Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Navitas Semiconductor Q1 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. To ask a question, simply press star one on your telephone keypad. To withdraw your question, press star one again. It is now my pleasure to turn the call over to Leanne Sievers. You may begin. Good afternoon, and welcome to Navitas Semiconductor's first quarter 2026 financial results conference call. Joining us today are Navitas President and CEO, Chris Allexandre, and CFO, Tonya Stevens. I'd like to remind our listeners that the results announced today are preliminary as they are subject to the company finalizing its closing procedures and customary quarterly review by the company's independent registered public accounting firm. As such, these results are unaudited and subject to revision until the company files its Form 10-Q for its quarter ended March 31st, 2026. In addition, management's prepared re-remarks contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore, we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, May 5th, 2026. Navitas assumes no obligation to update these projections in the future as market conditions may or may not change, except to the extent required by applicable law. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 90 days in the investor relations section on Navitas website at www.navitassemi.com. Now it's my pleasure to turn over the call to Navitas President and Chief Executive Officer. Chris, please go ahead. Good afternoon, and welcome to everyone on this phone and webcast. We appreciate you joining us into this call. I'm pleased to report that Q1 is reflecting another quarter of solid progress and growing momentum on our transformation to Navitas 2.0, highlighted by the company's return to top-line sequential growth. For those of you that may be new or still coming up to speed on our story, I want to begin with a brief high-level summary of our ongoing strategic transformation and Navitas 2.0 vision. Over the past two quarters, we have meaningfully accelerated our pivot away from the company's historical mobile and low-end consumer business to focus the entire organization on higher power markets, where Navitas GaN and high voltage SiC product can deliver long-term differentiation and value. Today, we are singularly focused on four high-growth, high-value market segments, AI data center, energy and green infrastructure, performance computing, and industrial electrification. Our goal for our objective are to rapidly achieve scale in these higher value markets in support of driving sustainable and profitable growth. Turning to an overview of the quarter. Our Q1 financial results demonstrated solid quarter-over-quarter improvement. We observed growing momentum across our high-power markets and expanded customer engagement. Highlighting the quarter, we achieved the expected return to growth in Q1, with revenue increasing 18% sequentially. The renewed growth was driven by our high-power markets, which also represented a growing and larger majority of total revenue as we continue to reduce reliance on the company's historical mobile and low-end consumer business. Although far too early to declare victory, we effectively completed our realignment of the entire organization, and Navitas is back to growth, driven by our high power market. In fact, revenue from our high power business grew up to 25% year-over-year, with all four of our targeted high power end markets increasing sequentially in Q1. The increased contribution from a high power market also drove a favorable mix in our overall revenue mix, resulting in improved Q1 gross margin. Consistent with our previously communicated expectation, we anticipate continued sequential top-line growth and gradual gross margin expansion throughout 2026. The ultimate success of our strategic transformation continues to be grounded in four pillars, market focus, technology leadership, operational efficiency, and financial discipline. With respect to market focus, we continue to see new technology adoption accelerating across multiple end markets and customers, both of which are increasingly driving towards GaN and high voltage SiC solutions. Without question, AI has been the primary catalyst driving this momentum and leading to the broader adoption of high power solution across all four of our target end markets. Collectively, these markets represent a serviceable addressable market of $3.5 billion by 2030. This roughly 50/50 between GaN and high voltage SiC, with combined CAGR exceeding 60%. We are definitely focused on the largest portion of the time, which I'd like to refer as the AI infrastructure. Comprise of unique but relative growth opportunity across the AI data center and the grid energy infrastructure, each of which are fundamentally to enabling the AI revolution. Today, the aggressive increase in compute power density is accelerating GaN and SiC adoption in data centers, while the required modernization of the energy grid infrastructure to support these data centers is driving increased needs for high voltage SiC. Navitas is uniquely positioned as one of the very few companies that can claim deep long-term experience in both GaN and high voltage SiC technologies. We're also agnostic and readily offer customers the ability to choose the optimal solution for their specific application [glass puicture]. As a result of our proven capability in both SiC and