VICOR CORP
For the period ended Sep 30, 2026. Filed Oct 26, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 26, 2026
VICR$146.88+8.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001193125-26-322462
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-26.
0001193125-26-431231
Item 2. — Management’s Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital ResourcesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 81 current paragraphs.
28 unchanged; 42 reworded; 6 added; 10 removed; 5 previous and 5 current paragraphs rearranged.
Tables are not compared: 11 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Decrease primarily attributable to an increase in facilities allocations.
Current report
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Current report
Gross margin for the nine months ended September 30, 2026 increased $80,160,000, or 40.1%, to $280,166,000, from $200,006,000 for the nine months ended September 30, 2025. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 61.8% for the nine months ended September 30, 2026, as compared to 57.9% for the nine months ended September 30, 2025. The increase in gross margin dollars and gross margin percentage was primarily attributable to the favorable impact from higher sales volume, including higher royalty revenue, and the favorable impact from production efficiencies on that higher sales volume, offset by the impact from the $45,000,000 patent litigation settlement payment received by the Company in the second quarter of 2025, unfavorable sales mix on the increased sales volume, and increased freight-in and tariff spending of $3,713,000 (net of approximately $2,972,000 in duty drawback recovery in the nine months ended September 30, 2026 and $712,000 in duty drawback recovery in the nine months ended September 30, 2025 of previously paid tariffs).
Current report
Increase primarily attributable to an increase in travel by the Company’s sales and marketing personnel.
Current report
Decrease primarily attributable to an increase in facilities allocations.
Current report
Increase primarily attributable to an increase in utilities, building maintenance expenses and property taxes.
Removed paragraphs (10)
Previous report
Decrease primarily attributable to a decrease in utilities and building maintenance expenses.
Previous report
Increase in the consumption of materials and supplies used in the engineering process.
Previous report
Decrease primarily attributable to an increase in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred.
Previous report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Previous report
Gross margin for the six months ended June 30, 2026 increased $8,993,000, or 6.6%, to $145,486,000, from $136,493,000 for the six months ended June 30, 2025. Gross margin, as a percentage of net revenues and patent litigation settlement, decreased to 56.8% for the six months ended June 30, 2026, as compared to 58.1% for the six months ended June 30, 2025. The increase in gross margin dollars and the decrease in gross margin percentage was primarily attributable to the $45,000,000 patent litigation settlement
Previous report
-22- payment received by the Company in the second quarter of 2025 offset by the favorable impact from higher sales volume and improved sales mix on that revenue, including higher royalty revenue, and the favorable impact of production efficiencies offset by increased freight-in and tariff spending of $3,554,000 (net of approximately $204,000 in duty drawback recovery in the six months ended June 30, 2026 and $0 in duty drawback recovery in the six months ended June 30, 2025 of previously paid tariffs).
Previous report
Decrease primarily relates to $5,100,000 in legal fees associated with the patent litigation settlement in the second quarter of 2025 offset by an increase in legal activity.
Previous report
Decrease primarily attributable to a decrease in utilities and building maintenance expenses.
Previous report
Increase in the consumption of materials and supplies used in the engineering process.
Previous report
Decrease primarily attributable to an increase in deferred costs capitalized for certain non-recurring engineering projects for which the related revenues had been deferred.
Reworded paragraphs (42)
Previous wording
-18- have, to varying degrees and at different times, reduced our revenue, gross margin, operating profit and cash flow and may continue to do so in the future. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, licensing income, average selling prices, average unit costs, the mix of products sold during that quarter, and the level of importation of raw materials subject to tariffs. Our quarterly operating margin as a percentage of net revenues also may vary with changes in revenue and product level profitability, but our operating costs are largely associated with compensation and related employee costs, which are not subject to sudden or significant changes.
