Financial Analysis

"11. Commitments and Contingencies Capital Expenditure Commitments At June 30, 2026, the Company had appro ximately $ 22,745,000 of canc elable and non-cancelable capital expenditure commitments, principally for manufacturing equipment. SynQor Litigation and Payment of Final Judgment Amount As previously reported in its Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K, the Company is the defendant in a patent infringement lawsuit originally filed on January 28, 2011 by SynQor, Inc. (SynQor) in the U.S. District Court for the Eastern District of Texas (the District Court). SynQor alleged that certain of the Companys products infringed certain United States Patents owned by SynQor. On October 26, 2022, after a trial in the District Court, the jury returned a verdict finding that the Company willfully infringed one SynQor patent, and awarding SynQor damages in the amount of $ 6,500,000 . On May 20, 2024, the District Court issued an Amended Corrected Final Judgment, awarding SynQor actual damages of $ 6,500,000 , enhanced damages of $ 4,500,000 , costs in the amount of approximately $ 87,000 , attorney fees in the amount of $ 9,500,000 , and pre-judgment interest of approximately $ 5,400,000 , for a total judgment of approximately $ 26,000,000 . In addition, the District Court ordered that post-judgment interest would accrue at an amount of $ 2,323 per day starting on April 24, 2024 until the judgment is paid, compounded annually, and that additional post-judgment …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys net revenues disaggregated by the category of revenue, by product line (in thousands): Three Months Ended June 30, 2026 Brick Products Advanced Products Total Direct customers, contract manufacturers and non-stocking distributors $ 25,786 $ 52,371 $ 78,157 Stocking distributors, net of sales allowances 23,314 9,432 32,746 Non-recurring engineering 91 1,932 2,023 Royalties 30,426 30,426 Other $ 49,191 $ 94,161 $ 143,352 Six Months Ended June 30, 2026 Brick Products Advanced Products Total Direct customers, contract manufacturers and non-stocking distributors $ 50,691 $ 92,463 $ 143,154 Stocking distributors, net of sales allowances 46,373 17,794 64,167 Non-recurring engineering 176 3,433 3,609 Royalties 45,391 45,391 Other $ 97,240 $ 159,081 $ 256,321 Three Months Ended June 30, 2025 Brick Products Advanced Products Total Direct customers, contract manufacturers and non-stocking distributors $ 19,620 $ 40,154 $ 59,774 Stocking distributors, net of sales allowances 15,604 7,995 23,599 Non-recurring engineering 256 1,704 1,960 Royalties 10,353 10,353 Other 360 360 $ 35,480 $ 60,566 $ 96,046 Six Months Ended June 30, 2025 Brick Products Advanced Products Total Direct customers, contract manufacturers and non-stocking distributors $ 37,902 $ 83,642 $ 121,544 Stocking distributors, net of sales allowances 30,968 11,841 42,809 Non-recurring engineering 721 3,105 3,826 Royalties 21,115 21,115 Other 720 720 $ 69,591 $ 120,423 $ 190,014 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

7. Stock-Based Compensation The Company uses the Black-Scholes option pricing model to calculate the fair value of stock option awards, whether they possess time-based vesting provisions or performance-based vesting provisions, and awards granted under the Vicor Corporation 2017 Employee Stock Purchase Plan (ESPP), as of their grant date. Stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Cost of product revenues $ 897 $ 899 $ 1,733 $ 1,866 Selling, general and administrative 2,085 1,790 4,044 3,984 Research and development 1,198 1,020 2,255 2,208 Total stock-based compensation $ 4,180 $ 3,709 $ 8,032 $ 8,058 Compensation expense by type of award was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Stock options $ 3,792 $ 3,386 $ 7,319 $ 7,463 ESPP 388 323 713 595 Total stock-based compensation $ 4,180 $ 3,709 $ 8,032 $ 8,058 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

4. Fair Value Measurements The Company accounts for certain financial assets at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. A three-level hierarchy is used to show the extent and level of judgment used to estimate fair value measurements. Assets and liabilities measured at fair value on a recurring basis included the following as of June 30, 2026 (in thousands): Using Significant Quoted Prices Other Significant in Active Observable Unobservable Total Fair Markets Inputs Inputs Value as of (Level 1) (Level 2) (Level 3) June 30, 2026 Cash equivalents: Money market funds $ 412,129 $ $ $ 412,129 Long-term investment: Failed Auction Security 2,525 2,525 Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2025 (in thousands): Using Significant Quoted Prices Other Significant in Active Observable Unobservable Total Fair Markets Inputs Inputs Value as of (Level 1) (Level 2) (Level 3) December 31, 2025 Cash equivalents: Money market funds $ 367,340 $ $ $ 367,340 Long-term investment: Failed Auction Security 2,462 2,462 The change in the esti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

