Navitas Semiconductor (NVTS 0.58%) shares rose by a remarkable 61.2% in May, according to data from S&P Global Market Intelligence. The move comes due to a confluence of positive events for the company of the month that helped confirm Navitas as one of the most highly sensitive stocks to the AI infrastructure boom.
Navitas' stock is battleground for AI bulls and bears It's a company that Wall Street analysts don't expect to generate earnings until 2030. The bears argue that the AI spending "bubble" will burst by then, while the bulls argue that AI infrastructure is only in its early innings and point to continually rising expectations as a sign of growing momentum. The bulls won the argument in May.
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Navitas' exposure to the high-power end markets, most notably AI data centers (it's an Nvidia partner in developing power chips for the next generation of high-voltage data centers), and including energy/grid infrastructure and industrial electrification, puts it at the forefront of the debate. That's why some bears tend to take short positions in the stock, hoping to inordinately benefit from an AI stock correction.
What went right for Navitas in May However, when the stock has positive catalysts, short sellers are often forced to close their positions aggressively. And Navitas had plenty of catalysts in May.
The first-quarter earnings, released in early May, saw the company beat estimates for revenue, loss per share, and cash outflows. A slew of Wall Street analysts rushed to upgrade their price targets following the earnings report Wall Street analysts also updated their models, and according to S&P Global Market Intelligence, the Wall Street consensus for revenue is now 12%, 10%, and 20% higher for 2026, 2027, and 2028 Other AI-focused companies, such as Nvidia and power components and systems company Vicor, gave strong outlooks for spending in Navitas' end markets.
Image source: Getty Images.
Where next for Navitas History suggests that an AI bubble will form, and loss-making stocks like Navitas will be badly exposed in the fallout. However, history also suggests that many bears are too early to the bubble-bursting afterparty. History also suggests that even if a bubble bursts, it can leave the industry trending at a baseline growth rate far higher than it was in the early innings of a long-term spending boom.
For now, the bulls are winning the argument, and as long as AI-focused companies are raising growth expectations, that's likely to continue.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Navitas Semiconductor (NASDAQ:NVTS) shares surged roughly 26% on Wednesday after the company highlighted its participation in Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)'s partner ecosystem at a major industry event in Taipei, drawing investor attention to its role in next-generation AI data center power architectures.
The company participated in Nvidia’s Partner Ceremony held on May 29, 2026, at the Taipei Nangang Exhibition Center. The event brought together ecosystem partners supporting Nvidia’s AI Factory MGX platform, which focuses on accelerating development of AI data centers using emerging 800 VDC rack architectures.
Navitas also said its 800V-to-6V DC-DC power delivery board (PDB) is being showcased at Nvidia’s AI Factory MGXEcosystem Showcase at COMPUTEX 2026, held June 2 to 5 in Taipei.
The system is designed to eliminate the need for a traditional 48V intermediate bus converter stage within server trays, with the aim of improving efficiency, reliability, and space utilization in high-density computing environments.
The PDB uses 16 GaNFast 650V FETs in a dual-cooled DFN8×8 package and is designed to reach up to 97.5% peak efficiency while operating at switching frequencies of 1 MHz. The company said the design enables a power density of about 2,100 W/in³ and supports tighter integration with GPU boards to improve transient response and power distribution.
“As AI workloads continue to scale and drive unprecedented demand for compute, power delivery has become one of the most critical challenges in enabling next-generation gigawatt AI factories,” Navitas CEO Chris Allexandre said in a statement.
He added that collaboration within Nvidia’s MGX ecosystem supports the development of higher-density and more efficient AI infrastructure.
Navitas also pointed to its broader portfolio of wide-bandgap semiconductor technologies, including GeneSiC silicon carbide (SiC) solutions used in solid-state transformers, high-voltage power modules, and three-phase power supply units for AI data center applications.
The company said its GaNFast and SiC technologies are intended to support power conversion from grid to GPU level with higher efficiency and density.
Shares of Nvidia traded down 3% at $216 on Wednesday.
TORRANCE, Calif., June 03, 2026 (GLOBE NEWSWIRE) -- Navitas Semiconductor (Nasdaq: NVTS), an industry leader in next-generation GaNFast™ gallium nitride (GaN) and GeneSiC™ silicon carbide (SiC) power semiconductors, was honored to participate in NVIDIA's Partner Ceremony held on May 29th, 2026, at the Taipei Nangang Exhibition Center. The event brought together key ecosystem partners supporting the NVIDIA AI Factory MGX™ platform, highlighting industry collaboration to accelerate the development of next-generation AI data centers powered by emerging 800 VDC rack architectures.
Navitas’ 800 V-to-6 V DC-DC power delivery board (PDB) is being shown at NVIDIA's AI Factory MGX™ Ecosystem Showcase at COMPUTEX 2026 in Taipei, June 2nd–June 5th. Powered by Navitas GaNFast technology, the PDB eliminates the need for a traditional 48 V intermediate bus converter (IBC) stage within the compute server trays, maximizing system efficiency, reliability, and valuable real estate.
The PDB features 16 GaNFast FETs rated at 650 V, 11 mOhms, in the latest DFN8×8 dual-cooled package, aiming 97.5% peak efficiency, operating at 1 MHz switching frequency, and enabling a power density of 2100 W/in³. Approximately 20% thinner than a mobile phone, its ultra-low profile allows for extremely close integration with the GPU board, maximizing transient performance and enhancing power distribution efficiency.
“As AI workloads continue to scale and drive unprecedented demand for compute, power delivery has become one of the most critical challenges in enabling next-generation gigawatt AI factories,” said Chris Allexandre, President and CEO of Navitas. “Through our collaboration with NVIDIA within the MGX™ ecosystem, Navitas is delivering GaN and SiC power technologies that enable megawatt-scale AI server racks with higher power density, a smaller system footprint, and improved thermal performance, helping accelerate the transition to more efficient and scalable AI infrastructure.”
Navitas provides a comprehensive portfolio of wide-bandgap (WBG) power technologies that form the foundation of next-generation AI factory infrastructure. Its GeneSiC silicon carbide (SiC) solutions enable efficient power delivery from the grid to the AI compute rack, supporting critical applications such as solid-state transformers (SSTs) with ultra-high-voltage 2300 V and 3300 V SiC power modules, and high-power three-phase power supply units (PSUs), powered by the latest Generation 5 technology 1200 V SiC MOSFETs. Together, these technologies help AI data centers achieve higher efficiency, greater power density, and enhanced system reliability at scale.
Navitas' GaNFast™ technology delivers high-frequency, high-efficiency DC-DC power conversion required to support the rapidly growing power demands of AI GPUs. Leveraging the superior switching performance of GaN, Navitas solutions enable MHz-frequency operation, higher power density, and faster transient response, allowing power to be delivered more efficiently from the rack level directly to the GPU.
Through its comprehensive portfolio of GaN and SiC technologies, Navitas continues to collaborate closely with NVIDIA within the MGX™ ecosystem, helping enable open, modular AI infrastructure architectures and accelerating the industry's transition toward next-generation AI factories.
Two pictures:
Navitas TW Country Manager Stacey Cho with NV executive team.Navitas 800 V-6 V PDB board on MGX Ecosystem display. About Navitas
Navitas Semiconductor (Nasdaq: NVTS) is a next-generation power semiconductor leader in gallium nitride (GaN) and IC integrated devices, and high-voltage silicon carbide (SiC) technology, driving innovation across AI data centers, energy and grid infrastructure, performance computing, and industrial electrification. With more than 30 years of combined expertise in wide bandgap technologies, GaNFast™ power ICs integrate GaN power, drive, control, sensing, and protection, delivering faster power delivery, higher system density, and greater efficiency. GeneSiC™ high-voltage SiC devices leverage patented trench-assisted planar technology to provide industry-leading voltage capability, efficiency, and reliability for medium-voltage grid and infrastructure applications. Navitas has over 300 patents issued or pending and is the world’s first semiconductor company to be CarbonNeutral®-certified.
Navitas Semiconductor, GaNFast, GaNSense, GeneSiC, and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names, and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
Contact Information
Navitas Semiconductor
Vipin Bothra [email protected]
Navitas Investor Contacts
Leanne Sievers | Brett Perry
Shelton Group [email protected]
This press release includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are attempts to predict or indicate future events or trends or similar statements that are not a reflection of historical fact. Forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions. Forward-looking statements are made based on estimates and forecasts of financial and performance metrics, projections of market opportunity and market share and current indications of customer interest, all of which are based on various assumptions, whether or not identified in this press release. All such statements are based on current expectations of the management of Navitas and are not predictions of actual future performance. Forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of Navitas and, forward-looking statements are subject to a number of uncertainties. Our businesses are subject to certain risks that could materially and adversely affect our respective business, financial condition, results of operations, or the value of our securities. For Navitas, these and other risk factors are discussed in the Risk Factors section of our most recent annual report on Form 10-K, as updated in the Risk Factors section of our most recent quarterly report on Form 10-Q, and in other documents we file with the SEC. If any of these risks, as discussed in more detail in our SEC reports, materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements.
Photos accompanying this announcement are available at
Navitas Semiconductor (NASDAQ:NVTS) shares surged roughly 26% on Wednesday after the company highlighted its participation in Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)'s partner ecosystem at a major industry event in Taipei, drawing investor attention to its role in next-generation AI data center power architectures.
The company participated in Nvidia’s Partner Ceremony held on May 29, 2026, at the Taipei Nangang Exhibition Center. The event brought together ecosystem partners supporting Nvidia’s AI Factory MGX platform, which focuses on accelerating development of AI data centers using emerging 800 VDC rack architectures.
Navitas also said its 800V-to-6V DC-DC power delivery board (PDB) is being showcased at Nvidia’s AI Factory MGXEcosystem Showcase at COMPUTEX 2026, held June 2 to 5 in Taipei.
The system is designed to eliminate the need for a traditional 48V intermediate bus converter stage within server trays, with the aim of improving efficiency, reliability, and space utilization in high-density computing environments.
The PDB uses 16 GaNFast 650V FETs in a dual-cooled DFN8×8 package and is designed to reach up to 97.5% peak efficiency while operating at switching frequencies of 1 MHz. The company said the design enables a power density of about 2,100 W/in³ and supports tighter integration with GPU boards to improve transient response and power distribution.
“As AI workloads continue to scale and drive unprecedented demand for compute, power delivery has become one of the most critical challenges in enabling next-generation gigawatt AI factories,” Navitas CEO Chris Allexandre said in a statement.
He added that collaboration within Nvidia’s MGX ecosystem supports the development of higher-density and more efficient AI infrastructure.
Navitas also pointed to its broader portfolio of wide-bandgap semiconductor technologies, including GeneSiC silicon carbide (SiC) solutions used in solid-state transformers, high-voltage power modules, and three-phase power supply units for AI data center applications.
The company said its GaNFast and SiC technologies are intended to support power conversion from grid to GPU level with higher efficiency and density.
Shares of Nvidia traded down 3% at $216 on Wednesday.
Navitas Semiconductor stock is surging to new heights today. Why are NVTS shares rallying? What’s Driving Navitas Semiconductor’s Collaboration With Nvidia?Navitas said it is collaborating with NVIDIA within the NVIDIA MGX ecosystem to accelerate 800 VDC AI infrastructure, positioning its GaNFast technology around the fast-rising power demands of AI GPUs.
The company highlighted an 800 V-to-6 V power distribution board design that uses 16 GaNFast FETs (650 V, 11 mOhms) and targets 97.5% peak efficiency at 1 MHz switching frequency with a stated power density of 2100 W/in³.
Navitas' 800 VDC pitch is landing as investors broaden "picks-and-shovels" AI infrastructure exposure beyond just Nvidia and hyperscalers.
Critical Technical Levels For NVTS Stock To WatchFrom a trend perspective, NVTS is extended but still firmly in an uptrend: it's trading 34.1% above its 20-day SMA ($22.86) and 187% above its 200-day SMA ($10.68), which tells you buyers have controlled the intermediate and long-term tape. The 20-day SMA is above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a golden cross that occurred in June 2025), keeping the bigger-picture structure bullish.
For momentum, MACD is the cleaner lens right now because it's flagging a potential cooldown even as price pushes higher: MACD is below its signal line and the histogram is negative, which suggests upside pressure is fading versus the prior upswing unless it can re-accelerate. In plain English, MACD compares faster and slower trend forces—when it's below the signal line, it often means the move is losing steam even if price hasn't broken down yet.
Key Resistance: $34.00 — a nearby round-number area just above the current price and close to the 52-week high zone ($33.82), where breakouts can stall on first test Navitas Semiconductor Stock Price Action On WednesdayNVTS Stock Price Activity: Navitas Semiconductor shares were up 22.12% at $31.58 at the time of publication on Wednesday, according to Benzinga Pro data.
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Navitas Semiconductor (NVTS 0.58%) stock is posting big gains in Wednesday's trading despite bearish pressures for the broader market. The company's share price was up 22.5% as of 1:30 p.m. ET despite the S&P 500 being down 0.7% and the Nasdaq Composite being down 0.5%.
While rising oil costs and bond yields are weighing on the broader market today, Navitas's valuation is surging thanks to news that the company's tech is being featured by Nvidia at events in Taipei, Taiwan. Navitas stock is now up 346% year to date as of this writing.
Image source: Getty Images.
Nvidia gives Navitas stock another boost Navitas published a press release today stating that the company was honored to have participated in Nvidia's Partner Ceremony on May 29 at the Taipei Nangang Exhibition Center. The company also announced that its announcing 800 V-to-6 V DC-DC power delivery board (PDB) is being featured at the Computex 2026 conference in Taiwan, which runs from June 2 through June 5. Navitas was featured as part of a showcase for the Nvidia AI Factory MGX platform, and its stock has frequently seen big moves in relation to its partnership with Nvidia.
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What's next for Navitas? Navitas's partnership with Nvidia seemingly positions the tech specialist to score some big wins as the artificial intelligence infrastructure buildouts continue at a rapid pace. On the heels of the company's explosive rally, Navitas is now valued at roughly $7.5 billion and trades at approximately 176 times this year's expected sales. While that highly growth-dependent valuation profile comes with a lot of risk, the company has been posting very impressive business momentum and seemingly has a long growth runway.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Key Takeaways NVIDIA shout-outs sent MRVL and NVTS soaring yesterday, up over 250% and 330%, respectively, year to date.Marvell's AI networking business is booming, with fiscal 2027 revenues projected near $11.5 billion.Navitas remains loss-making and trades at 129x forward sales, leaving little room for execution missteps. NVIDIA’s (NVDA - Free Report) endorsement sent shares of Marvell Technology (MRVL - Free Report) and Navitas Semiconductor (NVTS - Free Report) soaring yesterday. Marvell stock surged after NVIDIA CEO Jensen Huang called the company the "next trillion-dollar company" at the Computex conference in Taipei. Meanwhile, Navitas received a major boost after NVIDIA showcased its power-delivery technology as part of the AI Factory MGX Ecosystem.
Investors have rushed into both names, pushing MRVL and NVTS up more than 250% and 330%, respectively, year to date. But after such spectacular gains, do the stocks’ fundamentals justify the hype? And which stock has more going for it now?
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Marvell's AI Infrastructure Story Looks CompellingHuang highlighted Marvell's growing importance in artificial intelligence (AI) infrastructure, particularly its networking and connectivity solutions that help power next-generation AI data centers. As AI models become larger and more complex, moving data quickly between thousands of chips has become just as important as computing power itself. Marvell sits at the center of this trend.
The company has been strengthening its position in AI networking, optical interconnects, and custom silicon solutions. Earlier this year, NVIDIA validated Marvell's strategic importance through a $2 billion investment, deepening the relationship between the two companies.
The financial outlook also supports much of the optimism. Marvell recently raised its fiscal 2027 revenue guidance and now expects sales to grow approximately 40% year over year to nearly $11.5 billion. AI demand remains the primary growth driver, with management reporting exceptionally strong AI-related bookings.
One of Marvell's most attractive businesses is its interconnect segment, which the company expects to grow more than 70% in fiscal 2027. As hyperscalers build larger AI clusters, demand for high-speed, low-latency networking solutions is increasing rapidly.
Navitas Is a Higher-Risk AI Infrastructure BetNVIDIA’s showcase of Navitas' 800V-to-6V DC-DC power delivery platform at Computex strengthens the company's credibility within the AI ecosystem.
Navitas is also benefiting from the rapid buildout of AI infrastructure. The company is undergoing a transformation through its "Navitas 2.0" strategy, shifting away from slower-growing consumer and mobile markets toward AI data centers, grid infrastructure, industrial electrification and high-performance computing.