Current wording
-17- has, to varying degrees and at different times, reduced our revenue, gross margin, operating profit and cash flow and may continue to do so in the future. Our quarterly gross margin as a percentage of net revenues may vary, depending on production volumes, licensing income, average selling prices, average unit costs, the mix of products sold during that quarter, and the level of importation of raw materials subject to tariffs. Our quarterly operating margin as a percentage of net revenues also may vary with changes in revenue and product level profitability, but our operating costs are largely associated with compensation and related employee costs, which are not subject to sudden or significant changes.
Previous wording
Summary of Second Quarter 2026 Financial Performance Compared to First Quarter 2026 Financial Performance
Current wording
Summary of Third Quarter 2026 Financial Performance Compared to Second Quarter 2026 Financial Performance
Previous wording
The following summarizes our financial performance for the second quarter of 2026, compared to the first quarter of 2026:
Current wording
The following summarizes our financial performance for the third quarter of 2026, compared to the second quarter of 2026:
Previous wording
Total net revenues increased 26.9% to $143,352,000 for the second quarter of 2026, from $112,969,000 for the first quarter of 2026. Net revenues for Brick Products increased 2.4% compared to the first quarter of 2026, primarily due to improved market demand. Advanced Products net revenues increased 45.0% compared to the first quarter of 2026, primarily due to improved market demand and higher royalty revenue.
Current wording
Total net revenues increased 37.5% to $197,114,000 for the third quarter of 2026, from $143,352,000 for the second quarter of 2026. Net revenues for Brick Products increased 18.4% compared to the second quarter of 2026, primarily due to improved market demand. Advanced Products net revenues increased 47.5% compared to the second quarter of 2026, primarily due to higher royalty revenue and improved market demand.
Previous wording
Export sales represented approximately 46.0% of total net revenues in the second quarter of 2026 as compared to 48.9% in the first quarter of 2026.
Current wording
Export sales represented approximately 36.1% of total net revenues in the third quarter of 2026 as compared to 46.0% in the second quarter of 2026.
Previous wording
Gross margin for the second quarter of 2026 increased $20,754,000, or 33.3% to $83,120,000 from $62,366,000 for the first quarter of 2026. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 58.0% for the second quarter of 2026 from 55.2% for the first quarter of 2026. The increase in gross margin dollars and gross margin percentage was primarily attributable to the favorable impact from higher sales volume, including royalty revenue, offset by an increase in freight-in and tariff spending of $704,000 (net of approximately $11,000 in duty drawback recovery in the second quarter of 2026 and $193,000 in duty drawback recovery in the first quarter of 2026 of previously paid tariffs).
Current wording
Gross margin for the third quarter of 2026 increased $51,560,000, or 62.0% to $134,680,000 from $83,120,000 for the second quarter of 2026. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 68.3% for the third quarter of 2026 from 58.0% for the second quarter of 2026. The increase in gross margin dollars and gross margin percentage was primarily attributable to the favorable impact from higher sales volume, including royalty revenue, and a decrease in freight-in and tariff spending of $2,240,000 (net of approximately $2,768,000 in duty drawback recovery in the third quarter of 2026 of previously paid tariffs and $11,000 in duty drawback recovery in the second quarter of 2026 of previously paid tariffs).
Previous wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $379,736,000 at the end of the second quarter of 2026, as compared to $300,616,000 at the end of the first quarter of 2026.
Current wording
Backlog, which represents the total value of orders for products for which shipment is scheduled within the next 12 months, was approximately $406,043,000 at the end of the third quarter of 2026, as compared to $379,736,000 at the end of the second quarter of 2026.
Previous wording
Operating expenses for the second quarter of 2026 increased $2,760,000, or 6.1%, to $48,242,000 from $45,482,000 for the first quarter of 2026, due to an increase in selling, general and administrative expenses of $4,409,000, offset by a decrease in research and development expenses of $1,649,000.
