Third Quarter 2026
Filed Oct 20, 2026Vicor reported third-quarter product and royalty revenues of $197.1 million, up 37.5% sequentially and 78.5% from the corresponding period a year ago, with gross margin of $134.7 million and net income of $63.3 million.
Revenue, gross margin, operating income, net income, operating cash flow and backlog all increased both sequentially and from the corresponding period a year ago, while cash and cash equivalents reached approximately $513.1 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Product and royalty revenues, third quarterGAAP | $197.1M | 37.5% | 78.5% |
| Product revenue, third quarterGAAP | $130.5M | – | – |
| Royalty revenue, third quarterGAAP | $66.61M | – | – |
| Total net revenues, third quarterGAAP | $197.1M | 37.5% | 78.5% |
| Patent litigation settlement, third quarterGAAP | — | – | – |
| Total net revenues and patent litigation settlement, third quarterGAAP | $197.1M | – | – |
| Cost of product revenues, third quarterGAAP | $62.43M | – | – |
| Gross margin, third quarterGAAP | $134.7M | – | – |
| Gross margin as a percentage of revenue, third quarterGAAP | 68.3% | – | – |
| Selling, general and administrative expense, third quarterGAAP | $38.56M | – | – |
| Research and development expense, third quarterGAAP | $23.97M | – | – |
| Total operating expenses, third quarterGAAP | $62.5M | – | – |
| Income from operations, third quarterGAAP | $72.15M | – | – |
| Other income (expense), net, third quarterGAAP | $6.58M | – | – |
| Income before income taxes, third quarterGAAP | $78.73M | – | – |
| Provision (benefit) for income taxes, third quarterGAAP | $15.40M | – | – |
| Consolidated net income, third quarterGAAP | $63.3M | – | – |
| Net income attributable to noncontrolling interest, third quarterGAAP | $11K | – | – |
| Net income attributable to Vicor Corporation, third quarterGAAP | $63.32M | – | – |
| Basic net income per share attributable to Vicor Corporation, third quarterGAAP | $ 1.37 | – | – |
| Diluted net income per share attributable to Vicor Corporation, third quarterGAAP | $1.33 per diluted share | – | – |
| Basic shares outstanding, third quarterGAAP | 46.13M | – | – |
| Diluted shares outstanding, third quarterGAAP | 47.61M | – | – |
| Cash flow from operations, third quarterGAAP | $69.7M | – | – |
| Capital expenditures, third quarterother | $16.1M | – | – |
| Cash and cash equivalents, September 30, 2026other | approximately $513.1 million | 13.1% | – |
| Backlog, third quarterother | $406M | 7% | 166% |
| Product revenue, nine months ended September 30GAAP | $341.4M | – | – |
| Royalty revenue, nine months ended September 30GAAP | $112.0M | – | – |
| Total net revenues, nine months ended September 30GAAP | $453.4M | – | – |
| Patent litigation settlement, nine months ended September 30GAAP | — | – | – |
| Total net revenues and patent litigation settlement, nine months ended September 30GAAP | $453.4M | – | – |
| Cost of product revenues, nine months ended September 30GAAP | $173.3M | – | – |
| Gross margin, nine months ended September 30GAAP | $280.2M | – | – |
| Selling, general and administrative expense, nine months ended September 30GAAP | $89.36M | – | – |
| Research and development expense, nine months ended September 30GAAP | $66.9M | – | – |
| Total operating expenses, nine months ended September 30GAAP | $156.3M | – | – |
| Income from operations, nine months ended September 30GAAP | $123.9M | – | – |
| Other income (expense), net, nine months ended September 30GAAP | $14.15M | – | – |
| Income before income taxes, nine months ended September 30GAAP | $138.1M | – | – |
| Provision (benefit) for income taxes, nine months ended September 30GAAP | $4.26M | – | – |
| Consolidated net income, nine months ended September 30GAAP | $133.8M | – | – |
| Net income attributable to noncontrolling interest, nine months ended September 30GAAP | $37K | – | – |
| Net income attributable to Vicor Corporation, nine months ended September 30GAAP | $133.8M | – | – |
| Basic net income per share attributable to Vicor Corporation, nine months ended September 30GAAP | $ 2.92 | – | – |
| Diluted net income per share attributable to Vicor Corporation, nine months ended September 30GAAP | $ 2.81 | – | – |
| Basic shares outstanding, nine months ended September 30GAAP | 45.84M | – | – |
| Diluted shares outstanding, nine months ended September 30GAAP | 47.52M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product revenueReported product revenue for the third quarter ended September 30, 2026. | $130.5M | – | – |
| Royalty revenueReported royalty revenue for the third quarter ended September 30, 2026. | $66.61M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Product and royalty revenues increased 37.5% sequentially and 78.5% from the corresponding period a year ago.
