Key Highlights

  • Net revenues advanced 38% to USD 13.99 million for the quarter ended September 30, 2026, up from USD 10.11 million, with U.S. Data Center related sales providing most of the lift.
  • Operating Deficit deepened to USD 34.4 million, as SG&A spending rose 252% to USD 18.4 million because of Equity compensation and deal-related charges.
  • Revenue across nine months declined 14% to USD 33.1 million, while China's share of total sales slid to 33% from 52% amid weaker mobile and consumer demand.
  • Navitas finished buying Claros on October 6, 2026, paying roughly USD 126 million in cash after subtracting acquired cash, and issuing about 6.9 million Class A shares.

Data Center Sales Power a Stronger Quarter, Not a Stronger Year

The chipmaker Navitas Semiconductor (NASDAQ:NVTS) filed its 10-Q covering the quarter ending September 30, 2026 on November 3, 2026. Net revenues came to USD 13.99 million, a 38% jump from USD 10.11 million, and management attributed most of the gain to U.S. data center sales. U.S. buyers represented 53% of third quarter revenue, versus 21% a year earlier, while China dropped to 29% from 52%. Across nine months, Revenue shrank 14% to USD 33.1 million, pulled lower by softer mobile product Demand in Asia, mainly China, and by consumer markets. Cost of revenues, excluding amortization, absorbed 61% of third quarter sales, which implies a gross Margin around 39%, a figure we derived ourselves.

Stock-Based Pay and Earnout Remeasurements Weigh on Results

The company designs gallium nitride and silicon carbide power semiconductors aimed at AI data centers, grid infrastructure and industrial electrification, and it depends on outside manufacturers for production. Operating expenses climbed 72% to USD 39.9 million. Selling, general and administrative spending rose on equity compensation, including reversals from earlier periods tied to departing executives, plus legal, professional and Acquisition expenses. Restructuring cost reached USD 3.2 million, largely a noncash Impairment of USD 2.9 million on an epitaxial reactor under the Navitas 2.0 plan. Nine-month other expense totaled USD 209.7 million, driven by USD 211.0 million of earnout remeasurement losses booked below operating income. Adding that other expense and taxes to the operating loss implies a nine-month net loss near USD 299 million, a number we calculated.

Claros Integration, Continued Cash Burn and Open Risks

Claros, acquired October 6, 2026 using cash on hand, adds voltage regulator technology that combines several functions for AI data center power. Management expects operating losses and negative Operating Cash Flow to persist, with research and development, administrative and Capital outlays set to increase. It considers its cash sufficient even after the transaction, although the cash balance was not included in the material provided here. Research and Development spending hit USD 15.1 million, equal to 108% of revenue, meaning the company is still outspending its sales. Key risks include dependence on contract Manufacturing partners for capacity and yield, a shrinking China Business and the integration of Claros, with restructuring costs expected to be completed by the end of 2026.

Where Things Stand

Revenue rose because demand for U.S. data center products outweighed weakness elsewhere, while the loss deepened as spending outpaced sales and large noncash charges flowed through the income statement. The quarter points to momentum in one segment, yet nine-month sales are still down 14% and Navitas Semiconductor (NASDAQ:NVTS) is far from profitable at the operating line. The Claros purchase widens the company's AI power delivery offering, at a cost of roughly USD 126 million in cash. Next, watch whether data center sales keep scaling, whether Stock Compensation eases and how fast Claros adds to revenue.