This strategic pivot has resonated strongly with investors, particularly as power efficiency becomes a critical challenge for AI data centers. Navitas believes the AI data-center market alone could represent a $1.4 billion to $2.5 billion serviceable market opportunity by 2030. Adoption of gallium nitride (GaN) and silicon carbide (SiC) technologies is expected to grow at an impressive pace throughout the decade.
What makes Navitas particularly interesting is its exposure to both GaN and SiC technologies. These advanced power semiconductors are increasingly being used to improve efficiency and reduce energy losses in data centers, electric grids, renewable energy systems and industrial applications.
NVTS vs. MRVL: Scale, Profitability and ValuationBoth Marvell and Navitas are positioned to benefit from the massive wave of AI infrastructure spending. However, there is a significant difference between the two when it comes to scale, profitability and valuation.
Marvell already has an established business generating billions of dollars in annual revenues. MRVL’s data center revenues came in at $1.83 billion in the last reported quarter. It is also profitable and has clear visibility into future growth as hyperscalers continue expanding AI data centers. That said, Marvell's profitability remains sensitive to product mix as newer data-center platforms ramp up.
Navitas, by contrast, is still in the early stages of its growth story. While the company is targeting large opportunities in AI data centers, grid modernization, renewable energy, and industrial electrification, its current revenue base remains too small. For the second quarter of 2026, Navitas expects revenues of just $10 million. NVTS continues to operate at a loss as it invests aggressively in product development and customer acquisition. Management has indicated that quarterly revenues likely need to reach the high-$30 million range before the business can achieve operating profitability or break even.
Valuation further highlights the contrast. Navitas currently trades at roughly 129 times forward 12-month sales, far above Marvell's multiple of around 20. While both stocks are trading at a premium to the industry’s P/S of 10X, Navitas’ insane premium suggests investors are pricing in years of rapid growth and successful execution with no missteps.
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Marvell's valuation is also elevated, but it is backed by a much larger revenue base, stronger earnings profile and a more established position within the AI ecosystem. While the stock is not cheap, investors are paying for a business that is already benefiting meaningfully from AI spending rather than one that is still working to fully commercialize its opportunity.
Last WordBetween the two, Marvell clearly has the stronger investment case today. The company already occupies a critical position in the AI infrastructure stack and is generating the revenue growth needed to support its premium valuation. Navitas undoubtedly has exciting long-term potential, but its stock price appears to be running far ahead of the business itself. At current levels, investors are paying for a best-case scenario. Marvell also carries some valuation risk, but unlike Navitas, it has the scale, earnings power and execution track record to justify investor confidence.
While NVTS stock carries a Zacks Rank #4 (Sell), MRVL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways NVTS surged 19% after NVIDIA highlighted its 800V-to-6V DC-DC GaNFast board at Computex 2026.Navitas says the board hits 97.5% peak efficiency at 1 MHz, with a thinner design placed closer to AI GPUs.Consensus target price for NVTS is $13.71, implying ~55% downside from current levels. Navitas Semiconductor (NVTS - Free Report) has become one of the hottest stocks in the semiconductor space. Shares of the power-chip specialist surged more than 19% yesterday after the company showcased its collaboration with NVIDIA (NVDA - Free Report) , adding fuel to a rally that has already pushed the stock up by more than 330% year to date.
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The market's excitement is easy to understand. Artificial intelligence (AI) infrastructure spending continues to accelerate, and Navitas is increasingly positioning itself as a key supplier of the power technologies needed to support next-generation AI data centers.
But does the NVIDIA connection justify the stock's meteoric rise? And how long will NVTS stock keep rising on this hype? Hasn’t investor enthusiasm gotten ahead of reality? Let’s take a closer look.
Why NVIDIA's Partnership Is a Big Deal for NVTSThe latest rally was triggered after NVIDIA featured Navitas technology at Computex 2026 in Taipei as part of its AI Factory MGX Ecosystem Showcase.
Specifically, NVIDIA highlighted Navitas' 800V-to-6V DC-DC power delivery board, which uses the company's GaNFast technology. The solution is designed to deliver extremely high-power efficiency while maintaining a compact footprint. The board can achieve peak efficiency of 97.5% and operate at switching frequencies of 1 MHz.
The technology also offers a significantly thinner design, allowing it to be placed much closer to AI GPUs. This helps improve power delivery and system performance, two increasingly important requirements as AI workloads become more demanding.
Through its work within NVIDIA's MGX ecosystem, the company is helping develop power solutions capable of supporting megawatt-scale AI server racks while reducing system size and improving thermal performance.
More importantly, this is not just a product showcase. It means that Navitas is becoming embedded within NVIDIA's broader AI infrastructure ecosystem. For a smaller semiconductor company, that kind of validation from the undisputed leader in AI hardware is naturally attracting investor attention.
Navitas Is Betting Big on the AI Infrastructure BoomAI data centers are rapidly moving toward higher power-density architectures. As AI models become larger and more complex, the amount of electricity required to power AI servers continues to rise. This trend is creating a significant opportunity for Navitas' gallium nitride (GaN) and silicon carbide (SiC) power semiconductor technologies.
Traditional power solutions often struggle to balance efficiency, heat management and power density. Navitas believes its GaNFast technology can address these challenges by enabling higher-frequency operation, improved efficiency and faster power delivery directly to AI GPUs.
In first-quarter 2026, AI infrastructure revenues—including AI data centers and grid infrastructure—grew 50% sequentially from the fourth quarter of 2025
Navitas estimates the AI data center market alone could represent a serviceable addressable market opportunity of $1.4 billion to $2.5 billion by 2030. The company also expects GaN and SiC adoption within AI data centers to witness a remarkable 66% to 87% compound annual growth rate between 2025 and 2030. The company estimates that the energy and grid infrastructure market could represent a $1 billion-$1.8 billion serviceable addressable market opportunity by 2030.
Navitas' ability to offer both GaN and SiC products gives it a major edge. As hyperscalers build increasingly sophisticated AI infrastructure, many are expected to seek suppliers capable of supporting multiple layers of next-generation power architectures.
Competition Is Heating UpWhile Navitas has attracted significant investor attention, it is far from the only company targeting the AI power infrastructure opportunity.
Onsemi (ON - Free Report) is rapidly expanding its presence in the market through its own silicon carbide and GaN portfolio. The company reported AI data center revenue growth of more than 30% sequentially and more than 100% year over year in the first quarter of 2026. onsemi now expects AI data center revenues to double again in 2026.
STMicroelectronics (STM - Free Report) is also positioning itself as an important beneficiary of AI infrastructure spending. The company is leveraging technologies, including silicon photonics, GaN and SiC, while its partnership with Amazon Web Services is helping support demand for more energy-efficient AI networking solutions. STMicroelectronics now expects data center revenues to exceed $1 billion this year, up from previous forecast of $500 million.
The growing investments by larger and better-capitalized competitors highlight both the size of the opportunity and the challenges Navitas will face as it attempts to capture market share.
Has NVTS Stock Run Too Far?There is little doubt that Navitas has exciting long-term growth opportunities. The company's NVIDIA relationship strengthens its credibility, while AI infrastructure spending could provide a powerful tailwind for years to come.
However, investors appear to be valuing Navitas based largely on what the company could become several years from now rather than what the business currently is.
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The stock's massive year-to-date rally suggests that much of the AI opportunity may already be reflected in the share price. While the NVIDIA partnership could eventually translate into meaningful business wins, there is still considerable execution risk ahead.
The consensus analyst price target currently stands at $13.71, implying roughly 55% downside from current levels. That disconnect suggests expectations may have become overly optimistic.
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Navitas may ultimately emerge as a major winner in AI power infrastructure. However, after its extraordinary rally, the stock appears to have gotten way ahead of itself and could be due for a correction as valuations reconnect with underlying fundamentals rather than AI-driven hype.
Navitas currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
A month has gone by since the last earnings report for Navitas Semiconductor Corporation (NVTS - Free Report) . Shares have added about 84.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Navitas Semiconductor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Navita Loss Narrows in Q1, Revenues Down Y/YNavitas reported a narrower first-quarter 2026 loss than expected, supported by continued progress in its shift toward higher-value, high-power end markets. The company reported a loss of 4 cents per share, which beat the Zacks Consensus Estimate by 20%. NVTS reported a loss of 6 cents in the year-ago quarter and a loss of 5 cents in the previous quarter.
Revenues were $8.6 million, down 38.7% year over year, but beat the consensus mark by 7.5%. Management said that the high-power markets represented a large majority of sales and surged about 35% year over year, lifting mix and supporting margin expansion.
NVTS Returns to Sequential Growth as Mix ImprovesNavitas posted 18% sequential revenue growth that was attributed to the rebound to higher demand across its targeted high-power markets, including AI data centers and grid and energy infrastructure, as the company continues to reduce reliance on mobile and low-end consumer.
Navitas is positioning its GaN and high-voltage silicon carbide SiC portfolio for AI-driven power needs across data centers and the supporting grid infrastructure. Management highlighted recent customer and technology activity tied to next-generation power delivery, including an 800V-to-6V DC-DC board designed for higher-density AI data center architectures, and a 250-kW solid-state transformer demonstration that leverages SiC devices.
On the earnings call, management also pointed to momentum within “AI infrastructure,” which combines data center and grid efforts. The company said that the category grew 50% sequentially from the fourth quarter of 2025 to the first quarter of 2026, underscoring the pace of engagement as AI-related power requirements rise.
Navitas continues to frame AI data center power as a multi-step architecture transition that expands content opportunity for wide bandgap semiconductors. Management emphasized that higher-power AC-DC power supply units and evolving high-voltage DC distribution are driving interest in both SiC and GaN, with GaN expected to be increasingly important as conversion moves closer to the rack and power density requirements rise.
The company also discussed progress moving from device-level testing to system and board-level evaluation with customers for its newest GaN and SiC products. Management indicated that it has delivered “final samples” intended to support production ramps and is working closely with customers on system optimization and validation.
NVTS Keeps Costs Disciplined While Funding Key ProgramsThe improving mix showed up in profitability metrics. Non-GAAP gross margin expanded 30 basis points (bps) sequentially and 90 bps year over year to 39%, reflecting a greater contribution from higher-value, high-power programs and a smaller contribution from the lower-margin legacy business.
On the expense front, non-GAAP operating expenses were $15 million, essentially flat sequentially. Management said that cost discipline, particularly in selling, general and administrative (down 31.3% year over year to $5.7 million), helped create room to prioritize research and development (up 6.8% year over year to $9.4 million) tied to its high-power roadmap without driving a step-up in the overall operating cost base.
Non-GAAP operating loss was $11.7 million, improving from a loss of $12.1 million in the prior quarter and a loss of $11.8 million in the year-ago quarter.
Navitas’ Balance Sheet Remains a Key SupportNVTS ended the first quarter of 2026 with $221 million in cash and cash equivalents and no outstanding debt, providing the flexibility to support working capital and product roadmaps. The company exited fourth-quarter 2025 with a cash balance of $236.9 million.
Inventory was $14.9 million, up from $13.3 million at 2025-end, which management said reflects measured investment to support anticipated growth. With channel inventories described as healthier following prior streamlining actions, Navitas emphasized disciplined monitoring going forward. The company’s balance sheet strength remains a notable element of its strategy as it pursues expansion in high-power markets tied to AI infrastructure and industrial electrification.
NVTS’ Outlook Calls for Continued Sequential Growth in Q2For the second quarter of 2026, Navitas expects revenues of $10 million, plus or minus $0.5 million, which implies continued sequential growth. Non-GAAP gross margin is projected at 39.25%, plus or minus 75 bps, suggesting continuation of incremental mix-driven expansion.
Non-GAAP operating expenses are expected to remain roughly flat at $14.5 million to $15.5 million. Management said that it may selectively invest to accelerate growth, but it is aiming to keep spending disciplined as it scales the high-power business.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted -57.9% due to these changes.
VGM ScoresAt this time, Navitas Semiconductor has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Navitas Semiconductor has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerNavitas Semiconductor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Qualcomm (QCOM - Free Report) , has gained 29.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Qualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.
Qualcomm is expected to post earnings of $2.27 per share for the current quarter, representing a year-over-year change of -18.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Qualcomm. Also, the stock has a VGM Score of D.
Navitas Semiconductor Corp (NASDAQ:NVTS) stock is trading lower on Friday. The drop comes as traders lock in profits following a massive 266% year-to-date rally, alongside emerging concerns regarding stock dilution.
Nasdaq futures are down 0.97% while S&P 500 futures have shed 0.39%.
Heavy Profit-Taking After Massive AI RallyThe semiconductor company experienced a meteoric rise earlier this year, heavily driven by its high-profile collaboration with NVIDIA Corp MGX ecosystem to accelerate next-generation 800 VDC AI infrastructure. However, following a 266% year-to-date surge, investors are aggressively taking profits on Friday, putting downward pressure on the equity.
SEC Filing Reveals Multi-Million Share IssuanceCompounding the profit-taking pressure, Navitas filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC) on Thursday.
The filing detailed that the company issued an aggregate of 3,283,844 shares of Class A common stock on Thursday. The issuance fulfilled remaining obligations under a 2021 Business Combination Agreement for "Triggering Event I" and "Triggering Event II."
Dilution Concerns Impact SentimentAccording to the official SEC report signed by CEO Chris Allexandre, Navitas has now issued 6,561,282 total shares under this legacy agreement.
Furthermore, former stockholders still hold a "contingent right to receive up to a total of 10 million shares of Class A common stock" if specific price targets are hit before October 19.
This potential supply influx has stoked near-term dilution fears among traders.
Critical Technical Levels for NVTS to WatchEven with Friday's pullback, NVTS remains in a strong longer-term uptrend: it's trading 22.4% above its 20-day SMA ($24.22) and 171.5% above its 200-day SMA ($10.92), which tells you the move has been powerful and extended. The 20-day SMA is also above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a golden cross), keeping the trend structure bullish.
The key technical question is whether the stock can hold above its short-term trend gauges (the 20-day SMA/EMA around the mid-$24 area) if selling continues after the open, because that's where dip-buyers often defend in strong uptrends.
NVTS Price Action: Navitas Semiconductor shares were down 10.47% at $27.46 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
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Navitas Semiconductor (NVTS 0.58%) stock got hit with a sharp sell-off in Friday's daily trading. The chip company's share price closed out the day down 18.2% in a session that saw the S&P 500 decline 2.6% and the Nasdaq Composite sink 4.8%.
The broader stock market got hit with a wave of powerful selling action today as investors reacted to fears that the Federal Reserve is on course to hike interest rates. Despite a huge pullback today, Navitas stock is still up 251% across 2026's trading.
Image source: Getty Images.
Navitas sank in response to macroeconomic concerns The Bureau of Labor Statistics (BLS) published its May jobs report this morning, and the market had a staunchly negative reaction to the print. While investors could be forgiven for thinking that today's big market sell-off was caused by weaker-than-expected jobs numbers, employment growth for May actually came in significantly stronger than anticipated. The May jobs report showed that the U.S. economy added 172,000 jobs in May -- breezing past economists' forecast for 80,000 nonfarm payroll additions in the period. Stronger-than-expected payroll growth can be viewed as a positive in some respects, but there's a big catch.
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Growth investors are worried the Federal Reserve will raise rates Even though the BLS's May jobs report suggests that economic activity was more robust than expected last month, the data is spurring fears among investors. Inflation has been accelerating recently, and that has raised concerns that the Federal Reserve will hike interest rates.
If the economy is continuing to add new jobs at a relatively healthy pace, that makes it far more likely that the Fed will prioritize attacking inflation by raising interest rates. Higher rates pose a significant risk to the near-term bull cases for growth-dependent artificial intelligence stocks, and Navitas and other names in the category could continue to face pressures if it becomes clear that the Fed is adopting more hawkish positioning.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Navitas (NVTS 0.58%) stock saw a substantial valuation pullback this week, with it share price falling 7.6% across the stretch. Over the same period, the S&P 500 fell 2.6%, and the Nasdaq Composite declined by 4.7%.
Navitas had actually been strongly in the green earlier in the week thanks to bullish momentum for semiconductor stocks and news that Nvidia was featuring its tech at a conference, but the stock saw a strong bearish reversal to close the week. The Bureau of Labor Statistics (BLS) published its jobs report for May on Friday, and the print helped spur a huge sell-off for growth stocks.
Image source: Getty Images.
