Revenue: As of FY2025, the actual value is USD 443.5 M, beating the estimate of USD 443.32 M.EPS: As of FY2025, the actual value is USD 0.39.EBIT: As of FY2025, the actual value is USD -1.488 M.Power Integrations, Inc. operates as a single reportable segment, focusing on the design, development, manufacture, and marketing of integrated circuits and related components for high-voltage power conversion .<h4>Net Revenue by End Market</h4>Power Integrations, Inc.’s net revenue was $443.5 million in 2025, an increase from $419.0 million in 2024, primarily due to higher sales in the industrial end-market . International sales constituted approximately 98% of net revenue in both 2025 and 2024, with sales to the Asia region accounting for about 84% in both years . Sales to distributors represented 69% of net revenue in 2025 and 70% in 2024 .<ul><li>Communications: 12% in 2025 (12% in 2024, 29% in 2023) .</li><li>Computer: 13% in 2025 (14% in 2024, 12% in 2023) .</li><li>Consumer: 37% in 2025 (39% in 2024, 27% in 2023) .</li><li>Industrial: 38% in 2025 (35% in 2024, 32% in 2023) .</li></ul><h4>Key Operational Metrics (Company-wide)</h4><ul><li>Net Revenue: $443,504 thousand in 2025, $418,973 thousand in 2024, and $444,538 thousand in 2023 .</li><li>Gross Profit: $241,649 thousand in 2025, $224,751 thousand in 2024, and $228,956 thousand in 2023 .</li><li>Gross Margin: 54.5% in 2025, 53.6% in 2024, and 51.5% in 2023 . The increase in 2025 was attributed to manufacturing efficiencies and a favorable end-market mix from higher-margin categories .</li><li>Total Operating Expenses: $231,455 thousand in 2025, $206,822 thousand in 2024, and $193,897 thousand in 2023 .<ul><li>Research and Development Expenses: $101,116 thousand in 2025, $100,790 thousand in 2024, and $96,067 thousand in 2023 .</li><li>Sales and Marketing Expenses: $67,952 thousand in 2025, $67,825 thousand in 2024, and $64,598 thousand in 2023 .</li><li>General and Administrative Expenses: $42,701 thousand in 2025, $38,207 thousand in 2024, and $33,232 thousand in 2023 .</li><li>Other Operating Expenses: $19,686 thousand in 2025, mainly due to $11.3 million from an employee litigation matter and $8.4 million in stock-based compensation from an award modification related to a former CEO’s retirement .</li></ul></li><li>Income from Operations: $10,194 thousand in 2025, $17,929 thousand in 2024, and $35,059 thousand in 2023 .</li><li>Other Income: $10,785 thousand in 2025, $12,825 thousand in 2024, and $10,848 thousand in 2023 . This decreased in 2025 primarily due to lower interest income .</li><li>Provision (Benefit) for Income Taxes: - $1,114 thousand in 2025, - $1,480 thousand in 2024, and - $9,828 thousand in 2023 .</li><li>Net Income: $22,093 thousand in 2025, $32,234 thousand in 2024, and $55,735 thousand in 2023 .</li><li>Depreciation: $27,195 thousand in 2025, $33,303 thousand in 2024, and $35,203 thousand in 2023 .</li><li>Amortization of Intangibles: $831 thousand in 2025, $1,279 thousand in 2024, and $2,173 thousand in 2023 .</li><li>Interest Income: $11,682 thousand in 2025, $13,576 thousand in 2024, and $11,655 thousand in 2023 .</li><li>Stock-based Compensation Expense: $39,690 thousand in 2025, $35,076 thousand in 2024, and $28,528 thousand in 2023 .</li></ul><h4>Cash Flow</h4><ul><li>Cash and Cash Equivalents: $58,755 thousand as of December 31, 2025, compared to $50,972 thousand as of December 31, 2024 .</li><li>Short-term Marketable Securities: $190,755 thousand as of December 31, 2025, compared to $249,023 thousand as of December 31, 2024 .</li><li>Working Capital: Approximately $388.0 million as of December 31, 2025, compared to $458.7 million as of December 31, 2024 .</li><li>Net Cash Provided by Operating Activities: $111,518 thousand in 2025, $81,181 thousand in 2024, and $65,759 thousand in 2023 .</li><li>Net Cash Provided by (Used in) Investing Activities: $36,207 thousand provided in 2025, - $25,920 thousand used in 2024, and - $14,153 thousand used in 2023 .</li><li>Net Cash Used in Financing Activities: - $139,942 thousand in 2025, - $68,218 thousand in 2024, and - $93,049 thousand in 2023 .</li><li>Purchases of Property and Equipment: $24,396 thousand in 2025, $17,286 thousand in 2024, and $20,884 thousand in 2023 .</li></ul><h4>Other Key Financial and Operational Metrics</h4><ul><li>Customer Concentration: The top ten customers accounted for 81% of net revenue in 2025, 79% in 2024, and 80% in 2023 . Avnet alone accounted for 32% in 2025 (30% in 2024, 27% in 2023), and Salcomp Group accounted for 11% in 2025 (less than 10% in 2024, 10% in 2023) .</li><li>Allowance for Ship and Debit: The balance was $33,601 thousand as of December 31, 2025, compared to $26,446 thousand as of December 31, 2024 .</li><li>Inventories: As of December 31, 2025, inventories included raw materials of $101,366 thousand, work-in-process of $27,905 thousand, and finished goods of $37,616 thousand .</li><li>Stock Repurchases: Power Integrations, Inc. repurchased approximately 2.0 million shares for $98.1 million in 2025, exhausting its authorization .</li><li>Dividends: Cash dividends paid were $47.2 million in 2025, $46.0 million in 2024, and $44.0 million in 2023 .</li><li>Employee Headcount: There were 877 full-time personnel as of December 31, 2025, with 301 in R&amp;D, 335 in Sales and Marketing, and 84 in G&amp;A .</li><li>Acquisition: Odyssey Semiconductor Technologies was acquired for $9.52 million in cash in July 2024, which added $4.9 million in in-process research and development and $3.4 million in goodwill .</li><li>Legal Proceedings: In June 2025, a jury ruled against Power Integrations, Inc. in an employee litigation matter, awarding $3.2 million in compensatory damages and $6.0 million in punitive damages, with an additional $1.4 million in attorney fees recognized in Q4 2025 .</li></ul><h4>Outlook / Guidance</h4>Power Integrations, Inc. expects capital expenditures in fiscal 2026 to support future growth in manufacturing machinery and equipment . The company believes its current liquidity and operating cash flow will cover cash requirements for at least the next 12 months . The board declared a quarterly cash dividend of $0.215 per share for each quarter of 2026, and a reduction in force in early 2026 is estimated to incur $3.5 million to $4.0 million in severance and benefit costs in the first quarter of 2026 .

Power Integrations | 10-K: FY2025 Revenue Beats Estimate at USD 443.5 M