Navitas Semiconductor Corporation (NVTS): Business Model Canvas [Dec-2025 Updated]

You're looking at Navitas Semiconductor Corporation right now, and honestly, it's a fascinating pivot point for a semiconductor player. After seeing revenues dip to $10.1 million in Q3 2025 while guiding Q4 even lower to about $7.0 million, the market is watching closely to see if their big bet pays off. This company is deliberately shedding low-margin consumer business to focus entirely on the massive, high-power AI and EV segments, backing this strategy with a $450 million design win pipeline and proprietary GaN technology backed by a 20-year warranty. To see exactly how they are structuring this high-risk, high-reward transition across their key partners, activities, and resources, you need to dive into the full Business Model Canvas below. It's a high-stakes move, and the structure shows where the real value is being built, or where it might fall apart. This is defintely worth your time.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Key Partnerships

Navitas Semiconductor Corporation is actively reshaping its supply chain and design collaborations to pivot toward high-power markets, especially AI data centers, as of late 2025.

GlobalFoundries: Long-term GaN manufacturing alliance in the U.S.

Navitas Semiconductor Corp and GlobalFoundries (GF) announced a long-term strategic partnership on November 20, 2025, to strengthen and accelerate U.S.-based gallium nitride (GaN) technology, design, and manufacturing.

• Development is set for early 2026.
• Production is expected to begin at GF's Burlington, Vermont facility in late 2026.
• The collaboration focuses on delivering scalable GaN solutions for critical power markets, including AI datacenters and industrial electrification.

NVIDIA: Development collaboration for next-gen 800V DC AI factory architecture

Navitas Semiconductor is engaged in a development collaboration with NVIDIA to support next-generation 800V data centers. This involves leveraging Navitas Semiconductor's full portfolio of GaN and Silicon Carbide (SiC) across three power conversion stages. The company is advancing its 800 VDC power devices for NVIDIA's next-generation AI factory computing platforms.

The strategic focus on AI data centers is expected to see material Profit and Loss contributions starting in 2027. Navitas Semiconductor estimates that GaN and SiC technologies can support a 100x increase in server rack power capacity for AI data centers, representing an expanded $2.6B market potential by 2030.

Foundry Partners: TSMC and Powerchip for GaN and SiC production

Navitas Semiconductor is transitioning its GaN manufacturing base to secure scale and cost efficiency, moving from its existing supplier, TSMC, to Powerchip Semiconductor Manufacturing Corporation (PSMC) for 200mm GaN-on-silicon. Navitas Semiconductor maintained a strong balance sheet with approximately $151 million in cash and no debt as of the end of Q3 2025.

System OEMs/Hyperscalers: Co-designing solutions for high-power applications

Navitas Semiconductor is engaged in system-level co-design with leading hyperscalers, GPU vendors, and grid infrastructure partners. The company's Q3 2025 revenue was $10.1 million, with Q4 2025 revenue guided to a floor of $7 million $\pm$ $250,000 as the business pivots away from lower-margin mobile revenue.

The company has a strong customer pipeline valued at over $1.6 billion. Cumulative GaN shipments have reached over 300 million units.

• Announced first commercial GaN-based On-Board Charger (OBC) with Changan Automobile.
• Enphase announced its next-generation IQ9 would include Navitas Semiconductor's 650 V bi-directional GaNFast ICs.
• Six new automotive design wins were reported in Q3 2024 (Note: This is the closest available data point for design wins).

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Key Activities

You're looking at the core engine driving Navitas Semiconductor Corporation's transformation, what they call 'Navitas 2.0,' as of late 2025. This is where the company is putting its engineering talent and capital to work, shifting focus dramatically.

Wide Bandgap R&D: Continuous innovation in GaNFast™ and GeneSiC™ technology.

The R&D activity is centered on pushing the limits of Gallium Nitride (GaN) and Silicon Carbide (SiC) to capture the high-power market. Navitas Semiconductor is actively sampling new ultra-high-voltage (UHV) products, specifically 2.3kV and 3.3kV high-voltage SiC modules to energy storage and grid infrastructure customers as of December 1, 2025. They also introduced new 100V GaNFast FETs aimed at AI power applications. This innovation push follows a period of cost discipline; for instance, Research and Development Expenses in Q1 2025 were $11.50 million, representing a 39% decrease from $18.97 million in Q2 2024. The company is building on a foundation of over 300 patents issued or pending.