GaN, we believe it allows us to address more of the power chain and ultimately capture greater content per system. Briefly profiling the trends and opportunities specific to each of our four targeted end markets, starting with AI data center. As the technologies here involve GaN and SiC power delivery, we support all major AI data center architectures with industry-leading power density and efficiency. Again, adding both technology is a strategic differentiator, and our ability to fully support a given customer's chosen approach concept into more opportunities across more applications and greater potential growth content for Navitas. As conveyed at the recent NVIDIA GTC event in March, AI data center is rapidly evolving towards 800V HVDC architectures, leading to expanding content opportunity driven by the need for exponential power levels, increased density, and top-tier efficiency. Our immediate focus remains on expanding sampling of our newest GaN and SiC product, enabling qualifications, preparing for scale ramp, and supporting hyperscaler and OEM customers in their ongoing design and development efforts, spanning from AC/DC PSUs and DC/DC PSUs and 800V HVDC brick designs at higher power level and density. In grid infrastructure, we continue to advance active engagement across a series of new and existing customers with notable acceleration in design activity in the active space. AI remains a prominent underlying catalyst as all industry participants increasingly acknowledge the existing energy grid is not capable of supporting the projected future rollout of AI deployment. This market, where technology and scale are equally important, it present a large and long-term secular growth opportunity for our current and future high voltage SiCs products. Navitas GeneSiC technology position us as a leading enabler of the grid energy infrastructure modernization efforts, providing customers with more reliable and higher density power through our recently introduced 2.3 kV and 3.3 kV modules and a roadmap to even higher voltage. In performance computing, we are seeing sustained healthy adoption of GaN in higher power chargers solution for high-end laptops and mobile workstation used for gaming and AI development. Our opportunity in this market continues to be driven by the dramatic increase in power requirements, with CPU moving from 15W-30W to 45W-80W in new high-end AI notebooks, with the integration of GPU requiring up to 120W, 175W. As a result, we expect to benefit from growing demand and momentum in performance computing market application throughout 2026 and beyond. Finally, in industrial electrification, we are continuing to see customer traction in both GaN and ultrahigh voltage SiC in high-performance applications, such as DC/DC converter and megawatt chargers, industrial pump, motor control, and AV equipment electrification. With respect to our second pillar, technology leadership, we remain fully committed to ongoing innovation in GaN and high voltage SiC, driven by focused R&D investments and demonstrated by expanding customer engagement and co-development project. On GaN, we have continued to accelerate sampling of our 100 V and 650 V devices to more OEMs and ODMs. Customers pursuing the 800 V HVDC architect today are testing GaN, and we believe most are doing this testing with Navitas devices. We are focused on enabling and supporting customers in this transition from silicon to GaN like we have always successfully done in our past. More recently, we have seen some customers begin internal reliability system level testing on our newest GaN devices. During the first quarter, we continued to deepen our collaboration with OEMs, ODMs, and hyperscalers, including direct demonstration of enabling new GaN dame architecture that feature high power, efficiency, and reliability, all of which is leveraging Navitas more than 10 years of GaN experience and system expertise. One of those highlights was our recent release of the 20 kilowatt, 800 volts to 6 volt DC/DC platform using our latest 8 by 8, 650 V GaNFast, aiming at 97.5% peak efficiency. This platform solution was formally unveiled in March at GTC and showcased at NVIDIA NGX. As a reminder, we also previously released an industry-leading 800 V to 50 V AI DC/DC power brick, fully GaN, six yers ago and on the board delivering best-in-class efficiency and density. These respective platforms are generating strong interest and prospective customer engagement due to their demonstrated ability to deliver the highest power density, efficiency, and performance for next generation AI data center architecture. Today, our team remain focused on execution, including product delivery, qualification, and preparation of ramps, dialing the strategic growth for GaN-based edge-on-the board HVDC architecture in 2027. On high voltage picks, we continue to strengthen our technology with a focus on high power density and LVD, which represent both the primary market drivers and our key differentiators in terms of silicon and packaging. Following the introduction earlier this year of our new industry-leading Gen 5 GeneSiC technology based on our patented trench-assisted planar architecture. In March, we released our 1.2 kV Gen 5 SiC product tailored in packages to address the higher power density DC/DC and AC/DC needed in PSU applications. We have since delivered samples to OEM and OEM. They are currently being evaluated by most PSU vendors. Initial