- Backlog totaled $406 million, a 7% sequential increase and an increase of 166% from the corresponding period a year ago.
- Vicor granted its first VPD license to an AI OEM at Stage-2 unit royalty rates.
- The company purchased two additional sites within 30 miles of ChiP Fab-1 in Andover and stated that the sites will provide a nearly 5X increase in capacity from 3 Fabs relative to Fab-1.
- Management stated that it demonstrated the distinct advantages of Vicor’s 2nd GEN VPD in private presentations and lab sessions with OEMs and Hyperscalers.
Concerns
- Operating expenses, including contingency fees to law firms enforcing Vicor IP, increased to $62.5 million from $48.2 million in the second quarter of 2026 and $42.6 million for the corresponding period a year ago.
- Capital expenditures increased to $16.1 million from $11.2 million in the second quarter of 2026 and $4.0 million for the corresponding period a year ago.
- Management stated that unlicensed OEMs and Hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD.
- The release states that actual results could differ materially from forward-looking statements.
What to watch
- Bookings, shipments, revenue and profitability.
- Capacity expansion and utilization of the additional sites near ChiP Fab-1.
- Broader adoption of high performance ALL-FPA current multiplier modules which enable 2nd GEN VPD.
- License inquiries and royalty rates following the ITC decision to institute an investigation into VPD infringement.
- Backlog conversion and the trajectory of product revenue and royalty revenue.
Balance sheet and cash flow
- Cash and cash equivalents: September 30, 2026 $ 513,137 (Thousands); December 31, 2025 $ 402,805 (Thousands).
- Accounts receivable, net: September 30, 2026 122,488 (Thousands); December 31, 2025 60,716 (Thousands).
- Inventories: September 30, 2026 110,922 (Thousands); December 31, 2025 91,340 (Thousands).
- Other current assets: September 30, 2026 13,594 (Thousands); December 31, 2025 32,502 (Thousands).
- Total current assets: September 30, 2026 760,141 (Thousands); December 31, 2025 587,363 (Thousands).
- Long-term deferred tax assets: September 30, 2026 23,439 (Thousands); December 31, 2025 27,463 (Thousands).
- Long-term investment, net: September 30, 2026 —; December 31, 2025 2,462 (Thousands).
- Property, plant and equipment, net: September 30, 2026 177,987 (Thousands); December 31, 2025 147,690 (Thousands).
- Other assets: September 30, 2026 20,053 (Thousands); December 31, 2025 20,853 (Thousands).
- Total assets: September 30, 2026 $ 981,620 (Thousands); December 31, 2025 $ 785,831 (Thousands).
- Accounts payable: September 30, 2026 $ 24,334 (Thousands); December 31, 2025 $ 12,290 (Thousands).
- Accrued compensation and benefits: September 30, 2026 14,047 (Thousands); December 31, 2025 12,031 (Thousands).
- Accrued expenses: September 30, 2026 22,223 (Thousands); December 31, 2025 3,691 (Thousands).
- Accrued litigation: September 30, 2026 —; December 31, 2025 28,275 (Thousands).
- Sales allowances: September 30, 2026 3,512 (Thousands); December 31, 2025 3,136 (Thousands).
- Short-term lease liabilities: September 30, 2026 1,733 (Thousands); December 31, 2025 1,568 (Thousands).
- Income taxes payable: September 30, 2026 208 (Thousands); December 31, 2025 904 (Thousands).
- Short-term deferred revenue and customer prepayments: September 30, 2026 418 (Thousands); December 31, 2025 3,426 (Thousands).