Here are some key technology and operational metrics:

• GaNFast units shipped to date: over 300M.
• GaNFast field reliability benchmark: 100ppb.
• New SiC products feature Trench-Assisted Planar (TAP) architecture.
• SiCPAK G+ power modules show a >60% improvement in power-cycling lifetime.

Strategic Pivot Execution: Reallocating resources away from mobile/consumer to high-power.

The execution of the Navitas 2.0 pivot is visible in the financial guidance, which reflects a deliberate deprioritization of the lower-margin mobile and consumer business, particularly in the China market. This transition is expected to cause a near-term revenue contraction, with Q4 2025 net revenues guided to be in the range of $6.75 million to $7.25 million, down significantly from Q3 2025 revenue of $10.1 million. The company is targeting positive EBITDA by 2026.

The financial impact of the Q3 2025 results and the pivot guidance tells a clear story of resource shift:

Fabless Manufacturing Management: Coordinating with foundries for scalable production.

Navitas Semiconductor Corporation operates as a fabless semiconductor manufacturer. A key activity here is securing and diversifying the manufacturing base to support the high-power ramp. In late 2025, Navitas announced a partnership with GlobalFoundries to advance and produce GaN technology within the U.S., specifically targeting AI datacenters and critical power applications. This is a direct move to ensure scalable, geographically diverse production capacity for their next-generation products.

High-Power Customer Engagement: Deep, system-level co-design with key OEMs.

Engagement in high-power markets is validated by major design wins and collaborations. Navitas Semiconductor was recognized by NVIDIA as a power semiconductor partner for its next-generation 800V DC architecture in AI factory computing. This collaboration spans three power conversion stages for AI data centers, a market segment management projects could be worth $2.6 billion by 2030. Furthermore, the company secured a production design win with Changan, a top EV maker in China, for an on-board charger using its GaNSafe technology, with a production ramp expected in early 2026.

The focus areas for this engagement are clear:

• AI data centers and performance computing.
• Energy & grid infrastructure, including energy storage.
• Industrial electrification.
• Electric vehicle (EV) charging infrastructure.

Supply Chain Consolidation: Streamlining distribution for high-power GaN/SiC devices.

To support the pivot and manage inventory, Navitas Semiconductor is actively streamlining its distribution network, which contributed to the lower Q4 revenue guidance. A concrete action in this area was the announcement of a strategic distribution partnership with WT Microelectronics to improve its distributor network across Asia, focusing on GaN and SiC devices. This move is part of a broader effort to reallocate commercial resources toward the higher-power segments. The company maintains a strong liquidity position to support this transition, ending Q3 2025 with $150.6 million in cash and cash equivalents and no debt. Finance: draft 13-week cash view by Friday.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Key Resources

You're looking at the core assets Navitas Semiconductor Corporation is leaning on right now as they execute the 'Navitas 2.0' pivot. These aren't just abstract concepts; these are the tangible and intangible things that back their strategy, especially as they shift focus to high-power segments like AI data centers.

Intellectual Property: Proprietary GaNFast™ and GeneSiC™ Power Semiconductor Technology

The foundation here is the proprietary silicon-carbide (SiC) and gallium-nitride (GaN) intellectual property. This isn't just about having patents; it's about the proven performance advantage GaNFast™ power ICs offer-running up to 20x faster than legacy silicon chips. To back this up, Navitas Semiconductor has built a significant IP portfolio, with over 145 patents issued or pending as of early 2022, setting the stage for their next-generation offerings.

The core technology assets include:

• Proprietary GaNFast™ power ICs integrating power, drive, control, and protection.
• GeneSiC™ high-voltage silicon carbide technology for higher power needs.
• GaNSense™ technology, which adds system-level robustness to the ICs.

Cash Position

Liquidity is always a key resource, especially during a strategic transformation. Navitas Semiconductor maintained a solid balance sheet footing as of the end of the third quarter of 2025. Specifically, the company reported $150.6 million in cash and cash equivalents on September 30, 2025. This capital base is crucial for funding the resource reallocation required by the Navitas 2.0 strategy.

Design Win Backlog

The reported pipeline of future business, termed design wins, represents crucial potential revenue, even if it's not booked backlog yet. Navitas Semiconductor has reported a pipeline of design wins valued at $450 million. Remember, a design win means a customer has selected their product for a production program, but it isn't revenue until the end product ships. This figure is what management points to as the fuel for growth in late 2025 and into 2026, particularly in the targeted high-power markets.

