Vicor Corp
NASDAQ:VICR
Vicor Corp
Nestled in the technical heartland of Andover, Massachusetts, Vicor Corp. has quietly carved a niche in the power electronics industry. Founded in 1981 by Patrizio Vinciarelli, the company has become a stalwart in designing and manufacturing high-performance power modules. Vicor's innovation lies in its advanced power conversion technologies, which enable efficient and compact electricity conversion across various voltages. The company's products serve a crucial role in sectors demanding high reliability, from data centers to automotive and industrial applications. Vicor thrives on its advancements in modular power systems—breaking complex power challenges into manageable solutions, enabling more efficient designs and higher power densities.
What sets Vicor apart is its focus on flexibility, customization, and scalability in power solutions. Instead of generic one-size-fits-all products, Vicor offers a comprehensive line of power components. Their unique high-density power modules are designed with end-users' specific needs and applications in mind, allowing for tailored solutions that optimize performance and energy consumption. The company generates revenue by selling these sophisticated components to original equipment manufacturers (OEMs) and integrators, forging strong ties with industries that rely on cutting-edge power delivery methods to stay competitive. Through its relentless commitment to innovation and quality, Vicor Corp. has established itself as a pivotal player in transforming how industries efficiently harness electrical energy.
Nestled in the technical heartland of Andover, Massachusetts, Vicor Corp. has quietly carved a niche in the power electronics industry. Founded in 1981 by Patrizio Vinciarelli, the company has become a stalwart in designing and manufacturing high-performance power modules. Vicor's innovation lies in its advanced power conversion technologies, which enable efficient and compact electricity conversion across various voltages. The company's products serve a crucial role in sectors demanding high reliability, from data centers to automotive and industrial applications. Vicor thrives on its advancements in modular power systems—breaking complex power challenges into manageable solutions, enabling more efficient designs and higher power densities.
What sets Vicor apart is its focus on flexibility, customization, and scalability in power solutions. Instead of generic one-size-fits-all products, Vicor offers a comprehensive line of power components. Their unique high-density power modules are designed with end-users' specific needs and applications in mind, allowing for tailored solutions that optimize performance and energy consumption. The company generates revenue by selling these sophisticated components to original equipment manufacturers (OEMs) and integrators, forging strong ties with industries that rely on cutting-edge power delivery methods to stay competitive. Through its relentless commitment to innovation and quality, Vicor Corp. has established itself as a pivotal player in transforming how industries efficiently harness electrical energy.
Product Revenue: Q4 product revenue rose to $92.7 million, up 4.5% sequentially and 15.3% year-over-year, with full-year 2025 product revenue up 12.1% to $350.3 million.
Royalty Revenue Volatility: Q4 royalty revenue dropped 33.1% sequentially due to a Q3 catch-up, but full-year 2025 royalty revenue increased by 23.2% to $57.4 million.
Patent Settlement Impact: A $45 million patent litigation settlement contributed to total annual revenues, leading to a 26.1% increase in combined product and royalty revenue for 2025.
Gross Margin Improvement: Full-year 2025 gross margin rose to 57.3% from 51.2% last year, though Q4 margin dipped to 55.4% due to the royalty catch-up effect.
Profitability Surge: Net income for 2025 increased sharply to $118.6 million (from $6.1 million), with diluted EPS rising to $2.61 from $0.14.
Factory Utilization & Revenue Outlook: The main fab is expected to reach about 80% utilization within a year, implying the potential for product revenue to approach an $800 million annual run rate in 2026.
Book-to-Bill & Backlog: Q4 book-to-bill above 1.2, with 1-year backlog up 15.8% sequentially to $176.9 million and booking momentum continuing into Q1.
IP Licensing Opportunity: Management expects significant growth in IP licensing, targeting hundreds of millions in future licensing revenues with new settlements and additional licensees anticipated.
