Vicor third-quarter net income rises to $63.3 million on higher revenue

Vicor Corporation (VICR) said Tuesday that third-quarter net income rose to $63.3 million, or $1.33 per diluted share, as product and royalty revenue climbed. The results cover the three months ended Sept. 30, 2026.

The company designs, manufactures and markets modular power components and power systems, and it licenses its patents to original equipment manufacturers, or OEMs, and hyperscalers.

Here's how the company did:

• Net income: $63.3 million, or $1.33 per diluted share, vs. $28.3 million, or $0.63 per diluted share, a year earlier
• Product and royalty revenue: $197.1 million, vs. $110.4 million a year earlier
• Gross margin: $134.7 million, or 68.3% of revenue, vs. $63.5 million, or 57.5%, a year earlier
• Operating expenses: $62.5 million, vs. $42.6 million a year earlier

Product and royalty revenue rose 37.5% from $143.4 million in the second quarter. It also rose 78.5% from a year earlier.

Gross margin rose to $134.7 million from $83.1 million in the second quarter. As a share of revenue, it reached 68.3%, compared with 58.0% in the second quarter.

Operating expenses, which include contingency fees to law firms enforcing Vicor IP, were $62.5 million. That compares with $48.2 million in the second quarter and $42.6 million a year earlier.

Income from operations was $72.1 million, against $20.9 million a year earlier. Other income, net, was $6.6 million.

The company booked an income tax provision of $15.4 million. A year earlier it recorded a benefit of $5.0 million.

Diluted shares outstanding were 47.6 million, up from 44.9 million a year earlier.

Cash flow from operations totaled $69.7 million. That compares with $34.0 million in the second quarter and $38.5 million a year earlier.

Capital expenditures were $16.1 million, up from $11.2 million in the second quarter and $4.0 million a year earlier.

Cash and cash equivalents rose 13.1% from the second quarter to approximately $513.1 million as of Sept. 30. The balance was $453.6 million at June 30 and $402.8 million at Dec. 31, 2025.

Backlog totaled $406 million at the end of the quarter. That was up 7% from $380 million at the end of the second quarter and up 166% from $153 million a year earlier.

For the first nine months, total net revenues were $453.4 million, compared with $300.4 million a year earlier. Diluted earnings per share were $2.81, against $1.59.

The year-earlier nine months included a $45.0 million patent litigation settlement.

CEO Dr. Patrizio Vinciarelli said: "With the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover, we will be able to provide a nearly 5X increase in capacity from 3 Fabs, relative to Fab-1." He also said: "Capacity expansion is necessary in view of demand and industry trends."

Vinciarelli said the company demonstrated its 2nd GEN VPD to OEMs and hyperscalers in private presentations and lab sessions, and that "the stage is set for broader adoption" of related modules.

The company granted its first VPD license to an AI OEM at Stage-2 unit royalty rates. Vinciarelli said an International Trade Commission, or ITC, decision to institute an investigation into VPD infringement is "catching their attention."

Total assets were $981.6 million. Accounts receivable rose to $122.5 million from $60.7 million at Dec. 31, 2025, and inventories rose to $110.9 million from $91.3 million.

Accrued litigation was zero at Sept. 30, against $28.3 million at Dec. 31, 2025.

The release did not include financial guidance for the fourth quarter or the full year. It also did not give headcount or restructuring costs.

The company said the results were released in a press release attached to a regulatory filing. It scheduled a conference call for 8:00 a.m. Eastern Time on Tuesday.