Here's a quick look at how these figures relate to the business focus:

Engineering Talent

The human capital is centered on deep expertise in the niche field of wide bandgap materials and the complex integration of these power systems. This talent is what allows Navitas Semiconductor to develop integrated power ICs that offer superior performance density and efficiency compared to traditional silicon. Their team's experience is directly tied to setting industry standards, as evidenced by their role as a founding member of the JEDEC JC-70.1 GaN standards committee.

20-Year Warranty: Industry-First GaN Warranty

This warranty is a massive trust asset, especially when targeting reliability-sensitive markets like data centers and electric vehicles (EVs). Navitas Semiconductor offers an industry-first 20-year limited warranty on its GaNFast power ICs, which is 10x longer than typical warranties for silicon or SiC. This confidence stems from rigorous testing and field performance:

• Field operational hours: Over 174 billion hours.
• Equivalent device hours tested: 5.8 billion hours.
• Reported GaN-related field failures: Zero.

This level of proven reliability helps accelerate adoption in demanding industrial and automotive applications, where long-term performance is non-negotiable.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Navitas Semiconductor Corporation's technology over legacy silicon, especially as the company pivots hard into high-power AI infrastructure. The value propositions are concrete performance gains, not just abstract promises.

Superior Efficiency and Power Density

The primary draw for data center operators, who are battling massive energy bills, is the efficiency gain. Navitas Semiconductor's IntelliWeave patented digital control, when combined with their high-power GaNSafe ICs and Gen-3 Fast SiC MOSFETs, enables Power Factor Correction (PFC) peak efficiencies of up to 99.3% in AI data center power supplies. This translates directly to a reported 30% reduction in power losses compared to existing solutions in those specific applications.

This efficiency, coupled with the inherent nature of Gallium Nitride (GaN), allows for smaller, lighter systems. For instance, their optimized designs deliver efficient 4.5 kW power in the smallest power-supply form-factor, achieving a power density of 137 W/in³. This is a critical enabler for the multi-megawatt rack densities required by next-generation AI workloads. Furthermore, earlier Common Redundant Power Supply (CRPS) designs demonstrated a 40% smaller size than best-in-class legacy silicon solutions.

Here's a quick look at how these performance metrics stack up against the financial reality of late 2025, where the company reported Q3 2025 revenue of $10.1 million and guides Q4 2025 revenue to a bottom of $7.0 million ± $0.25 million as they focus on these high-value segments.

System Integration and Reliability Assurance

Navitas Semiconductor Corporation simplifies design for their customers by offering integrated solutions. Their proprietary GaNFast™ power ICs integrate the core components needed for power conversion:

• GaN power (FET)
• GaN drive
• Control, sensing, and protection

This integration results in easy-to-use, high-speed, high-performance 'digital-in, power-out' building blocks.

To back this complex integration, Navitas Semiconductor offers the industry's only 20-year limited warranty for its GaNFast technology, which is 10x longer than typical silicon or SiC offerings. This confidence stems from rigorous testing; as of early 2022, they cited over 40 million units shipped with zero reported GaN-related field failures, supported by 5.8 billion equivalent device hours testing. This reliability is a defintely key accelerator for adoption in high-reliability markets like data centers.

Sustainability Impact

The move to wide bandgap semiconductors directly supports global electrification and energy savings goals. Navitas Semiconductor was the first semiconductor company to be CarbonNeutral®-certified. The environmental benefit is quantified:

• Each GaN IC shipped saves an estimated 4 kg of CO2.
• In 2024 alone, their GaNFast power ICs saved an estimated 2.8 million tons of CO2 emissions compared to traditional silicon.
• The potential impact by 2050 is projected to save up to 2.6 Gtons CO2 per year.

This focus on sustainability is now central to their strategy, as they target high-growth markets like AI data centers and industrial electrification, where efficiency directly impacts operational costs.

Finance: review Q4 2025 operating expense guidance of approximately $15.0 million against the non-GAAP gross margin projection of 38.5% ± 50 basis points to model the path to positive EBITDA in 2026.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Customer Relationships

You're navigating a business model in transition, where Navitas Semiconductor Corporation is deliberately reshaping its customer base to chase higher-margin, high-power opportunities. This shift, called "Navitas 2.0," means the relationship structure is actively changing, moving away from transactional support to deep technical collaboration.

Dedicated Co-Design: Deep technical collaboration with high-power customers (e.g., AI/EV).