Before falling, Navitas stock got a huge pop from Nvidia news Navitas stock skyrocketed on Wednesday following news that Nvidia was featuring the company's 800 V-to-6 V DC-DC power delivery board (PDB) at the Computex 2026 conference. The PDB board was showcased as part of Nvidia's AI Factory MGX platform, and Navitas's share price soared following news that the company's tech partnership was being highlighted. On the other hand, the stock suffered big sell-offs later in the week and closed out the stretch solidly in the red.
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A strong jobs report has the market worried The Federal Reserve is tasked with shaping monetary policy that both promotes economic growth and keeps inflation under control, and setting benchmark interest rates is arguably the most important tool at its disposal. Lower interest rates help energize economic growth, while higher rates help curb inflation.
With the May jobs report published on Friday, the BLS estimated that 172,000 nonfarm payroll positions had been added last month -- more than double the 80,000 estimated job additions called for by surveyed economists. Strong jobs growth could cause the Fed to once again shift its priorities to curtailing inflation, which has been accelerating recently. If the Fed raises rates, it could curb investors' appetites for Navitas and other growth stocks and set the stage for further valuation contractions.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Direct-cooled thermal management offered by a reflow-compatible, isolated thermal pad significantly improves power density, reliability, and efficiency.Integrated aluminum nitride substrate-based isolation reduces electromagnetic coupling, allowing higher switching speeds and lower EMI management costs.Developed for 3300V, 2300V, and 1200V SiC MOSFET products.
TORRANCE, Calif., June 08, 2026 (GLOBE NEWSWIRE) -- Navitas Semiconductor (Nasdaq: NVTS), an industry leader in next-generation GaNFast™ gallium nitride (GaN) and GeneSiC™ silicon carbide (SiC) power semiconductors, today announced the launch of its new UHV-TO-247-4-ISO package, setting a new benchmark for high-performance discrete power devices.
Featuring over 12 mm pin-to-pin creepage and greater than 6000 V integrated isolation, the package is purpose-built for 1200 V to 3300 V GeneSiC SiC MOSFETs, delivering module-like performance in a compact discrete form factor. When compared with standard non-isolated through-hole packages, this package not only eliminates the need for external high-voltage isolation but also improves thermal and EMI performance. This expands Navitas’ packaging portfolio, including SiCPAK® power modules, QDPAK, TO-247-LP, and other high-performance solutions, for more efficient, denser, scalable power systems in energy, grid, and AI data centers.
System Benefits:
Integrated High-Voltage Isolation: By integrating an Aluminum Nitride (AlN) substrate, this package offers robust high-voltage isolation exceeding 6000 V — eliminating the need for external isolation materials and simplifying system design.Direct-Cooled, Reflow-Compatible Thermal Management: A high-voltage isolated, reflow-compatible thermal pad lets the package mount directly to liquid- or air-cooled heat sinks, eliminating external TIM. This reduces RTH,J-HS by up to 60%, leading to up to 150% increased power dissipation capability, improving power density, reliability, manufacturability, and overall system cost.Reduced Coupling Capacitance & Radiated EMI: Integrated high-voltage isolation reduces die-to-heatsink stray capacitance compared to external ceramic-based isolators, effectively minimizing common-mode noise and radiated EMI. This enables higher switching speeds and delivers improved power density, increased system efficiency, and reduced system-level costs associated with EMI mitigation.Superior Power and Thermal Cycling Lifetime: Built on a high-performance AlN substrate with active metal brazing (AMB) technology and a robust reflow-compatible heatsink interface, this package eliminates the need for external TIM and isolation materials from the system stack - delivering superior power cycling capability and enhanced thermal cycling lifetime.Industry-Standard Form-Factor and Footprint: Compatible with the established high-voltage TO-247-4 form factor and lead geometry, this package allows effortless system integration with no redesign — while delivering superior performance, increased reliability, and lower total system cost.
“High-power system design is fundamentally challenged by the need to balance efficient thermal management with robust high-voltage isolation,” said Paul Wheeler, VP & GM of the SiC Business Unit at Navitas. “The UHV-TO-247-4-ISO package overcomes critical thermal and isolation challenges, delivering power module–class performance in a compact discrete form factor. As a highly efficient building block, it empowers system designers to unlock the full potential of GeneSiC TAP SiC MOSFET technology in next-generation applications such as immersion-cooled and liquid-cooled power electronics.”
Product Portfolio:
The UHV-TO-247-4-ISO package is offered in 3300V, 2300V, and 1200V SiC MOSFET ratings. This packaging breakthrough enables performance improvements in high-voltage grid-tied power conversion systems (PCS), solid-state transformers (SST), battery energy storage systems (BESS), and renewable energy applications.
Part NumberVDSRDS,ONG5R06MT12UIK1200 V6.5 mΩG5R12MT12UIK1200 V12 mΩG4H11MT23UIK2300 V11.5 mΩG4H23MT23UIK2300 V23 mΩG4H22MT33UIK3300 V22.5 mΩG4H45MT33UIK3300 V45 mΩ
The new package, together with its direct-cooled heatsink assembly, will be available at the Navitas Booth at PCIM Europe 2026, in Nuremberg, booth #544, Hall 9.
To request samples and product collateral, please contact a Navitas Sales Representative or write to [email protected].
About Navitas
Navitas Semiconductor (Nasdaq: NVTS) is a next-generation power semiconductor leader in gallium nitride (GaN) and IC integrated devices, and high-voltage silicon carbide (SiC) technology, driving innovation across AI data centers, energy and grid infrastructure, performance computing, and industrial electrification. With more than 30 years of combined expertise in wide bandgap technologies, GaNFast™ power ICs integrate GaN power, drive, control, sensing, and protection, delivering faster power delivery, higher system density, and greater efficiency. GeneSiC™ high-voltage SiC devices leverage patented trench-assisted planar technology to provide industry-leading voltage capability, efficiency, and reliability for medium-voltage grid and infrastructure applications. Navitas has over 300 patents issued or pending and is the world’s first semiconductor company to be CarbonNeutral®-certified.
Navitas Semiconductor, GaNFast, GaNSense, GeneSiC, and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names, and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
Contact Information
Navitas Semiconductor
Vipin Bothra [email protected]
Navitas Investor Contacts
Leanne Sievers | Brett Perry
Shelton Group [email protected]
Cautionary Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are attempts to predict or indicate future events or trends or similar statements that are not a reflection of historical fact. Forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions. Forward-looking statements are made based on estimates and forecasts of financial and performance metrics, projections of market opportunity and market share and current indications of customer interest, all of which are based on various assumptions, whether or not identified in this press release. All such statements are based on current expectations of the management of Navitas and are not predictions of actual future performance. Forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of Navitas and, forward-looking statements are subject to a number of uncertainties. Our businesses are subject to certain risks that could materially and adversely affect our respective business, financial condition, results of operations, or the value of our securities. For Navitas, these and other risk factors are discussed in the Risk Factors section of our most recent annual report on Form 10-K, as updated in the Risk Factors section of our most recent quarterly report on Form 10-Q, and in other documents we file with the SEC. If any of these risks, as discussed in more detail in our SEC reports, materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8fba65a0-8c64-4eed-b1ab-4fae59db3823
https://www.globenewswire.com/NewsRoom/AttachmentNg/d136a4f5-13b6-47b4-8d83-660180fe28d1
Navitas Introduces Isolated Through-Hole Package for SiC MOSFETs, Enabling Direct-Cooled Thermal Man... Direct-cooled thermal management offered by a reflow-compatible, isolated thermal pad significantly ... Developed for 3300V, 2300V, and 1200V SiC MOSFET products. Featuring over 12 mm pin-to-pin creepage and greater than 6000 V integrated isolation, the package i...
Insiders are making big moves in several key stocks across finance and tech. This includes rare buys at a crypto-linked name that is well-known among retail investors. Meanwhile, insiders are selling a stock that received swaths of analyst upgrades last month, and a surging chip company with ties to NVIDIA NASDAQ: NVDA.
Get Robinhood Markets alerts:
Robinhood Insiders Buy Shares for the First Time in a YearRobinhood Markets Today
HOOD
Robinhood Markets
$88.21 +1.85 (+2.15%)
As of 01:15 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$63.51▼
$153.86P/E Ratio42.63
Price Target$110.73
Robinhood Markets NASDAQ: HOOD has certainly had a difficult start to 2026, down more than 25% on the year. Shares have also fallen by about 45% from their 52-week high. It should not come as a surprise that leading crypto asset Bitcoin has also fallen about 50% from its 52-week high and is down over 25% in 2026.
Robinhood has moved into many markets besides crypto, including equity and options trading, retirement accounts, subscriptions, and prediction markets. Nonetheless, its share price performance remains closely tied to crypto performance, for better or worse.
Amid its fall, Robinhood has seen a significant uptick in insider buying during Q2 2026. Overall, MarketBeat has tracked $35 million worth of insider purchases during the quarter after not seeing any since Q2 2025.
Meanwhile, insider sales remain slightly higher in Q2 2026 at $42 million. However, essentially all of these sales came under predetermined 10b5-1 plans, limiting their negative implications. Additionally, as buys have greatly increased, sales have come way down. In Q3 and Q4 2025, insider sales came in at more than $1 billion combined.
Overall, the combination of drastically falling insider sales and renewed insider buying is a solid bullish indicator for Robinhood going forward. This is particularly true when considering Robinhood’s beaten-down share price.
Snowflake Insider Sales Sell After Post-Earnings PopNext up is Snowflake NYSE: SNOW, which recently catapulted to the upside. The company’s latest earnings report greatly impressed investors, as it posted a double beat and a guidance raise. This led shares to gain more than 36% in one day.
Snowflake Today
$238.84 -1.07 (-0.44%)
As of 01:15 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$118.30▼
$284.99Price Target$291.77
Snowflake also ranked as one of MarketBeat’s top three most upgraded stocks of last month—along with two other key AI names. Despite its recent surge, Snowflake’s overall return in 2026 is not overly impressive, sitting below 10%.
Still, it is notable that insider sales spiked following Snowflake’s huge post-earnings move. Among the $338 million worth of insider sales tracked in Q2, $288 million came after the company’s report. However, most of these sales also came under 10b5-1 plans, again limiting their bearish signal.
Furthermore, many of these sales involved the exercise of stock options followed by subsequent sales.
For example, Director Frank Slootman exercised options at $8.88 per share and then sold shares at $250 or higher. Thus, Slootman generated massive gains, limiting the effect that future up moves would have on his overall payoff. Nonetheless, total sales increased nearly threefold from $114 million in Q1. Overall, the raw size of Snowflake's sales is moderately concerning despite mitigating circumstances.
Insider at NVIDIA-Partnered Navitas Dump SharesLast up is Navitas Semiconductor NASDAQ: NVTS, which has soared more than 200% in 2026. This comes as Navitas is an NVIDIA partner for the company’s 800 volts direct current (VDC) data center power push.
Navitas Semiconductor Today
NVTS
Navitas Semiconductor
$20.48 -0.02 (-0.09%)
As of 01:15 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$5.44▼
$34.17Price Target$12.87
The goal of this is to reduce the number of conversions needed to make grid power usable in artificial intelligence (AI) server racks. In turn, data center power efficiency should increase. Notably, Navitas recently unveiled its 800V-to-6V DC-DC power delivery board, designed for use in NVIDIA systems. Shares surged by nearly 20% afterward.
Still, as Navitas shares put up huge gains, insider sales have also moved up considerably. Overall, MarketBeat has tracked $116 million worth of insider sales, the company’s highest quarterly sales over the past three years. None of these sales came under 105b-1 plans, although they did come before the company debuted its new power delivery board that sent shares soaring.
Many of these insiders continue to hold very large positions in Navitas. For example, despite selling over 3.6 million shares, Director Ranbir Singh still holds nearly 15 million Navitas shares. Overall, the recent sales surrounding Navitas are a solidly bearish signal—although its NVIDIA partnership is difficult to ignore.
Analysts Eye Recovery in Robinhood Despite Wide Price Target DispersionOverall, Robinhood’s recent insider buys stand out, given how long it has been since insiders upped their stakes in the company. As insiders buy in, Wall Street analysts are also demonstrating confidence in the stock. The MarketBeat consensus price target on HOOD currently sits near $110, implying upside of more than 30%. Still, it is worth noting that forecasts range very widely, with recently updated targets as high as $155 and as low as $65.
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Key Takeaways NVTS unveiled a UHV-TO-247-4-ISO isolated package for its high-voltage SiC MOSFET lineup.The design integrates isolation, cuts thermal resistance and EMI, and boosts power dissipation capability.NVTS sizes the AI data centers market at $1.4B-$2.5B and energy/grid at $1B-$1.8B by 2030. Navitas Semiconductor (NVTS - Free Report) recently unveiled a new isolated package for its silicon carbide (SiC) MOSFETs. At first glance, this may seem like a routine product update. However, the launch highlights the company's efforts to strengthen its position in some of the fastest-growing power electronics markets, including artificial intelligence (AI) data centers, grid infrastructure and energy storage systems.
As demand for electricity continues to rise, so does the need for more efficient power conversion. Whether it's an AI server, a battery storage project or a renewable energy installation, power systems need to handle higher voltages and greater power densities while maintaining efficiency and reliability. That is where Navitas’ latest innovation can make a difference.
Why This Launch Matters for NVTSThe company's new UHV-TO-247-4-ISO package is designed for its high-voltage SiC MOSFET portfolio. The package integrates high-voltage isolation directly into the device and improves thermal management, allowing heat to be removed more effectively. In power electronics, heat is often one of the biggest obstacles to performance. Systems that run cooler can typically operate more efficiently, handle greater power levels and deliver improved reliability over time.
The new design can significantly reduce thermal resistance and increase power dissipation capability compared to conventional non-isolated through-hole packages. The package also aims to reduce electromagnetic interference (EMI), enabling faster switching speeds and potentially lowering system-level costs associated with EMI mitigation.
All this matters as the next generation of power-hungry applications requires exactly these kinds of improvements.
AI data centers are a good example. The rapid adoption of AI is driving unprecedented demand for computing power, which is increasing power consumption inside data centers. As operators look to improve efficiency and manage rising energy requirements, advanced power semiconductors are becoming a critical part of the solution. Navitas believes the AI data center market alone could represent a $1.4 billion to $2.5 billion opportunity by 2030.
The opportunity extends beyond AI. Navitas is also targeting battery energy storage systems, renewable energy installations, power conversion systems, and solid-state transformers. These markets are expected to benefit from long-term electrification trends, making them attractive growth opportunities for semiconductor suppliers. The company estimates that the energy and grid infrastructure market could represent a $1 billion to $1.8 billion serviceable opportunity by 2030.
With management estimating multibillion-dollar opportunities across AI infrastructure and energy markets, Navitas is betting that system-level innovation can help it capture a meaningful share of these emerging growth areas. The development also aligns with Navitas' broader strategy. The company is no longer focused solely on improving chip performance. Instead, it is increasingly addressing system-level challenges such as cooling, isolation, efficiency and reliability. That approach could help Navitas stand out in an increasingly competitive SiC market.
How Does Navitas Stack Up Against Peers? Companies such as onsemi (ON - Free Report) and STMicroelectronics (STM - Free Report) have established strong positions in the SiC industry and continue to invest heavily in expanding their product portfolios and manufacturing capabilities.
Last year, onsemi expanded its AI infrastructure ambitions through the acquisition of Vcore Power, adding power management capabilities for next-generation AI platforms. onsemi has also enhanced its EliteSiC portfolio with SiC JFET technology through the Qorvo buyout, aimed at improving efficiency in advanced power supply stages.
STMicroelectronics is also leveraging its expertise in silicon carbide power devices, power management solutions, and industrial semiconductors to target high-efficiency power conversion applications. STMicroelectronics is also investing in optical interconnect technologies, which are expected to become increasingly important as AI computing platforms demand faster data transfer and lower power consumption.
Both companies benefit from larger scale, broader customer relationships, and deeper financial resources. Against this backdrop, Navitas is focusing on system-level innovation— addressing cooling, isolation, efficiency, and electromagnetic interference challenges within the package itself— to solve broader customer pain points that extend beyond chip performance.
NVTS' Price Performance, Valuation & EstimatesShares of Navitas have surged more than 180% year to date compared with the industry’s growth of 46%.
Image Source: Zacks Investment Research
From a valuation standpoint, Navitas trades at a forward price-to-sales ratio of 85.09X, significantly higher than the industry’s average of 9.14X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Navitas’ 2026 and 2027 bottom line is pegged at a loss of 17 cents per share and 15 cents per share, respectively. See how the loss estimates have been revised over the past 90 days.