- Total current liabilities: September 30, 2026 66,475 (Thousands); December 31, 2025 65,321 (Thousands).
- Long-term income taxes payable: September 30, 2026 3,143 (Thousands); December 31, 2025 3,086 (Thousands).
- Long-term lease liabilities: September 30, 2026 5,427 (Thousands); December 31, 2025 5,608 (Thousands).
- Total liabilities: September 30, 2026 75,045 (Thousands); December 31, 2025 74,015 (Thousands).
- Capital stock: September 30, 2026 518,247 (Thousands); December 31, 2025 462,805 (Thousands).
- Retained earnings: September 30, 2026 555,116 (Thousands); December 31, 2025 421,359 (Thousands).
- Accumulated other comprehensive loss: September 30, 2026 (1,174) (Thousands); December 31, 2025 (1,672) (Thousands).
- Treasury stock: September 30, 2026 (165,909) (Thousands); December 31, 2025 (170,935) (Thousands).
- Total Vicor Corporation stockholders’ equity: September 30, 2026 906,280 (Thousands); December 31, 2025 711,557 (Thousands).
- Noncontrolling interest: September 30, 2026 295 (Thousands); December 31, 2025 259 (Thousands).
- Total equity: September 30, 2026 906,575 (Thousands); December 31, 2025 711,816 (Thousands).
- Total liabilities and equity: September 30, 2026 $ 981,620 (Thousands); December 31, 2025 $ 785,831 (Thousands).
Analysis
Vicor reported a sharply stronger third quarter. Product and royalty revenues were $197.1 million, up 37.5% from $143.4 million in the second quarter of 2026 and up 78.5% from $110.4 million for the corresponding period a year ago. The quarterly revenue mix included product revenue of $ 130,501 (Thousands) and royalty revenue of $ 66,613 (Thousands). Backlog reached $406 million, up 7% sequentially and 166% from $153 million for the corresponding period a year ago.
Profitability improved materially with revenue. Gross margin was $134.7 million, compared with $83.1 million in the second quarter of 2026 and $63.5 million a year earlier. Gross margin as a percentage of revenue was 68.3%, compared with 58.0% sequentially and 57.5% a year earlier. Income from operations was $ 72,148 (Thousands), while consolidated net income was $63.3 million and diluted net income per share was $1.33.
Expenses also increased. Operating expenses, including contingency fees to law firms enforcing Vicor IP, were $62.5 million, compared with $48.2 million in the second quarter of 2026 and $42.6 million a year earlier. The income statement reported selling, general and administrative expense of $ 38,563 (Thousands) and research and development expense of $ 23,969 (Thousands) for the quarter. The tax line moved to a provision of $ 15,401 (Thousands) from a benefit of $(4,988) (Thousands) in the corresponding period a year ago.
Cash generation and liquidity strengthened during the quarter. Cash flow from operations totaled $69.7 million, compared with $34.0 million sequentially and $38.5 million a year earlier. Capital expenditures were $16.1 million. Cash and cash equivalents increased 13.1% sequentially to approximately $513.1 million, and the balance sheet reported total assets of $ 981,620 (Thousands) and total liabilities of $ 75,045 (Thousands) at September 30, 2026.
Management emphasized capacity expansion, AI-related VPD adoption and licensing. It stated that the purchase of two additional sites within 30 miles of ChiP Fab-1 will provide a nearly 5X increase in capacity from 3 Fabs relative to Fab-1. Vicor also reported its first VPD license to an AI OEM at Stage-2 unit royalty rates and cited inquiries about licenses after the ITC instituted an investigation into VPD infringement. The release did not provide forward financial guidance.
Management, verbatim
Capacity expansion is necessary in view of demand and industry trends.
Dr. Patrizio Vinciarelli, CEO
The stage is set for broader adoption of high performance ALL-FPA current multiplier modules which enable 2 nd GEN VPD.
Dr. Patrizio Vinciarelli, CEO
On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates.
Dr. Patrizio Vinciarelli, CEO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior outlook for comparison
- Non-GAAP financial measures
- Free cash flow
- Share repurchases
- Dividends
- Debt balance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.