customer feedback has been excellent, with reports up to 50% increase in power density and greater than 98% system efficiency and improved cooling. Turning to operational efficiency, the prior restructuring action initiated late last year, which I discussed in detail last quarter, has been substantially complete. Previously mentioned, today the entire organization and its resource are fully aligned to focus on the high power market, which represents a substantial strategic repositioning from where the company was just 9 months ago. Our team is moving fast and working very hard. Their collective dedication is impressive. Recognizing the tremendous opportunities ahead, we plan to continue adding selective engineering skills and competencies to accelerate customer support over the coming quarters. Also during the quarter, we completed our leadership transformation with the appointment of our new CFO, Tonya Stevens, who formally joined the team in late March. We now have the full leadership team in place, including new leaders in operations, engineering execution, sales and marketing, business units, and finance, all of whom joined the company in recent weeks and months from larger companies with strong track records in execution and scale. Importantly, this new authority team and our employees are demonstrating strong buy-in and excitement for Navitas 2.0, and it's a privilege to lead this transformation alongside each other. We also continue to make progress on our strategic technology and sponsoring partnership with GlobalFoundries on GaN. We are confident this will enable our planned 8-inch pivot in 2027 for GaN manufacturing in the U.S. At the same time, we are starting to build appropriate buffers with TSMC to ensure a smooth transition for all existing customers. Additionally, we have begun actively scaling our supply chain to support upcoming growth and demand, and we are leveraging AI internally across design and most other functions to allow us to scale even faster. Our fourth pillar is financial discipline, which we are committed to as we execute our scale-up plan and transformation to Navitas 2.0, a consistently growing and profitable high-power company. This includes remaining diligent with respect to prioritizing of investment in high-power program, maintaining leverage OpEx, and focusing on high-margin long-term engagement that builds multi-generational customer relationships. We made significant progress in Q1 with our previous restructuring effort and full alignment towards high-power market now substantially complete. Going forward, we'll continue to drive efficiency across the organization and are committed to disciplined investment in the business even as we target a much larger market opportunity. Our focus remains on top-line growth and margin expansion, driven by improving scale and mix of our high power business in support of achieving long-term profitability. In summary, I am very pleased with the continuous progress and great momentum we have achieved in such a short period of time. We are taking further steps toward positioning Navitas as a high power company. We anticipate continued sequential revenue growth in the second quarter and throughout the rest of 2026. Q1 was the first clear proof point, and the growth in high power market demonstrate the momentum of our Navitas 2.0 strategy. We also anticipate gross margin to steadily improve as volume growth drive better fixed cost absorption and our revenue mix increasingly favors the high power business. Mobile contribution will continue to diminish each quarter and become insignificant by year end. At that time, we expect our business and revenue will be defined almost entirely by high power market, a transformation that positions well for sustainable long-term growth and profitability. Before I turn the call over to review our financials, I'd like to take this moment to welcome Tonya Stevens, our newly appointed CFO. I'm thrilled to have her join our executive team. She brings over 30 years of exceptional track record of financial leadership in the semiconductor industry, most recently at Lattice Semiconductor. I look forward to her valuable contribution as we grow the business and scale our operations to a larger financially disciplined and profitable company. With that, I'll now just going to Tonya to introduce herself and review our first quarter financials and second quarter outlook. Thank you, Chris. Before reviewing the financials, I would like to take a moment to introduce myself and share my motivations for joining Navitas. My corporate finance career spans more than 30 years and began with seven years in public accounting. I've since spent the majority of my career in the semiconductor industry, including 17 years at Intel in corporate finance and the last seven years at Lattice Semiconductor as chief accounting officer and previously interim CFO. I'm incredibly excited to join Navitas for several reasons. The team is comprised of extremely talented and capable leaders and individuals who are laser-focused on executing the company's strategic objectives in a rapidly advancing and high-velocity environment. Together with its compelling technology portfolio, the company represents a pure-play GaN and SiC opportunity to scale up and capitalize on the substantial AI-driven secular growth in high-power markets. It's a privilege to be part of the Navitas leadership team, and I look forward to meeting