Current wording
Operating expenses for the third quarter of 2026 increased $14,290,000, or 29.6%, to $62,532,000 from $48,242,000 for the second quarter of 2026, due to an increase in selling, general and administrative expenses of $10,962,000, and an increase in research and development expenses of $3,328,000.
Previous wording
We reported net income for the second quarter of 2026 of $49,772,000, or $1.04 per diluted share, compared to net income of $20,664,000, or $0.44 per diluted share, for the first quarter of 2026. Net income in the first and second quarters of 2026 include tax benefits due to excess deductions related to share-based compensation.
Current wording
We reported net income for the third quarter of 2026 of $63,321,000, or $1.33 per diluted share, compared to net income of $49,772,000, or $1.04 per diluted share, for the second quarter of 2026. Net income in the second quarter of 2026 includes tax benefits due to excess deductions related to share-based compensation.
Previous wording
For the second quarter of 2026, depreciation and amortization totaled $5,423,000 and capital additions totaled $11,173,000 as compared to depreciation and amortization of $5,337,000 and capital additions of $12,387,000 for the first quarter of 2026.
Current wording
For the third quarter of 2026, depreciation and amortization totaled $5,532,000 and capital additions totaled $16,140,000 as compared to depreciation and amortization of $5,423,000 and capital additions of $11,173,000 for the second quarter of 2026.
Previous wording
Inventories increased by approximately $9,659,000, or 10.2%, to $104,489,000 at June 30, 2026, compared to $94,830,000 at March 31, 2026, in anticipation of increased volume to fulfill backlog.
Current wording
Inventories increased by approximately $6,433,000, or 6.2%, to $110,922,000 at September 30, 2026, compared to $104,489,000 at June 30, 2026, in anticipation of increased volume to fulfill backlog.
Previous wording
Total net revenues for the second quarter of 2026 were $143,352,000, an increase of $47,306,000, or 49.3%, as compared to $96,046,000 for the second quarter of 2025. Net revenues, by product line, for the three months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
Total net revenues for the third quarter of 2026 were $197,114,000, an increase of $86,691,000, or 78.5%, as compared to $110,423,000 for the third quarter of 2025. Net revenues, by product line, for the three months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
The increase in net revenues for Advanced Products was primarily due to higher royalty revenue due to a new license agreement entered into during the quarter ended June 30, 2026 and volume increases due to improved market demand. The increase in net revenues for Brick Products was primarily due to improved market demand.
Current wording
The increase in net revenues for Advanced Products was primarily due to higher royalty revenue due to a new license agreement entered into during the quarter ended September 30, 2026 and volume increases due to improved market demand. The increase in net revenues for Brick Products was primarily due to improved volume increases due to increased market demand.
Previous wording
Gross margin for the second quarter of 2026 decreased $9,008,000, or 9.8%, to $83,120,000, from $92,128,000 for the second quarter of 2025. Gross margin, as a percentage of net revenues and patent litigation settlement, decreased to 58.0% for the second quarter of 2026, compared to 65.3% for the second quarter of 2025. The decrease in gross margin dollars and gross margin percentage was primarily attributable to the $45,000,000 patent litigation settlement payment received by the Company in the second quarter of 2025 offset by the favorable impact from higher sales volume, including higher royalty revenue and the favorable impact of production efficiencies offset by unfavorable sales mix on the increased sales volume and increased freight-in and tariff spending of $1,328,000 (net of approximately $11,000 in duty drawback recovery in the second quarter of 2026 and $0 in duty drawback recovery in the second quarter of 2025 of previously paid tariffs).
Current wording
Gross margin for the third quarter of 2026 increased $71,167,000, or 112.1%, to $134,680,000, from $63,513,000 for the third quarter of 2025. Gross margin, as a percentage of net revenues and patent litigation settlement, increased to 68.3% for the third quarter of 2026, compared to 57.5% for the third quarter of 2025. The increase in gross margin dollars and gross margin percentage was primarily attributable to the favorable impact from higher sales volume, including higher royalty revenue, and the favorable impact from production efficiencies on that higher sales volume, offset by unfavorable sales mix on the increased sales volume and slightly increased freight-in and tariff spending of $159,000 (net of approximately $2,768,000 in duty drawback recovery in the third quarter of 2026 and $712,000 in duty drawback recovery in the third quarter of 2025 of previously paid tariffs).
