# EDGAR Filing Document

**Accession Number:** 0000833640
**File Stem:** 0000833640-25-000155
**Filing Date:** 2025-8
**Character Count:** 30622
**Document Hash:** 9b17c03c5184255c4ee21b4f7acac277
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000833640-25-000155.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0000833640-25-000155

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** POWER INTEGRATIONS INC
- **CENTRAL INDEX KEY:** 0000833640
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 943065014
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23441
- **FILM NUMBER:** 251189728

**BUSINESS ADDRESS:**
- **STREET 1:** 5245 HELLYER AVE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95138
- **BUSINESS PHONE:** 4084149200

**MAIL ADDRESS:**
- **STREET 1:** 5245 HELLYER AVE
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95138

?xml version='1.0' encoding='ASCII'? POWI - 2025 - 8-K - ITEM 2.02

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**______________**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **August 6, 2025**

**______________**

**Power Integrations, Inc.**

(Exact name of registrant as specified in its charter)

**______________**

---

| | | |
|:---|:---|:---|
| **Delaware**<br>| **000-23441**<br>| **94-3065014**<br>|
| (State or other jurisdiction<br>| (Commission<br>| (IRS Employer<br>|
| of incorporation)<br>| File Number)<br>| Identification No.)<br>|

---

**5245 Hellyer Avenue**

**San Jose, California 95138-1002**

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code **(408) 414-9200**

**______________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class<br>| Trading Symbol(s)<br>| Name of each exchange on which registered<br>|
| Common Stock, $0.001 Par Value<br>| POWI<br>| The Nasdaq Global Select Market<br>|

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

---

| | |
|:---|:---|
| &nbsp;&nbsp;Emerging growth company  | &nbsp;&nbsp;☐ |
| &nbsp;&nbsp;If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | &nbsp;&nbsp; ☐ |

---

**Item 2.02. Results of Operations and Financial Condition.**

On August 6, 2025 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

[Exhibit 99.1](powi-20250806xex99d1.htm) [Press release dated August 6, 2025](powi-20250806xex99d1.htm) <br> Exhibit 104 Cover Page Interactive Data File (Formatted as Inline XBRL)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | Power Integrations, Inc. | Power Integrations, Inc. |
| Dated: | August 6, 2025 | By: | /s/ SANDEEP NAYYAR |
|  |  |  | Sandeep Nayyar |
|  |  |  | *Chief Financial Officer* |

---

## Exhibit 99.1

**Exhibit 99.1**

**Power Integrations Reports Second-Quarter Financial Results**

***Revenues increased nine percent year-over-year to $115.9 million***

***Company repurchased 706 thousand shares during the quarter for $32.6 million***

**SAN JOSE, CALIF. – August 6, 2025 –** Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended June 30, 2025. Net revenues for the second quarter were $115.9 million, up ten percent compared to the prior quarter and up nine percent from the second quarter of 2024. GAAP net income for the second quarter was $1.4 million or $0.02 per diluted share compared to $0.15 per diluted share in the prior quarter and $0.09 per diluted share in the second quarter of 2024. Cash flow from operations for the quarter was $29.1 million.

In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, a charge stemming from litigation related to an employment matter, amortization of acquisition-related intangible assets and the related tax effects. Non-GAAP net income for the second quarter of 2025 was $19.9 million or $0.35 per diluted share compared to $0.31 per diluted share in the prior quarter and $0.28 per diluted share in the second quarter of 2024. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.

Power Integrations CEO Jennifer Lloyd commented: "Revenues increased nine percent year-over-year driven by strong growth in the industrial category. While near-term visibility is low due to macroeconomic uncertainty, our long-term growth drivers are on track. Our automotive business continues to build toward a material revenue contribution in 2026. Revenues from GaN-based products grew more than 50 percent in the first half with adoption broadening into appliance, industrial and EV applications. Our 1250- and 1700-volt GaN technologies are well suited for the requirements of next-generation AI datacenters, and we are developing differentiated, system-level products to capitalize on that opportunity."

**Additional Highlights**

● The company repurchased 706 thousand shares during the quarter for $32.6 million; $42.4 million remained on its repurchase authorization at quarter-end.

● Power Integrations paid a dividend of $0.21 per share on June 30, 2025. A dividend of $0.21 per share will be paid on September 30, 2025, to stockholders of record as of August 29, 2025.

------

**Financial Outlook**

The company issued the following forecast for the third quarter of 2025:

● Revenues are expected to be in a range of $118 million plus or minus $5 million.

● GAAP gross margin is expected to be between 54.5 percent and 55 percent, and non-GAAP gross margin is expected to be between 55 percent and 55.5 percent. The difference between GAAP and non-GAAP is attributable to stock-based compensation and, to a lesser extent, amortization of acquisition-related intangible assets.

● GAAP operating expenses are expected to be approximately $72.5 million; non-GAAP operating expenses are expected to be approximately $47.5 million. Non-GAAP operating expenses are expected to exclude approximately $10 million of stock-based compensation and a net non-cash charge of approximately $15 million reflecting the immediate expensing of stock awards previously granted to the company's former CEO. The grants will continue to vest according to their original terms, including performance criteria, under a consultancy agreement with the former CEO.

#### Conference Call Today at 1:30 p.m. Pacific Time
Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the investor section of the company's website, *http://investors.power.com*. Members of the investment community can register for the conference call by visiting *https://emportal.ink/4eCXH0R*.

#### About Power Integrations
**Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company's products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.**

#### Note Regarding Use of Non-GAAP Financial Measures
**In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, other operating expenses of $9.2 million stemming from an employment litigation matter and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to one measure, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company's compensation mix and will continue to result in significant expenses in the company's GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations' industry, may calculate non-GAAP** 

------

#### measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

#### Note Regarding Forward-Looking Statements
The above statements regarding the company's forecast for its third-quarter financial performance are forward-looking statements reflecting management's current expectations and beliefs. These statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with the company's business, actual results could differ materially from those projected or implied by these statements. These risks and uncertainties include, but are not limited to: changes in trade policies, in particular the escalation and imposition of new and higher tariffs, which could reduce demand for end products that incorporate our integrated circuits and/or place pressure on our prices as our customers seek to offset the impact of increased tariffs on their own products; the company's ability to supply products and its ability to conduct other aspects of its business such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, which may impact the level of demand for the company's products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company's revenues to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates. In addition, new product introductions and design wins are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the marketplace, including product development delays and defects and market acceptance of the new products. These and other risk factors that may cause actual results to differ are more fully explained under the caption "Risk Factors" in the company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 7, 2025. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether because of new information, future events or otherwise, except as otherwise required by law.

*Power Integrations and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.*

------

**POWER INTEGRATIONS, INC.**

**CONSOLIDATED STATEMENTS OF INCOME**

**(in thousands, except per-share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **June 30, <br>2025** | **March 31, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** |
| NET REVENUES | $| 115852 | $| 105529 | $| 106198 | $| 221381 | $| 197886 |
| COST OF REVENUES |  | 51898 |  | 47294 |  | 49665 |  | 99192 |  | 93573 |
| GROSS PROFIT |  | 63954 |  | 58235 |  | 56533 |  | 122189 |  | 104313 |
| OPERATING EXPENSES: |  |  |  |  |  |  |  |  |  |  |
| Research and development |  | 25991 |  | 24095 |  | 26047 |  | 50086 |  | 49272 |
| Sales and marketing |  | 18349 |  | 16375 |  | 18053 |  | 34724 |  | 33775 |
| General and administrative |  | 11808 |  | 11047 |  | 10475 |  | 22855 |  | 18838 |
| Other operating expenses |  | 9151 |  |  |  |  |  | 9151 |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses |  | 65299 |  | 51517 |  | 54575 |  | 116816 |  | 101885 |
| INCOME (LOSS) FROM OPERATIONS |  | (1345) |  | 6718 |  | 1958 |  | 5373 |  | 2428 |
| OTHER INCOME |  | 2690 |  | 3167 |  | 3189 |  | 5857 |  | 6691 |
| INCOME BEFORE INCOME TAXES |  | 1345 |  | 9885 |  | 5147 |  | 11230 |  | 9119 |
| PROVISION (BENEFIT) FOR INCOME TAXES |  | (24) |  | 1095 |  | 298 |  | 1071 |  | 316 |
| NET INCOME | $ | 1369 | $ | 8790 | $ | 4849 | $ | 10159 | $ | 8803 |
| EARNINGS PER SHARE: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $ | 0.02 | $ | 0.15 | $ | 0.09 | $ | 0.18 | $ | 0.15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $ | 0.02 | $ | 0.15 | $ | 0.09 | $ | 0.18 | $ | 0.15 |
| SHARES USED IN PER-SHARE CALCULATION: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  | 56274 |  | 56871 |  | 56780 |  | 56571 |  | 56807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  | 56387 |  | 57123 |  | 56984 |  | 56787 |  | 57104 |
| SUPPLEMENTAL INFORMATION: |  |  |  |  |  |  |  |  |  |  |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **June 30, <br>2025** | **March 31, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** |
| Stock-based compensation expenses included in: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | $| 592 | $| 657 | $| 707 | $| 1249 | $| 1053 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development |  | 3190 |  | 2250 |  | 3885 |  | 5440 |  | 6310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing |  | 1922 |  | 1586 |  | 2510 |  | 3508 |  | 4114 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative |  | 4373 |  | 4190 |  | 3933 |  | 8563 |  | 5972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $ | 10077 | $ | 8683 | $ | 11035 | $ | 18760 | $ | 17449 |
| Cost of revenues includes: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | $ | 146 | $ | 147 | $ | 258 | $ | 293 | $ | 740 |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **June 30, <br>2025** | **March 31, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2025** | **June 30, <br>2024** | **June 30, <br>2024** |
| REVENUE MIX BY END MARKET |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Communications |  | 11% |  | 10% |  | 11% |  | 10% |  | 11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Computer |  | 12% |  | 12% |  | 14% |  | 12% |  | 13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer |  | 37% |  | 44% |  | 42% |  | 41% |  | 41% |
| &nbsp;&nbsp;&nbsp;&nbsp;Industrial |  | 40% |  | 34% |  | 33% |  | 37% |  | 35% |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** |
| **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** | **RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS** |
| **(in thousands, except per-share amounts)** | **(in thousands, except per-share amounts)** | **(in thousands, except per-share amounts)** | **(in thousands, except per-share amounts)** | **(in thousands, except per-share amounts)** | **(in thousands, except per-share amounts)** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| **RECONCILIATION OF GROSS PROFIT** |  |  |  |  |  |
| GAAP gross profit | $63954 | $58235 | $56533 | $122189 | $104313 |
| &nbsp;&nbsp;&nbsp;&nbsp;*GAAP gross margin* | *55.2%* | *55.2%* | *53.2%* | *55.2%* | *52.7%* |
| Stock-based compensation included in cost of revenues | 592 | 657 | 707 | 1249 | 1053 |
| Amortization of acquisition-related intangible assets | 146 | 147 | 258 | 293 | 740 |
| Non-GAAP gross profit | $64692 | $59039 | $57498 | $123731 | $106106 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Non-GAAP gross margin* | *55.8%* | *55.9%* | *54.1%* | *55.9%* | *53.6%* |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| **RECONCILIATION OF OPERATING EXPENSES** |  |  |  |  |  |
| GAAP operating expenses | $65299 | $51517 | $54575 | $116816 | $101885 |
| Less: Stock-based compensation expense included in operating expenses |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 3190 | 2250 | 3885 | 5440 | 6310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 1922 | 1586 | 2510 | 3508 | 4114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 4373 | 4190 | 3933 | 8563 | 5972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 9151 |  |  | 9151 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 18636 | 8026 | 10328 | 26662 | 16396 |
| Non-GAAP operating expenses | $46663 | $43491 | $44247 | $90154 | $85489 |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| **RECONCILIATION OF INCOME FROM OPERATIONS** |  |  |  |  |  |
| GAAP income (loss) from operations | $(1345) | $6718 | $1958 | $5373 | $2428 |
| &nbsp;&nbsp;&nbsp;&nbsp;*GAAP operating margin* | *–1.2%* | *6.4%* | *1.8%* | *2.4%* | *1.2%* |
| Add: Total stock-based compensation | 10077 | 8683 | 11035 | 18760 | 17449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 146 | 147 | 258 | 293 | 740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 9151 |  |  | 9151 |  |
| Non-GAAP income from operations | $18029 | $15548 | $13251 | $33577 | $20617 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Non-GAAP operating margin* | *15.6%* | *14.7%* | *12.5%* | *15.2%* | *10.4%* |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| **RECONCILIATION OF PROVISION FOR INCOME TAXES** |  |  |  |  |  |
| GAAP provision (benefit) for income taxes | $(24) | $1095 | $298 | $1071 | $316 |
| &nbsp;&nbsp;&nbsp;&nbsp;*GAAP effective tax rate* | *–1.8%* | *11.1%* | *5.8%* | *9.5%* | *3.5%* |
| Tax effect of adjustments to GAAP results | (871) | 239 | (269) | (632) | (627) |
| Non-GAAP provision for income taxes | $847 | $856 | $567 | $1703 | $943 |
| &nbsp;&nbsp;&nbsp;&nbsp;*Non-GAAP effective tax rate* | *4.1%* | *4.6%* | *3.4%* | *4.3%* | *3.5%* |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| **RECONCILIATION OF NET INCOME PER SHARE (DILUTED)** |  |  |  |  |  |