many of you that I haven't met already over the coming weeks and months. With that said, I will now review the financial results for the first quarter of 2026 and then discuss our outlook for the second quarter. Please note, unless otherwise indicated, I will focus my comments on non-GAAP results. A detailed reconciliation of all non-GAAP to GAAP financial measures can be found in our press release published earlier today. Revenue in the first quarter of 2026 exceeded the high end of guidance, increasing 18% sequentially to $8.6 million on a GAAP basis. This compares to revenue of $7.3 million in the Q4 and $14.0 million in the first quarter of 2025. As Chris highlighted, the return to sequential growth was driven by high-power markets, which grew approximately 35% from the first quarter 2025 and now represents a large majority of total revenue as the company continues to reduce its reliance on historical revenue contribution from mobile and low-end consumer business. Notably, we expect high-power markets to continue driving sequential growth throughout 2026. The higher quarterly revenue and improved revenue mix drove a 30 basis point expansion in gross margin, which improved to 39.0% from 38.7% in the prior quarter and 38.1% in the first quarter of 2025. The shifting mix of total revenue toward higher value, high-power markets and away from mobile and low-end consumer is key to our gross margin expansion strategy. We expect sustained gradual improvements in gross margin throughout the coming year. Operating expenses for the first quarter were $15.0 million, compared to $14.9 million in the prior quarter and $17.2 million in the same quarter a year ago. Operating expenses for the quarter reflect our commitment to focused and disciplined spending, particularly in SG&A, which created the opportunity to invest more in R&D projects quarter-over-quarter in support of our strategic pivot to Navitas 2.0, while keeping total operating expenses flat. Loss from operations for the first quarter was $11.7 million, compared to a loss of $12.1 million in the prior quarter and $11.8 million in the first quarter of 2025. In Q1, diluted shares outstanding was approximately $230 million, resulting in first quarter loss per share of $0.04 compared to $0.05 loss in the prior quarter. Turning to the balance sheet, cash and cash equivalents at the end of the first quarter 2026 were $221 million, compared to $237 million at the end of the fourth quarter, and the company continues to have no outstanding debt. With respect to inventory, we ended the first quarter with $14.9 million, compared to $13.3 million at year-end. The sequential increase in inventory primarily reflects our measured investment to support future anticipated revenue growth. With respect to channel and distributor inventory, as a result of previous streamlining actions taken during the latter part of last year, we now have a significantly healthier channel inventory profile. Going forward, we are committed to disciplined monitoring and management of these inventories to ensure we are well-positioned to respond quickly to end market demand. Overall, the balance sheet remains very strong and provides the company with an extensive amount of liquidity as well as ample flexibility in terms of working capital to execute our strategic objectives and anticipated growth. Moving to guidance for the second quarter of 2026. Consistent with the company's previous communications, we expect continued sequential growth, with revenue increasing to $10.0 million plus or minus half a million. At the midpoint, this represents over 16% sequential growth compared to the first quarter of 2026. Non-GAAP gross margin is expected to be 39.25% plus or minus 75 basis points, which at the midpoint represents a 25 basis point increase, primarily reflecting the ongoing shift in revenue mix toward higher power markets. Non-GAAP operating expenses are expected to remain approximately flat sequentially between $14.5 million-$15.5 million as we continue to emphasize disciplined cost management. Moving forward, we may choose to selectively invest in OpEx to accelerate growth at a fraction of the rate of revenue growth. That concludes our formal remarks. Operator, please open the call for questions. As a reminder, to ask a question, simply press star one on your telephone keypad. Our first question comes from the line of Tristan Gerra with Baird. Please go ahead. Hi. Good afternoon. I know it's still probably a bit early, but would you be able to talk about the dollar content that we could expect per watt for silicon carbide on the first generation 800 V architecture? What type of ramp in content should we expect with Kyber for both silicon carbide and GaN? Okay. Hi, Tristan. This is Chris. Thanks for the question. If you refer to our prior communication, right, we gave guidance in term of content per megawatts because that's how the best way to kind of define the content we talked about for GaN in the range of $10,000-$15,000 per megawatt, really driven by the Navitas 800 V HVDC when the DC/DC gets inside the rack, as we discussed at privately. In the AC/DC PSU, there's about $5,000-$8,000 per megawatt, which is coming from both the higher power of those PSUs. If you refer to GTC, right, NVIDIA announced that at the end of the year, the PSUs, the AC/DC are gonna get to 18.5 kW, which is much higher. The factor is if we look at the power level from today's PSUs, the