The core of the new relationship strategy involves deep technical collaboration, especially with hyperscalers and EV/Energy OEMs. This is evidenced by Navitas Semiconductor being recognized by NVIDIA as a power semiconductor partner for its next-generation 800V DC architecture in AI factory computing. This level of engagement requires co-design, where Navitas's GaN and high-voltage SiC technologies are integrated early in the customer's system design. Furthermore, the company is sampling 2.3kV and 3.3kV high-voltage SiC modules directly to energy storage customers, indicating a close, development-stage relationship rather than a simple component sale.

The company's commitment to product longevity in these critical applications is underscored by offering the industry's first and only 20-year GaNFast warranty, a bold statement of confidence designed to secure these high-value design slots.

Long-Term Engagements: Longer sales cycles and deeper relationships in high-power markets.

Relationships in the target high-power markets inherently involve longer sales cycles, which is a key characteristic of this customer relationship segment. Industry benchmarks suggest that design wins in complex sectors like automotive and data centers often take 2-4 years to materialize into revenue. For example, a key design win with Changan for EV on-board chargers is not expected to generate revenue until early 2026. This timeline dictates a relationship built on sustained technical support and trust over several fiscal years, contrasting sharply with the previous model.

The expected revenue for the fourth quarter of 2025 is guided to be around $7.0 million (plus or minus $0.25 million) as the company intentionally deprioritizes lower-value business to focus on these longer-term engagements.

Automated Service: High-volume, transactional support for legacy mobile/consumer.

The transactional, high-volume support model associated with legacy mobile and consumer electronics is being deliberately reduced. Navitas Semiconductor is executing a strategic wind-down of this segment, which management noted was lower-profit. This is visible in the financial results, where Q3 2025 revenue was $10.1 million, a significant drop from $21.7 million in Q3 2024, due to deprioritizing the low-power China mobile and consumer business. The relationship structure here is shifting toward streamlining distribution and reducing channel inventory, which is a necessary step to free up resources for the high-power focus.

The company is actively managing down this segment to align with its new focus:

• Deprioritizing low-margin China mobile & consumer business.
• Streamlining distribution network.
• Reducing channel inventory.

Strategic Account Management: Focused teams for hyperscalers and Tier 1 EV/Energy OEMs.

Navitas Semiconductor is deploying specialized resources to manage its most important new customers. The company has job openings for a Strategic Accounts Sales Manager, based in the San Jose, CA area, whose primary responsibility is revenue and business development management within assigned major strategic accounts in the Americas. These roles require extensive experience in the High Power market-specifically Automotive (EVs) and/or Solar-and an understanding of GaN and SiC topologies. This structure ensures that relationships with Tier 1 EV/Energy OEMs and hyperscalers are managed with dedicated, high-level technical and commercial oversight.

To support this global pivot, Navitas also expanded its Asian distribution partnership with WT Microelectronics in late November 2025, tasking them to lead customer engagement and logistics in Asia, specifically to improve support for high-power customers in that region.

Here's a look at the financial context framing this relationship shift as of late 2025:

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Channels

You're looking at how Navitas Semiconductor Corporation (NVTS) gets its GaNFast and GeneSiC products into the hands of customers as of late 2025. The channel strategy is clearly shifting to align with the pivot toward high-power, high-growth markets, which means less reliance on the legacy mobile segment and more focus on enterprise and infrastructure.

Direct Sales Force: Targeting high-value, high-power customers like AI data centers

Navitas Semiconductor is executing a strategic pivot, moving away from a heavy dependence on consumer and mobile markets to focus on high-power segments, specifically AI data centers and EV drivetrains. The direct sales team's role is to facilitate development of new end-customer partnerships, working in tandem with their distribution network. This focus is cemented by their recognition as a power semiconductor partner by NVIDIA for next-generation 800V data centers. This collaboration covers three power conversion stages, targeting a potential $2.6B market by 2030 just within AI data centers. The company's total employee count as of November 14, 2025, stood at 280 employees, indicating a lean structure supporting this high-value direct engagement.

Consolidated Distributors: WT Microelectronics handles logistics and customer support in Asia

A major channel move in late 2025 was the massive consolidation of the Asian distribution network. Navitas Semiconductor announced on November 27, 2025, that it had strengthened its strategic partnership with WT Microelectronics Co., Ltd., making WT the primary partner to lead customer engagement and design-in activities across Asia. This move replaced a previous multi-distributor approach to improve speed and quality of support for high-power growth markets. WT is allocating expanded technical and commercial resources to handle robust regional logistics, inventory management, and final customer delivery for GaNFast and GeneSiC devices. This channel is critical for serving customers in the targeted segments, including AI data centers and industrial electrification.

