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1. Company Snapshot

1.a. Company Description

Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally.The company offers a range of brick-format DC-DC converters; complementary components; and input and output voltage, and output power products, as well as electrical and mechanical accessories.It also provides custom power systems solutions.


The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, industrial automation and equipment, instrumentation, test equipment, solid state lighting, telecommunications and networking infrastructure, and vehicles and transportation markets.Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.

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1.b. Last Insights on VICR

Vicor Corporation's recent performance was driven by robust Q3 results, showcasing accelerating revenue growth of 18.5% year-over-year to $110.4 million, and expanding margins. The company's licensing business is thriving, with royalty revenues significantly contributing to the top and bottom line. A strong backlog and growing profitability support a successful turnaround. Additionally, Vicor's aggressive share buybacks and growing royalty income are key positives. According to a recent upgrade, the company trades below its five-year average P/E, suggesting potential for multiple expansion. (Source: Vicor: The Narrative Has Changed)

1.c. Company Highlights

2. Vicor's Q3 Earnings: A Mixed Bag with Promising Licensing Growth

Vicor Corporation reported product revenues and licensing income of $110.4 million for Q3 2025, a 21.7% sequential decline from Q2 2025. The gross margin decreased by 780 basis points due to the $45 million patent litigation settlement in the previous quarter. Despite this, the company reported a net income of $28.3 million and GAAP diluted income per share of $0.63, beating estimates of $0.495. Operating expenses decreased by 8.9% sequentially to $42.6 million.

Publication Date: Oct -27

📋 Highlights
  • Sequential Revenue Decline:: Q3 product revenues and licensing income totaled $110.4M, down 21.7% from Q2 2025’s $141.4M, despite 8.2% growth in Advanced Products and 26.6% in Brick Products.
  • Gross Margin Drop:: Gross margin fell 780 bps sequentially due to a $45M patent litigation settlement boost in Q2, now absent, while operating expenses decreased 8.9% to $42.6M.
  • Licensing Growth:: Licensing income surged 50% annually, with a $90M run rate, and Patrizio projected doubling the licensing business within 2 years through new agreements and expanded IP monetization.
  • Litigation ROI:: Expected $400M return on litigation investments by 2026, including $45M from Q2 settlements and future enforcement of unasserted patents in AI/data center markets.
  • VPD Production Timeline:: Second-gen VPD samples available by late 2025, with production starting in Q1 2026 for an OEM/hyperscaler, targeting 100%+ solution for 6,000–7,000A processor demands.

Segment Performance

Advanced Products revenue increased 8.2% sequentially to $65.5 million, while Brick Products revenue rose 26.6% to $44.9 million. Shipments to stocking distributors increased by 39% sequentially and 6% year-over-year. The growth in product bookings and shipments was driven by the delivery of generation components and second-generation vertical power delivery.

Licensing Income and Growth Prospects

The company is optimistic about its licensing business, with Patrizio Vinciarelli stating that licensing income is expected to grow at a rate of 50% per year. Vicor has already entered into a second license with an existing licensee and expects to sign up more customers in the AI and data center spaces over the next couple of years. The existing exclusion order from the ITC case will remain in effect, potentially generating significant returns.

Valuation and Outlook

With a P/E Ratio of 75.72 and an EV/EBITDA of 159.26, the stock appears to be priced for significant growth expectations. Analysts estimate next year's revenue growth at 3.6%. Vicor's technology has advantages over traditional VRs and IVRs, and the company is well-positioned to capitalize on the growing demand for AI and data center power solutions. The current fab utilization and plans to fill it are expected to drive product revenue growth. The ROE of 12.28% and ROIC of 7192.95% indicate a strong return on equity and invested capital.

Future Prospects

Vicor's second-generation VPD technology is expected to drive growth, with production slated to start in Q1 next year. The company is engaged with an OEM and a hyperscaler, and samples are expected to be available in January. The licensing business is expected to contribute significantly to revenue growth, with a potential run rate of $100 million and beyond over the next couple of years.