AC/DCs, which are in the range of, you know, 5 kW-10 kW to 18.5 kilowatts for NVIDIA, but even 25 kW-30 kW for other hyperscalers, there's a ratio of when power goes up by two, the SiC content goes up by five. There is a nonlinear increase, right? I'm not gonna get specific in term of content because it really depends on the architecture, one phase, three phase, going to three phase, but refer to the $5,000-$8,000 of content for the SiC inside the center, which is mostly AC/DC PSUs. The mental law, which I just mentioned, which is when the AC/DC move from, let's say, 5 kW to 10 kW to 18 kW to 25 kW to 30 kW, there's about 2.5x content acceleration compared to power level. Thank you. That's very useful. Yeah. Very useful. For my follow-up, specific to silicon carbide, you know, clearly pricing's been coming down drastically in 2024, 2025. Given the ramp that you see, do you expect pricing to stabilize? I know you're going to be in a very high voltage, so how different is that pricing dynamic there than in the lower voltage? Also, do you expect at some point, you know, supply-demand balance, in silicon carbide? We don't participate, as you know, to the low voltage SiC business inside mostly industrial and EV, right? What we see is for inside data center, the AC-DC mostly use 1.2 kV and above 650 sometimes, but 1.2 kV and above, right? Where the driver today is more speed, reliability, and density. Of course, this is a competitive market, and as the hyperscalers are driving more power and more PSUs, and more PSUs per rack, there is price competitiveness. Today what we've seen is, what the customers are pushing us on is how we execute and how we help them to get to the best credibility and the best density of power, which I think save a lot more money at the system level than, a cheaper device. Great. Thank you very much. My help, Tristan. Thank you. Your next question comes from the line of Maddie De Paola with Rosenblatt Securities. Please go ahead. Hi, guys. This is Maddie calling on behalf of Kevin Cassidy. You highlighted that GaN and SiC are both playing vital roles in AI power and that you guys are uniquely positioned to win both technologies. I know you mentioned this, but can you provide any more color on how having both capabilities is helping in customer discussions or design win activity in data center over your larger competitors? Hey, Maddie, this is Chris. Okay. First of all, I think, you know, we focus on the high power markets, right? We have four markets. Yeah. Each of them have a different flavor of architecture and technology. If I refer to AI data center, it's mostly a GaN and SiC play. If I look at grid infrastructure, it's mostly a SiC play. Of course, high performance computing is more a GaN play, and industrial is actually both a SiC and a GaN play, right? If you look at the first two, which is what your question is, right? If you look at the evolution of the architecture, let's zoom out a little bit, right? Today, in the current architecture, the traditional architecture is 50 V busbar, where the, you know, voltage from the grid, which is 480, 400 V AC is converted to 50 V DC, right? That mostly use SiC, okay. That's been going for a while, right? The first step, I think I referred to what has been announced at GTC, right? The first step is to the 800 V, is the introduction of three phase, much higher power, which I referred to in my answer to Tristan. The first phase is both higher power three phase AC/DCs, right? Where you convert the 400, 480 V AC into 800 V DC. Okay. That's the first phase, which is gonna start at the end of the year, early next year, right? That on the AC/DC we use mostly SiC. There is a DC/DC conversion to that. If you refer to what NVIDIA announced at GTC, there is a DC/DC top of rack converter, right, at 15 kW, for instance. Both use either GaN or SiC. Having both is already right there enabling customers to have a choice depending on their preference. What is very interesting is when you move to the next step, which is the second phase of the 800 V DC architecture, where you get to, let's call it high density rack. Megawatt rack would be Kyber for NVIDIA or more other high density racks for the Google of this world and the others, right? That's where you move the DC/DC conversion inside the tray, inside the rack. When you do that, you have no choice than to use GaN. Okay. The level of density, the level of power requirements makes it impossible to use silicon, but also silicon carbide doesn't have the switching frequency. That's where you're moving to GaN, right? The fourth step is when you replace, that's more on the grid side, when you replace the AC/DC PSU on the sidecar track, basically by SST. If you think about it, this is a continuum of architecture change and evolution, and having both helps us to sit at the big table. Should it be current generation, next generation, next generation, and how the next set of guys are evolving from current architecture to next phase of 800 V into a high voltage, high density racks array, and even down the road with the reorganization and the restructuring of the grid. Okay, awesome. Thank you, guys. Thank you, Maddie De Paola. Our next question comes from the line of Quinn Bolton with Needham & Company. Please go ahead. Hey, guys. This is Shadi Milwali on for Quinn. Thanks for taking our questions. My first question is for Chris, but do you have any big picture takeaways from GTC and APEC