Here's a look at the financial context surrounding this channel focus, based on recent reported figures:

Online/Technical Support: Providing design tools and application notes for engineers

Technical enablement is channeled through the expanded partnership with WT Microelectronics, which is responsible for providing comprehensive support services, including design-in assistance, technical support, and application guidance for regional customers utilizing GaNFast and GeneSiC devices. This support is essential for accelerating the adoption of Navitas Semiconductor's technologies in complex, high-voltage systems. The company's overall IP position, boasting over 300 company-wide patents issued or pending, underpins the technical foundation offered through these support channels.

OEM/System Integrators: Products embedded into final systems (e.g., EV chargers, server power supplies)

The ultimate channel for revenue realization is through the embedding of Navitas Semiconductor's products into final systems by Original Equipment Manufacturers (OEMs) and system integrators. The company is seeing design win conversion progress across key end-markets. For instance, in the EV space, Navitas has secured more than 40 EV design wins across China, Europe, the United States, and Korea, representing a rapidly expanding $900 million EV pipeline. This includes a landmark design win with Changan Auto, marking the first adoption of a GaN platform in a mainstream EV. In data centers, Navitas introduced a 12-kilowatt power platform, an industry first, designed to enable high-performance AI servers to reach up to 500kW per rack. The company's focus on high-end, premium segments within mobile, consumer, and appliance markets is also maintained to improve margins while the high-power segments scale.

• EV Design Wins: >40 across key geographies.
• EV Pipeline Value: $900 million.
• AI Server Rack Power Capacity Enabled: Up to 500kW.
• AI Data Center Market Potential (by 2030): $2.6 billion.

Finance: draft 13-week cash view by Friday.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Customer Segments

You're looking at Navitas Semiconductor Corporation (NVTS) as it executes its 'Navitas 2.0' strategic pivot, moving away from legacy, lower-margin business to target high-growth, higher-power semiconductor markets. This shift is clearly reflected in how the company now segments its customer base, prioritizing design wins in infrastructure over consumer volume.

The financial performance in late 2025 underscores this transition. Navitas Semiconductor reported total revenue of $10.1 million in the third quarter of 2025. Looking ahead, the guidance for the fourth quarter of 2025 net revenues is set lower, at $7.0 million $\pm$ $0.25 million, which management explicitly attributes to the strategic decision to deprioritize lower-profit segments.

The core customer segments driving the future strategy are centered on high-power density and efficiency:

• AI Data Center/Performance Computing
• Energy and Grid Infrastructure
• Industrial Electrification

The company maintains a solid financial footing to support this transition, holding cash and cash equivalents of $150.6 million as of September 30, 2025.

AI Data Center/Performance Computing: Focus on next-gen 800V DC power architectures

This segment represents a generational opportunity, particularly through Navitas Semiconductor's collaboration with NVIDIA, where it is recognized as a power semiconductor partner for the next-generation 800V DC architecture in AI factory computing. The company has started sampling mid-voltage GaN devices at 100 volts, which are designed for the final power conversion stage inside AI servers. While this is a primary focus, management has indicated that meaningful revenue from AI data centers is not expected before 2027.

Energy/Grid Infrastructure: Solar inverters, energy storage systems, and industrial power

Navitas Semiconductor is actively engaging this segment with its high-voltage Silicon Carbide (SiC) technology. The company is sampling 2.3 kV and 3.3 kV SiC modules specifically for energy storage and grid infrastructure customers. This area supports the broader mission to 'Electrify our World™'.

Industrial Electrification: High-power applications like motors and industrial power supplies

Industrial electrification is cited alongside AI data centers and energy infrastructure as a key market where demand is accelerating for Navitas Semiconductor's GaN and high-voltage SiC technologies. These applications require the high efficiency and power density that Navitas' wide bandgap semiconductors provide.

Mobile/Consumer (Deprioritized): Legacy segment being pruned for lower-margin business

The executive team is executing a decisive pivot away from the lower-margin, low-power China mobile and consumer business. In the third quarter of 2025, the mobile segment was still the majority of the business, but leadership projected it would fall to under 50% of revenue in the fourth quarter of 2025 as the company streamlines distribution and reduces channel inventory. Navitas is becoming more selective, focusing only on ultrafast chargers with speeds higher than 100 watts within this legacy space.