Image Source: Zacks Investment Research
Navitas currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIRO Group Holdings, Inc. (NASDAQ:AIRO – Get Free Report) COO John Uczekaj sold 3,415 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $8.84, for a total transaction of $30,188.60. Following the completion of the sale, the chief operating officer directly owned 20,111 shares in the company, valued at approximately $177,781.24. This trade represents a 14.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
John Uczekaj also recently made the following trade(s):
On Thursday, March 12th, John Uczekaj sold 396 shares of AIRO Group stock. The shares were sold at an average price of $10.43, for a total transaction of $4,130.28. AIRO Group Stock Up 0.5% Shares of NASDAQ:AIRO opened at $8.75 on Tuesday. The firm’s 50 day moving average price is $9.71 and its 200 day moving average price is $11.95. The stock has a market cap of $275.01 million and a price-to-earnings ratio of 437.50. AIRO Group Holdings, Inc. has a fifty-two week low of $7.28 and a fifty-two week high of $39.07.
AIRO Group (NASDAQ:AIRO – Get Free Report) last issued its earnings results on Tuesday, March 31st. The company reported $0.02 earnings per share for the quarter. The firm had revenue of $48.28 million during the quarter.
Hedge Funds Weigh In On AIRO Group A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Strs Ohio purchased a new stake in shares of AIRO Group during the 3rd quarter worth $25,000. Raymond James Financial Inc. purchased a new stake in shares of AIRO Group during the 2nd quarter worth $43,000. Invesco Ltd. boosted its position in shares of AIRO Group by 1.2% during the 4th quarter. Invesco Ltd. now owns 200,630 shares of the company’s stock worth $1,641,000 after purchasing an additional 2,395 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of AIRO Group during the 2nd quarter worth $60,000. Finally, JPMorgan Chase & Co. acquired a new position in shares of AIRO Group during the 3rd quarter worth approximately $54,000.
Wall Street Analyst Weigh In Several brokerages recently weighed in on AIRO. Wall Street Zen raised shares of AIRO Group from a “sell” rating to a “hold” rating in a report on Saturday, December 20th. Mizuho cut their price objective on shares of AIRO Group from $25.00 to $20.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Finally, Weiss Ratings reissued a “sell (e)” rating on shares of AIRO Group in a report on Monday, December 29th. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $19.67.
Check Out Our Latest Research Report on AIRO Group
About AIRO Group (Get Free Report)
We are a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. We leverage decades of industry expertise and connections across the drone, aviation, and avionics markets to provide leading solutions to the aerospace and defense market. We offer connected and diversified solutions providing operational synergies across our segments and are powered by an international footprint as well as supplier and public sector relationships.
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AIRO Group remains a speculative buy, with a prudent strategic pivot away from passenger eVTOL toward medium-lift cargo drones, especially for defense applications. AIRO's 2025 results were underwhelming: revenue growth missed estimates, margins fell sharply, and free cash flow turned negative, but management is prioritizing long-term scaling over short-term profitability. Guidance for 2026 targets 15-25% revenue growth, with a $150 million backlog and CapEx reductions due to the strategic shift, though margins will remain pressured during scaling.
NEW YORK, April 07, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES--(BUSINESS WIRE)---- $AIRO--AIRO Investors Have Opportunity to Join AIRO Group Holdings, Inc. Fraud Investigation with the Schall Law Firm.
NEW YORK, April 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, April 15, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or “the Company”) (NASDAQ: AIRO) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Airo announced its Q4 and full year 2025 financial results on March 31, 2026. The Company missed consensus estimates for sales and profits, also announcing its decision to abandon its air taxi business. Based on this news, shares of Airo fell by almost 11.3%.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, April 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, April 22, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or “the Company”) (NASDAQ: AIRO) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Airo announced its Q4 and full year 2025 financial results on March 31, 2026. The Company missed consensus estimates for sales and profits, also announcing its decision to abandon its air taxi business. Based on this news, shares of Airo fell by almost 11.3%.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO) (“AIRO” or the “Company”), a global leader in advanced aerospace and defense technologies, today announced that it will host a conference call to report its financial results for the first quarter 2026 at 8:00 a.m., ET, on Thursday, May 14, 2026. Participants can join the call by dialing 1 (800)-715-9871 (US) or 1 (646)-307-1963 (international) and enter the access code 7911023. To listen to the live audio webcast and Q&.
MCLEAN, Va.--(BUSINESS WIRE)-- #AIDriven--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the introduction of the RQ-70 Dainn, a long-range unmanned aircraft system (UAS) designed for intelligence, surveillance and reconnaissance (ISR) and target acquisition missions. The RQ-70 Dainn will be officially unveiled at Eurosatory in Paris, June 15–19, 2026, where AIRO will showcase how its integrated, AI-driven systems are addressing increasingly comple.
DETROIT--(BUSINESS WIRE)-- #AIRO--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, together with its brand Jaunt Air Mobility, today announced the public unveiling of its full-scale autonomous aircraft at AUVSI XPONENTIAL 2026 – a vertical takeoff and landing (VTOL) platform designed for defense and government missions, with dual-use capability for cargo logistics and remote operations. The aircraft represents a major milestone in the development of AIRO's heav.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (NASDAQ: AIRO) (“AIRO” or the “Company”), a global leader in advanced aerospace and defense technologies, today announced financial results for the first quarter ended March 31, 2026.
“Following a foundational 2025, we continued to take important steps in the first quarter to strengthen our infrastructure and strategic focus needed to scale AIRO into a leading, integrated aerospace and defense platform. As a newly public company, we are prioritizing disciplined capital deployment, aligning our investments with what we believe to be the highest-return opportunities across defense mobility, security, and training. While first quarter results reflect expected variability and investment timing, we believe this represents the low point for the year and positions us for accelerated growth as we execute against a robust pipeline of demand. And, we are reiterating our full‑year 2026 revenue growth guidance of 15% to 25%,” stated Dr. Chirinjeev Kathuria, Executive Chairman.
“We delivered a solid start to 2026, with results in line with our expectations and reinforcing our confidence in our full-year outlook. During the quarter, we refined our strategic focus to further align AIRO with the growing drone market, centered on delivering mission‑ready, AI‑enabled unmanned systems to U.S. and allied defense customers. With growing demand, a backlog that continues to build, and key milestones ahead, including Blue UAS certification and the introduction of new products, we believe we are well positioned for a strong rest of the year and meaningful long-term value creation,” said Joe Burns, Chief Executive Officer of AIRO.
First Quarter 2026 Financial Highlights
Revenue: $8.9 million, compared to $11.8 million in the first quarter of 2025. Gross profit: $2.4 million, representing gross margin of 26.6%, compared to $6.9 million, representing gross margin of 58.8% in the prior year period. Operating loss: $(17.2) million, compared to $(3.1) million in the first quarter of 2025. Net loss: $(15.5) million, compared to $(2.0) million in the first quarter of 2025. EBITDA: $(14.3) million, compared to $2.7 million in the first quarter of 2025. Adjusted EBITDA: $(12.8) million, compared to $0.1 million in the first quarter of 2025. First Quarter 2026 & Recent Operational Highlights
Advanced AI-enabled drone capabilities with launch of full-stack RQ-35 variant. AIRO began marketing and selling an AI-enabled version of its flagship RQ-35 Heidrun, enhancing performance in GPS-denied environments and reinforcing its leadership in next-generation ISR systems. Shifting focus toward cargo and ISR markets while expanding medium-lift drone portfolio. AIRO is prioritizing development of a large cargo drone platform and ISR variant, rather than passenger drones, built on a shared architecture to enable lower-cost development, reduced regulatory complexity, and more predictable, diversified revenue. In parallel, the Company unveiled the JX250 and JC250 aircraft, projected to achieve up to 1,000 miles of range and up to 16 hours of endurance in ISR configurations, which would significantly expand operational reach and AIRO’s addressable market; based on current progress, first flight is targeted this year, with commercialization and operational deployment expected to begin in 2027. Optimizing portfolio to sharpen focus on the drone market; evaluating strategic alternatives for Training segment. AIRO is sharpening its focus on the drone market, where the Company sees the most significant and immediate opportunity while positioning for long-term growth. As part of this effort, the Company is evaluating the strategic fit and long-term role of its Training segment. The Training segment remains a valuable asset with significant long-term opportunity, but the segment is capital-intensive and often requires meaningful ongoing investment. Scaled manufacturing capacity to support future demand growth. Continued modernization of the Støvring, Denmark facility, increasing production capacity to approximately 30% above current backlog levels and improving operational efficiency. Sustained backlog strength and stable near‑term revenue visibility. Drone backlog exceeded $150 million as of April 30, 2026, consistent with March 31, 2026 levels, providing strong visibility with the majority expected to convert to revenue over the next 12 months. First Quarter 2026 Financial Results
Revenue for the first quarter of 2026 was $8.9 million, compared to $11.8 million in the first quarter of 2025. The year-over-year decrease was in line with internal expectations and reflects normal seasonality, timing of customer shipments, and a higher mix of upgrade-related activity during the period.
Gross profit for the first quarter was $2.4 million, representing a gross margin of 26.6%, compared to $6.9 million and 58.8% in the prior-year period. The change in margin was primarily driven by product mix, with a greater contribution from lower-margin upgrade programs versus full system deliveries. The Company expects margins to improve over the balance of the year as drone deliveries resume as the primary revenue driver.
Operating loss for the quarter was $(17.2) million, compared to $(3.1) million in the first quarter of 2025. The increase in operating loss reflects lower revenue, higher cost of sales, and continued investment in engineering, production scaling, and public company infrastructure following the Company’s initial public offering (“IPO”).
Net loss for the first quarter was $(15.5) million, compared to $(2.0) million in the prior-year quarter, reflecting the same factors impacting operating performance.
EBITDA was $(14.3) million, compared to $2.7 million in the prior-year period. Adjusted EBITDA was $(12.8) million, compared to $0.1 million in the prior-year period, reflecting the impact of product mix dynamics and continued investments to support long-term growth.
As of March 31, 2026, cash totaled $54.2 million, with approximately $1.2 million in total debt, providing the Company with financial flexibility to support ongoing strategic initiatives.
Drone backlog totaled more than $150 million as of April 30, 2026, consistent with March 31, 2026. The Company expects the majority of this backlog to convert to revenue over the next 12 months, providing strong visibility into future growth. Management continues to view backlog conservatively and believes its expanding pipeline provides additional upside beyond current backlog levels.
EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures and Backlog” below for the definition of each non-GAAP financial measure and the tables that follow for a reconciliation of each of these non-GAAP measures to net (loss) income, the most comparable GAAP measure.
Outlook
The Company reiterates its full-year 2026 revenue growth expectations of 15% to 25% year over year. As of April 30, 2026, drone backlog exceeded $150 million, and the Company expects the majority of this to convert over the next 12 months.
Growth in 2026 is expected to be supported by increased drone system deliveries, expanded manufacturing capacity, continued international demand from NATO-aligned defense customers and progress across strategic partnerships and new platform development.
As is typical for businesses serving government and defense customers, revenue recognition may vary meaningfully across quarters depending on contract timing, production schedules and delivery milestones.
Additionally, the Company is introducing full-year 2026 Adjusted EBITDA guidance in the negative mid‑ to high‑teens dollar range, reflecting strategic investments across the business to drive organic growth.
Our financial outlook is based on assumptions that we believe to be reasonable as of the date of this release, but may be materially affected by many factors, as discussed below under “Forward Looking Statements.” Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise this outlook, whether as a result of new information, future events or otherwise, except as required by law.
AIRO is unable to include a reconciliation of forward-looking Adjusted EBITDA to net loss, the most directly comparable GAAP measure, without unreasonable effort due to the high variability with respect to the impact of items such as depreciation and amortization, stock-based compensation expense and other items that are excluded from Adjusted EBITDA.
Conference Call and Webcast
AIRO will host a conference call to discuss its first quarter 2026 results and business outlook on May 14, 2026, at 8:00 am ET. Participants can join the call by dialing 1 (800)-715-9871 (US) or 1 (646)-307-1963 (international) and enter the access code 7911023. To listen to the live audio webcast and Q&A, visit the Event & Presentations section of AIRO’s investor relations website at AIRO Group Holdings, Inc. - Events & Presentations, or by clicking on the link HERE. To avoid delays, it is recommended that participants dial into the conference call 15 minutes ahead of the scheduled start time.
A replay of the webcast will be available on the website within 24 hours after the call. The earnings press release and related materials will also be available on AIRO’s investor relations website at https://investor.theairogroup.com/.
About AIRO
AIRO Group Holdings is a next-generation aerospace and defense platform driving innovation across defense and commercial markets. Headquartered in McLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines a global reach with deep technical expertise.
Through a vertically integrated model, AIRO delivers mission-critical solutions centered on its drone platforms, leveraging advanced avionics, integrated training capabilities, and embedded autonomy across systems.
Forward-Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release and include, but are not limited to, statements relating to AIRO’s expectations around its strategic initiatives and growth trajectory, statements relating to estimates and forecasts of financial and performance metrics, including full year 2026 outlook, the timing of Blue UAS certification and impact on procurement opportunities, the amount and timing of Drone backlog converting to revenue, anticipated product performance and capabilities, the optimization of its AIRO’s portfolio and evaluation of the strategic fit and long-term role of its Training segment, the sufficiency of AIRO’s cash and restricted cash to support ongoing strategic initiatives, the demand for, market acceptance of and opportunity of AIRO’s products and services, AIRO’s ability to enter into strategic partnerships and the impacts of such partnerships and other statements that are not historical fact. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, including those described in the section titled “Risk Factors” in AIRO’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on March 31, 2026 as well as other filings AIRO may make with the SEC in the future. Forward-looking statements represent AIRO’s management’s beliefs and assumptions only as of the date such statements are made. AIRO undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Non-GAAP Financial Measures and Backlog
To supplement its condensed consolidated financial statements prepared and presented in accordance with GAAP, AIRO uses EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, as described below, to facilitate analysis of its financial and business trends and for internal planning and forecasting purposes. AIRO defines (1) EBITDA as net loss before interest (income) expense, income tax (benefit) expense and depreciation and amortization, (2) Adjusted EBITDA as net loss before interest (income) expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation and contingent consideration fair value adjustments and (3) Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. The above items are excluded from EBITDA and Adjusted EBITDA because these items are either non-cash in nature, or because the amount and timing of these items is unpredictable, or because they are not driven by core results of operations, thereby rendering comparisons with prior periods and competitors less meaningful. AIRO believes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its results of operations, as well as provides useful measures for period-to-period comparisons of its business performance. Moreover, Adjusted EBITDA is a key measurement used by AIRO management internally to make operating decisions, including those related to analyzing operating expenses, evaluating performance and performing strategic planning and annual budgeting.
There are limitations associated with the use of non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to performance measures derived in accordance with GAAP. AIRO’s presentation of these non-GAAP financial measures should not be construed to imply that its future results will be unaffected by items that are excluded from these metrics. In addition, AIRO’s definitions of these non-GAAP financial measures may be different from similarly titled non-GAAP measures used by other companies. These non-GAAP financial measures have limitations as an analytical tool and you should not consider any of these non-GAAP financial measures in isolation or as a substitute for analysis of our results as reported under GAAP. See the tables that follow for a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) and Adjusted EBITDA Margin to net income (loss) margin, the most directly comparable financial measures stated in accordance with GAAP.
Drones segment backlog represents unfilled orders for which we have purchase orders or other definitive agreements with customers outside of the United States, as well as orders for which NATO countries have allocated funds but for which no definitive agreement has been executed but is expected once through the administrative process, in each case against which we expect to perform and recognize the majority of revenue in the next 12 months. Drones segment backlog amount was translated to U.S. dollars using applicable exchange rates as of market close on April 30, 2026, and may increase or decrease based on fluctuations in foreign exchange rates.
AIRO Group Holdings, Inc.