in March, especially in regard to the direction of GaN versus SiC in 800 V data centers? My takeaway was kind of what I just mentioned to Maddie. First of all, we've talked about 800 V architecture now for more than one year. It's happening. I think NVIDIA was very clear that they see at the end of the year, early next year, this, what I call the first phase of the 800 V HVDC architecture, where you basically do the AC/DC at a much higher level of power with SiC, and then you do a DC/DC where you can use either GaN or SiC. Right? Also outlining that as you move to next step, the move to much higher density rack is kind of enabling GaN content towards the next level. That's my kinda, my takeaway from the GTC is 800 V is happening. Keep in mind that there is, we talk about NVIDIA here, but there are other hyperscalers, they might have a different path. They might actually go even faster to the next phase, where you get the power, the DC/DC part enabling directly on the tray and in the rack, which will accelerate the GaN adoption. I would say I come out of GTC with the stronger conviction that having both makes a huge difference. Okay? I think we talked about this before, where I said Navitas is uniquely positioned because we have both SiC and GaN. I think it's actually very hard for a supplier to sit at the big table, if you either have GaN or if you have, SiC. Okay? There's only a handful, to not say a very few number of suppliers who have both, and that's a key differentiation. That's my takeaway on top of the fact that 800 V is happening and accelerating. Great. Thank you. My follow-up is just on the product landscape for GaN. As you're sampling with hyperscalers, what are some of the key specs that matter most to them when evaluating GaN products? How does your portfolio measure up against those requirements? Thank you. Thank you, Shadi. What we said before is we sampled both high voltage, so 650 V GaN, as well as mid-voltage GaN, 100 V. We've done that in different flavors of package, okay, depending on the level of integration and density that the customers are looking. In the last quarter, we mentioned we've done the initial samples. Since then, we've now delivered the final samples, okay, which is basically the samples that would go to production. We are working with customers on, you know, the move from, let's say, a device level testing to kind of board system level testing. You know, the feedback we get is technology as well as packaging offering is actually adequate to what they're trying to do. Great. Thank you. Your next question comes from the line of Richard Shannon with Craig-Hallum Capital Group. Please go ahead. Hi, everyone. This is Tyler Anderson on for Richard. Thank you for taking my questions. I was just wondering, could you talk about why customers would want to upgrade transformers that aren't connecting to data centers? Have you heard of any talks within the government to force the upgrade of transformers? I'll start by the last part of your question. We have no knowledge of any forcing function or requirement from the government to move from traditional transformers to SST. What I will tell you is, if you look at And I think we've released some slides in the past in our investor package, right? If you look at the transformers today are very kind of old school, so to speak, okay. They are operating at a low frequency, which is in the 60 Hz. They have limited efficiency, which is less than 95%. They are heavy metal. They are very large and very big. As you move to an explosion, because that's what we are talking about, explosion of rollout of AI data center, which basically pulls from the grid a lot more energy, you have to install a lot more transformers, right? That's gonna be at some point impossible if we keep the conventional transformer, right? The move to SST is a bit of a necessity as we scale up and deploy the hundreds of gigawatts in the next few years, right? The other thing I would refer to is we keep referring to SST, but when we talk about grid and energy, this is going beyond the SST. The SST is gonna be the last step of evolution, right? Today you have much higher level of power of transformers, megawatts, converters. Yo u have grid-tied solar farms that are being deployed. There's a lot of grid-type applications that are being deployed, which we see as a growing driver even in 2026 and 2027, ahead of the big acceleration of the SST, which will come really in late 2027, early 2028. Make sense, Tyler? That does. I'm also wondering, you know, if there's anything around the switching. I'm seeing something about. Please, I understand I may be wrong on this or going down the wrong path. Correct me if I am. Aluminum conductor, steel transformers, y ou know, I'm seeing things about them wanting to focus on the switching. Would you be able to benefit from that upgrade in the switching? I mean, yes, you will. I think the grid companies have realized that the only way to make the grid, as I said, compatible with the acceleration of power is really to get to this new form of conversion, less conversion, less steps, moving from super high voltage, to whatever DC, through a form of electronification of the grid, okay? For lack of better terms, right? I think this will require SST and isolation transformers, basically. Have you heard of any conversations around the lack of supply of transformers, accelerating anything with your customers? I have