| GAAP net income | $1369 | $8790 | $4849 | $10159 | $8803 |
| Adjustments to GAAP net income |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 10077 | 8683 | 11035 | 18760 | 17449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquisition-related intangible assets | 146 | 147 | 258 | 293 | 740 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 9151 |  |  | 9151 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect of items excluded from non-GAAP results | (871) | 239 | (269) | (632) | (627) |
| Non-GAAP net income | $19872 | $17859 | $15873 | $37731 | $26365 |
| Average shares outstanding for calculation of non-GAAP net income per share (diluted) | 56387 | 57123 | 56984 | 56787 | 57104 |
| Non-GAAP net income per share (diluted) | $0.35 | $0.31 | $0.28 | $0.66 | $0.46 |
| GAAP net income per share (diluted) | $0.02 | $0.15 | $0.09 | $0.18 | $0.15 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** |
| **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** | **CONSOLIDATED BALANCE SHEETS** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **December 31,<br>2023** |
| **ASSETS** |  |  |  |
| &nbsp;&nbsp;CURRENT ASSETS: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents  | $66935 | $49614 | $50972 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term marketable securities | 201801 | 239682 | 249023 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 27583 | 22806 | 27172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories  | 168396 | 169068 | 165612 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets  | 18188 | 18645 | 21260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 482903 | 499815 | 514039 |
| &nbsp;&nbsp;PROPERTY AND EQUIPMENT, net  | 147955 | 146786 | 149562 |
| &nbsp;&nbsp;INTANGIBLE ASSETS, net | 7660 | 7868 | 8075 |
| &nbsp;&nbsp;GOODWILL | 95271 | 95271 | 95271 |
| &nbsp;&nbsp;DEFERRED TAX ASSETS | 37174 | 38906 | 36485 |
| &nbsp;&nbsp;OTHER ASSETS | 26574 | 25754 | 25394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $797537 | $814400 | $828826 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |
| &nbsp;&nbsp;CURRENT LIABILITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable  | $31044 | $33587 | $29789 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and related expenses  | 14881 | 12526 | 13987 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | 751 | 781 | 961 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued liabilities  | 18323 | 8056 | 10580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 64999 | 54950 | 55317 |
| &nbsp;&nbsp;LONG-TERM LIABILITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 4063 | 3992 | 3871 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 24687 | 19643 | 19866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 93749 | 78585 | 79054 |
| &nbsp;&nbsp;STOCKHOLDERS' EQUITY: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock  | 21 | 22 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 7106 | 18734 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1287) | (2183) | (3023) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 705054 | 730870 | 734039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 703788 | 735815 | 749772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $797537 | $814400 | $828826 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** | **POWER INTEGRATIONS, INC.** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** | **CONSOLIDATED STATEMENTS OF CASH FLOWS** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30, <br>2025** | **March 31, <br>2025** | **June 30, <br>2024** | **June 30, <br>2025** | **June 30, <br>2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $1369 | $8790 | $4849 | $10159 | $8803 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to cash provided by operating activities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 7002 | 7244 | 8391 | 14246 | 17106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 208 | 207 | 320 | 415 | 863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment |  |  |  |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 10077 | 8683 | 11035 | 18760 | 17449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of discount on marketable securities | (375) | (346) | (413) | (721) | (909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 1683 | (2537) | (2152) | (854) | (3482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts receivable allowance for credit losses |  | (381) | 163 | (381) | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (4777) | 4747 | (4256) | (30) | (2024) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 672 | (3456) | (2019) | (2784) | (6720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 3036 | 3369 | 1226 | 6405 | 2072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (3754) | 4002 | (1411) | 248 | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable and other accrued liabilities | 13931 | (3936) | 1898 | 9995 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 29072 | 26386 | 17631 | 55458 | 33536 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (5926) | (5726) | (4167) | (11652) | (8510) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of marketable securities | (42066) | (5630) | (27918) | (47696) | (77830) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales and maturities of marketable securities | 80610 | 15882 | 31194 | 96492 | 85392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 32618 | 4526 | (891) | 37144 | (948) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from issuance of common stock |  | 2787 |  | 2787 | 2691 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (32560) | (23098) | (11338) | (55658) | (25979) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of dividends to stockholders | (11809) | (11959) | (11352) | (23768) | (22736) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from draw on line of credit | 13000 |  |  | 13000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on line of credit | (13000) |  |  | (13000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (44369) | (32270) | (22690) | (76639) | (46024) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 17321 | (1358) | (5950) | 15963 | (13436) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 49614 | 50972 | 56443 | 50972 | 63929 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $66935 | $49614 | $50493 | $66935 | $50493 |

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#### Contacts
Joe Shiffler<br>Power Integrations, Inc.<br>(408) 414-8528<br>*joe@power.com*

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