34M | 14.97M | 9.37M | 12.69M | -19.19M | 21.04M | 17.86M | -2.51M | -2.24M | 14.97M | 64.34M | 40.3M | 29.9M | 44.3M | 44.9M |
| EBITDA Margin % | 22.81% | 14.13% | 4.82% | 16.94% | 10.27% | 18.73% | 9.58% | 9.19% | 14.19% | 3.31% | 1.06% | 4.03% | -2.2% | -5.25% | 3.51% | 9.76% | 15.69% | 7.56% | 4.56% | 6.48% | -9.99% | 11.73% | 10.41% | -1.65% | -1.47% | 7.64% | 24.98% | 21.22% | 18.17% | 27.31% | 30.97% |
| EBITDA Growth % | 35.93% | 232.72% | -74.76% | 67.41% | -39.12% | 136.8% | 17.67% | -41.53% | 448.43% | 254.66% | -76.07% | 279% | 52.6% | -236.27% | -68.92% | -37.24% | 162.8% | 59.72% | -26.14% | 166.12% | -191.23% | 17.74% | 812.89% | -11.92% | -114.96% | -76.74% | 59.64% | 34.78% | -32.51% | -1.34% | -11.44% |
| D&A (Non-Cash Add-back) | 15.74M | 20.79M | 18.63M | 17.24M | 13.78M | 11.71M | 11.06M | 10.33M | 9.25M | 8.89M | 8.44M | 9.14M | 9.8M | 10.01M | 10.42M | 11.01M | 10.22M | 10.2M | 10.52M | 11.62M | 13.99M | 17.66M | 21.9M | 23.2M | 22.26M | 19.98M | 18.33M | 15.8M | 11.6M | 8.3M | 8.3M |
| EBIT | 111.85M | 94.57M | 18.19M | 60.24M | 33.7M | 56.8M | 17.37M | 13.82M | 32.46M | -1.36M | -6.31M | -267K | -12.56M | -19.11M | -2.75M | 13.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -25.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Interest Income | 6.62M | 12.13M | 11.47M | 8.22M | 1.31M | 930K | 95K | 300K | 257K | 124K | 68K | 47K | 80K | 97K | 136K | 259K | 438K | 717K | 2.14M | 4.48M | 5.39M | 3.12M | 1.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.62M | 12.13M | 11.47M | 8.22M | 1.31M | 930K | 95K | 300K | 257K | 124K | 68K | 47K | 80K | 97K | 136K | 259K | 438K | 717K | 2.14M | 4.48M | 5.39M | 3.12M | 1.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 23.49M | 57.74M | 11.8M | 8.89M | 1.49M | 1.2M | 1.09M | 1.07M | 874K | 1.26M | 284K | 5.03M | 268K | 2K | 157K | -2K | 497K | -2.57M | -1.62M | 657K | -37.94M | 3.75M | 1.63M | -190K | -604K | 4.12M | 3.79M | 3.4M | 4.9M | 5M | 3.9M |
| Pretax Income | 111.85M | 94.57M | 10.49M | 60.24M | 28.69M | 56.8M | 18.46M | 14.89M | 32.93M | -98K | -6.03M | 4.76M | -14.49M | -20.46M | -2.59M | 14.03M | 29.62M | 5.46M | -931K | 5.46M | -29.09M | 4.88M | -2.4M | -24.89M | -25.11M | -895K | 49.8M | 28M | 23.3M | 40.9M | 40.4M |
| Pretax Margin % | 23.6% | 23.2% | 2.92% | 14.87% | 7.19% | 15.81% | 6.22% | 5.66% | 11.31% | -0.04% | -3.01% | 2.16% | -6.42% | -10.28% | -1.19% | 5.55% | 11.81% | 2.76% | -0.45% | 2.79% | -15.15% | 2.72% | -1.4% | -16.44% | -16.45% | -0.46% | 19.33% | 14.74% | 14.16% | 25.22% | 27.86% |
| Income Tax | -33.45M | -24.02M | 4.35M | 6.64M | 3.26M | 176K | 539K | 778K | 1.09M | -356K | 231K | -401K | -425K | 3.04M | 1.21M | 4.72M | -3.92M | 1.36M | 976K | -1.01M | 648K | 964K | 1.32M | -5.36M | -9.16M | -336K | 15.88M | 8.9M | 7.5M | 14.7M | 14.8M |
