Navitas Stock Declines 9% on Q3 Loss, Revenues Fall Y/Y

Navitas Semiconductor (NVTS) shares dropped 9% after reporting third-quarter 2025 results on Monday (Nov. 3). Navitas shares have appreciated 198.1% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 29.2%.

The decline in share price can be attributed to sluggish results and an unimpressive outlook. Navitas reported third-quarter 2025 non-GAAP loss of 5 cents per share, which was in line with the Zacks Consensus Estimate. The figure was narrower than the year-ago quarter’s loss of 6 cents.

Revenues decreased 53.4% year over year to $10.1 million, surpassing the Zacks Consensus Estimate by 0.1%.

Navitas expects fourth-quarter 2025 revenues of $7 million (+/- $0.25 million). The Zacks Consensus Estimate for revenues is currently pegged at $10.36 million, indicating a 42.4% decline from the year-ago reported quarter.

Navitas Semiconductor Corporation Price, Consensus and EPS Surprise

Navitas Semiconductor Corporation price-consensus-eps-surprise-chart | Navitas Semiconductor Corporation Quote

NVTS’ Operating Results

The non-GAAP gross margin was 38.7%, contracting 140 basis points (bps) year over year.

Non-GAAP Research and development (R&D) expenses decreased 28.3% year over year to $8.3 million. As a percentage of revenues, R&D expenses were 82% compared with 53.3% in the year-ago quarter.

The non-GAAP selling, general and administrative (SG&A) expenses decreased 27.6% year over year to $7.2 million. As a percentage of revenues, SG&A expenses were 70.7% compared with 45.4% in the year-ago quarter.

Navitas reported a non-GAAP operating loss of $11.5 million, narrower than $12.7 million loss reported in the year-ago quarter.

NVTS’ Balance Sheet Details

As of Sept. 30, 2025, cash and cash equivalents were $150.5 million compared with the previous quarter’s $161.2 million.

Navitas’ Q4 Guidance in Details

Navitas’ fourth-quarter non-GAAP gross margin is expected to be 38.5% (+/- 50 bps). Operating expenses are expected to be roughly $15 million in the fourth quarter.

The consensus mark for fourth-quarter 2025 loss is pegged at 5 cents per share, unchanged over the past 60 days and narrower than the loss of 6 cents reported in the year-ago quarter.

Zacks Rank & Stocks to Consider

Navitas currently carries a Zacks Rank #3 (Hold).

Reddit Inc. (RDDT), Credo Technology Group (CRDO) and Amphenol (APH) are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $1.93 per share, revised upward by 3.2% over the past seven days and suggests a year-over-year increase of 157.9%. Reddit shares have soared 25.1% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 169.5% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 104.3% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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