9. Income Taxes The (benefit) provision for income taxes is based on the estimated annual effective tax rate for the year which includes estimated federal, state and foreign income taxes on the Company's projected pre-tax income (loss). The (benefit) provision for income taxes and the effective income tax rates were as follows (dollars in thousands): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Benefit) provision for income taxes $ ( 10,863 ) $ 7,842 $ ( 11,136 ) $ 8,266 Effective income tax rate ( 27.9 )% 16.0 % ( 18.8 )% 15.9 % The effective tax rates differ from the statutory tax rates for the three and six months ended June 30, 2026 primarily due to excess deductions related to share-based compensation, and for the three and six months ended June 30, 2025 primarily due to the Companys full valuation allowance position against net domestic deferred tax assets as of June 30, 2025. The (benefit) provision for income taxes for the three and six months ended June 30, 2026 and 2025 included estimated federal, state, and foreign income taxes in jurisdictions in which the Company does not have sufficient tax attributes. The Company released its valuation allowance on the majority of its deferred tax assets as of December 31, 2025. The Company maintained a valuation allowance of $ 17,500,000 related primarily to state tax attributes as of June 30, 2026. On a periodic basis, the Company reassesses any valuation allowances that it maintains on its defer …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

8. Rental Income Income, net under the Companys operating lease agreement, for its owned facility leased to a third party in California, was approximately $ 284,000 for the three-month periods ended June 30, 2026 and 2025 , and $ 567,000 for the six-month periods ended June 30, 2026 and 2025 . The initial term of the lease agreement expired on May 31, 2024 and was extended for an additional eighty-four months, commencing June 1, 2024 and ending May 31, 2031. …

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6. Revenues The following tables present the Companys net revenues disaggregated by geography based on the location of the customer, by product line (in thousands): Three Months Ended June 30, 2026 Brick Products Advanced Products Total United States $ 20,355 $ 57,062 $ 77,417 Europe 12,115 4,099 16,214 Asia Pacific 16,698 32,705 49,403 All other 23 295 318 $ 49,191 $ 94,161 $ 143,352 Six Months Ended June 30, 2026 Brick Products Advanced Products Total United States $ 43,570 $ 91,560 $ 135,130 Europe 22,386 7,428 29,814 Asia Pacific 31,200 59,425 90,625 All other 84 668 752 $ 97,240 $ 159,081 $ 256,321 Three Months Ended June 30, 2025 Brick Products Advanced Products Total United States $ 15,422 $ 30,824 $ 46,246 Europe 6,142 4,720 10,862 Asia Pacific 13,822 24,880 38,702 All other 94 142 236 $ 35,480 $ 60,566 $ 96,046 Six Months Ended June 30, 2025 Brick Products Advanced Products Total United States $ 28,957 $ 54,131 $ 83,088 Europe 13,915 6,820 20,735 Asia Pacific 26,623 59,166 85,789 All other 96 306 402 $ 69,591 $ 120,423 $ 190,014 The following tables present the Companys net revenues disaggregated by the category of revenue, by product line (in thousands): Three Months Ended June 30, 2026 Brick Products Advanced Products Total Direct customers, contract manufacturers and non-stocking distributors $ 25,786 $ 52,371 $ 78,157 Stocking distributors, net of sales allowances 23,314 9,432 32,746 Non-recurring engineering 91 1,932 2,023 Royalties 30,426 30,426 Other $ 49,191 …

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5. Segment Information The Company has determined its Chief Operating Decision Maker (CODM) to be the Chief Executive Officer (CEO). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. The Company is organized and operates as a single operating and reportable segment. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income. The CODM manages the business using consolidated expense information for the single operating segment. All expense categories on the Condensed Consolidated Statements of Operations are significant and there are no other significant segment expenses that would require disclosure. The Company offers a comprehensive range of modular building blocks enabling rapid design of a power system specific to a customers precise needs. Based on design, performance, and form factor considerations, as well as the range of evolving applications for which the products are appropriate, the Company categorizes its product portfolios as either Advanced Products or Brick Products, which together constitute one segment. Both product lines are built in the Companys manufacturing facility in Andover, Massachusetts employing similar processing and production techniques, and are supported by the same sales and marketing organizations. The measure of segment assets is reported on …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing