Track market-moving stories before they get noisy

Quantum Computing Inc.: A Sudden Jump in RevenueQuantum Computing Inc. (QUBT 0.32%) primarily generates revenue by providing specialized software tools and application accelerators for quantum computers, focusing heavily on serving large commercial and government entities through its quantum optics and integrated photonics technology.

While it completed the acquisition of NuCrypt and introduced its new deployment-ready computing architecture, it reported a net income margin of negative 110% for the quarter ended March 31, 2026.

IonQ: Steadily Climbing RevenueIonQ (IONQ 1.75%) primarily develops general-purpose quantum computing systems and generates revenue by selling computational access through major cloud platforms and proprietary networks using ion-based technology.

It commercially launched new Earth monitoring capabilities and secured an advanced defense research contract, and it reported a gross margin of about 24% for the quarter ended March 31, 2026.

Why Revenue Matters for Retail InvestorsRevenue represents the total amount of money a business brings in from its core operations before any expenses are subtracted, serving as a fundamental baseline measure of overall consumer demand and business growth.

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Quarterly Revenue for Quantum Computing and IonQQuarter (Period End)Quantum Computing RevenueIonQ RevenueQ2 2024 (June 2024)$183.0K$11.4 millionQ3 2024 (Sept. 2024)$101.0K$12.4 millionQ4 2024 (Dec. 2024)$62.0K$11.7 millionQ1 2025 (March 2025)$39.0K$7.6 millionQ2 2025 (June 2025)$61.0K$20.7 millionQ3 2025 (Sept. 2025)$384.0K$39.9 millionQ4 2025 (Dec. 2025)$198.0K$61.9 millionQ1 2026 (March 2026)$3.7 million$64.7 millionData source: Company filings. Data as of May 28, 2026.

Foolish TakeExamining the revenue trends between IonQ and Quantum Computing Inc., which refers to itself as QCi, shows a stark contrast, and provides meaningful insights to investors. Not only is IonQ’s sales consistently larger than QCi’s, its revenue growth rate is spectacular.

For example, IonQ reported record revenue of $64.7 million in the first quarter, representing jaw-dropping 755% year-over-year growth. This indicates the company’s ion-based quantum computing technology is capturing customers.

Meanwhile, QCi’s sales trend shows anemic and inconsistent revenue, revealing its photonic technology hasn’t been able to gain traction with customers. That finally seemed to change in Q1 with sales of $3.7 million compared to just $39,000 in the previous year. However, that dramatic boost came from its acquisition of NuCrypt and Luminar Semiconductor.

Given what the revenue numbers between these two companies reveal, IonQ looks like a solid business to invest in for those who want exposure to the quantum computing sector. Its technology is winning customers, as its strong growth rate and consistency in rising revenue over recent quarters indicates.

QCi has not proven its technology can generate meaningful sales, and its Q1 year-over-year increase was due to acquisitions, not customer growth. This trend is concerning, unless the acquired businesses can help to ignite sales.

Shares of Quantum Computing Inc. (QUBT - Free Report) have gained 29.9% over the past four weeks to close the last trading session at $11.96, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $17.83 indicates a potential upside of 49.1%.

The mean estimate comprises six short-term price targets with a standard deviation of $6.4. While the lowest estimate of $10.00 indicates a 16.4% decline from the current price level, the most optimistic analyst expects the stock to surge 125.8% to reach $27.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in QUBT. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why QUBT Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 43.2%, as three estimates have moved higher compared to no negative revision.

Moreover, QUBT currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much QUBT could gain, the direction of price movement it implies does appear to be a good guide.

Quantum Computing shares surge 19.4% year to date as the company boosts revenues, completes two acquisitions and expands DIRAC commercialization despite margin pressures.

Key Takeaways Quantum Computing exited Q1 2026 with about $1.4 billion in cash, cash equivalents and investments. QUBT reported about $1.6 billion in assets and equity, while liabilities totaled $23.4 million. Quantum Computing generated $13.5 million in interest income and reported a $16 million backlog. Quantum Computing Inc. (QUBT - Free Report) or “QCi” exited the first quarter of 2026 with a strong balance sheet, providing the company with financial flexibility to carry out its growth strategy. QCi ended the quarter with cash, cash equivalents and investments of about $1.4 billion, demonstrating that the company maintained a substantial liquidity position despite completing the acquisitions of Luminar Semiconductor (“LSI”) and NuCrypt.

QCi’s financial strength is further reflected in its total assets of about $1.6 billion and stockholders' equity of approximately $1.6 billion. Meanwhile, total liabilities accounted for $23.4 million, much lower than the cash level.

The company generated $13.5 million in interest income during the first quarter, highlighting the earnings potential of its sizable cash reserves. QCi also reported a contract backlog of $16 million, providing visibility into future revenue opportunities and supporting the company's growth outlook.

Overall, QCi's substantial cash reserves, strong equity base and healthy backlog position the company to fund organic growth initiatives, pursue strategic acquisitions and invest in manufacturing scale-up efforts without near-term financing concerns. This financial flexibility is a valuable cushion in an industry where research and development costs remain high.

Peer UpdateRigetti (RGTI - Free Report) exited the first quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $418.2 million. The company ended the quarter with no debt on its balance sheet, underscoring a solid solvency position. This means Rigetti has ample liquidity to fund its operations and roadmap execution without near-term financing pressure. 

D-Wave Quantum (QBTS - Free Report) exited first-quarter 2026 with cash and cash equivalents of $338.2 million and marketable investment securities were $250.2 million. Operating cash outflow was $45 million in the first quarter, while investing cash outflow included $250.8 million of cash consideration for the Quantum Circuits acquisition. Even after that step-down, the balance sheet supports continued investment in R&D, sales coverage and system installations. Entering 2026, Leap Cloud utilization remained below 50%, providing ample capacity headroom, and allowing additional annealing systems to be deployed within months at modest cost.

QUBT’s Stock Price PerformanceOver the past year, QCi’s shares have plunged 5.4%, outperforming the industry’s 11.3% decline. 

Image Source: Zacks Investment Research

QUBT’s Expensive ValuationQUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 95.27X compared with the industry median of 4.97X.

Image Source: Zacks Investment Research

QUBT Stock Estimate TrendIn the past 30 days, QCi’s loss per share estimate for 2026 has moved north to 14 cents. 

Image Source: Zacks Investment Research

QUBT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways OpenAI, SpaceX and Anthropic IPO filings may boost investor interest in QUBT and QBTS.QUBT posted $3.7M in Q1 2026 revenues and highlighted photonics foundry capabilities.QBTS cited proposed CHIPS Act funding, strong bookings growth and a new roadmap. The quantum computing industry may not be a direct participant in the upcoming AI IPO wave, but it could still be one of its biggest beneficiaries. Following confidential IPO filings by Anthropic on June 1 and OpenAI on June 8, the stage is set for what could become two of the largest AI listings in history.

Meanwhile, SpaceX is expected to go public this week in a blockbuster offering that could further fuel enthusiasm for frontier technologies. As investors evaluate these potential trillion-dollar-valued listings, attention is increasingly shifting to how they could reshape capital flows across emerging technologies, including quantum computing.

Here, we have picked two pure-play quantum computing stocks, Quantum Computing Inc. (QUBT - Free Report) and D-Wave Quantum (QBTS - Free Report) , with more than 40% short-term price upside potential. These two stocks are well-positioned to capitalize on the increased capital flows and growing investor attention likely to accompany the upcoming AI IPO wave.

AI IPOs Could Unlock Fresh CapitalThe impact on quantum computing is likely to be felt first through capital markets. Successful AI IPOs can strengthen investor appetite for emerging technologies, potentially making it easier for quantum companies to raise equity, attract strategic partners and secure long-term funding. This comes at a time when governments and corporations are already increasing their commitment to the sector. In June, the U.S. government unveiled a more than $2 billion quantum investment initiative, while major technology companies continue to expand spending on advanced computing infrastructure. Meanwhile, major technology companies continue to invest heavily in advanced computing infrastructure, creating a favorable backdrop for emerging computing platforms.

Quantum's Path to Commercialization May ShortenAside from this, the pace of commercialization may also gain traction within the quantum computing niche. Over the past three years, massive investment in AI has fueled spending on data centers, specialized chips and software platforms, creating clear winners across the value chain. Quantum investors are hoping for a similar trajectory. Other than QUBT and QBTS, companies such as IonQ (IONQ - Free Report) and Rigetti Computing (RGTI - Free Report) are pursuing commercial opportunities in optimization, cybersecurity, networking and AI-related applications. At the same time, IBM and Microsoft continue to advance quantum hardware and software development. A strong AI IPO cycle could make it easier for quantum firms to attract strategic partnerships and fund expensive initiatives such as error correction, scalable hardware and quantum networking.

