Navitas Semiconductor Corporation

Good afternoon. Thank you for standing by and welcome to Navitas Semiconductor First Quarter 2025 Financial Results Conference Call. Please be advised today's conference is being recorded and a replay will be available on Navitas Investor Relations website. I would now like to hand the conference over to Lori Barker, Investor Relations. Please go ahead.

Good afternoon, everyone. I'm Lori Barker, Investor Relations for Navitas. Thank you for joining Navitas Semiconductor's first quarter 2025 results conference call. I'm joined today by Gene Sheridan, our president, CEO, and co-founder, and Todd Glickman, CFO. A replay of this webcast will be available on our website approximately one hour following this conference call and available for approximately 30 days. Additional information related to our business is also posted on the investor relations section of our website. Our earnings release includes non-GAAP financial measures. Reconciliation of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our first quarter earnings release and also posted on our website in the investor relations section. Non-GAAP expenses and operating margin include stock-based compensation, amortization of intangible assets, and other non-recurring items. In this conference call, we will make forward-looking statements about future events or about the future financial performance of Navitas. You can identify these statements by words like we expect, we believe, or similar terms. We wish to caution you that such forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from expectations expressed in our forward-looking statements. Important factors that can affect Navitas' business, including factors that could cause actual results to differ from our forward-looking statements, are described in our earnings release. Please also refer to the risk factors sections in our most recent 10-K and 10-Q. Our estimates or other forward-looking statements may change, and Navitas assumes no obligation to update forward-looking statements to reflect actual results. Changed assumptions are other events that may occur except as required by law. And now, over to Gene Sheridan, CEO.

Thanks to all of you for joining our Q1 2025 earnings call. Our Q1 2025 revenues came in line with guidance at 14 million and 38% gross margin. While the slowdown in channel inventory in ED, solar, and industrial continues to present some near-term headwinds in our business, I want to walk through a number of important recent market and product developments that I expect will set up for a strong 2026 as the market recovers and many design wins kick in later this year. In Q1, we announced the industry's first production release of a bidirectional GaN IC. As we described in our online launch event and available video, GaN bidirectional switches, or BDS, is a revolutionary new technology that creates an ideal switch that the industry has never seen in 40-plus years of power semiconductor developments. No other power semidevice in the industry's history across silicon, GaN or silicon chloride, has achieved this ideal combination of capabilities. GaN BDS makes it technically and commercially feasible to reduce traditional two-stage converters that are used in over 70% of power electronics into one single stage while enabling bidirectional energy flow. GaN BDS eliminates dozens of large and expensive components in that second stage, resulting in size, weight, cost, and power loss improvements of 30% or more. When combined with our new IsoFast family of high-frequency isolated drivers, this chipset creates new opportunities to accelerate GaN adoption with these single-stage converters into EV onboard chargers, solar microinverters, charging and discharging of energy storage systems, motor control applications, and others. The first customer adopting our GaN BDS is in solar microinverters and expects to ramp later this year. And we expect others to ramp throughout 2026 in a number of the applications mentioned. In addition, we announced our GaN safe technology has now been automotive qualified to the challenging AEC Q101 standard, and our GaN safe has been adopted in the industry's first GaN EV onboard charger design with Chang'an Auto, a top EV maker in China with expected production in early 2026. This is a major industry-first achievement. Additional GAN EV wins are expected to also ramp throughout 2026, as Navitas is pioneering GAN adoption into an entire new mainstream market of electric vehicles. We have released a comprehensive GAN reliability report, which not only highlights this major Q101 automotive qualification achievement, but demonstrates our aggregate field reliability track record, which spans seven years since first GAN production release in 2018. Over this time, we've advanced the technology and its reliability across four generations and continual design innovations and integrations that have translated into an aggregate 250 million unit shift and a continuous improvement in field reliability that has now reached an unprecedented 100 parts per billion failure rate, far exceeding any industry requirements. In a similar fashion, we have spent the last two years since the Genesec acquisition improving and demonstrating the extraordinary reliability performance of our Genesec technology. We will soon be announcing a new reliability standard we call AEC+, which exceeds the stringent automotive AEC standards by 100% or more for many of the industry standard reliability tests and as compared to our testing of competitive technologies. When we combine this impressive reliability achievement with our demonstrated ultra-high voltage capability, enabling silicon carbide to support 2.3 kV and up to 6.5 kV, we are pioneering reliability and voltage capabilities essential in enabling new energy markets that include next-generation megawatt applications spanning EV fast chargers, energy storage, renewable energy, and grid infrastructure upgrades. Stay tuned for many more market developments and customer wins on this front. Also, while passenger battery electric vehicles have seen some slowdown and inventory corrections, we're excited to announce adoption of our selling carbide technology with two significant commercial EV customers. While the commercial EV market, which includes long-haul trucks, forklift, mining, and other commercial applications, is a smaller market compared to passenger EVs, it requires much higher power, higher voltage, higher reliability, plus higher selling carbide content. a perfect fit for our Genesys technology. We're happy to announce two significant wins in this space, which we expect to enable a multimillion-dollar impact in 2026. In data centers, AI continues to drive a dramatic increase in total power density and power efficiency. Navitas continues our significant system design progress, utilizing our latest Genesys and Gansafe ICs, including new IntelliWeave control technology, where we started with a 2.7 kilowatt design last year, and then pushed power levels in new systems designed to 3.2 kilowatt, 4.5 kilowatt, 8.5 kilowatt. And today, I'm pleased to announce a new 12 kilowatt design that we will formally launch at Computex later this month. 12 kilowatt represents an industry first for data centers, and this platform is only possible with a combination of GaN and silicon carbide technologies. a perfect fit for our pure clay wideband gap capabilities. While most initial Blackwell-based systems are utilizing power supply designs in the range of 4.5 kilowatts, this 12-kilowatt platform will enable Blackwell, Blackwell Ultra, and future Rubin platforms to more than double the total rack power to as much as 500 kilowatts. We already have over 75 customer projects in production or development, using either silicon carbide, GAN, or both, and expect this pipeline to accelerate with this 12-kilowatt launch. Last week, we announced some board and executive changes, which we believe will accelerate the company's transition from early growth stage to much greater scale and profitability. To enhance our governance, we have separated the chair and CEO roles and announced Rick Hendricks as our new independent chair. Rick has been on the board since our IPO and brings significant capital markets and executive leadership skills to the roles. We also announced our CTO, COO Dan Kinzer, is transitioning into a technical advisory role with the anticipation of a new incoming COO that we expect to announce in the near future. At Navitas and throughout my career, Dan has been a great friend and business partner and has been instrumental in the creation of Navitas over the last 10 plus years. While his executive role is changing, we look forward to Dan's world-class innovation contributions going forward in his new advisory role. Let me summarize the significant market and technology developments that I've described today. Our high-powered GaN ICs and cell and garbage technologies are very well positioned to open up all new markets for Navitas and, in many cases, for the industry. GaN sinks and Genesys technologies are ramping into mainstream AI data center applications throughout this year. Bi-directional GaN is a game-changing technology that we expect will start enabling next-generation solar microinverters in the second half of this year. GAN Safe is now auto-qualified and will be the first GAN adopted in mainstream EV applications expected to begin production early next year. Genesys technology is now qualified to far exceed these automotive reliability standards and is gaining important share in commercial EV applications. Combined with our ultra-high voltage capability of 2.3 kV or higher, Genesic is an enabling technology for a broad range of new energy megawatt applications that are critical to fulfill our mission to electrify our world. Now, let me turn it over to Todd to discuss our financial performance in Outlook.