Navitas GaN Adoption Is Slower Than Anticipated: Analyst

Rosenblatt analyst Kevin Cassidy revised estimates for Navitas Semiconductor Corporation NVTS following the first quarter results reported on Monday.

The company reported an adjusted EPS loss of 6 cents, which was in line with estimates, and sales reached $14.02 million, exceeding the estimated $13.99 million.

Navitas Semiconductor expects second quarter sales of $14 million – $15 million vs consensus of $14.95 million.

The analyst says that the results and guidance for the second quarter of 2025 were largely in line with expectations.

The analyst adds that the adoption of Gallium Nitride (GaN) technology in end markets beyond handsets continues to be slower than anticipated and is still working through existing Silicon Carbide (SiC) inventory.

The analyst writes that the company is securing new design wins, with particular optimism on the recently launched GaN bi-directional diode switch.

Cassidy expects production ramps for solar microinverter applications in the second half of 2025.

While tariffs are not currently a direct impediment to demand, management expressed caution regarding the second half of 2025 and has contingency plans in place for China-for-China and USA-for-USA, adds the analyst.

For FY25, the analyst estimates revenues of $60.5 million (vs. consensus of $74.5 million) and an adjusted EPS loss of $0.19 (vs. consensus loss of $0.16), down from the earlier estimate of $75 million and a loss of $0.16, respectively.

For FY26, Cassidy continues to estimate revenue of $110 million and an adjusted EPS loss of $0.07.

Price Action: NVTS shares closed lower by 4.74% at $1.91 on Tuesday.

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