Previous wording
Selling, general and administrative expenses were $27,601,000 for the second quarter of 2026, a decrease of $351,000, or 1.3%, from $27,952,000 for the second quarter of 2025. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement decreased to 19.3% for the second quarter of 2026 from 19.8% for the second quarter of 2025. The components of the $351,000 decrease in selling, general and administrative expenses for the second quarter of 2026 compared to the second quarter of 2025 were as follows (dollars in thousands):
Current wording
Selling, general and administrative expenses were $38,563,000 for the third quarter of 2026, an increase of $15,816,000, or 69.5%, from $22,747,000 for the third quarter of 2025. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement decreased to 19.6% for the third quarter of 2026 from 20.6% for the third quarter of 2025. The components of the $15,816,000 increase in selling, general and administrative expenses for the third quarter of 2026 compared to the third quarter of 2025 were as follows (dollars in thousands):
Previous wording
Decrease primarily relates to $5,100,000 in legal fees associated with the patent litigation settlement in the second quarter of 2025 offset by an increase in legal activity.
Current wording
Increase primarily attributable to legal fees associated with licensing agreements and an increase in legal activity.
Previous wording
Increase primarily attributable to tax withholdings and employer taxes associated with an increase in stock option exercises, annual compensation adjustments in May 2026 and higher stock-based compensation expense associated with stock options awarded in May 2026.
Current wording
Increase primarily attributable to annual compensation adjustments in May 2026 and higher stock-based compensation expense associated with stock options awarded in May 2026.
Previous wording
Research and development expenses were $20,641,000 for the second quarter of 2026, an increase of $1,850,000, or 9.8%, compared to $18,791,000 for the second quarter of 2025. As a percentage of total net revenues and patent litigation settlement, research and development expenses increased to 14.4% for the second quarter of 2026 from 13.3% for the second quarter of 2025. The components of the $1,850,000 increase in research and development expenses for the second quarter of 2026 compared to the second quarter of 2025 were as follows (dollars in thousands):
Current wording
Research and development expenses were $23,969,000 for the third quarter of 2026, an increase of $4,110,000, or 20.7%, compared to $19,859,000 for the third quarter of 2025. As a percentage of total net revenues and patent litigation settlement, research and development expenses decreased to 12.2% for the third quarter of 2026 from 18.0% for the third quarter of 2025. The components of the $4,110,000 increase in research and development expenses for the third quarter of 2026 compared to the third quarter of 2025 were as follows (dollars in thousands):
Previous wording
Increase primarily attributable to tax withholdings and employer taxes associated with an increase in stock option exercises, annual compensation adjustments in May 2026 and higher stock-based compensation expense associated with stock options awarded in May 2026.
Current wording
Increase primarily attributable to annual compensation adjustments in May 2026 and higher stock-based compensation expense associated with stock options awarded in May 2026.
Previous wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of Vicor Japan Company, Ltd. (“VJCL”), for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the
Current wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of Vicor Japan Company, Ltd. (“VJCL”), for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced favorable foreign currency exchange rate fluctuations in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Income before income taxes was $38,923,000 for the second quarter of 2026, as compared to $49,042,000 for the second quarter of 2025.
Current wording
Income before income taxes was $78,733,000 for the third quarter of 2026, as compared to $23,314,000 for the third quarter of 2025.
