Power Integrations (NASDAQ: POWI) is a semiconductor company that designs and sells integrated circuits for power conversion applications. Revenue comes from transactional sales of ICs to distributors and directly to electronics manufacturers, with distributors receiving price adjustments through a ship-and-debit mechanism where the final price is settled at the time of end-customer sale. The company competes on the basis of high integration, which enables power converter designs using fewer total components than discrete or hybrid alternatives, along with energy-efficiency features, safety functions, and design support tools. Gross profit was $241.6 million, or 55% of net revenue, in FY2025, up from $224.8 million, or 54% of net revenue, in FY2024. Approximately 98% of net revenue in each of FY2025, FY2024, and FY2023 was generated by sales to customers outside the United States. The company also offers high-voltage gate drivers as standalone ICs or circuit boards. Wafer fabrication, assembly, and most test operations are outsourced.

Revenue model

Transactional sales of ICs through distributors and direct channels. Distributors buy at a standard price and submit ship-and-debit claims for pre-approved price reductions upon sale to end customers. Revenue is recognized at transfer of control to the distributor. No subscription or licensing revenue is described in the filing excerpts.

Products and services

Integrated circuits for power conversion, including highly integrated power supply ICs and high-voltage gate drivers available as standalone ICs or as circuit boards containing gate-driver circuitry. Products are designed to reduce standby and active energy waste in power supplies for consumer electronics, household appliances, and other devices.

Customers and end markets

Electronics manufacturers and distributors serving end markets that include consumer electronics (computers, printers, televisions, mobile-phone chargers), household appliances (microwave ovens, dishwashers, washing machines), and other devices requiring power conversion. The company has no long-term contracts with customers; business is characterized by short-term orders. Distributor inventory levels and financial condition require ongoing monitoring. Higher-margin market categories contributed to gross margin improvement in FY2025.

Value-chain role

Fabless semiconductor designer. Wafer fabrication, assembly, and most test operations are outsourced. The company provides hands-on design assistance, software tools, and reference designs to help customers integrate its ICs into finished power supply designs. Products carry a 12-month conformance warranty from shipment date.

Geographic exposure

Approximately 98% of net revenue in FY2025, FY2024, and FY2023 was generated by sales to customers outside the United States. Substantially all foreign sales are denominated in U.S. dollars, creating exposure to dollar appreciation relative to local currencies in customer markets.

Source: SEC 10-K, filed 2026-02-06

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