Navitas Forecasts 125% Growth in High-Power Markets as Mobile Business Winds Down
The semiconductor maker is shifting toward AI data centers and power infrastructure, but rising revenue has yet to translate into improved GAAP profitability
By Ben Hansel, Senior Financial Editor 247MarketNews
DENVER, Colo. (247MarketNews.com)— Navitas Semiconductor (NASDAQ:NVTS) is beginning to see financial results from its decision to abandon much of its traditional mobile and consumer business in favor of the artificial intelligence infrastructure market, but its latest earnings report highlights the distance between a promising growth strategy and a profitable business.
The company reported third-quarter 2026 revenue of $14 million, up 38% from a year earlier and 33% sequentially. It was Navitas' first year-over-year revenue increase since 2024. Management expects another 14% sequential increase in the fourth quarter, to approximately $16 million.
The underlying shift is substantial. Navitas expects its high-power business to grow 125% for the full year, more than offsetting the planned elimination of its mobile and low-end consumer revenue. AI data centers and grid infrastructure are expected to account for more than 40% of fourth-quarter sales, according to the company.
That is a significant change for a business that reported $45.9 million in revenue for 2025, down 45% from $83.3 million in 2024. The latest nine-month figures also show revenue declining 14% year over year, illustrating how much ground the new business must recover.
The profitability picture is less encouraging than the revenue growth suggests. Third-quarter GAAP gross margin improved to 21.5%, from negative 2% a year earlier. However, Navitas disclosed that the improvement partly reflects lower amortization of acquired intangible assets, as certain technology assets became fully amortized. Its non-GAAP gross margin, a measure that excludes various expenses, was 40%, up from 38.7% a year earlier.
Meanwhile, GAAP net loss increased to $37.1 million from $19.2 million in the year-ago quarter. The company reported a smaller non-GAAP net loss of $6.9 million, but its GAAP operating loss also widened to $34.4 million from $19.4 million.
Navitas has substantial financial resources to support its transition. Cash and cash equivalents stood at $531.5 million at September 30, compared with $236.9 million at the end of 2025.
Its October acquisition of Claros is another important piece of the strategy. Navitas completed the deal to add integrated voltage regulation technology, extending its product offering from grid-level power conversion to the delivery of electricity directly to AI processors.
The technology push is supported by collaborations with NVIDIA and Microchip on 800-volt power delivery designs. These relationships are commercially relevant because next-generation AI computing systems require increasingly dense power delivery, making conversion efficiency and electrical infrastructure critical constraints.
About the Author
Ben Hansel is a financial and business writer with a background in business, sales, and finance. He graduated from the University of Texas at El Paso. His professional and educational background informs his coverage of financial markets, corporate developments, economic trends and the broader forces shaping the market.
Important Editorial Note: 247 highlights companies approaching significant catalysts and inflection points. This report reflects information available at the time of publication. Since developments can occur rapidly, readers should independently verify current information and review all company filings and disclosures.
