Vicor Corporation Reports Results for the Third Quarter Ended September 30, 2026
October 20, 2026 07:00 ET | Source: Vicor Corporation
ANDOVER, Mass., Oct. 20, 2026 -- Vicor Corporation (NASDAQ: VICR) today reported financial results for the third quarter ended September 30, 2026. These results will be discussed at 8:00 a.m. Eastern Time, during management’s quarterly investor conference call. The details for the call are below.
Product and royalty revenues for the third quarter ended September 30, 2026 totaled $197.1 million, a 37.5% sequential increase from $143.4 million in the second quarter of 2026, and increased 78.5% from $110.4 million for the corresponding period a year ago.
Gross margin increased sequentially to $134.7 million for the third quarter of 2026, compared to $83.1 million for the second quarter of 2026, and increased from $63.5 million for the corresponding period a year ago. Gross margin, as a percentage of revenue, increased to 68.3% for the third quarter of 2026, compared to 58.0% for the second quarter of 2026, and increased from 57.5% for the corresponding period a year ago. Operating expenses, including contingency fees to law firms enforcing Vicor IP, increased sequentially to $62.5 million for the third quarter of 2026, compared to $48.2 million for the second quarter of 2026, and increased from $42.6 million for the corresponding period a year ago.
Net income for the third quarter was $63.3 million, or $1.33 per diluted share, compared to net income of $49.8 million, or $1.04 per diluted share, for the second quarter of 2026 and net income of $28.3 million or $0.63 per diluted share, for the corresponding period a year ago.
Cash flow from operations totaled $69.7 million for the third quarter, compared to cash flow from operations of $34.0 million in the second quarter of 2026, and cash flow from operations of $38.5 million for the corresponding period a year ago. Capital expenditures for the third quarter totaled $16.1 million, compared to $11.2 million for the second quarter of 2026 and $4.0 million for the corresponding period a year ago. Cash and cash equivalents as of September 30, 2026 increased 13.1% sequentially to approximately $513.1 million compared to approximately $453.6 million as of June 30, 2026.
Backlog for the third quarter ended September 30, 2026 totaled $406 million, a 7% sequential increase from $380 million at the end of the second quarter of 2026, and increased 166% from $153 million for the corresponding period a year ago.
Commenting on recent developments, CEO Dr. Patrizio Vinciarelli stated: “With the purchase of two additional sites within 30 miles of ChiP Fab-1 in Andover, we will be able to provide a nearly 5X increase in capacity from 3 Fabs, relative to Fab-1. Capacity expansion is necessary in view of demand and industry trends.
Open Compute confirmed the challenges of VRs and IVRs. In addition to infringing patents to 1st GEN VPD, VRs and IVRs face electrical, mechanical and thermal barriers to escalating AI processor requirements. In private presentations and lab sessions with OEMs and Hyperscalers, we demonstrated the distinct advantages of Vicor’s 2nd GEN VPD. Participants paid attention, providing positive feedback and interest in engaging. The stage is set for broader adoption of high performance ALL-FPA current multiplier modules which enable 2nd GEN VPD.
On the licensing front, we granted our first VPD license to an AI OEM at Stage-2 unit royalty rates. Unlicensed OEMs and Hyperscalers may not have realized the implications of importing, or planning to import, computing systems infringing Vicor patents to VPD. The ITC decision to institute an investigation into VPD infringement is catching their attention, prompting inquiries about licenses at royalty rates that strongly favor early adopters."
For more information on Vicor and its products, please visit the Company’s website at www.vicorpower.com.
Earnings Conference Call
Vicor will be holding its investor conference call today, Tuesday, October 20, 2026 at 8:00 a.m. Eastern Time. Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 8:00 a.m. on October 20, 2026. For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor's website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software. For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor's website.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement in this press release that is not a statement of historical fact is a forward-looking statement, and, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,” “will,” “would,” “should,” “continue,” “prospective,” “project,” and other similar expressions identify forward-looking statements. Forward-looking statements also include statements regarding bookings, shipments, revenue, profitability, targeted markets, increase in manufacturing capacity and utilization thereof, future products and capital resources. These statements are based upon management’s current expectations and estimates as to the prospective events and circumstances that may or may not be within the company’s control and as to which there can be no assurance. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors, including those economic, business, operational and financial considerations set forth in Vicor’s Annual Report on Form 10-K for the year ended December 31, 2025, under Part I, Item I — “Business,” under Part I, Item 1A — “Risk Factors,” under Part I, Item 3 — “Legal Proceedings,” and under Part II, Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The risk factors set forth in the Annual Report on Form 10-K may not be exhaustive. Therefore, the information contained in the Annual Report on Form 10-K should be read together with other reports and documents filed with the Securities and Exchange Commission from time to time, including Forms 10-Q, 8-K and 10-K, which may supplement, modify, supersede or update those risk factors. Vicor does not undertake any obligation to update any forward-looking statements as a result of future events or developments.
