We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVTS cut Q1 operating expenses to $17.2M and aims for $15.5M to support breakeven in 2026.
Navitas holds $75M in cash with no debt, reflecting disciplined capital and strong liquidity.
$450M lifetime design wins and GaN and SiC innovation position NVTS for higher-margin growth.
Navitas Semiconductor (NVTS - Free Report) is actively strengthening its financial position through a combination of operational efficiencies and cost management amid softness in core markets.
The company reported first-quarter 2025 operating expenses of $17.2 million, down sequentially, with an aim to further reduce it to $15.5 million in the upcoming quarters. This contributed to an improved non-GAAP operating loss of $11.8 million, down from $12.7 million in the previous quarter. NVTS expects further reductions in operating expenses and remains on track to reach EBITDA breakeven once quarterly revenues enter the high $30 million range in 2026, positioning the company for sustained financial stability and future growth. Additionally, Navitas maintains a debt-free balance sheet, $75 million in cash, providing strong liquidity.
Other Factors Fueling NVTS’ Strong Financial Position
Navitas secured $450 million in design wins till 2024, across sectors such as EV, data centers, solar and mobile. These wins are now moving into production, expected to yield revenue growth in the upcoming quarters. Additionally, the company’s leadership in gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, particularly with industry-first innovations like bidirectional GaN ICs and AEC-Q101-qualified GaNSafe technology, gives it a competitive edge in capturing higher margins.
NVTS’ GaN products are manufactured in Taiwan and sold mostly outside the United States, minimizing direct tariff exposure. The company is expanding into high-power applications like AI data centers (12kW systems), commercial EVs and next-gen solar microinverters. These markets have higher average selling prices (ASPs), longer product lifecycles and stronger growth potential that help improve both top-line growth and gross margin over time.
Prominent Competitors of NVTS With Strong Financial Position
ON Semiconductor (ON - Free Report) ended the first quarter with cash and cash equivalents and short-term investments of $3.01 billion. In comparison, long-term debt was $3.35 billion, which is easily manageable, given its strong cash flow generation ability. In first-quarter 2025, the company generated cash flow of $602.3 million, up 20.8% year over year. It currently has $1.1 billion available under its revolving credit facility. Onsemi is reducing its capital expenditure spending, which is now expected to be 5% of revenues for the rest of 2025. Strong liquidity is helping ON continue with its share repurchase program. In the first quarter, it repurchased 6.1 million shares of common stock.
STMicroelectronics (STM - Free Report) exited the first quarter with $5.96 billion in total liquidity and $2.88 billion in debt, resulting in a strong net financial position of $3.08 billion. This provides the company with ample financial flexibility to navigate market fluctuations and continue investing in growth.
Despite a 27% drop in year-over-year revenues, it kept operating expenses in check at $830 million, lesser than anticipated, reflecting strict cost discipline. The company is continuing to invest wisely, with a planned $2.00-$2.30 billion in capital expenditure in 2025. This investment is aimed at upgrading its manufacturing by expanding its 300mm silicon and 200mm silicon carbide (SiC) production capacity.
NVTS Stock Outperforms Industry & Benchmark
Year to date, shares of Navitas have surged 72.6%, outperforming the industry and S&P 500 composite’s growth of 15.7% and 5.7%, respectively.
Image Source: Zacks Investment Research
Navitas’ Expensive Valuation
NVTS stock trades at a forward 12-month price-to-sales (P/S) of 14.4X, significantly higher than the industry average of 7.5X.
Image Source: Zacks Investment Research
NVTS Consensus Estimate Trend
The Zacks Consensus Estimate for NVTS’ loss per share has moved south over the past 90 days.
Image: Bigstock
Navitas Enjoys Robust Financial Position: What's Fueling It?
Key Takeaways
Navitas Semiconductor (NVTS - Free Report) is actively strengthening its financial position through a combination of operational efficiencies and cost management amid softness in core markets.
The company reported first-quarter 2025 operating expenses of $17.2 million, down sequentially, with an aim to further reduce it to $15.5 million in the upcoming quarters. This contributed to an improved non-GAAP operating loss of $11.8 million, down from $12.7 million in the previous quarter. NVTS expects further reductions in operating expenses and remains on track to reach EBITDA breakeven once quarterly revenues enter the high $30 million range in 2026, positioning the company for sustained financial stability and future growth. Additionally, Navitas maintains a debt-free balance sheet, $75 million in cash, providing strong liquidity.
Other Factors Fueling NVTS’ Strong Financial Position
Navitas secured $450 million in design wins till 2024, across sectors such as EV, data centers, solar and mobile. These wins are now moving into production, expected to yield revenue growth in the upcoming quarters. Additionally, the company’s leadership in gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, particularly with industry-first innovations like bidirectional GaN ICs and AEC-Q101-qualified GaNSafe technology, gives it a competitive edge in capturing higher margins.
NVTS’ GaN products are manufactured in Taiwan and sold mostly outside the United States, minimizing direct tariff exposure. The company is expanding into high-power applications like AI data centers (12kW systems), commercial EVs and next-gen solar microinverters. These markets have higher average selling prices (ASPs), longer product lifecycles and stronger growth potential that help improve both top-line growth and gross margin over time.
Prominent Competitors of NVTS With Strong Financial Position
ON Semiconductor (ON - Free Report) ended the first quarter with cash and cash equivalents and short-term investments of $3.01 billion. In comparison, long-term debt was $3.35 billion, which is easily manageable, given its strong cash flow generation ability. In first-quarter 2025, the company generated cash flow of $602.3 million, up 20.8% year over year. It currently has $1.1 billion available under its revolving credit facility. Onsemi is reducing its capital expenditure spending, which is now expected to be 5% of revenues for the rest of 2025. Strong liquidity is helping ON continue with its share repurchase program. In the first quarter, it repurchased 6.1 million shares of common stock.
STMicroelectronics (STM - Free Report) exited the first quarter with $5.96 billion in total liquidity and $2.88 billion in debt, resulting in a strong net financial position of $3.08 billion. This provides the company with ample financial flexibility to navigate market fluctuations and continue investing in growth.
Despite a 27% drop in year-over-year revenues, it kept operating expenses in check at $830 million, lesser than anticipated, reflecting strict cost discipline. The company is continuing to invest wisely, with a planned $2.00-$2.30 billion in capital expenditure in 2025. This investment is aimed at upgrading its manufacturing by expanding its 300mm silicon and 200mm silicon carbide (SiC) production capacity.
NVTS Stock Outperforms Industry & Benchmark
Year to date, shares of Navitas have surged 72.6%, outperforming the industry and S&P 500 composite’s growth of 15.7% and 5.7%, respectively.
Image Source: Zacks Investment Research
Navitas’ Expensive Valuation
NVTS stock trades at a forward 12-month price-to-sales (P/S) of 14.4X, significantly higher than the industry average of 7.5X.
Image Source: Zacks Investment Research
NVTS Consensus Estimate Trend
The Zacks Consensus Estimate for NVTS’ loss per share has moved south over the past 90 days.
Image Source: Zacks Investment Research
NVTS’ Zacks Rank
NVTS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.