The strategic focus areas and their associated technology advancements can be mapped out:

The company is reallocating resources to these high-power markets, expecting Q4 2025 revenue of $7.0 million $\pm$ $0.25 million to be the revenue bottom before sequential growth starts in 2026.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Navitas Semiconductor Corporation's operations as they pivot toward high-power markets. Here is the cost structure data, grounded in the latest filings and guidance for the 2025 fiscal year.

Research & Development (R&D): Navitas Semiconductor Corporation continues significant investment to accelerate its GaN and SiC roadmaps, though operating expenses are being trimmed. For the first quarter of 2025, GAAP Research and Development Expenses were $12,668 thousand. This was reduced to $11.50 million in the second quarter of 2025. The company indicated that the split between R&D and Selling, General and Administrative (SG&A) expenses was expected to remain at 55/45 for the remainder of 2025. Based on the Q4 2025 non-GAAP operating expense guidance, this implies an estimated R&D spend of approximately $8.25 million (55% of $15.0 million) for that quarter.

Operating Expenses: The focus for late 2025 is on expense reduction to drive efficiency. Non-GAAP operating expenses for the fourth quarter of 2025 are expected to be approximately $15.0 million. This represents a sequential reduction from the $15.4 million reported for the third quarter of 2025. Total GAAP Operating Expenses for the first quarter of 2025 were $30,611 thousand.

Cost of Revenues: As a fabless model company, the Cost of Revenues primarily reflects costs paid to external partners for manufacturing. For the third quarter of 2025, GAAP Cost of Revenues (exclusive of amortization of intangibles) was $6,281 thousand. This compares to $12.16 million for the second quarter of 2025. The Cost of Revenues (exclusive of amortization) for the first quarter of 2025 was $8,711 thousand.

Manufacturing Overhead: Costs associated with managing the outsourced supply chain are embedded within the Cost of Revenues. The company is actively streamlining its distribution network as part of its strategic pivot. The GAAP Cost of Revenues (amortization of intangibles) for the three months ended September 30, 2025, was $4,038 thousand.

Here is a look at the key expense components from recent periods:

The R&D and SG&A expense split was planned to be 55/45 for the rest of 2025. The company is focused on disciplined OpEx and cash management during this transition period.

Navitas Semiconductor Corporation (NVTS) - Canvas Business Model: Revenue Streams

The revenue streams for Navitas Semiconductor Corporation (NVTS) are currently defined by a strategic transition, moving away from lower-margin, lower-power segments toward higher-power, higher-growth markets. This pivot directly impacts near-term revenue recognition while setting the stage for future scaling.

Product Sales: Revenue generation fundamentally comes from the sale of Navitas Semiconductor Corporation's core semiconductor products. These are primarily the GaNFast™ ICs (Gallium Nitride Integrated Circuits) and the GeneSiC™ power devices (Silicon Carbide power devices). The current focus is on reallocating resources to high-power markets like AI data centers, performance computing, energy and grid infrastructure, and industrial electrification, which are expected to yield better margins over time.

The recent financial performance reflects this strategic realignment. Here is a quick look at the recent and projected revenue and margin data:

The Q3 2025 revenue of \$10.1 million was achieved while the company was actively deprioritizing the low-power, lower-profit China mobile and consumer business, and working to streamline distribution and reduce channel inventory.

The Q4 2025 guidance of approximately \$7.0 million ($\pm \text{\$0.25 million}$) is expected to represent the bottom of this strategic transition period, with management anticipating progressive gross margin improvement following this quarter. The projected non-GAAP gross margin for Q4 2025 is set at 38.5% ($\pm \text{50 basis points}$).

Future Revenue: A significant component of Navitas Semiconductor Corporation's future revenue visibility stems from its substantial pipeline of design wins. As of early 2025, the company reported a backlog of \$450 million in customer design wins.

This backlog is heavily weighted toward the high-power markets the company is now prioritizing:

• Data Center
• Electric Vehicle (EV)
• Performance Computing
• Energy & Grid Infrastructure

The conversion of this \$450 million design win backlog into recognized revenue is the key driver for projected revenue growth in late 2025 and beyond, though timelines for complex projects like those in the AI data center ecosystem are expected to see material contribution starting in 2027. Finance: review the conversion rate assumptions for the \$450 million backlog against the Q4 2025 revenue guidance by next Tuesday.