Diodes Inc (DIOD) Q4 2025 Earnings Call Highlights: Record Revenue Growth and Strategic Ambitions

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Wed, February 11, 2026 at 2:02 PM GMT+9 4 min read

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**Fourth-Quarter Revenue:** $391.6 million, a 15.4% increase year over year.

**Full-Year Revenue:** $1.5 billion, a 13% increase from 2024.

**Fourth-Quarter GAAP Gross Profit:** $121.9 million or 31.1% of revenue.

**Full-Year GAAP Gross Profit:** $462.4 million or 31.3% of revenue.

**Fourth-Quarter GAAP Net Income:** $10.2 million or $0.22 per diluted share.

**Full-Year GAAP Net Income:** $66.1 million or $1.43 per diluted share.

**Fourth-Quarter Non-GAAP Adjusted Net Income:** $15.7 million or $0.34 per diluted share.

**Full-Year Non-GAAP Adjusted Net Income:** $56.7 million or $1.22 per diluted share.

**Fourth-Quarter EBITDA:** $41.9 million or 10.7% of revenue.

**Full-Year EBITDA:** $199.2 million or 13.4% of revenue.

**Fourth-Quarter Cash Flow from Operations:** $38.1 million.

**Full-Year Cash Flow from Operations:** $215.5 million.

**Fourth-Quarter Free Cash Flow:** $12.4 million.

**Full-Year Free Cash Flow:** $137.2 million.

**Fourth-Quarter Capital Expenditures:** $25.7 million or 6.6% of revenue.

**Full-Year Capital Expenditures:** $78.4 million or 5.3% of revenue.

**First-Quarter 2026 Revenue Guidance:** Approximately $395 million, plus or minus 3%.

**First-Quarter 2026 GAAP Gross Margin Guidance:** 31.5%, plus or minus 1%.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Diodes Inc (NASDAQ:DIOD) reported a 15% year-over-year revenue growth for the fourth quarter and 13% for the full year, marking the highest annual growth since 2021.

The company experienced significant growth in the Computing market, with a 25% increase driven by AI server-related applications.

Diodes Inc (NASDAQ:DIOD) achieved a 6% sequential and 24% year-over-year increase in the Automotive market, contributing to improved gross margins.

The company introduced over 650 new part numbers in 2025, with 40% specifically for the Automotive market, increasing addressable content per vehicle.

Diodes Inc (NASDAQ:DIOD) has set ambitious three-year interim financial targets, aiming for $2 billion in annual revenue and $700 million in gross profit, highlighting strong operating leverage and earnings potential.

Negative Points

GAAP gross profit margin decreased to 31.1% in the fourth quarter from 32.7% in the prior year, indicating pressure on profitability.

GAAP net income for the fourth quarter was $10.2 million, down from $14.3 million in the previous quarter.

The Consumer market revenue declined by 5% sequentially, reflecting challenges in this segment.

The company's free cash flow was impacted by capital expenditures, with a net cash flow of negative $9.7 million for the fourth quarter.

Diodes Inc (NASDAQ:DIOD) faces challenges with underutilization charges, which are expected to impact gross margins until manufacturing efficiencies improve.

 






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Q & A Highlights

Q: Gary, you outlined some aggressive targets. Can you walk us through how you plan to achieve them? A: Gary Yu, President and CEO: We remain committed to our long-term goal of $1 billion in gross profit. Our interim target is $2 billion in revenue, representing a 10.5% CAGR, with $700 million in gross profit. This involves focusing on Automotive, Industrial, and AI server-related applications, improving cost structure, and achieving a 45% GP flow-through for incremental revenue.

Q: Regarding gross margin improvement, is it due to leverage or operational efficiency? A: Gary Yu, President and CEO: It’s a combination of both. We’ve been improving our cost structure, manufacturing efficiency, and product mix. Increasing revenue will help address underloading issues in manufacturing, contributing to margin improvement.

Q: Should we expect the interim goal to be achieved by 2028? A: Gary Yu, President and CEO: Yes, this is a commitment to the Board and the Street, aiming for 2028.

Q: Is the major driver for gross margin improvement the reduction of underutilization charges? A: Gary Yu, President and CEO: Yes, underload charges are key, but we are also focusing on product mix enhancement and high-margin segments like Automotive, Industrial, and AI-related servers to improve GP dollars and percentage.

Q: Can you discuss the impact of manufacturing services agreements ending this year? A: Gary Yu, President and CEO: These agreements are ending, and we are transitioning production to our own fabs. This transition is promising, and we expect benefits to contribute to our GP percentage starting next year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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