POWER INTEGRATIONS INC. has recently released its 10-K report, providing a detailed look at its business operations and financial performance. The company, incorporated in 1988 and headquartered in San Jose, California, specializes in designing, developing, manufacturing, and marketing analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. Its products cater to a wide range of applications, including consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, LED lighting, industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. The company serves various markets, including communications, computer, consumer, and industrial sectors, with international sales representing approximately 98% of net revenue in 2025 and 2024.
In the 10-K report, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," provides a comprehensive overview of the company's financial performance in 2025 and 2024. The net revenue for POWER INTEGRATIONS INC. was $443.5 million in 2025, showing an increase from $419.0 million in 2024. This growth was primarily driven by higher sales in the industrial end-market, including growth in sales of gate-driver products and increased sales of ICs for various applications. The company's top ten customers, including distributors that resell to OEMs and merchant power supply manufacturers, accounted for approximately 81% and 79% of net revenue in 2025 and 2024, respectively. International sales represented around 98% of net revenue in both years.
The report also highlights the company's gross profit, which was $241.6 million or 55% of net revenue in 2025, compared to $224.8 million or 54% of net revenue in 2024. This increase in gross margin in 2025 was attributed to manufacturing efficiencies, including the benefit of higher unit volumes on manufacturing costs per unit, and a favorable end-market mix with a greater percentage of sales coming from higher-margin market categories.
Additionally, the report discusses critical accounting policies, including revenue recognition and inventory valuation. The company recognizes revenue under the core principle to depict the transfer of control to customers in an amount reflecting the consideration expected to be entitled. It also provides insights into the valuation of inventory, highlighting the lower risk of obsolescence due to the fungibility of products across customers and applications.
The 10-K report offers a detailed comparison of the company's financial performance, providing a percentage breakdown of net revenue, cost of revenue, gross profit, and operating expenses for the years ended December 31, 2025, 2024, and 2023. It also includes an analysis of the company's net revenue mix by end-markets served, international sales, and sales to distributors, providing a comprehensive overview of its business operations and financial results.
As a result of these announcements, the company's shares have moved -0.37% on the market, and are now trading at a price of $43.32. For the full picture, make sure to review POWER INTEGRATIONS INC's 10-K report.