Vicor designs, manufactures and markets modular power components and complete power systems based upon a portfolio of patented technologies. Vicor licenses its patents to OEMs and hyper-scalers needing supply chain assurance, flexibility and scalability. Headquartered in Andover, Massachusetts, Vicor modules and power system technology are used in high performance computing, industrial, transportation, aerospace and defense.
For further information contact:
James F. Schmidt, Chief Financial Officer
Office: (978) 470-2900
Email: [email protected]
| VICOR CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||
| (Thousands except for per share amounts) | ||||||||||||
| QUARTER ENDED | NINE MONTHS ENDED | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| SEPT 30, | SEPT 30, | SEPT 30, | SEPT 30, | |||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Product revenue | $ | 130,501 | $ | 88,698 | $ | 341,431 | $ | 257,597 | ||||
| Royalty revenue | 66,613 | 21,725 | 112,004 | 42,840 | ||||||||
| Total net revenues | 197,114 | 110,423 | 453,435 | 300,437 | ||||||||
| Patent litigation settlement | - | - | - | 45,000 | ||||||||
| Total net revenues and patent litigation settlement | 197,114 | 110,423 | 453,435 | 345,437 | ||||||||
| Cost of product revenues | 62,434 | 46,910 | 173,269 | 145,431 | ||||||||
| Gross margin | 134,680 | 63,513 | 280,166 | 200,006 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 38,563 | 22,747 | 89,356 | 75,836 | ||||||||
| Research and development | 23,969 | 19,859 | 66,900 | 58,027 | ||||||||
| Total operating expenses | 62,532 | 42,606 | 156,256 | 133,863 | ||||||||
| Income from operations | 72,148 | 20,907 | 123,910 | 66,143 | ||||||||
| Other income (expense), net | 6,585 | 2,407 | 14,149 | 9,198 | ||||||||
| Income before income taxes | 78,733 | 23,314 | 138,059 | 75,341 | ||||||||
| Less: Provision (benefit) for income taxes | 15,401 | (4,988 | ) | 4,265 | 3,278 | |||||||
| Consolidated net income | 63,332 | 28,302 | 133,794 | 72,063 | ||||||||
| Less: Net income attributable to | ||||||||||||
| noncontrolling interest | 11 | 10 | 37 | 40 | ||||||||
| Net income attributable to | ||||||||||||
| Vicor Corporation | $ | 63,321 | $ | 28,292 | $ | 133,757 | $ | 72,023 | ||||
| Net income per share attributable | ||||||||||||
| to Vicor Corporation: | ||||||||||||
| Basic | $ | 1.37 | $ | 0.63 | $ | 2.92 | $ | 1.60 | ||||
| Diluted | $ | 1.33 | $ | 0.63 | $ | 2.81 | $ | 1.59 | ||||
| Shares outstanding: | ||||||||||||
| Basic | 46,129 | 44,734 | 45,845 | 44,986 | ||||||||
| Diluted | 47,609 | 44,930 | 47,524 | 45,167 | ||||||||
| VICOR CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
| (Thousands) | ||||||||
| SEPT 30, | DEC 31, | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 513,137 | $ | 402,805 | ||||
| Accounts receivable, net | 122,488 | 60,716 | ||||||
| Inventories | 110,922 | 91,340 | ||||||
| Other current assets | 13,594 | 32,502 | ||||||
| Total current assets | 760,141 | 587,363 | ||||||
| Long-term deferred tax assets | 23,439 | 27,463 | ||||||
| Long-term investment, net | - | 2,462 | ||||||
| Property, plant and equipment, net | 177,987 | 147,690 | ||||||
| Other assets | 20,053 | 20,853 | ||||||
| Total assets | $ | 981,620 | $ | 785,831 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 24,334 | $ | 12,290 | ||||
| Accrued compensation and benefits | 14,047 | 12,031 | ||||||
| Accrued expenses | 22,223 | 3,691 | ||||||
| Accrued litigation | - | 28,275 | ||||||
| Sales allowances | 3,512 | 3,136 | ||||||
| Short-term lease liabilities | 1,733 | 1,568 | ||||||
| Income taxes payable | 208 | 904 | ||||||
| Short-term deferred revenue and customer prepayments | 418 | 3,426 | ||||||
| Total current liabilities | 66,475 | 65,321 | ||||||
| Long-term income taxes payable | 3,143 | 3,086 | ||||||
| Long-term lease liabilities | 5,427 | 5,608 | ||||||
| Total liabilities | 75,045 | 74,015 | ||||||
| Equity: | ||||||||
| Vicor Corporation stockholders' equity: | ||||||||
| Capital stock | 518,247 | 462,805 | ||||||
| Retained earnings | 555,116 | 421,359 | ||||||
| Accumulated other comprehensive loss | (1,174 | ) | (1,672 | ) | ||||
| Treasury stock | (165,909 | ) | (170,935 | ) | ||||
| Total Vicor Corporation stockholders' equity | 906,280 | 711,557 | ||||||
| Noncontrolling interest | 295 | 259 | ||||||
| Total equity | 906,575 | 711,816 | ||||||
| Total liabilities and equity | $ | 981,620 | $ | 785,831 | ||||