Consolidated Balance Sheets
(unaudited)
(Amounts in thousands)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash
$
54,227
$
74,358
Restricted cash
189
193
Accounts receivable, net
8,098
12,385
Related party receivables
74
393
Inventory
22,507
11,639
Prepaid expenses and other current assets
9,513
7,508
Total current assets
94,608
106,476
Property and equipment, net
9,917
8,986
Right-of-use operating lease assets
3,032
3,278
Goodwill
569,284
571,653
Intangible assets, net
82,064
83,487
Other assets
210
259
Total assets
$
759,115
$
774,139
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
10,661
$
6,599
Related party payables
7,807
8,892
Accrued expenses
8,475
7,624
Operating lease liabilities, current
887
902
Deferred revenue
3,557
4,497
Related party borrowings
5
1,161
Current maturities of debt
740
1,190
Total current liabilities
32,132
30,865
Long-term debt, net of current maturities
500
500
Deferred tax liability
1,046
1,046
Long-term deferred revenue
16
8
Operating lease liabilities, noncurrent
2,224
2,478
Other long-term liabilities
800
50
Total liabilities
36,718
34,947
Stockholders’ equity:
Common stock
-
-
Additional paid-in capital
964,524
963,022
Treasury shares
(21,220
)
(21,220
)
Accumulated other comprehensive income
5,103
7,947
Accumulated deficit
(226,010
)
(210,557
)
Total stockholders’ equity
722,397
739,192
Total liabilities and stockholders’ equity
$
759,115
$
774,139
AIRO Group Holdings, Inc.
Consolidated Statements of Operations
(unaudited)
Three months ended March 31,
(Amounts in thousands, except per share amounts)
2026
2025
Revenue
$
8,901
$
11,795
Cost of revenue
6,536
4,862
Gross profit
2,365
6,933
Operating expenses:
Research and development
6,704
3,666
Sales and marketing
1,977
1,433
General and administrative
10,842
4,915
Total operating expenses
19,523
10,014
Loss from operations
(17,158
)
(3,081
)
Other income (expense):
Interest income (expense), net
376
(1,267
)
Other (expense) income, net
(316
)
2,662
Total other income (expense)
60
1,395
Loss before income tax benefit (expense)
(17,098
)
(1,686
)
Income tax benefit (expense)
1,645
(287
)
Net loss
$
(15,453
)
$
(1,973
)
Net loss per share – basic and diluted
$
(0.49
)
$
(0.12
)
Weighted-average number of shares of common stock used in computing net loss per share, basic and diluted
AIRO Group's Pullback: An Undervalued Growth Opportunity?AIRO Group NASDAQ: AIRO reported first-quarter 2026 revenue that declined from the prior year, while management said the results were in line with internal expectations and reaffirmed its full-year revenue growth outlook as the company shifts more of its focus toward drones.
On the company’s earnings call, Executive Chairman Chirinjeev Kathuria described 2025 as a “foundational year” and said the first quarter represented another step in building infrastructure to support growth as a newly public company. He said AIRO is refining its strategic focus around opportunities that align customer demand, operational timelines and long-term value.
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Kathuria said the company is “repositioning the business to focus on the drone market” as part of a strategy to diversify its product portfolio. He pointed to several recently introduced platforms, including the RQ-70, which he said complements the RQ-35 with extended range, higher payload capacity, upgraded sensors and a competitive price point. He also highlighted the JC-250 and JX-250 drone aircraft, which are designed to achieve more than 1,000 miles of range and 16 hours of endurance in an intelligence, surveillance and reconnaissance configuration.
Revenue Falls, Loss Widens in First Quarter Chief Financial Officer Mariya Pylypiv said AIRO generated first-quarter 2026 revenue of $8.9 million, compared with $11.8 million in the first quarter of 2025. She said the decrease was expected and modestly ahead of internal expectations, citing timing-related customer shipments and expected variability in the business.
Gross profit was $2.4 million, representing a gross margin of 26.6%, compared with gross profit of $6.9 million and gross margin of 58.8% in the year-earlier period. Pylypiv said the year-over-year margin decline was not reflective of underlying demand and was driven by a first-quarter revenue mix shift toward drone upgrades.
Operating loss widened to $17.2 million from $3.1 million a year earlier. Net loss was $15.5 million, compared with $2 million in the first quarter of 2025. EBITDA was negative $14.3 million, versus positive $2.7 million in the prior-year period, while adjusted EBITDA was negative $12.8 million, compared with approximately breakeven a year earlier.
Pylypiv said the weaker profitability reflected lower revenue, higher cost of sales and higher operating expenses tied to post-IPO investments that management had previously discussed. She said the company remains disciplined on cost controls while investing in infrastructure to support demand.
Drone Backlog Exceeds $150 Million Management said demand remains stable, with drone backlog exceeding $150 million as of April 30. Pylypiv said the figure was stable compared with the amount reported on the fourth-quarter call and that AIRO expects the majority of the backlog to convert to revenue within the next 12 months.
She noted that the backlog excludes U.S. backlog, which she said could provide upside once included. The company defines the backlog as orders it reasonably expects to convert over the next 12 months.
Pylypiv said the company expects a record second half of 2026 and, more specifically, a record fourth quarter, providing momentum into 2027. She also said AIRO expects 2027 revenue growth to outpace what it has projected for 2026, with additional outperformance tied to U.S. demand.
Guidance Reaffirmed Despite Quarterly Variability AIRO reiterated its full-year 2026 revenue growth guidance of 15% to 25% year over year. Pylypiv said management is “extremely confident” in achieving the guided range and believes the company has an opportunity to outperform it.
The company expects the first quarter to be the low point for the year on both the top and bottom lines. Pylypiv said AIRO expects an approximate 40-60 split between first-half and second-half revenue, with the third quarter sequentially lower than the second quarter, based on current visibility into large drone order deliveries.
AIRO also initiated full-year 2026 adjusted EBITDA guidance in the negative mid- to high-teens dollar range. Pylypiv said the majority of the EBITDA loss is expected in the first half of the year, with first-quarter performance in line with or modestly better than the second quarter.
The company expects low single-digit gross margin compression compared with fiscal 2025, largely driven by the first-quarter mix shift toward drone upgrades. Pylypiv said pure drone deliveries are expected to be the leading driver of revenue in the second quarter and the remaining quarters, which management expects to favorably impact margins.
Blue UAS Certification Remains a Key Milestone Chief Executive Officer Joe Burns said AIRO is reaffirming its timeline to achieve Blue UAS certification in the second quarter of 2026. He called the certification a key milestone that could expand the company’s addressable market by enabling it to support the U.S. Department of Defense and accelerate domestic adoption.
Burns said the company has experience fully assembling RQ-35 Heidrun drones at its manufacturing facility in Phoenix, Arizona. In response to an analyst question, he said AIRO has invested heavily in the Phoenix factory and feels confident in obtaining final Blue UAS certification after completing required process steps.
Burns said the RQ-35 Heidrun remains AIRO’s core platform, while the company is preparing to introduce additional platforms, including the RQ-70 Dainn. He said the RQ-70 is intended to address a distinct operational profile with significantly extended flight range, higher payload capacity and upgraded sensor options.
He also said AIRO is integrating artificial intelligence across its products. Burns said the company is already marketing and selling the AI-enabled full-stack RQ-35 Heidrun, and that onboard AI supports real-time identification and classification of enemy assets and threats, navigation, situational awareness, mission execution and autonomy.
Portfolio Review and Capital Allocation Burns said AIRO is evaluating strategic alternatives for its training business, including maintaining the current approach. He said CDI remains a valuable asset with long-term potential, but described it as an asset-heavy operation whose role is being assessed as AIRO scales other segments.
In avionics, Burns said Aspen performed in line with top-line expectations for the quarter, though margins were affected by upgrade-related pricing programs and the timing of operating expenses. He said AIRO continues to see consistent demand for Aspen products and sees opportunities to integrate Aspen Avionics more deeply into its drone business over time.
Burns said AIRO’s balance sheet, with $54.2 million in cash as of March 31 and little debt, gives the company flexibility. He said AIRO continues to evaluate acquisitions that could be accretive within 12 months and strategically enhance its drone and avionics platforms. He also said management sees a disconnect between the company’s stock price and the underlying value of the business, and views share repurchases as an attractive and flexible way to return capital at current levels.
During the question-and-answer session, Burns said proposed Bullet and Nord joint ventures are still moving through regulatory issues and have not yet been finalized. He said AIRO is also evaluating other partnerships with strategic alignment. Asked about the Drone Dominance program, Burns said AIRO is currently involved as a subcontractor and expects more phases of the program to emerge in the near future.
About AIRO Group NASDAQ: AIROWe are a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. We leverage decades of industry expertise and connections across the drone, aviation, and avionics markets to provide leading solutions to the aerospace and defense market. We offer connected and diversified solutions providing operational synergies across our segments and are powered by an international footprint as well as supplier and public sector relationships.
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MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the acquisition of an industrial plot in Rebild Municipality, Denmark, totaling 390,000 square feet (~36,000 square meters). AIRO intends to use this plot to build its next large-scale industrial site to support the Company's next growth phase. AIRO believes that this investment represents a key step in realizing AIRO's strategy to scale a globally integrated.
AIRO Group is transforming into a pure-play defense drone company as military demand accelerates across NATO and U.S. markets. The company holds a backlog exceeding $150 million, nearly double annual revenue, creating significant future revenue visibility. Blue UAS certification could unlock U.S. Department of Defense procurement channels and materially expand AIRO's addressable market.
LOS ANGELES--(BUSINESS WIRE)---- $NAGE #Biotech--Niagen Bioscience, Inc. (NASDAQ: NAGE), the global authority on NAD+ (nicotinamide adenine dinucleotide) with a focus on the science of healthy aging, today announced OneSpaWorld (NASDAQ: OSW) as the newest Niagen Plus™ provider, engaged to offer pharmaceutical grade Niagen IV at over 80 Medi-Spa clinics onboard high-end cruise ships. Marking Niagen Bioscience's first cruise ship clinic partnership, this collaboration brings Niagen IV to guests at sea. Rob Fried, C.
OneSpaWorld Holdings Limited (OSW - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, OSW's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
OSW could be on the verge of a breakout after moving 9.6% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.
Once investors consider OSW's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 3 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors may want to watch OSW for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
Lindblad Expeditions (NASDAQ:LIND – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Volatility & Risk Lindblad Expeditions has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Earnings and Valuation This table compares Lindblad Expeditions and OneSpaWorld”s top-line revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Lindblad Expeditions $771.02 million 1.44 -$29.72 million ($0.63) -27.08 OneSpaWorld $961.00 million 2.48 $71.62 million $0.69 34.03 OneSpaWorld has higher revenue and earnings than Lindblad Expeditions. Lindblad Expeditions is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a summary of current ratings for Lindblad Expeditions and OneSpaWorld, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Lindblad Expeditions 1 1 5 0 2.57 OneSpaWorld 0 1 7 1 3.00 Lindblad Expeditions presently has a consensus target price of $22.25, suggesting a potential upside of 30.42%. OneSpaWorld has a consensus target price of $26.33, suggesting a potential upside of 12.15%. Given Lindblad Expeditions’ higher possible upside, equities analysts clearly believe Lindblad Expeditions is more favorable than OneSpaWorld.
Institutional & Insider Ownership 75.9% of Lindblad Expeditions shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 34.0% of Lindblad Expeditions shares are held by company insiders. Comparatively, 3.9% of OneSpaWorld shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability This table compares Lindblad Expeditions and OneSpaWorld’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Lindblad Expeditions -3.65% N/A -1.01% OneSpaWorld 7.45% 17.08% 12.90% Summary OneSpaWorld beats Lindblad Expeditions on 12 of the 15 factors compared between the two stocks.
About Lindblad Expeditions (Get Free Report)
Lindblad Expeditions Holdings, Inc. provides marine expedition adventures and travel experience worldwide. It operates through Lindblad and Land Experiences segment. Lindblad segment provides ship-based expeditions aboard customized, nimble, and intimately-scaled vessels, which offers up-close experiences in the planet's wild and remote places, and capitals of culture; and offers expedition ship which is equipped with state-of-the-art tools for in-depth exploration with infrastructure and ports, such as Antarctica and the Arctic, and places that accessed by a ship comprising Galápagos Islands, Alaska, Baja California's Sea of Cortez and Panama, and foster engagement activities. The Land Experiences segment comprises natural habitats, which provides over 100 different expedition itineraries in more than 45 countries across seven continents, with eco-conscious expeditions and nature-focused, and small-group tours including polar bear tours and bear adventure; and DuVine provides intimate group cycling and adventure tours around the world with local cycling experts as guides in local cultural, cuisine, and accommodations. This segment also offers off the beaten path including small group travel, led by local, and experienced guides with focus on wildlife, hiking national parks, and culture; and classical journey, a curated active small-group and private custom journeys centered around cinematic walks led by expert local guides over 50 countries across the world. In addition, it has an alliance with National Geographic Partners, LLC, which provides lecturers and National Geographic experts including photographers, marine biologists, writers, naturalists, field researchers, and film crews; and partnered with World Wildlife Fund to offer conservation travel. Lindblad Expeditions Holdings, Inc. was founded in 1979 and is headquartered in New York, New York.
About OneSpaWorld (Get Free Report)
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.
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Key Takeaways Garmin gains from strong momentum in Fitness wearables and Auto OEM shipments growth.Garmin sees demand rising across Americas and EMEA, with expansion across Aviation and Marine segments.Columbia Sportswear's ACCELERATE strategy and digital push drive demand and brand growth. Health and fitness companies benefit from consistent demand due to growing global awareness of health issues and the importance of physical fitness. This trend is supported by the rising rate of lifestyle-related diseases and a growing emphasis on preventive healthcare.
The space’s growth is backed by diverse revenue streams including subscriptions, product sales and services, making it attractive to investors seeking long-term gains. Moreover, technological advancements, such as fitness trackers and wearable fitness devices, provide new opportunities for growth and drive further consumer engagement and revenue potential.
Health and fitness companies focus on improving and maintaining physical well-being through products and services including gym memberships, fitness equipment, nutritional supplements and wellness programs.
Here we recommend three Health and Fitness stocks with a favorable Zacks Rank for a stable portfolio in the second quarter of 2026. Their favorable Zacks Rank indicates potential price upside in the near term.
These stocks are: Columbia Sportswear Co. (COLM - Free Report) , Garmin Ltd. (GRMN - Free Report) and OneSpaWorld Holdings Ltd. (OSW - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Columbia Sportswear Co.Zacks Rank #1 Columbia Sportswear shows momentum driven by its ACCELERATE strategy, which targets younger consumers through refreshed branding and strong digital marketing. COLM’s product innovation and brand elevation, alongside contributions from the prAna brand in the fourth quarter of 2025, support healthier demand and long-term growth potential.
COLM’s Profit Improvement Program is focused on improving operational efficiency and cost discipline while sustaining investment in brand building. COLM’s financial health remains solid with no debt, strong cash levels, share repurchases and dividends.
Columbia Sportswear has an expected revenue and earnings growth rate of 2% and -6.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12% over the last 60 days.
Garmin Ltd.Zacks Rank #1 Garmin is benefiting from strong momentum across the Fitness and Auto OEM segments. While strength in the Fitness segment is primarily attributed to advanced wearables demand, GRMN’s Auto OEM revenues are driven by the increased shipments of domain controllers. Strong momentum across the Aviation, Marine and Outdoor segments is an upside.
Increasing demand in the Americas and EMEA regions is a plus. GRMN’s growing focus on continued innovation, diversification and market expansion to explore opportunities across all business segments is praiseworthy. Our estimates suggest that GRMN’s revenues are expected to witness a CAGR of 8.3% during fiscal 2026-2028.
Garmin has an expected revenue and earnings growth rate of 9.7% and 9.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.2% over the last 60 days.
OneSpaWorld Holdings Ltd.Zacks Rank #2 OneSpaWorld Holdings is a provider and innovator in the fields of wellness, beauty, rejuvenation and transformation on cruise ships and on land in the United States and internationally.
OSW’s service includes traditional and alternative massage, body and skincare treatment options, ayurvedic treatments, comprehensive hair and nail services, fitness, acupuncture, herbal medicine, pain management and medi-spa.
In addition, OSW offers products under the ELEMIS, Grown Alchemist, Kerastase, Keratin Complex, Thermage, Dysport, GoodFeet arch supports, Hyperice, and Megawhite teeth whitening brands.
OneSpaWorld Holdings has an expected revenue and earnings growth rate of 6.6% and 13.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% over the last 60 days.
What happenedAccording to an SEC filing dated April 13, 2026, Reinhart Partners, LLC increased its position in OneSpaWorld (OSW +1.30%) by 1,697,822 shares during the first quarter. The estimated transaction value, based on the average quarterly closing price, was $36.11 million. The quarter-end value of the position rose by $43.80 million, reflecting both new share purchases and price movements.
What else to knowThe fund was a buyer of OSW, with the stake now representing 2.56% of its 13F assets under management.