3. NewsRoom

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Geode Capital Management LLC Cuts Stock Holdings in Vicor Corporation $VICR

Nov -29

Source: defenseworld.net

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Corporate Veep Sells $1.8 Million in Shares of AI Infrastructure Company Vicor (Nasdaq: VICR)

Nov -11

Source: fool.com

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Vicor: The Narrative Has Changed (Rating Upgrade)

Oct -23

Source: seekingalpha.com

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Vicor: The Qualcomm Of AI Power Converters

Oct -23

Source: seekingalpha.com

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Vicor (NASDAQ:VICR) Shares Gap Up Following Better-Than-Expected Earnings

Oct -23

Source: defenseworld.net

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Why Vicor Stock Skyrocketed Today

Oct -22

Source: fool.com

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Vicor stock surge 27% after robust Q3 performance on strong licensing demand

Oct -22

Source: invezz.com

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Vicor Corporation (VICR) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.11%)

6. Segments

Advanced Products

Expected Growth: 10%

Vicor's Advanced Products segment growth is driven by increasing demand for high-performance power conversion solutions in aerospace, defense, and industrial markets. The adoption of electrification in transportation and renewable energy systems also fuels growth. Additionally, Vicor's innovative products, such as its modular power converters, address the need for high-density, high-reliability power systems, further contributing to the segment's 10% growth.

Brick

Expected Growth: 8%

Vicor's Brick growth is driven by increasing adoption in datacenter and 5G infrastructure, fueled by rising demand for high-power density and efficient power conversion. Additionally, growing electrification in transportation and industrial markets, as well as expanding use in aerospace and defense, contribute to the segment's 8% growth.

7. Detailed Products

VI Chip

High-performance, high-density DC-DC converters for high-reliability applications

PRM (Pre-Regulator Module)

High-power, high-density pre-regulator modules for high-reliability applications

VTM (Voltage Transformation Module)

High-performance, high-density voltage transformation modules for high-reliability applications

PICM (Power Component Module)

High-performance, high-density power component modules for high-reliability applications

Mil-COTS (Military-Commercial-Off-The-Shelf) Products

Ruggedized, high-reliability power conversion products for military and defense applications

Custom Power Solutions

Custom-designed power conversion solutions for unique customer requirements

8. Vicor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Vicor Corporation's products are specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few key customers increases the threat of substitutes.

Bargaining Power Of Customers

Vicor Corporation's customers are large and have significant bargaining power due to their size and purchasing power. This gives them the ability to negotiate prices and terms.

Bargaining Power Of Suppliers

Vicor Corporation has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers also help to mitigate this risk.

Threat Of New Entrants

The barriers to entry in Vicor Corporation's industry are high, making it difficult for new entrants to emerge. The company's established relationships and specialized products also make it challenging for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry in Vicor Corporation's industry is moderate, with a few established players competing for market share. However, the company's differentiated products and strong relationships with customers help to mitigate this risk.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.50%
Debt Cost 3.95%
Equity Weight 98.50%
Equity Cost 11.55%
WACC 11.44%
Leverage 1.52%

11. Quality Control: Vicor Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Satellogic

A-Score: 5.0/10

Value: 8.0

Growth: 4.2

Quality: 7.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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BlackSky Technology

A-Score: 3.8/10

Value: 4.4

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Vicor

A-Score: 3.7/10

Value: 0.8

Growth: 4.7

Quality: 8.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

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Focus Universal

A-Score: 3.6/10

Value: 6.0

Growth: 2.0

Quality: 3.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Mesa Laboratories

A-Score: 3.0/10

Value: 6.1

Growth: 4.3

Quality: 3.9

Yield: 1.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

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Genasys

A-Score: 2.1/10

Value: 6.6

Growth: 0.1

Quality: 2.9

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

96.83$

Current Price

96.83$

Potential

-0.00%

Expected Cash-Flows