| Effective Tax Rate % | -29.91% | -25.4% | 41.46% | 11.03% | 11.37% | 0.31% | 2.92% | 5.23% | 3.3% | 363.27% | -3.83% | -8.43% | 2.93% | -14.85% | -46.58% | 33.66% | -13.23% | 24.97% | -104.83% | -18.59% | -2.23% | 19.75% | -54.93% | 21.52% | 36.5% | 37.54% | 31.88% | 31.79% | 32.19% | 35.94% | 36.63% |
| Net Income | 145.27M | 118.56M | 6.13M | 53.59M | 25.45M | 56.63M | 17.91M | 14.1M | 31.73M | 167K | -6.25M | 4.93M | -13.89M | -23.64M | -4.08M | 8.84M | 33.33M | 2.8M | -3.6M | 5.33M | -29.74M | 3.92M | -3.72M | -19.54M | -15.94M | -559K | 33.92M | 19.1M | 15.8M | 26.2M | 25.6M |
| Net Margin % | 30.65% | 29.08% | 1.71% | 13.23% | 6.38% | 15.76% | 6.04% | 5.36% | 10.89% | 0.07% | -3.12% | 2.24% | -6.15% | -11.87% | -1.87% | 3.5% | 13.29% | 1.41% | -1.75% | 2.72% | -15.48% | 2.18% | -2.17% | -12.9% | -10.45% | -0.29% | 13.17% | 10.06% | 9.6% | 16.15% | 17.66% |
| Net Income Growth % | 121.69% | 1834.34% | -88.56% | 110.62% | -55.06% | 216.16% | 27.04% | -55.56% | 18897.01% | 102.67% | -226.79% | 135.48% | 41.26% | -479.84% | -146.1% | -73.46% | 1091.03% | 177.83% | -167.39% | 117.94% | -859.4% | 205.18% | 80.94% | -22.54% | -2751.88% | -101.65% | 77.59% | 20.89% | -39.69% | 2.34% | -13.22% |
| Net Income (Continuing) | 145.3M | 118.6M | 6.14M | 53.6M | 25.43M | 56.63M | 17.92M | 14.11M | 31.85M | 258K | -6.26M | 5.16M | -14.07M | -23.5M | - | - | - | - | - | - | -29.74M | 3.92M | -3.72M | -19.54M | -15.94M | -559K | 33.92M | 19.1M | 15.8M | 26.2M | 25.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 275K | 259K | 220K | 237K | 248K | 306K | 335K | 308K | 434K | 305K | 208K | 1.05M | 2.78M | 3.16M | 3.62M | 3.77M | 3.98M | 4.28M | 4.25M | 4.04M | 3.59M | 3.03M | 1.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.05 | 2.61 | 0.14 | 1.19 | 0.57 | 1.26 | 0.41 | 0.34 | 0.78 | 0.00 | -0.16 | 0.13 | -0.36 | -0.60 | -0.10 | 0.21 | 0.80 | 0.07 | -0.09 | 0.13 | -0.71 | 0.08 | -0.09 | -0.47 | -0.38 | -0.01 | 0.78 | 0.45 | 0.37 | 0.60 | 0.60 |
| EPS Growth % | 114.26% | 1764.29% | -88.24% | 108.77% | -54.76% | 207.32% | 20.59% | -56.41% | - | 102.63% | -223.08% | 136.11% | 40% | -500% | -147.62% | -73.75% | 1042.86% | 181.11% | -166.38% | 118.31% | -987.5% | 190.29% | 81.15% | -23.68% | -2778.79% | -101.69% | 73.33% | 21.62% | -38.33% | 0% | -11.76% |
| EPS (Basic) | - | 2.63 | 0.14 | 1.21 | 0.58 | 1.30 | 0.42 | 0.35 | 0.80 | 0.00 | -0.16 | 0.13 | -0.36 | -0.60 | -0.10 | 0.21 | 0.80 | 0.07 | -0.09 | 0.13 | -0.71 | 0.08 | -0.09 | -0.47 | -0.38 | -0.01 | 0.80 | 0.46 | 0.37 | 0.62 | 0.61 |
| Diluted Shares Outstanding | 47.71M | 44.93M | 45.17M | 45M | 44.89M | 44.97M | 43.87M | 41.68M | 40.73M | 39.93M | 38.84M | 39.15M | 38.57M | 39.2M | 41.81M | 41.86M | 41.77M | 41.67M | 41.65M | 41.69M | 41.84M | 42.09M | 42.02M | 41.9M | 42.34M | 42.34M | 43.27M | 42.41M | 42.78M | 43.34M | 42.67M |