Previous wording
The (benefit) provision for income taxes and the effective income tax rates for the three months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
The provision (benefit) for income taxes and the effective income tax rates for the three months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
The effective tax rates differ from the statutory tax rates for the three months ended June 30, 2026 primarily due to excess deductions related to share-based compensation, and for the three months ended June 30, 2025 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets as of June 30, 2025. The (benefit) provision for income taxes for the three months ended June 30, 2026 and 2025 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Current wording
The effective tax rates differ from the statutory tax rates for the three months ended September 30, 2026 primarily due to excess deductions related to share-based compensation, and for the three months ended September 30, 2025 primarily due to the Company’s full valuation allowance position against net domestic deferred tax assets as of September 30, 2025. The provision (benefit) for income taxes for the three months ended September 30, 2026 and 2025 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Previous wording
We reported net income for the second quarter of 2026 of $49,772,000, or $1.04 per diluted share, compared to net income of $41,192,000, or $0.91 per diluted share, for the second quarter of 2025.
Current wording
We reported net income for the third quarter of 2026 of $63,321,000, or $1.33 per diluted share, compared to net income of $28,292,000, or $0.63 per diluted share, for the third quarter of 2025.
Previous wording
Net revenues for the six months ended June 30, 2026 were $256,321,000, an increase of $66,307,000, or 34.9%, from $190,014,000 for the six months ended June 30, 2025. Net revenues, by product line, for the six months ended June 30, 2026 and the six months ended June 30, 2025 were as follows (dollars in thousands):
Current wording
Net revenues for the nine months ended September 30, 2026 were $453,435,000, an increase of $152,998,000, or 50.9%, from $300,437,000 for the nine months ended September 30, 2025. Net revenues, by product line, for the nine months ended September 30, 2026 and the nine months ended September 30, 2025 were as follows (dollars in thousands):
Previous wording
The increase in net revenues for Advanced Products was primarily due to higher royalty revenue due to a new license agreement entered into during the quarter ended June 30, 2026 and volume increases due to improved market demand. The increase in net revenues for Brick Products was primarily due to improved market demand.
Current wording
The increase in net revenues for Advanced Products was primarily due to higher royalty revenue due to new license agreements entered into during the nine months ended September 30, 2026 and volume increases due to improved market demand. The increase in net revenues for Brick Products was primarily due to improved volume increases due to increased market demand.
Previous wording
During the six months ended June 30, 2025, the Company received a patent litigation settlement payment of $45,000,000 (as described in more detail in Note 11 to the Condensed Consolidated Financial Statements).
Current wording
During the nine months ended September 30, 2025, the Company received a patent litigation settlement payment of $45,000,000 (as described in more detail in Note 11 to the Condensed Consolidated Financial Statements).
Previous wording
Selling, general and administrative expenses were $50,793,000 for the six months ended June 30, 2026, a decrease of $2,296,000, or 4.3%, compared to $53,089,000 for the six months ended June 30, 2025. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement, decreased to 19.8% for the six months ended June 30, 2026 from 22.6% for the six months ended June 30, 2025. The components of the $2,296,000 decrease in selling, general and administrative expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 were as follows (dollars in thousands):
Current wording
Selling, general and administrative expenses were $89,356,000 for the nine months ended September 30, 2026, an increase of $13,520,000, or 17.8%, compared to $75,836,000 for the nine months ended September 30, 2025. Selling, general and administrative expenses as a percentage of total net revenues and patent litigation settlement decreased to 19.7% for the nine months ended September 30, 2026 from 22.0% for the nine months ended September 30, 2025. The components of the $13,520,000 increase in selling, general and administrative expenses for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were as follows (dollars in thousands):
Previous wording
Research and development expenses were $42,931,000 for the six months ended June 30, 2026, an increase of $4,763,000, or 12.5%, from $38,168,000 for the six months ended June 30, 2025. As a percentage of total net revenues and patent litigation settlement, research and development expenses increased to 16.7% for the six months ended June 30, 2026 from 16.2% for the six months ended June 30, 2025. The components of the $4,763,000 increase in research and development expenses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 were as follows (dollars in thousands):
Current wording
Research and development expenses were $66,900,000 for the nine months ended September 30, 2026, an increase of $8,873,000, or 15.3%, from $58,027,000 for the nine months ended September 30, 2025. As a percentage of total net revenues and patent litigation settlement, research and development expenses decreased to 14.8% for the nine months ended September 30, 2026 from 16.8% for the nine months ended September 30, 2025. The components of the $8,873,000 increase in research and development expenses for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were as follows (dollars in thousands):
Previous wording
Decrease primarily attributable to decreased prototype development costs for Advanced Products.
