NEW YORK, July 27, 2026, 19:21 EDT — U.S. cash equities ended for the day; after-hours trading remains active.
- The midpoint of third-quarter revenue guidance suggests sequential growth of 28%.
- A single distributor accounted for 71% of revenue during the second quarter.
- The stock rose 4.5% on Monday, but slipped 2.5% in after-hours trading.
A single distributor accounted for 71% of Navitas’ revenue in the second quarter, highlighting a concentration risk amid an otherwise improved outlook.
The company forecast third-quarter sales at a midpoint of $13.5 million, representing a 28% increase from the second quarter. Investors now seek proof that demand is expanding across various channels.
Shares finished Monday at $11.41, gaining 4.5%. After the bell, they fell 2.5% to $11.13. The stock was still trading 1.9% higher compared to Friday’s closing level.
Revenue for the second quarter climbed 22% from the previous period to reach $10.5 million. Non-GAAP gross margin improved by 50 basis points, coming in at 39.5%. The adjusted operating loss decreased by $0.3 million to $11.4 million.
The filing offers a clearer picture of that expansion:
| Revenue bridge | Q1 2026 | Q2 2026 | Sequential change |
|---|---|---|---|
| Total revenue | $8.60 million | $10.53 million | +$1.93 million |
| Distributor A revenue | ~$5.72 million | ~$7.48 million | +~$1.75 million |
| All other revenue | ~$2.88 million | ~$3.05 million | +~$0.18 million |
| Distributor A share* | ~67% | 71% | +~4 percentage points |
Initial figures are based on rounded quarterly and semi-annual concentration rates. Sales through distributors could reflect multiple end customers.
Initial midpoint estimates attribute about 91% of the sequential increase to Distributor A. These figures are rounded, so the estimate is approximate. Channel concentration does not always indicate customer concentration.
Navitas reported that distributors work with equipment manufacturers and merchant power providers. CEO Chris Allexandre noted an “expanding backlog” and a “record level book-to-bill.” The company stated that production samples are aiding multiple new customer ramp-ups. Navitas Semiconductor
Navitas stated that AI infrastructure is projected to make up over a third of sales by the end of the year. Revenue from high-power sources has already increased by more than 50% compared to the previous year. The company’s management forecasts mid-single-digit revenue growth for the full year 2026.
The valuation allows for minimal margin. Based on Monday’s closing price and the current share count, equity value is estimated at around $3.0 billion. After deducting cash, the figure stands at approximately $2.42 billion, which is nearly 45 times the company’s annualized Q3 revenue. These numbers are early projections.
Navitas reported cash holdings of $557.4 million as of the end of June. The rise was largely driven by equity issuance. At-the-market equity offerings in the first half generated $373.2 million net. The company’s shares outstanding increased by 13.3% since December.
Operating cash outflow in the first half was $48.3 million, almost twice as much as a year earlier. Losses remain a key aspect of the investment story.
Navitas shares fell 4.7% in the week ending Friday. Renesas Electronics Corporation (TYO:6723) filed a lawsuit on July 22, accusing Navitas of misappropriating trade secrets related to AI power chips. Navitas stated in its filing that it plans to contest the suit.
One day after the announcement, Navitas and Magnachip Semiconductor Corporation (NYSE:MX) unveiled a licensing agreement focused on high-voltage silicon-carbide technology. Magnachip is set to release its second-quarter earnings following the market close on Wednesday. Investors are likely to look for updates on when the partnership could begin delivering commercial results.
The first full cash trading session after Navitas’ results arrives on Tuesday. The main question is if growth will offset the reliance on a concentrated revenue stream.
Risks are still significant. Wolfspeed Inc. NYSE:WOLF has filed lawsuits regarding multiple GaN and SiC patents. Renesas is pursuing damages and an injunction with different trade-secret allegations. Navitas intends to contest both actions; the results are not yet clear.