2 Quantum Stocks with 45%+ Price Target to Benefit From This TrendQuantum Computing Inc. or QCi: It appears well-positioned to benefit from any potential increase in investor interest toward frontier technologies following the OpenAI and Anthropic IPOs. QCi is differentiating itself through quantum photonics rather than traditional superconducting architectures, with applications spanning AI, cybersecurity and high-performance computing. QUBT reported first-quarter 2026 revenues of $3.7 million, up from just $39,000 a year earlier. It ended the quarter with approximately $1.4 billion in cash and investments. The company has also been highlighting its photonics foundry capabilities and room-temperature systems, which could become increasingly attractive as capital flows toward next-generation computing infrastructure.

QUBT currently holds a Zacks Rank #2 (Buy). Based on short-term price targets offered by six analysts, the average price target for Quantum Computing represents an increase of 70.62% from the last closing price of $10.45.

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D-Wave Quantum: It is among the most direct beneficiaries of the U.S. government’s recently announced $2 billion quantum initiative. In May, D-Wave signed a Letter of Intent for $100 million in proposed CHIPS Act funding, validating its annealing and gate-model quantum technologies. D-Wave also reported a 2,000% year-over-year improvement in first-quarter bookings and recently unveiled a roadmap targeting fault-tolerant quantum systems. Capitalizing on the AI IPO cycle and with federal funds accelerating quantum development, D-Wave's growing commercial traction and government backing could strengthen its position in the race toward large-scale commercialization.

QBTS currently has a Zacks Rank #3 (Hold). Based on short-term price targets offered by 13 analysts, the average price target for D-Wave Quantum represents an increase of 46.54% from the last closing price.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Shares in IP Group PLC (LSE:IPO) rose 9% to 53.5p on Tuesday after the company reported net asset value per share climbing to 110.4p, with total NAV reaching £975.1 million.

The recovery was driven largely by Pfizer's acquisition of Metsera, a biotechnology company developing obesity treatments.

The deal brought £128.2 million in discounted future royalty and milestone income onto IP Group's balance sheet, giving it direct financial exposure to Pfizer's obesity drug programme, including a phase III trial of PF'3944, a GLP-1 therapy.

Portfolio companies raised a combined £914 million during the year, up 17%, with notable rounds including $115 million for DNA repair drug developer Artios and $103 million for autonomous vehicle software company Oxa.

Cash proceeds from exits fell to £68.1 million, down from £183.4 million in 2024.

The group completed a £75 million buyback, retiring roughly 9% of its share capital, and is targeting more than £250 million in portfolio exits by end-2027.

Key Takeaways Navitas unveiled 20kW 800V-to-6V and 10kW DC-DC boards for higher-density AI data centers.Navitas' AI infrastructure revenue surged 50% sequentially in Q1 2026 as evaluations advance.NVTS demoed a 250kW GeneSiC solid-state transformer and 2.3kV/3.3kV SiC modules for grid upgrades. Navitas Semiconductor Corporation (NVTS - Free Report) is reshaping its story around power conversion, where artificial intelligence (AI) workloads are forcing new architectures in the data center and beyond. Higher power density, tighter efficiency targets and new distribution approaches are lifting demand for wide-bandgap devices, particularly gallium nitride and silicon carbide.

That backdrop matters because Navitas is pushing designs that span both sides of the power chain, from rack-level conversion to higher-voltage modules positioned for the supporting grid. The opportunity is real, but so are the execution and scaling hurdles.

NVTS Tracks the Move to High-Voltage AI PowerAI data centers are migrating toward higher power density and higher-voltage direct-current architectures. That shift expands wide-bandgap content across both alternating-current to direct-current and direct-current to direct-current conversion, where efficiency gains translate into lower energy loss and reduced cooling needs.

Navitas is positioning its portfolio to capture more of that power chain. The company’s view is that high-voltage distribution and rising power-supply demands should broaden its content opportunity as conversion moves closer to the rack and power-density requirements rise.

Navitas Product Demos Point to Future DesignsTwo recent proof points offer clear “what to watch” signals for the next design cycle. Navitas introduced a 20-kilowatt 800-volt to 6-volt direct-current to direct-current power delivery board using GaNFast technology. The platform is designed to support higher-density data center architectures and is cited with up to 97.5% peak efficiency at a 1 megahertz switching frequency.

Separately, the company unveiled a 10-kilowatt direct-current to direct-current power platform aimed at next-generation AI data centers. Navitas cited up to 98.5% peak efficiency and a 1-megahertz switching frequency, framing it as a path to unprecedented power density for large-scale deployments.

