Vicor’s third quarter was marked by strong operational execution and significant upside in IP licensing, driving results above Wall Street’s expectations and delivering a positive market reaction. Management attributed the quarter’s performance to accelerated adoption of its advanced power modules and a sharp increase in licensing revenues, particularly after reaching new agreements with existing licensees. CEO Patrizio Vinciarelli emphasized, “Our licensing income is going up substantially, and we have line of sight to doubling our licensing business within a couple of years.”
Is now the time to buy VICR? Find out in our full research report (it’s free for active Edge members).
Vicor (VICR) Q3 CY2025 Highlights:
- Revenue: $110.4 million vs analyst estimates of $95.4 million (18.5% year-on-year growth, 15.7% beat)
- EPS (GAAP): $0.63 vs analyst estimates of $0.12 (significant beat)
- Adjusted EBITDA: $26.1 million vs analyst estimates of $13.2 million (23.6% margin, 97.7% beat)
- Operating Margin: 18.9%, up from 6.1% in the same quarter last year
- Backlog: $152.8 million at quarter end, up 1.5% year on year
- Market Capitalization: $4.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Vicor’s Q3 Earnings Call
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Quinn Bolton (Needham & Company) asked about the drivers behind the spike in licensing revenue and whether recent deals would provide ongoing growth. CEO Patrizio Vinciarelli explained the increase came from a new agreement with an existing licensee and expects recurring payments to continue.
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Jonathan Tanwanteng (CJS Securities) pressed for details on bookings growth, probing whether it reflected organic demand or catch-up from prior headwinds. Vinciarelli noted bookings are set to rise as new VPD products fill the fab and demand broadens across industrial and defense customers.
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Richard Shannon (Craig-Hallum Capital Group) questioned the number of active licensees and the outlook for additional agreements. Vinciarelli forecasted eventual adoption by all major AI OEMs and hyperscalers, noting that exclusion orders drive license uptake.
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John Dillon (D&B Capital) raised concerns about production timelines and the pace at which Vicor can move from prototype to mass production. VP Phil Davies attributed the rapid ramp to Vicor’s in-house fab, short cycle times, and high yields.
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Patrick Connors (Ajax Capital) asked about customer concerns regarding second sourcing and supply chain risk. Vinciarelli acknowledged these concerns and said Vicor is open to flexible business models, including licensing and potential fab partnerships.
Catalysts in Upcoming Quarters
In the months ahead, the StockStory team will be watching (1) the rate at which Vicor’s Gen 5 VPD solutions move from design-in to volume production for leading AI customers, (2) the pace of new IP licensing agreements and enforcement actions, and (3) progress in improving fab utilization and gross margins as advanced product sales ramp. We’ll also track how Vicor addresses customer preferences for multi-sourcing and supply chain flexibility, as these factors could shape long-term growth.
Vicor currently trades at $90.24, up from $65.89 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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