Top holdings after the filing:Axcelis Technologies: $154.30 million (4.4% of AUM)First Citizens BancShares, Class A: $147.60 million (4.2% of AUM)Silicon Motion Technology: $147.56 million (4.2% of AUM)Modine Manufacturing: $130.29 million (3.7% of AUM)InterDigital: $127.54 million (3.7% of AUM)As of April 13, 2026, OneSpaWorld shares were trading at $24.94, up 47.32% over the past year and outperforming the S&P 500 by 17 percentage points.
Company overviewMetricValuePrice (as of market close April 13, 2026)$24.94Market capitalization$2.56 billionRevenue (TTM)$961.00 millionNet income (TTM)$71.62 millionCompany snapshotOneSpaWorld:
Offers health, wellness, fitness, beauty, and medi-spa services onboard cruise ships and at destination resorts, including body and skin care, salon treatments, fitness classes, and branded wellness products.Generates revenue through direct service provision, product sales, and exclusive brand partnerships primarily within the cruise and hospitality sectors.Targets cruise line passengers and resort guests seeking premium wellness and beauty experiences, with a global footprint across major cruise lines and select destination resorts.OneSpaWorld leverages exclusive partnerships with well-known beauty and wellness brands to deliver differentiated offerings and drive customer loyalty. Its scale, brand portfolio, and integration with major cruise operators underpin its competitive position in the global leisure market.
What this transaction means for investorsReinhart Partners’ purchase of OneSpaWorld is worth noting, as the firm typically seeks out high-quality, smaller equities to hold for the long term. Not only did Reinhart double down on its OSW holding, but it added to the stock after its price rose roughly 10% from the fourth quarter of 2025. This is a strong vote of confidence for OneSpaWorld, and the stock has already become the 20th-largest position among Reinhart’s 77 holdings.
OneSpaWorld estimates it holds a 90% market share in spa-at-sea services, giving it a near-monopoly in its unique niche. While its growth story may not be overwhelming, it grew sales by 7% in 2025 and expects revenue to grow by at least 6% in 2026. Boasting a 97% contract renewal rate with the major cruise ship corporations like Carnival Cruise Lines, OSW’s dominant position in its niche isn’t likely to disappear anytime soon, barring mismanagement.
Having rebounded from the pandemic, OneSpaWorld has resumed paying a growing dividend and begun repurchasing shares, making it a very shareholder-friendly investment. I’ll be keeping the stock on my radar thanks to its robust leadership in its niche -- and I certainly see why Reinhart likes the stock -- but I’ll be curious to see if it can develop a stronger growth story over the longer term and keep its share price trending higher.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Modine Manufacturing. The Motley Fool has a disclosure policy.
The Zacks Leisure and Recreation Services industry is facing pressure from weak discretionary spending amid inflation and economic uncertainty. At the same time, rising labor costs and higher debt burdens are squeezing margins and limiting growth investments. However, the industry has been benefiting from optimized business processes, consistent partnerships and digital initiatives. Robust demand for concerts and strong bookings for cruise operators continue to support the industry. Firms such as Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) are likely to benefit from the trends mentioned above.
Industry Description The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, and theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts. Many companies are engaged in hospitality and related businesses. A few industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, which is highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
5 Trends Shaping the Leisure & Recreation Services Industry???s Future Macroeconomic Pressure and Weak Consumer Spending: The industry is highly sensitive to economic conditions and persistent inflation, combined with elevated interest rates, is weighing on demand. As household budgets tighten, consumers are cutting back on discretionary spending such as travel, entertainment and recreational activities, leading to softer attendance and lower overall spending per customer.
Rising Labor and Operating Costs: Leisure and recreation businesses are labor-intensive and ongoing staffing shortages are driving wage increases. In addition, costs related to utilities, food, maintenance and marketing continue to rise. These pressures are squeezing margins and, in some cases, forcing companies to scale back operations or pass on costs to consumers.
Robust Demand Helps Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings related to North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.
Digital Tools Improving Engagement: Technology is playing a growing role in how leisure services are delivered and managed. Online booking systems, mobile apps and personalized promotions are making it easier for customers to engage more frequently. At the same time, data analytics and automation are helping businesses manage staffing, scheduling and capacity more efficiently, supporting margins in a challenging labor environment. Overall, steady consumer interest, smarter monetization strategies and increased use of technology continue to strengthen the U.S. Leisure and Recreation Services industry.
Strong Revenue Upside From Premium and Membership Models: Leisure operators are finding new ways to increase revenue per customer by offering premium options, bundled packages and recurring memberships. Enhanced experiences, exclusive access and loyalty-based pricing allow companies to charge more without significantly impacting demand. These strategies help protect profitability while also building longer-term customer relationships.
Zacks Industry Rank Indicates Dull Prospects The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. The industry carries a Zacks Industry Rank #144, which places it in the bottom 41% of 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull, near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in the group’s earnings growth potential.
Before we present a few stocks that investors can consider, let us analyze the industry’s recent stock-market performance and valuation picture.
Industry Outperforms the Sector The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite but outperformed its sector in the past year. Stocks in the industry have collectively grown 22.5% in the past year compared with the broader sector’s growth of 7.2%. The S&P 500 has risen 31.5% in the said time frame.
1-Year Price PerformanceValuation Based on the forward 12-month P/S, the industry trades at 2.25X compared with the S&P 500’s 5.03X and the sector’s 2.35X. In the past five years, the industry has traded as high as 6.15X and as low as 1.71X, the median being 2.23X, as the charts show.
P/S Ratio (F12M) Compared With S&P 3 Leisure & Recreation Services Stocks to Keep an Eye On OneSpaWorld: The company is benefiting from strong demand across its cruise and resort partnerships, which is driving higher guest spending and boosting key operating metrics. OSW’s continued investment in technology, including expanding use of AI, is enhancing revenue generation, operational efficiency and customer experience.
Shares of this Zacks Rank #2 (Buy) company have surged 46.5% in the past year. In 2026, OSW’s sales and earnings are expected to witness year-over-year growth of 6.6% and 13.1%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price & Consensus: OSW
Royal Caribbean: The company is benefiting from a strong demand environment and robust booking trends. Also, resilient pricing and healthy load factors across future sailings bode well. Royal Caribbean emphasized investing in the digital front, fleet expansion, private destination portfolio and guest experience to drive growth.
Shares of this Zacks Rank #3 (Hold) company have gained 46.8% in the past year. The company’s earnings in 2026 and 2027 are likely to witness growth of 14% and 14.3%, respectively.
Price & Consensus: RCL
Norwegian Cruise: The company is likely to benefit from disciplined expense management, new ship orders and robust demand in its luxury brands. Also, investments in private destinations and guest experience enhancements bode well. NCLH is leveraging data analytics to personalize pre-cruise interactions and boost ancillary revenues.
Shares of this Zacks Rank #3 company have jumped 31% in the past year. In fiscal 2026, NCLH’s sales and earnings are expected to witness year-over-year growth of 7.4% and 10.9%, respectively.
NEW YORK--(BUSINESS WIRE)--OneSpaWorld Holdings Limited, (NASDAQ: OSW), the pre-eminent global provider of health and wellness products and services on board cruise ships and in destination resorts around the world, announced today that it will release its First Quarter Fiscal 2026 earnings on Wednesday, April 29th before market open. The Company will conduct a conference call the same day at 10:00 am ET to discuss its quarterly results. What: OneSpaWorld First Quarter Fiscal 2026 financial res.
OneSpaWorld Holdings Limited (NASDAQ:OSW – Get Free Report) has been assigned a consensus recommendation of “Buy” from the nine research firms that are covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $26.3333.
Several brokerages have commented on OSW. Weiss Ratings restated a “buy (b-)” rating on shares of OneSpaWorld in a report on Monday, December 29th. Truist Financial raised their target price on shares of OneSpaWorld from $24.00 to $25.00 and gave the stock a “buy” rating in a report on Tuesday, February 17th. Stifel Nicolaus dropped their target price on shares of OneSpaWorld from $27.00 to $26.00 and set a “buy” rating on the stock in a report on Thursday, January 15th. Jefferies Financial Group assumed coverage on shares of OneSpaWorld in a report on Tuesday, March 24th. They set a “buy” rating and a $30.00 target price on the stock. Finally, TD Cowen lifted their price objective on shares of OneSpaWorld from $26.00 to $27.00 and gave the company a “buy” rating in a report on Monday, March 30th.
Read Our Latest Research Report on OSW
OneSpaWorld Stock Up 1.5% OneSpaWorld stock opened at $23.47 on Friday. The company’s 50 day simple moving average is $22.53 and its 200 day simple moving average is $21.45. OneSpaWorld has a fifty-two week low of $16.16 and a fifty-two week high of $25.25. The firm has a market capitalization of $2.38 billion, a price-to-earnings ratio of 34.01 and a beta of 0.95. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.91 and a quick ratio of 1.10.
OneSpaWorld (NASDAQ:OSW – Get Free Report) last released its quarterly earnings data on Wednesday, February 18th. The company reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.02). The firm had revenue of $242.13 million for the quarter, compared to the consensus estimate of $243.07 million. OneSpaWorld had a return on equity of 17.08% and a net margin of 7.45%.The firm’s revenue was up 11.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.20 EPS. As a group, sell-side analysts anticipate that OneSpaWorld will post 1.02 EPS for the current year.
OneSpaWorld Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 11th were issued a $0.05 dividend. The ex-dividend date was Wednesday, March 11th. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.9%. OneSpaWorld’s dividend payout ratio (DPR) is 28.99%.
Institutional Trading of OneSpaWorld Hedge funds and other institutional investors have recently made changes to their positions in the business. Reinhart Partners LLC. acquired a new stake in OneSpaWorld in the fourth quarter valued at $45,358,000. First Trust Advisors LP boosted its position in shares of OneSpaWorld by 45.6% in the third quarter. First Trust Advisors LP now owns 3,088,830 shares of the company’s stock valued at $65,298,000 after acquiring an additional 966,889 shares during the period. Bessemer Group Inc. boosted its position in shares of OneSpaWorld by 3,988.8% in the third quarter. Bessemer Group Inc. now owns 924,726 shares of the company’s stock valued at $19,550,000 after acquiring an additional 902,110 shares during the period. Aberdeen Group plc bought a new stake in shares of OneSpaWorld in the fourth quarter valued at about $17,663,000. Finally, Goldman Sachs Group Inc. lifted its position in OneSpaWorld by 108.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,003,892 shares of the company’s stock worth $20,821,000 after purchasing an additional 521,497 shares during the period. 95.98% of the stock is currently owned by institutional investors and hedge funds.
OneSpaWorld Company Profile (Get Free Report)
OneSpaWorld Holdings Ltd is a global provider of spa and wellness services, catering primarily to the cruise line, hospitality and venue-based leisure industries. The company designs and operates on-board spa facilities, salon services and retail boutiques, offering treatments such as massage, facial and body therapies, nail care, hair styling and aesthetic enhancements. Additionally, OneSpaWorld provides program consulting, management, training and product distribution services to its partners, enabling tailored spa experiences across diverse passenger and guest demographics.
OneSpaWorld’s core operations span major cruise lines—such as Carnival Corporation, Royal Caribbean Group, MSC Cruises and Virgin Voyages—as well as luxury resort and hotel brands.
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Total Revenues of $247.6 Million, Net Income of $21.3 Million and Adjusted EBITDA of $32.2 Million
Introduces Second Quarter 2026 Guidance of $257 to $262 Million in Total Revenues and $32.5 to $34.5 Million in Adjusted EBITDA
Expects FY 2026 Guidance of $1.014 to $1.034 Billion in Total Revenues and $129 to $139 Million in Adjusted EBITDA
Board Declares Quarterly Dividend of $0.05 Per Share
NASSAU, Bahamas--(BUSINESS WIRE)--OneSpaWorld Holdings Limited (NASDAQ: OSW) (“OneSpaWorld,” or the “Company”), the pre-eminent global provider of health and wellness services and products onboard cruise ships and in destination resorts around the world, today announced financial results for the first quarter ended March 31, 2026.
Leonard Fluxman, Executive Chairman and Chief Executive Officer, commented: “We began the year with continuing strong momentum through the first quarter, reporting better-than-expected top and bottom-line results. The first quarter marked our 20th consecutive quarter of record Total revenues and Adjusted EBITDA, evidencing the strength of our global operations and the disciplined execution of our strategy by our outstanding team. Our highly trained and motivated staff delivered exceptional experiences for our health and wellness center guests, driven by ongoing innovation in our service and product offerings.”
“As we look ahead, our visible growth opportunities and favorable positioning give us confidence in our ability to continue our strong performance in 2026 and beyond,” continued Mr. Fluxman. “In 2026, we expect to further strengthen our market leadership onboard our existing fleet while initiating health and wellness center operations on six new ship builds during the year. Overall, we remain confident that 2026 will reflect another record year for OneSpaWorld and continued value creation for our shareholders and partners,” he concluded.
Stephen Lazarus, President, Chief Financial Officer and Chief Operating Officer, added: “We had an outstanding start to the year with record Total revenues and record Adjusted EBITDA increasing 13% and 21%, respectively, from 2025 first quarter performance, reflecting the successful implementation of our strategic initiatives. The quarter included increases across all key operating and financial metrics and strong cash flow generation, which supports future growth, the return of value to shareholders and debt repayment. Of particular note, we continue to accelerate the integration of AI-driven technologies into our health and wellness center and shoreside operations intended to drive incremental revenue, cash flow and earnings growth.”
Mr. Lazarus noted further: “During the first quarter, we continued to leverage our asset-light business model, utilizing $5.1 million of our free cash flow to pay our quarterly dividend and $1.3 million to reduce debt on our Term Loan Facility. We ended the first quarter with a strong balance sheet, including $17.3 million in cash and $67.3 million of total liquidity and Total debt, net of deferred financing costs of $82.8 million. Based on our positive outlook, our guidance for the second quarter reflects growth of 10% for both Total revenues and Adjusted EBITDA at the mid-point of the ranges compared with the second quarter of 2025, excluding the results of exited and reorganized operations.”
First Quarter 2026 Highlights:
Total revenues increased 13% to $247.6 million compared to $219.6 million in the first quarter of 2025 and included $1.4 million and $1.9 million in revenues, respectively, attributable to the Company’s Asian resorts business in the process of being exited. Income from operations increased 36% to $22.9 million compared to $16.8 million in the first quarter of 2025. 2025 included $2.5 million of non-recurring severance expense. Net income increased 40% to $21.3 million compared to $15.3 million in the first quarter of 2025. Adjusted EBITDA increased 21% to $32.2 million compared to $26.6 million in the first quarter of 2025. 2025 included $1.1 million of non-recurring severance expense. Operating Network Update:
Cruise Ship Count: The Company ended the first quarter with health and wellness centers on 208 ships and an average ship count of 202 for the quarter, compared with 199 ships at the end of the first quarter of 2025 and an average ship count of 193 ships for the first quarter of 2025. Destination Resort Count: The Company ended the first quarter with 36 destination resort health and wellness centers and an average resort count of 37 for the quarter, compared with 50 destination resort health and wellness centers at the end of the first quarter of 2025 and an average resort count of 49 for the first quarter of 2025. As part of our previously announced exit from Asian operations, 22 health and wellness centers remained operational at quarter end, down from 35 in the first quarter of 2025. Staff Count: At the end of the first quarter, our cruise ship health and wellness centers were staffed with 4,585 personnel, compared with 4,240 personnel on March 31, 2025. Liquidity Update:
Cash totaled $17.3 million and liquidity, including the Company’s fully undrawn $50 million credit facility, totaled $67.3 million at March 31, 2026. The Company’s results are reported in this press release on a GAAP basis and on an as adjusted non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. This press release also refers to Adjusted EBITDA and Adjusted Net Income (non-GAAP financial measures), the terms for which definition and reconciliation are presented below.