Current wording
Increase primarily attributable to increased prototype development costs for Advanced Products.
Previous wording
The significant components of “Other income (expense), net” for the six months ended June 30, 2026 and the six months ended June 30, 2025 and the changes from period to period were as follows (in thousands):
Current wording
The significant components of “Other income (expense), net” for the nine months ended September 30, 2026 and the nine months ended September 30, 2025 and the changes from period to period were as follows (in thousands):
Previous wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of VJCL, for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced unfavorable foreign currency exchange rate fluctuations in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
Our exposure to market risk fluctuations in foreign currency exchange rates relates to the operations of VJCL, for which the functional currency is the Japanese Yen, and all other subsidiaries in Europe and Asia, for which the functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced unfavorable foreign currency exchange rate fluctuations in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Income before income taxes was $59,326,000 for the six months ended June 30, 2026, as compared to $52,027,000 for the six months ended June 30, 2025.
Current wording
Income before income taxes was $138,059,000 for the nine months ended September 30, 2026, as compared to $75,341,000 for the nine months ended September 30, 2025.
Previous wording
The (benefit) provision for income taxes and the effective income tax rates for the six months ended June 30, 2026 and 2025 were as follows (dollars in thousands):
Current wording
The provision for income taxes and the effective income tax rates for the nine months ended September 30, 2026 and 2025 were as follows (dollars in thousands):
Previous wording
The effective tax rates differ from the statutory tax rates for the six months ended June 30, 2026 primarily due to excess deductions related to share-based compensation, and for the six months ended June 30, 2025 primarily due to the Company’s full valuation allowance position against domestic deferred tax assets as of June 30, 2025. The (benefit) provision for income taxes for the six months ended June 30, 2026 and 2025 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Current wording
The effective tax rates differ from the statutory tax rates for the nine months ended September 30, 2026 primarily due to excess deductions related to share-based compensation, and for the nine months ended September 30, 2025 primarily due to the Company’s full valuation allowance position against net domestic deferred tax assets as of September 30, 2025. The provision for income taxes for the nine months ended September 30, 2026 and 2025 included estimated federal, state and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes.
Previous wording
The Company released its valuation allowance on the majority of its deferred tax assets as of December 31, 2025. The Company maintained a valuation allowance of $17,500,000 related primarily to state tax attributes as of June 30, 2026. On a periodic basis, the
Current wording
The Company released its valuation allowance on the majority of its deferred tax assets as of December 31, 2025. The Company maintained a valuation allowance of $17,500,000 related primarily to state tax attributes as of September 30, 2026. On a periodic basis, the Company reassesses any valuation allowances that it maintains on its deferred tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets.
Previous wording
We reported net income for the six months ended June 30, 2026 of $70,436,000, or $1.48 per diluted share, as compared to net income of $43,731,000, or $0.97 per diluted share, for the six months ended June 30, 2025.
Current wording
We reported net income for the nine months ended September 30, 2026 of $133,757,000, or $2.81 per diluted share, as compared to net income of $72,023,000, or $1.59 per diluted share, for the nine months ended September 30, 2025.
Previous wording
As of June 30, 2026, we had $453,582,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 13.2:1 as of June 30, 2026 and 9.0:1 as of December 31, 2025. Working capital, defined as total current assets less total current liabilities, increased $97,709,000 to $619,751,000 as of June 30, 2026 from $522,042,000 as of December 31, 2025.