| Basic Shares Outstanding | 45.94M | 44.73M | 44.91M | 45.04M | 44.64M | 44.94M | 43.68M | 41.46M | 40.67M | 39.93M | 38.84M | 38.75M | 38.57M | 39.2M | 40.77M | 41.8M | 41.7M | 41.66M | 41.65M | 41.6M | 41.84M | 41.92M | 42.02M | 41.9M | 42.34M | 42.34M | 42.28M | 41.57M | 42.29M | 42.59M | 41.97M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 0.99% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying VICR stock.
For fiscal year 2025, Vicor Corporation (VICR) reported total revenue of $407.7M. This represents a 181.2% increase compared to $145.0M in 1996.
Vicor Corporation (VICR) is profitable, generating $118.6M in net income for the fiscal year ending 2025 with a net profit margin of 29.1%.
Vicor Corporation (VICR) reported an operating income of $36.8M, resulting in an operating profit margin of 9.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Vicor Corporation (VICR) generated $214.4M in gross profit for the year, representing a gross profit margin of 52.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Customer concentration and AI demand volatility
Metrics are mathematically derived from official filings.
Revenue Rebound Led by Advanced Products
VICR's revenue surged 1.6% sequentially to $143.4M in 2026Q2, recovering from a 2025Q1 trough of $94.0M, driven by strong demand in high-performance compute and broadening industrial/aerospace applications, as reported in the latest earnings release.
The sequential growth from $113.0M in 2026Q1 to $143.4M in 2026Q2 marks a sharp acceleration, with year-over-year growth of 1.6% despite a challenging prior-year comparison. The revenue trajectory appears to be recovering from the 2024 downturn, where quarterly revenues dipped to $83.9M, suggesting a cyclical upswing. The broadening demand base beyond AI, including ATE and defense, may reduce concentration risk, but the sustainability of this growth hinges on continued design wins and capacity utilization.
Gross Margin Expansion Signals Pricing Power
Gross margin improved to 58.0% in 2026Q2, up from 47.2% in 2025Q1, reflecting better factory utilization and favorable product mix, according to the income statement data. This suggests Vicor's premium positioning is translating into stronger profitability.
The 10.8 percentage point gross margin expansion from 2025Q1 to 2026Q2 is a clear sign of operating leverage as volumes recover. The 58.0% gross margin is above the peer average (MPWR at 55.2%), indicating Vicor's ability to command premium pricing for its high-density power solutions. However, the margin is still below the 65.3% peak in 2025Q2, suggesting there is room for further improvement as Fab 2 utilization increases. Investors should monitor whether this margin level is sustainable or if it reflects a temporary mix shift.
Operating Leverage Kicks In as Volumes Recover
Operating margin jumped to 24.3% in 2026Q2 from 14.9% in 2026Q1, as revenue growth outpaced fixed cost absorption, per the quarterly income statement. This demonstrates significant operating leverage in Vicor's high-fixed-cost manufacturing model.
The operating income more than doubled sequentially from $16.9M to $34.9M, while revenue grew only 26.9%, highlighting the scalability of the business once fixed costs are covered. The 9.4 percentage point operating margin expansion is a direct result of higher factory utilization and controlled SG&A growth. However, the 2025Q2 operating margin of 32.2% shows that peak utilization can drive even higher margins, suggesting that current levels may still be below the company's potential. The key question is whether demand can sustain this utilization rate.
Net Income Boosted by Non-Operating Items
Net margin of 34.7% in 2026Q2 significantly exceeds operating margin of 24.3%, indicating non-operating gains or tax benefits, as per the income statement. This gap warrants normalization to assess true earnings power.
The 10.4 percentage point gap between net and operating margins in 2026Q2, and the even larger gap in 2025Q4 (43.4% net vs 14.6% operating), suggests the presence of one-time items such as legal settlements or tax credits. These items inflate reported EPS, which may mislead investors about core profitability. Excluding these, the underlying earnings power appears to be improving, but the volatility in net income (e.g., $49.8M in 2026Q2 vs $20.7M in 2026Q1) underscores the need for careful adjustment. Stock-based compensation of $4.2M in 2026Q2 is modest but should be factored into cash flow analysis.
R&D and SG&A Discipline Amid Growth
R&D spending remained stable at $20.6M in 2026Q2, while SG&A rose to $27.6M, reflecting investment in sales engineering, as per the income statement. This cost discipline supports margin expansion.
R&D as a percentage of revenue declined to 14.4% in 2026Q2 from 19.7% in 2026Q1, indicating that the company is leveraging its existing technology investments. SG&A increased by $4.4M sequentially, but as a percentage of revenue it fell to 19.2% from 20.5%, showing efficiency gains. The stable R&D spend suggests Vicor is not aggressively increasing investment despite growth, which may be a positive for margins but could also signal a slowdown in innovation. The high fixed-cost base remains a risk if demand falters, as seen in 2024Q1 when operating income was negative.
2025Q2 Marks a Turning Point
The 2025Q2 quarter was a pivotal inflection, with revenue jumping 64.3% year-over-year to $141.0M and gross margin peaking at 65.3%, according to the income statement. This marked the start of the current upcycle.
The 2025Q2 results represented a dramatic recovery from the 2024 downturn, driven by a surge in AI-related demand and the initial benefits of Fab 2 capacity. The gross margin of 65.3% was the highest in the period, indicating exceptional pricing power and utilization. However, the subsequent quarters saw a pullback in revenue and margins, suggesting that the initial spike may have been partly due to customer inventory builds. The 2026Q2 recovery to $143.4M revenue and 58.0% gross margin indicates a more sustainable growth trajectory, but the volatility highlights the cyclicality of the business.
What Could Invalidate the Base Case
The 2026Q2 net margin of 34.7% versus operating margin of 24.3% suggests non-operating gains may be masking weaker core profitability, per the income statement. This gap warrants scrutiny.
A short-seller would likely focus on the persistent gap between operating and net margins, which in 2025Q4 reached 28.8 percentage points (43.4% net vs 14.6% operating), implying that reported EPS may not be sustainable without recurring non-operating items. Additionally, the revenue volatility—from $141.0M in 2025Q2 down to $94.0M in 2025Q1—exposes the fragility of the AI-driven demand, and any loss of a key design win could reverse the current momentum. The high customer concentration in the Advanced Products segment, combined with the risk of hyperscale customers prioritizing multi-sourced solutions, could compress margins and growth rates, challenging the premium valuation.