First Quarter Ended March 31, 2026 Compared to March 31, 2025
Total revenues increased 13% to $247.6 million compared to $219.6 million for the first quarter of 2025, driven by a 4% increase in revenue days, a 2% increase in average guest spend, and health and wellness center expansion from 2026 new ship builds, contributing $23.1 million, $5.0 million and $1.2 million, respectively, to the increase in Total revenues, of which $5.4 million was attributable to increased guest pre-booked services. Growth in our Maritime Total revenues was offset by a $1.2 million decrease in destination resorts Total revenues, partially due to the closure of hotels where we had previously operated. Cost of services increased $20.2 million, attributable to the $25.1 million increase in Service revenues compared to the first quarter of 2025. Cost of products increased $2.5 million, attributable to the $2.9 million increase in Product revenues compared to the first quarter of 2025. Administrative expenses were $6.2 million compared to $4.2 million in the first quarter of 2025. The increase was primarily due to $1.9 million in third-party fees for certain management and logistic services as a result of our previously announced restructuring, which were previously performed internally by company staff, and as such, the related costs have shifted from Salaries, benefits and payroll taxes to Administrative. Salaries, benefits and payroll taxes were $8.4 million, compared to $11.0 million in the first quarter of 2025. The decrease was primarily attributable to the non-recurrence of $2.5 million in separation-related expenses incurred during the first quarter of 2025 associated with the termination of the Company’s former Chief Commercial Officer. The variance also reflects a reduction in internal personnel costs in the first quarter of 2026 resulting from the transition of certain management and logistics services to third-party providers, as discussed above, partially offset by annual merit increases and higher incentive-based compensation. Net income was $21.3 million, or Net income per diluted share of $0.21, compared to Net income of $15.3 million, or Net income per diluted share of $0.15, for the first quarter of 2025. This increase was primarily attributable to a $6.0 million improvement in operating income and the non-recurrence of $2.5 million of severance expense recorded in the first quarter of 2025. Adjusted net income was $28.0 million, or Adjusted net income per diluted share of $0.27, compared to Adjusted net income of $22.6 million, or Adjusted net income per diluted share of $0.22, for the first quarter of 2025. Adjusted EBITDA was $32.2 million, compared to Adjusted EBITDA of $26.6 million in the first quarter of 2025. 2025 included $1.1 million of non-recurring severance expense. Balance Sheet and Cash Flow Highlights
Cash at March 31, 2026 was $17.3 million after giving effect to the payment of $5.1 million in quarterly dividends and repaying $1.3 million of our Term Loan Facility. Total debt, net of deferred financing costs, was $82.8 million at March 31, 2026. Second Quarter 2026 and Fiscal Year 2026 Guidance
Three Months Ended June 30, 2026
Year Ended December 31, 2026 (2)
Total Revenues (1)
$
257-262 million
$
1.014-1.034 billion
Adjusted EBITDA
$
32.5-34.5 million
$
129.0-139.0 million
(1) Revenues for the three months ended June 30, 2025 and the Fiscal Year ended December 31, 2025 included $5.5 million and $23.0 million, respectively, related to the reorganization of operations in the United Kingdom and Italy and the exit of land-based operations in Asia.
(2) The Company’s fiscal year 2026 guidance for the year ended December 31, 2026 as presented above compares to its previous guidance for Total Revenues of $1.010 to $1.030 billion and Adjusted EBITDA of $128.0 to $138.0 million provided with fourth quarter 2025 results issued on February 18, 2026.
Dividend Announcement
The Company announced today that the Board of Directors approved a quarterly dividend payment of $0.05 per common share payable on June 3, 2026 to shareholders of record as of the close of business on May 20, 2026.
Share Repurchase Program
As of March 31, 2026, the Company had $37.5 million remaining on its $75 million share repurchase program adopted in April 2025. No shares were repurchased during the first quarter of 2026.
Conference Call Details
A conference call to discuss the first quarter 2026 financial results is scheduled for Wednesday, April 29, 2026, at 10:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-0784 (international callers please dial 1-201-689-8560) and provide the passcode 13760135 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://onespaworld.com/investor-relations. A replay of the call will be available by dialing 844-512-2921 (international callers please dial 412-317-6671) and entering the passcode 13760135. The conference call replay will be available from 2:00 p.m. Eastern Time on Wednesday, April 29, 2026 until 11:59 p.m. Eastern Time on Wednesday, May 6, 2026. The Webcast replay will remain available for 90 days.
About OneSpaWorld
Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld’s distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, aesthetics and fitness services, treatments, and products, currently onboard 208 cruise ships and at 35 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades upon its exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer, and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the Securities and Exchange Commission. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication.
Non-GAAP Financial Measures
We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (“GAAP”). Please see “Note Regarding Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures.
ONESPAWORLD HOLDINGS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended March 31,
$
%
2026
2025
Inc/(Dec)
Inc/(Dec)
REVENUES:
Service revenues
$
203,660
$
178,519
$
25,141
14
%
Product revenues
43,971
41,111
2,860
7
%
Total revenues
247,631
219,630
28,001
13
%
COST OF REVENUES AND OPERATING EXPENSES:
Cost of services
168,312
148,154
20,158
14
%
Cost of products
37,819
35,297
2,522
7
%
Administrative
6,202
4,213
1,989
47
%
Salaries, benefits and payroll taxes
8,363
10,995
(2,632
)
(24
)%
Amortization of intangible assets
4,068
4,134
(66
)
(2
)%
Total cost of revenues and operating expenses
224,764
202,793
21,971
11
%
Income from operations
22,867
16,837
6,030
36
%
OTHER (EXPENSE) INCOME
Interest expense, net
(1,170
)
(1,147
)
(23
)
(2
)%
Total other expense
(1,170
)
(1,147
)
(23
)
2
%
Income before income tax expense
21,697
15,690
6,007
38
%
INCOME TAX (BENEFIT) EXPENSE
367
419
(52
)
(12
)%
Net income
$
21,330
$
15,271
$
6,059
40
%
Net income per share:
Basic
$
0.21
$
0.15
Diluted
$
0.21
$
0.15
Weighted average shares outstanding:
Basic
101,985
104,602
Diluted
102,308
105,077
Forecasted
Q2 2026
FY 2026
Period End Ship Count
209
210
Average Ship Count (1)
201
202
Period End Resort Count
12
12
Average Resort Count (3)
30
22
Three Months Ended
March 31,
2026
2025
Selected Statistics
Period End Ship Count
208
199
Average Ship Count (1)
202
193
Average Weekly Revenue Per Ship
$
91,872
$
84,177
Average Revenue Per Shipboard Staff Per Day
$
597
$
562
Revenue Days (2)
18,175
17,401
Period End Resort Count
36
50
Average Resort Count (3)
37
49
Average Weekly Revenue Per Resort
$
17,505
$
15,247
Capital Expenditures (in thousands)
$
4,345
$
1,697
(1) Average Ship Count reflects the fact that during the period ships were in and out of service and is calculated by adding the total number of days that each of the ships generated revenue during the period, divided by the number of calendar days during the period.
(2) Revenue Days reflects a day on which the health and wellness centers are open onboard a revenue generating cruise with passengers.
(3) Average Resort Count reflects the fact that during the period destination resort health and wellness centers were in and out of service and is calculated by adding the total number of days that each destination resort health and wellness center generated revenue during the period, divided by the number of calendar days during the period.
Note Regarding Non-GAAP Financial Information
This press release includes financial measures that are not calculated in accordance with GAAP, including Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA.
We define Adjusted net income as Net income, adjusted for items, including Amortization of intangible assets and Stock-based compensation. Adjusted net income per diluted share is defined as Adjusted net income divided by Diluted weighted average shares outstanding during the period, as if such shares had been outstanding during the entire three month periods ended March 31, 2026 and 2025.
We define Adjusted EBITDA as Net income adjusted for items, including Income tax expense; Interest expense, net; Depreciation and amortization; and Stock-based compensation as set forth below.
We believe that these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA have limitations as profitability measures in that they do not include total amounts for interest expense on our debt and provision for income taxes, and the effect of our expenditures for capital assets and certain intangible assets. In addition, all of these non-GAAP measures have limitations as profitability measures in that they do not include the effect of non-cash stock-based compensation expense and the impact of certain expenses related to items that are settled in cash. Because of these limitations, the Company relies primarily on its GAAP results.
In the future, we may incur expenses similar to those for which adjustments are made in calculating Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as a basis to infer that our future results will be unaffected by extraordinary, unusual, or nonrecurring items.
Reconciliation of GAAP to Non-GAAP Financial Information
The following table reconciles Net income to Adjusted net income for the first quarters ended March 31, 2026 and 2025 and Adjusted net income per diluted share for the first quarters ended March 31, 2026 and 2025 (amounts in thousands, except per share amounts):
Three Months Ended
March 31,
2026
2025
Net income
$
21,330
$
15,271
Amortization of intangible assets (a)
4,068
3,761
Stock-based compensation
2,563
3,560
Adjusted net income
$
27,961
$
22,592
Adjusted net income per diluted share
$
0.27
$
0.22
Diluted weighted average shares outstanding
102,308
105,077
(a) Amortization of intangible assets represents non-cash amortization charges that are excluded as they are not representative of the ongoing operating performance of the business.
Beginning in Q1 2026, the Company updated its Adjusted net income reconciliation to reflect actual amortization of intangible assets in place of the previously used fixed addback amount. Management believes this change provides a more accurate and transparent presentation of non-cash charges. Prior period amounts have not been restated as the difference was not material.
The following table reconciles Net income to Adjusted EBITDA for the first quarters ended March 31, 2026 and 2025 (amounts in thousands):
OneSpaWorld (OSW - Free Report) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.59%. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.24, delivering a surprise of -7.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
OneSpaWorld, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $247.63 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.99%. This compares to year-ago revenues of $219.63 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
OneSpaWorld shares have added about 14.5% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for OneSpaWorld?While OneSpaWorld has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for OneSpaWorld was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $260.8 million in revenues for the coming quarter and $1.12 on $1.02 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Lucky Strike Entertainment (LUCK - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +142.9%. The consensus EPS estimate for the quarter has been revised 5% lower over the last 30 days to the current level.
Lucky Strike Entertainment's revenues are expected to be $353.89 million, up 4.1% from the year-ago quarter.
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has OneSpaWorld (OSW - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
OneSpaWorld is one of 243 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. OneSpaWorld is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for OSW's full-year earnings has moved 5.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, OSW has gained about 12.8% so far this year. In comparison, Consumer Discretionary companies have returned an average of -9.8%. This means that OneSpaWorld is outperforming the sector as a whole this year.
Perdoceo Education (PRDO - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 15.6%.
In Perdoceo Education's case, the consensus EPS estimate for the current year increased 11.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, OneSpaWorld belongs to the Leisure and Recreation Services industry, a group that includes 27 individual companies and currently sits at #191 in the Zacks Industry Rank. On average, this group has lost an average of 12.6% so far this year, meaning that OSW is performing better in terms of year-to-date returns.
On the other hand, Perdoceo Education belongs to the Schools industry. This 18-stock industry is currently ranked #44. The industry has moved +1.2% year to date.
Going forward, investors interested in Consumer Discretionary stocks should continue to pay close attention to OneSpaWorld and Perdoceo Education as they could maintain their solid performance.
Ranger Investment Management sold out its entire position in OneSpaWorld Holdings Limited (OSW +1.30%) during the first quarter, according to a May 15, 2026, SEC filing. The estimated transaction value was $21.54 million, based on quarterly average pricing.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Ranger Investment Management, L.P., sold all 1,012,656 shares of OneSpaWorld Holdings Limited (OSW +1.30%) during the first quarter. The estimated transaction value was $21.54 million, based on the average closing price over the period. The fund’s quarter-end position in the company is now zero. The net position value shift, including price movement, was a decrease of $21.00 million.
What else to knowTop holdings for Ranger Investment Management, L.P. after the filing:NASDAQ:LGND: $53.49 million (3.9% of AUM)NASDAQ:PEGA: $44.81 million (3.2% of AUM)NASDAQ:PDFS: $41.86 million (3.0% of AUM)NYSE:ULS: $38.31 million (2.8% of AUM)NYSE:SEI: $34.35 million (2.5% of AUM)As of May 14, 2026, shares of OneSpaWorld Holdings Limited were priced at $23.82, up 25% over the past year and underperforming the S&P 500, which is up about 28%.Company OverviewMetricValueRevenue (TTM)$989.00 millionNet Income (TTM)$77.68 millionDividend Yield0.8%Price (as of market close 2026-05-14)$23.82Company SnapshotOneSpaWorld offers health and wellness services, including spa treatments, salon services, fitness programs, medi-spa procedures, and branded beauty products, primarily onboard cruise ships and at destination resorts.The firm generates revenue through direct service delivery, product sales, and exclusive partnerships with leading wellness brands within the cruise and leisure sector.It serves cruise line guests and resort visitors worldwide, targeting the leisure and travel market seeking premium wellness experiences.OneSpaWorld Holdings Limited operates an extensive network of health and wellness centers across cruise ships and destination resorts, leveraging exclusive brand partnerships to differentiate its service offering. The company’s integrated business model combines spa, fitness, and beauty services with product sales, creating multiple revenue streams and broadening its market reach. With a global footprint and established relationships in the cruise industry, OneSpaWorld is positioned as a leading provider of high-end wellness experiences for travelers.
What this transaction means for investorsRanger Investment Management completely exited its OneSpaWorld position even as the company continues to post record operating results and guide for further growth, which seemingly makes this look like a potential call on opportunity costs rather than a strict conviction call. OneSpaWorld’s first-quarter revenue climbed 13% year over year to a record $247.6 million, while net income rose 40% to $21.3 million and adjusted EBITDA increased 21% to $32.2 million. The company also marked its 20th consecutive quarter of record revenue and adjusted EBITDA, a streak that speaks to the consistency of the cruise industry's post-pandemic recovery.
Meanwhile, management sounded confident about the road ahead. CEO Leonard Fluxman highlighted plans to launch wellness operations on six new cruise ships this year and said the company expects another record year. OneSpaWorld said its full-year outlook includes as much as $1.034 billion in revenue and $139 million in adjusted EBITDA.
Ultimately, it seems like OneSpaWorld's asset-light model, expanding ship count, and growing guest spending could continue driving earnings growth. The stock has very slightly underperformed the S&P 500 over the past year, but the business itself appears to be gaining momentum.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ul Solutions. The Motley Fool has a disclosure policy.
OneSpaWorld dominates outsourced spa and wellness services on cruise ships, operating an asset-light, high-revenue model. OSW maintains over 90% market share in outsourced cruise ship spas, serving a captive audience of 23 million passengers annually. Long-term relationships with top cruise lines and 100% ship penetration from major partners ensure stable, predictable cash flows.
Provides Q1 Guidance and Reaffirms 2026 Outlook Driven by Leading Value Proposition and Efficiency Initiatives March 12, 2026 06:30 ET | Source: Vivid Seats LLC
CHICAGO, March 12, 2026 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (NASDAQ: SEAT) (“Vivid Seats” or “we”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today provided financial results for the fourth quarter and full year ended December 31, 2025 along with guidance for the first quarter ending March 31, 2026 and full year ending December 31, 2026.
“The trends we are seeing in the first quarter confirm that our strategy and execution are delivering measurable results,” said Lawrence Fey, Chief Executive Officer of Vivid Seats. “We are enhancing our foundational strengths that include our leading technology, unique data assets, relentless focus on efficiency, and differentiated customer value proposition. We are particularly encouraged by the positive impact and momentum we are seeing from the impact of our enhanced App value proposition coupled with our cost reduction program.”
Fourth Quarter 2025 Key Operational and Financial Metrics
Marketplace GOV of $580.6 million – down 42% from $994.4 million in Q4 2024Revenues of $126.8 million – down 37% from $199.8 million in Q4 2024Net loss of $428.7 million – down $424.2 million from a net loss of $4.4 million in Q4 2024Adjusted EBITDA of $0.8 million – down $33.4 million from $34.2 million in Q4 2024 Full Year 2025 Key Operational and Financial Metrics
Marketplace GOV of $2,704.6 million – down 31% from $3,892.6 million in 2024Revenues of $570.8 million – down 26% from $775.6 million in 2024Net loss of $721.5 million – down $735.8 million from net income of $14.3 million in 2024Adjusted EBITDA of $41.8 million – down $109.6 million from $151.4 million in 2024 Key Business Metrics and Non-U.S. GAAP Financial Measure
We use the following metrics to evaluate our performance, identify trends, formulate financial projections, and make strategic decisions. We believe these metrics provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as management.