Current wording
As of September 30, 2026, we had $513,137,000 in cash and cash equivalents. The ratio of total current assets to total current liabilities was 11.4:1 as of September 30, 2026 and 9.0:1 as of December 31, 2025. Working capital, defined as total current assets less total current liabilities, increased $171,624,000 to $693,666,000 as of September 30, 2026 from $522,042,000 as of December 31, 2025.
Previous wording
The primary sources of cash for the six months ended June 30, 2026 were $44,224,000 received in connection with the exercise of options to purchase our Common Stock awarded under our stock option plans and the issuance of Common Stock under our 2017 Employee Stock Purchase Plan and $30,197,000 generated from operations, which is net of a payment made to SynQor, Inc. in the amount of $28,557,000. See Note 11 for additional information regarding the payment made to SynQor. The primary use of cash during the six months ended June 30, 2026 was for the purchase of equipment of $23,560,000.
Current wording
The primary sources of cash for the nine months ended September 30, 2026 were $80,364,000 generated from operations, $47,087,000 received in connection with the exercise of options to purchase our Common Stock awarded under our stock option plans and the issuance of Common Stock under our 2017 Employee Stock Purchase Plan, $19,513,000 of proceeds from advanced manufacturing investment credits, and $3,000,000 from the sales of investments. The primary use of cash during the nine months ended September 30, 2026 was for the purchase of equipment of $39,700,000.
Previous wording
In July 2024, our Board of Directors authorized the repurchase of up to $100,000,000 of our Common Stock (the “Repurchase Authorization”). As of June 30, 2026, we had approximately $64,327,000 remaining available for repurchases of our Common Stock under the Repurchase Authorization.
Current wording
In July 2024, our Board of Directors authorized the repurchase of up to $100,000,000 of our Common Stock (the “Repurchase Authorization”). In August 2026, our Board of Directors authorized the repurchase of up to $150,000,000 of our Common Stock (the “New Repurchase Authorization”). The New Repurchase Authorization replaces the July 2024 Repurchase Authorization in its entirety and no further repurchases will be made pursuant to the July 2024 Repurchase Authorization. The timing and amounts of Common Stock repurchases pursuant to the New Repurchase Authorization are at the discretion of the Company’s President and Chief Executive Officer based upon economic and financial market conditions. The New Repurchase Authorization does not expire.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Increase primarily attributable to legal fees associated with licensing agreements and an increase in legal activity.
Current report — wording carried from elsewhere
Increase primarily attributable to an increase in the use of consultants.
Current report — wording carried from elsewhere
Increase primarily attributable to an increase in waste disposal activities related to improving production process capabilities for our Advanced Products.
Current report — wording carried from elsewhere
Decrease primarily attributable to a decrease in equipment set-up and calibration for Advanced Products production.
Current report — wording carried from elsewhere
Decrease primarily attributable to an increase in research and development personnel incurring time on production activities, compared to research and development activities.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
During the second quarter of 2025, the Company received a patent litigation settlement payment of $45,000,000 (as described in more detail in Note 11 to the Condensed Consolidated Financial Statements).
Previous report — wording carried elsewhere
-21- functional currency is the U.S. Dollar. These subsidiaries in Europe and Asia experienced unfavorable foreign currency exchange rate fluctuations in the second quarter of 2026 compared to the second quarter of 2025.
Previous report — wording carried elsewhere
Decrease primarily attributable to a decrease in computer software services relating to new internal-use software implementation.
Previous report — wording carried elsewhere
Company reassesses any valuation allowances that it maintains on its deferred tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets.
Previous report — wording carried elsewhere
The timing and amounts of Common Stock repurchases under the Repurchase Authorization are at the discretion of the Company’s President and Chief Executive Officer based upon economic and financial market conditions.