not, but I will not be surprised that the requirement for volume in terms of classic transformers and the dependency on metal and a few other things might actually play also in the acceleration of the modernization of the grid. Okay. Thank you. You're welcome. As a reminder, to ask a question, simply press star one on your telephone keypad. Your next question comes from the line of Jon Tanwanteng with CJS Securities. Please go ahead. Hi, guys. This is actually Jeremy on for Jon. Thanks for taking the time. Can you just talk a little bit more about the sequential improvement you're seeing heading into Q2, if that's mostly data center driven, and if you're meaningfully ahead of where you thought you were going to be, a quarter or two ago? Thanks. Yeah. This is Tonya. Hey, Jeremy. I'll start and let Chris add. Relative to your point in high markets, if you remember in Q4, we talked about high power being the majority for the first time in the company's history, and we talked about it being greater than 15%, mobile being less than 25%, and a vast majority of the company last year. In Q1, high power continued to grow. It was a large majority of the company, like you heard us say. Throughout the year, to your point, we expect it to continue to grow as a percent of the company, and we exit the year almost an entirely high-power company, and that being driven by what you said, the data center and the grid and infra, the AI infrastructure component of that. What you saw in our press release and our discussions, high power grew 35% year-over-year from Q1 2025 to Q1 2026, and we expect that growth to accelerate in the second half of 2026. Again, driven by both components, but the key catalyst is that AI component. The momentum is driven by all of the high-power markets, but particularly the AI infrastructure, and that's data center and energy grid. I have something, Jeremy, thank you for the question. First of all, if you look at Q4 to Q1 when we grew 18%, we said, as Tonya Stevens said, that the high power markets, okay, grew as a percentage of the company, mobile went down. That means that the growth of high power was actually much higher, okay, than 18%, the top line of the company, and grew 35% year-over-year. We don't break down by markets, right? We don't. We refer to kind of high power w e also said in our script that all markets grew sequentially. As we see, this will continue out throughout the year. I'll give you one data point, okay? Tonya referred to, and I referred that also in my script about AI infrastructure. What this means is we are combining within the high power, we're combining data center and grid. The reason why we do that is, what I've noticed is the driver of the grid is data center. At the end of the day, you cannot look at AI data center and grid energy as two independent markets, like computing would be, right? This is really kind of intertwined, interlinked. That business grew 50% quarter-over-quarter, from Q2 to Q1, right? That's the only quarter I'm gonna give you, right? As the company grew 18% quarter-over-quarter, the combination of data center and grid infrastructure grew 50%. That's stronger than expected, okay. You asked me where I think we were, we are versus where I thought we're gonna be. That's stronger than expected. The reason why it's stronger is that we all see it. It's an acceleration of rollout. We have not seen yet the content going up. I talked about the fact that content is gonna go up, okay? The content is gonna go up because when you move from a 10 kW PSUs to a 18.5 kW PSUs or even a 25 to 30 kilowatt PSUs, the ratio is 2x power leads to 5x content. The SiC content and growth is gonna accelerate. Today, what we are seeing is just the growth of AI. Next year, we're gonna see even an acceleration of GaN as the DC/DC gets inside the rack. I think what we are seeing here with the 50% is that the AI data center is accelerating. I will also tell you, even though we don't guide by market, that what we see today for Q2, and as a reminder, we are confident in our guide for Q2. We're seeing that that AI infrastructure that grew 50% quarter-over-quarter, Q4 to Q1, is actually gonna grow faster. That growth is gonna accelerate throughout the year, and that's before even the step-up in content. Yes, I would say we are a bit, you know, ahead of where I think we're gonna be. I look at Q2 guide with confidence. The benefit of being high power is we have longer visibility. We used to be in mobile where you get, you know, you're still chasing orders within the quarter. I think the high power market, and particularly data center and grid infrastructure, are giving us a much longer visibility. I look at Q2 with confidence and we think, as we said before, that this growth will continue throughout 2026. Awesome. Thank you both so much. That color was super helpful. One last follow-up. Any update on the use of cash this year and next in support of the growth ramp? What are your thoughts on when cash flow break even is likely to occur? Thank you again. Yeah. I'll take that one. And coming into Navitas and being new, when you look at the strength of our balance sheet, and I even referenced that in my script, right? A very strong balance sheet. We have over $221 million in cash and no debt at the company. That gives us a pretty long runway to support our working capital needs and CapEx flexibility. I'm confident we can execute the objectives and the organic plan