The following table summarizes our key business metrics and non-U.S. GAAP financial measure for the three months and years ended December 31, 2025 and 2024 (in thousands):
Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Marketplace GOV(1)$580,587 $994,377 $2,704,573 $3,892,645 Marketplace orders(2) 1,766 2,613 8,336 11,556 Resale orders(3) 111 115 428 431 Adjusted EBITDA(4)$840 $34,243 $41,822 $151,419 (1) Marketplace Gross Order Value (“Marketplace GOV”) represents the total transactional amount of Marketplace orders processed on our online platform during a period, inclusive of fees, exclusive of taxes, and net of event cancellations. During the three months and year ended December 31, 2025, event cancellations negatively impacted Marketplace GOV by $13.5 million and $60.7 million, respectively, compared to $21.1 million and $95.9 million during the three months and year ended December 31, 2024, respectively. (2) Marketplace orders represent the total volume of Marketplace segment transactions processed on our online platform during a period, net of event cancellations. During the three months and year ended December 31, 2025, our Marketplace segment experienced 34,307 and 163,919 event cancellations, respectively, compared to 43,019 and 222,472 event cancellations during the three months and year ended December 31, 2024, respectively. (3) Resale orders represent the total volume of Resale segment transactions processed on a given platform (including our own) during a period, net of event cancellations. During the three months and year ended December 31, 2025, our Resale segment experienced 943 and 4,702 event cancellations, respectively, compared to 792 and 5,286 event cancellations during the three months and year ended December 31, 2024, respectively. (4) Adjusted EBITDA is a financial measure not defined under accounting principles generally accepted in the United States of America (“U.S. GAAP”). We believe adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations and serves as a useful measure for making period-to-period comparisons of our business performance. See “Adjusted EBITDA” below for more information, including a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable U.S. GAAP financial measure. Financial Outlook for Full Year 2026
For the year ending December 31, 2026, Vivid Seats anticipates:
Marketplace GOV in the range of $2.2 billion to $2.6 billionAdjusted EBITDA in the range of $30.0 million to $40.0 million* Financial Outlook for Q1 2026
For the quarter ending March 31, 2026, Vivid Seats anticipates:
Marketplace GOV in the range of $570.0 million to $620.0 millionAdjusted EBITDA in the range of $8.0 million to $10.0 million*Cash balance of $125.0 million to $135.0 million * We calculate forward-looking adjusted EBITDA based on internal forecasts that omit certain information that would be included in forward-looking net income (loss), the most directly comparable U.S. GAAP financial measure. We do not attempt to provide a reconciliation of forward-looking adjusted EBITDA to forward-looking net income (loss) because the timing and/or probable significance of certain excluded items that have not yet occurred and are outside of our control is inherently uncertain and unavailable without unreasonable efforts. Such items could have a significant and unpredictable impact on our future U.S. GAAP financial results.
Webcast Details
Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the fourth quarter and full year 2025 financial results, business updates, and financial outlook. Participants may access the live webcast and supplemental earnings presentation on the events page of the Vivid Seats Investor Relations website at investors.vividseats.com/events-and-presentations.
About Vivid Seats
Founded in 2001, Vivid Seats is a leading online ticket marketplace committed to becoming the ultimate partner for connecting fans to the live events, artists, and teams they love. Based on the belief that everyone should “Experience It Live,” the Chicago-based company provides exceptional value by providing one of the widest selections of events and tickets in North America and an industry leading Vivid Seats Rewards program where all fans earn on every purchase. Through its proprietary software and unique technology, Vivid Seats drives the consumer and business ecosystem for live event ticketing and enables the power of shared experiences to unite people. Vivid Seats has been recognized by Newsweek as one of America’s Best Companies for Customer Service in ticketing. Fans who want to have the best live experiences can start by downloading the Vivid Seats mobile app, going to vividseats.com, or calling 866-848-8499.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “can,” “continue,” “could,” “design,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “propose,” “seek,” “should,” “target,” “will,” and “would,” as well as similar expressions that predict or indicate future events or do not relate to historical matters, are intended to identify such forward-looking statements. The forward-looking statements contained in this press release relate to, without limitation: our future operating results and financial performance, including our expectations with respect to our return to growth, our fiscal year 2026 Marketplace GOV and adjusted EBITDA, and our first quarter 2026 Marketplace GOV, adjusted EBITDA, and cash balance; our expectations with respect to live event industry growth, concert supply, and our competitive positioning; our business strategy and objectives; and the expected benefits, including future savings, of our cost reduction program and the transactions consummated pursuant to our corporate simplification agreement, dated October 31, 2025 (collectively, the “Corporate Simplification”). Forward-looking statements are not guarantees of future performance, conditions, or results, and are subject to risks, uncertainties, and assumptions that can be difficult to predict and/or are outside of our control. Therefore, actual results may differ materially from those contemplated by any forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: the supply of and demand for live events; the impact of adverse economic conditions and other factors affecting discretionary consumer and corporate spending; our ability to develop and maintain relationships with ticket buyers, sellers, and partners; the impact of changes to internet search engine algorithms and mobile app marketplace rules; the impact of artificial intelligence on how consumers search for live event tickets; our ability to attract ticket sellers and buyers to our platform in the increasingly competitive ticketing industry; our ability to continue to maintain and improve our platform; the impact of extraordinary events, including disease epidemics; our ability to identify suitable acquisition targets and to complete and realize the expected benefits of acquisitions and other strategic investments; our ability to attract, hire, motivate, and retain our senior management team and other highly skilled personnel; our ability to comply with applicable laws and regulations; the ability of ticket holders to sell their tickets on the secondary market unencumbered; the impact of unfavorable outcomes in legislation and legal proceedings; our ability to maintain the integrity of our information systems and infrastructure, and to identify, assess, and manage relevant cybersecurity risks; our ability to generate sufficient cash flows and/or obtain additional financing when necessary or desirable; our ability to realize the expected benefits, including future savings, of our cost reduction program and/or the Corporate Simplification (including due to changes in applicable laws or fluctuations in our taxable income); and other factors discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as in our press releases and other filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events, or otherwise.
VIVID SEATS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents$102,702 $243,482 Restricted cash 604 1,166 Accounts receivable – net 30,664 48,315 Inventory – net 18,166 19,601 Prepaid expenses and other current assets 26,336 32,607 Total current assets 178,472 345,171 Property and equipment – net 12,373 12,567 Right-of-use assets – net 10,515 12,008 Intangible assets – net 141,528 233,116 Goodwill – net 283,915 943,119 Deferred tax assets – net 1,123 77,967 Investments 5,365 6,929 Other assets 3,575 5,219 Total assets$636,866 $1,636,096 Liabilities, redeemable noncontrolling interests, and shareholders' equity (deficit) Current liabilities: Accounts payable$153,418 $232,984 Accrued expenses and other current liabilities 125,957 165,047 Deferred revenue 19,973 23,804 Current maturities of long-term debt 3,930 3,950 Total current liabilities 303,278 425,785 Long-term debt – net 383,431 384,960 Long-term lease liabilities 16,452 18,731 TRA liability — 155,720 Other liabilities 18,834 36,865 Total liabilities 721,995 1,022,061 Commitments and contingencies Redeemable noncontrolling interests — 352,922 Shareholders' equity (deficit): Class A common stock, $0.0001 par value; 500,000,000 shares authorized, 11,712,157 and 7,190,975 shares issued and outstanding at December 31, 2025 and 2024, respectively 23 14 Class B common stock, $0.0001 par value; 250,000,000 shares authorized, zero and 3,811,250 shares issued and outstanding at December 31, 2025 and 2024, respectively — 8 Additional paid-in capital 1,368,067 1,267,710 Treasury stock, at cost, 949,665 and 571,687 shares at December 31, 2025 and 2024, respectively (93,920) (75,568)Accumulated deficit (1,359,472) (930,171)Accumulated other comprehensive income (loss) 173 (880)Total shareholders' equity (deficit) (85,129) 261,113 Total liabilities, redeemable noncontrolling interests, and shareholders' equity (deficit)$636,866 $1,636,096 VIVID SEATS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Revenues$126,814 $199,813 $570,776 $775,586 Costs and expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 42,144 52,477 173,438 201,854 Marketing and selling 56,677 79,452 230,562 285,146 General and administrative 34,343 52,398 173,880 202,123 Depreciation and amortization 11,703 12,584 49,392 44,238 Impairment charges 402,574 — 723,023 — Total costs and expenses 547,441 196,911 1,350,295 733,361 Income (loss) from operations (420,627) 2,902 (779,519) 42,225 Interest expense – net 6,331 6,466 23,741 23,172 Other expense (income) – net 2,408 (430) (151,956) (3,666)Loss on extinguishment of debt — — 801 — Income (loss) before income taxes (429,366) (3,134) (652,105) 22,719 Income tax expense (benefit) (704) 1,281 69,385 8,417 Net income (loss) (428,662) (4,415) (721,490) 14,302 Net income (loss) attributable to redeemable noncontrolling interests (153,504) (3,528) (292,189) 4,877 Net income (loss) attributable to Class A common stockholders$(275,158) $(887) $(429,301) $9,425 VIVID SEATS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended December 31, 2025 2024 Cash flows from operating activities Net income (loss)$(721,490) $14,302 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 49,392 44,238 Amortization of leases 1,514 1,697 Amortization of deferred financing costs 970 988 Equity-based compensation 36,734 50,429 Change in fair value of Intermediate Warrants (5,924) (4,044)Loss on asset disposals 555 277 Change in fair value of derivative asset 2,201 800 Deferred income tax expense 74,746 1,246 Non-cash interest expense (income) – net 651 (890)Foreign currency loss (gain) – net (126) 4,056 Adjustment of liabilities under TRA (150,719) (6,166)Loss on extinguishment of debt 801 — Impairment charges 723,023 — Write-off of Sponsorship Loan 2,024 — Changes in operating assets and liabilities: Accounts receivable – net 17,545 9,776 Inventory – net 1,434 1,413 Prepaid expenses and other current assets 5,820 1,161 Accounts payable (79,463) (23,691)Accrued expenses and other current liabilities (35,787) (30,164)Deferred revenue (3,831) (10,870)Long-term lease liabilities (2,302) (994)Other assets and liabilities – net (9,367) 358 Net cash provided by (used in) operating activities (91,599) 53,922 Cash flows from investing activities Purchases of property and equipment (2,164) (4,227)Purchases of personal seat licenses (983) (737)Investments in developed technology (16,108) (19,014)Purchases of seat images (919) (347)Disbursement of Sponsorship Loan — (2,000)Payments toward Acquired Domain Name Obligation — (417)Net cash used in investing activities (20,174) (26,742)Cash flows from financing activities Payments of 2022 First Lien Loan — (689)Payments of Shoko Chukin Bank Loan — (2,655)Proceeds from 2024 First Lien Loan — 125,500 Repurchases of Class A common stock (18,295) (22,982)Tax distributions to redeemable noncontrolling interests (1,689) (10,014)Payments of taxes related to net settlement of equity incentive awards (1,886) (714)Payment of deferred financing costs and other debt-related expenses (162) (315)Payment of liabilities under TRA (4,005) (77)Payments of 2024 First Lien Loan (76,986) (1,975)Proceeds from 2025 First Lien Loan 76,986 — Payments of 2025 First Lien Loan (2,948) — Payments toward Acquired Domain Name Obligation (2,000) — Mergers and exchange of Class B common stock for Class A common stock in connection with Corporate Simplification 1,621 — Repurchase and retirement of fractional shares resulting from Reverse Stock Split (5) — Net cash provided by (used in) financing activities (29,369) 86,079 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (200) (1,045)Net increase (decrease) in cash, cash equivalents, and restricted cash (141,342) 112,214 Cash, cash equivalents, and restricted cash – beginning of period 244,648 132,434 Cash, cash equivalents, and restricted cash – end of period$103,306 $244,648 Supplemental disclosures of cash flow information Cash paid for interest$27,681 $19,498 Cash paid for income taxes$6,369 $5,469 Adjusted EBITDA
We present adjusted EBITDA, which is a non-U.S. GAAP financial measure, because it is a key measure used by analysts, investors, and others to evaluate companies in our industry. Adjusted EBITDA is also used by management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting.
We believe adjusted EBITDA is useful for understanding, evaluating, and highlighting trends in our operating results and for making period-to-period comparisons of our business performance because it excludes the impact of items that are outside of our control and/or not reflective of ongoing performance related directly to the operation of our business.
Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. Adjusted EBITDA does not reflect all amounts associated with our operating results as determined in accordance with U.S. GAAP and specifically excludes certain recurring costs such as income tax expense (benefit), interest expense – net, depreciation and amortization, sales tax liabilities, transaction costs, equity-based compensation, litigation, settlements, and related costs, change in fair value of the Intermediate Warrants (as defined below), loss on asset disposals, change in fair value of derivative asset, foreign currency loss (gain) – net, adjustment of liabilities under our former Tax Receivable Agreement (the “TRA”) entered into with the existing unitholders of Hoya Intermediate, LLC, loss on extinguishment of debt, impairment charges, and severance compensation. In addition, other companies may calculate adjusted EBITDA differently than we do, thereby limiting its usefulness as a comparative tool. We compensate for these limitations by providing specific information regarding the U.S. GAAP amounts that are excluded from our presentation of adjusted EBITDA.
The following table presents a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable U.S. GAAP financial measure, for the three months and years ended December 31, 2025 and 2024 (in thousands):
Three Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024 Net income (loss)$(428,662) $(4,415) $(721,490) $14,302 Adjustments to reconcile net income (loss) to adjusted EBITDA: Income tax expense (benefit) (704) 1,281 69,385 8,417 Interest expense – net 6,331 6,466 23,741 23,172 Depreciation and amortization 11,703 12,584 49,392 44,238 Sales tax liability(1) 18 3,147 (842) 5,760 Transaction costs(2) 1,936 2,877 10,752 9,528 Equity-based compensation(3) 2,848 12,144 36,734 50,429 Litigation, settlements, and related costs(4) 11 486 944 650 Change in fair value of Intermediate Warrants(5) (211) 1,669 (5,924) (4,044)Loss on asset disposals(6) 175 117 555 277 Change in fair value of derivative asset(7) 1,360 263 2,201 800 Foreign currency loss (gain) – net(8) 2,237 3,790 (126) 4,056 Adjustment of liabilities under TRA(9) (932) (6,166) (150,719) (6,166)Loss on extinguishment of debt(10) — — 801 — Impairment charges(11) 402,574 — 723,023 — Severance compensation(12) 2,156 — 3,395 — Adjusted EBITDA$840 $34,243 $41,822 $151,419 (1) During the periods presented, we accrued for additional uncollected indirect tax liabilities in jurisdictions where we believed it was probable we should remit payment to U.S. and foreign governmental tax authorities before all required amounts are collected from the customer. We also received abatements and recognized other reductions to the balance of the liability related to uncollected indirect taxes (including sales taxes). (2) Consists of (i) legal, accounting, tax, and other professional fees, (ii) personnel costs related to retention bonuses, (iii) integration costs, and (iv) other transaction-related expenses, none of which are considered indicative of our core operating performance. Costs in the three months and year ended December 31, 2025 primarily related to the February 2025 refinancing of our first lien term loan, repurchases of Class A common stock, a reverse split of our common stock, the Corporate Simplification, and various strategic transactions and investments. Costs in the three months and year ended December 31, 2024 primarily related to the June 2024 refinancing of our first lien term loan, repurchases of Class A common stock, and various strategic transactions and investments. (3) Costs in the three months and year ended December 31, 2025 primarily related to equity granted by us pursuant to our 2021 Incentive Award Plan (as amended, the “Incentive Award Plan”), which is not considered indicative of our core operating performance. Costs in the three months and year ended December 31, 2024 primarily related to equity granted by us pursuant to the Incentive Award Plan, as well as profits interests issued by Hoya Topco, LLC prior to the 2021 transaction pursuant to which Horizon Acquisition Corporation merged with and into us (the “Merger Transaction”), neither of which are considered indicative of our core operating performance. (4) Relates to external legal costs, settlement costs, and insurance recoveries, none of which are considered indicative of our core operating performance. (5) Relates to the revaluation of warrants issued in connection with the Merger Transaction (the “Intermediate Warrants”) that entitled Hoya Topco, LLC to purchase common units of Hoya Intermediate, LLC, which revaluations are not considered indicative of our core operating performance. (6) Relates to disposals of fixed assets, which are not considered indicative of our core operating performance. (7) Relates to the revaluation of derivatives recorded at fair value, which revaluations are not considered indicative of our core operating performance. (8) Relates to net losses (gains) resulting from the impact of exchange rate changes on transactions denominated in non-functional currencies, which are not considered indicative of our core operating performance. (9) Relates to the remeasurement and settlement of the TRA liability, which are not considered indicative of our core operating performance. (10) Relates to losses incurred in connection with the extinguishment of our former first lien term loan, which are not considered indicative of our core operating performance. (11) Relates to non-cash impairment charges related to our goodwill and certain indefinite-lived intangible assets triggered by the effects of recent declines in our financial performance, near-term outlook, and Class A common stock price, among other factors. (12) Relates to severance-related payments made to terminated employees as a result of a reduction in employee headcount and the departure of certain members of our leadership team, which are not considered indicative of our core operating performance.
