Diodes Incorporated

Good afternoon, everyone, and welcome to DIODES Incorporated's fourth quarter and full year 2025 financial results conference call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. If anyone needs assistance at any time during the conference call, please press the star key followed by zero on your touchtone telephones. As a reminder, this conference call is being recorded today, Tuesday, February 10, 2026. We'd now like to turn the conference call over to Leanne Seavers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon, and welcome to DIODE's fourth quarter 2025 financial results conference call. I'm Leanne Seavers, president of Shelton Group, DIODE's investor relations firm. Joining us today are Diode's President and CEO, Gary Yu, CFO, Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing, Emily Yang, and Vice President of Marketing and Investor Relations, Gurmeet Dhaliwal. I'd like to remind our listeners that the results announced today are preliminary as they are subject to the company finalizing its closing procedures and customary quarterly review by the company's independent registered public accounting firm. As such, these results are unaudited and subject to revision until the company files its Form 10-K for its year ended December 31st, 2025. In addition, management's prepared remarks contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission, including Form 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, February 10, 2026. DAS assumes no obligation to update these projections in the future as market conditions may or may not change. except to the extent required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also, throughout the company's press release and management statements during the conference call, we refer to net income attributable to common stockholders as GAAP net income. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the investor relations section of DIODE's website at www.diodes.com. And now I'll turn the call over to DIODE's president and CEO, Gary Yu. Gary, please go ahead.

Welcome, everyone, and thank you for joining us on today's conference call. As announced in our press release earlier today, we end 2025 with fourth quarter revenue growing 15% year-over-year, and 13% for the full year, which is the highest level of annual growth since 2021. Additionally, this quarter represents the fourth consecutive quarter of double-digit growth year-over-year, further highlighting the $0.06 design wing initiative and content expansion over the past year. We have continued to see demand improvement across our target market and geographies, with the most significant growth for the full year driven by a 25% increase in the computing market, primarily for AI server-related applications, as well as double-digit increase in our automotive and industrial end markets. Also during the quarter, we began to realize initial improvement in growth margin as product makes benefit from growth in the automotive market. which increased 6% sequentially and at 24% year-over-year. We also remain focused on increasing manufacturing efficiency and minimize under-loading costs over the next few quarters to further drive future margin expansion. As we look to the coming quarter, we anticipate extending our success by delivering above seasonal revenue results and our fifth consecutive quarter of double-digit year-over-year growth. As we look back over this past year and the progress that has made, I want to take this opportunity to discuss my specific near-term financial target after having been in the role of President and CEO for the past two quarters. After reaching $1 billion in revenue in 2017, our next billion dollar goal is to reach $2.5 billion in revenue and $1 billion in gross profit, or 40% in gross margin. I want to emphasize that we remain committed to achieving these long-term goals. In order to help our investors track our progress toward these goals, today I'm introducing three-year interim financial targets, which include achieving $2 billion in annual revenue with approximately $700 million in gross profit or 35% plus in gross margin. This is equated to a revenue CAGR of 10.5% and a 15% CAGR on gross profit dollars. Most notable, when taking into account our improved cost structure, we are expecting to deliver over $4 in non-GAAP EPS, which equals to a 50% CAGR over that three-year period. This interim goal highlights the strong operating leverage in Dow's financial model and the ability to generate significant earnings, power, and cash flow on each incremental dollar of revenue growth. As mentioned earlier in my remarks, we continue to prioritize product mix improvements by focusing our sales effort and R&D dollars on our three key focus areas of automotive, industrial, and computing for AI-related server applications. Content expansion, design momentum, and a new product introduction will continue to be the cornerstones of our growth initiative, combined with increased manufacturing and cost efficiency to drive margin expansion. With that, let me now turn the call over to Brad to discuss our first quarter and the full year financial results, as well as our first quarter guidance in more detail.