NVTS AI Infrastructure Momentum Is Early but ImprovingThe commercialization path in AI power is still defined by evaluations, qualification programs and system-level validation. Navitas has emphasized progress moving from device-level testing to system and board-level evaluation, along with delivered “final samples” intended to support production ramps and customer validation work.

That language points to an adoption curve that is building, not finished. The encouraging part is that engagement is translating into better mix and sequential growth. Management noted that “AI infrastructure,” which combines data center and grid efforts, grew 50% sequentially from the fourth quarter of 2025 to the first quarter of 2026.

Navitas’ SiC Pitch Expands Beyond the Data CenterThe grid side can become the other half of the AI power narrative. Navitas has linked rising AI-driven electricity demand to upgrades in power grids and energy infrastructure, where higher-voltage silicon carbide devices can enable new distribution concepts and more compact, efficient systems.

A key example is the company’s demonstration of a 250-kilowatt solid-state transformer solution using its GeneSiC technology to enable scalable 800-volt direct-current distribution. Navitas has also positioned its 2.3-kilovolt and 3.3-kilovolt silicon carbide modules for energy infrastructure applications such as battery energy storage systems, utility solar projects and solid-state transformers.

NVTS News Flow That Can Shift SentimentThe near-term catalyst list is tied to both leadership moves and product cadence. Navitas announced two board appointments, adding Davin Lee effective immediately and Gregory M. Fischer effective immediately.

On the operating side, the company named Tonya Stevens as chief financial officer, effective March 30. The same update cycle included new GeneSiC form factors, including a top-side cooled QDPAK and a low-profile TO-247-4L with asymmetrical leads, and a fifth-generation GeneSiC technology platform launch.

Navitas Supply Chain Choices Can Become a ThemeNavitas operates a fabless model, which supports scaling without the burden of building capital-intensive manufacturing facilities. The structure can also sharpen speed of execution by leaning on established foundry partners for wafer fabrication and related steps.

That model comes with dependency risk because external partners ultimately control capacity and production continuity. The company’s manufacturing relationships include Taiwan Semiconductor Manufacturing Company for gallium nitride products and X-Fab for silicon carbide manufacturing, with other partnerships that include GlobalFoundries. This blend can feed a supply-chain “security” narrative around U.S.-based partners, while still leaving Navitas exposed to third-party operational realities.

NVTS: What Could Derail the Trend TradeThe biggest fundamental risk is that Navitas remains deeply unprofitable with limited revenue scale. In the first quarter of 2026, the company generated $8.6 million in revenue and reported a non-GAAP net loss of $13.8 million, underscoring how far this Zacks Rank #4 (Sell) company must go before sustained profitability becomes realistic.

Timing risk is also material. AI and industrial projects can involve long design and qualification cycles, and management has stressed engagements and qualification programs rather than large production wins.

Competition is the final pressure point. Larger power and semiconductor players are investing aggressively, including Infineon Technologies AG, Texas Instruments Incorporated and ON Semiconductor Corporation, which can pressure pricing and slow share capture.

Investors looking for a cleaner near-term earnings backdrop may prefer established equipment names tied to the same AI buildout, such as Applied Materials (AMAT - Free Report) and Lam Research (LRCX - Free Report) , both carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Navitas' 250% YTD surge has it trading at 104.75x forward P/S. AI infrastructure momentum is real, but shares look priced for perfection.

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.

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]

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/7be05833-6d8e-4343-a221-1385f46ec7bf

https://www.globenewswire.com/NewsRoom/AttachmentNg/a9760d40-62a8-4f9a-8c19-e28d678e1854

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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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?

Image Source: Zacks Investment Research

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.

Image Source: Zacks Investment Research

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.

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 (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.

Today's Change

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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.

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...

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 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.

, /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.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

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.   

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

, /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.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

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]

www.schallfirm.com

, /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.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

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.

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

31,395

16,387

AIRO Group Holdings, Inc.

Non-GAAP Reconciliations

(UNAUDITED)

  Three Months
Ended March 31,

(in thousands, except percentages)

2026

2025

Net loss

$

(15,453

)

$

(1,973

)

Depreciation and amortization

3,130

3,138

Income tax (benefit) expense

(1,645

)

287

Interest (income) expense, net

(376

)

1,267

EBITDA

(14,344

)

2,719

Stock-based compensation

1,502

125

Contingent consideration fair value adjustments

-

(2,738

)

Adjusted EBITDA

$

(12,842

)

$

106

Net loss margin

(173.6

)%

(16.7

)%

Adjusted EBITDA margin

N.m.

0.9

%

  N.m. – Not meaningful

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