consistent with what I said in the script. Again, we remain focused on profitability, and like Chris said, you know, we remain on track and maybe a little ahead of where we thought we would be to profitability. We're very focused on that. Nothing's changed in our thoughts around profitability. In fact, potentially accelerated a bit. Jeremy, you can make the math, right? I mean, you know, today, at today's gross margin, okay? Today's OpEx, it will take us to be in the high 30s from a revenue standpoint to be profitable, okay? We're guiding 10, okay, for Q2. We said that we expect that growth to continue throughout the year. There is no reason to believe based on what we just discussed, that the momentum that we are seeing in data center, grid infrastructure, as well as the other high power market will slow down. You can extrapolate that to when we're gonna be profitable. I'm not gonna guide specific, right? What I will tell you is when we look at our business, both Tonya, myself, and the leadership team, is getting to break even is a key objective. We're gonna spend what we have to spend to optimize and to drive our growth, but being, you know, financially efficient, okay. Make sure that we get to break even at some point is a key priority for us. Thank you. Your next question comes from the line of Quinn Bolton with Needham & Company. Please go ahead. Hi, Chris, welcome, Tonya. Great to have you on board. I wanted to follow up. Chris, you mentioned that, at least on the 800 V GaN opportunity, you've got to move from device level testing to board level testing. Kind of can you walk us through what the following steps would be to get to final production and sort of the timeline if these higher power racks go to production, say second half of calendar 2027, when do you think those designs would be sort of fully locked down? Would that happen at the end of this year or could that continue into 2027 in terms of the testing process? Okay. Thank you, Quinn. You're very persistent asking the same question every quarter, so I appreciate that. Nothing has changed really, r ight? I would change the answer, as you said, depending if you're looking at the first phase of the 800 V DC to the second phase. Again, for everybody to understand, the second phase is when the DC-DC conversion gets inside the rack, right? The big difference is in the first phase, you're designing AC-DC PSUs, DC-DC PSUs, right? You're working with the hyperscalers, but really the implementation of that is at the merchant power, ODM, OEMs, okay? The Delta, the Flex Power Modules, the Vertiv, the Eaton, and so on and so forth, right? Where we are with those guys, we first delivered the samples, both the 1.2 kV SiC that we mentioned, the Gen5, in the new package, as well as the GaN devices. We now have delivered the final samples, okay? Which I think is the samples that will get to production, which I think is important. For those boards, we are, as I said, moving from component level testing to standard testing. What does it mean? Well, the customers have done a couple of prototypes. They're optimizing the systems, the layout, the EMI performance, the efficiency. We are highly active and supportive of this, okay, with our application engineers and our field application engineers. That's kind of where we are, right? You know, the next step is once they've done some level of system testing, then they're gonna do system reliability and system validation, right, at the next level. I would say for the first phase of the 800 V DC, since this is meant to ramp at the end of the year to earlier next year, I mean, we're gonna get clarity very quickly. As I told you before, for me, I'm not gonna comment on design win and engagement with customers unless the customer wants so. You're gonna see the proof point in the backlog and as we go, right? When it comes to the second phase, which is really driven by the hyperscalers, when the DC-DC conversion gets in the tray inside the rack, mostly with GaN, because there is no other technology that helps you to do this 800 V 50 or 800 V 12, 800 V or 6, okay, inside the rack. I think today we are still working with hyperscalers and getting the ODM to be comfortable, okay? One of the reason why we're spending so much time developing those reference boards that we've announced earlier this year, the 800 V 50 or the 800 V 60, that it gives comfort to the hyperscalers and the customers on how to implement. It's probably six to nine months behind. If you ask me when we're gonna get proof point of the in-tray GaN-based DC/DC conversion, probably Q1 to Q2 next year. Okay. Again, this is the iteration, right. You know, customers, what I see is I measure my team and the engagement with customers in term of the number of samples we ship. You ship 10 samples or 50 samples. When you get to 5,000 samples, it's not 10% more, okay. It's proto builds. I measure my team on the amount of energy that the customer is spending on testing the technology and pulling us in from a labs point of view into helping us, right. I see that energy, that momentum, that number of samples going up. That's why I'm comfortable in the momentum we are building. However, as I said in the past, I think the proof is in the pudding and we are not gonna talk about pipeline. We're not gonna talk about customer engagement unless the customer decides to, but we're gonna refer to growth and outlook and guidance and backlog, which I think is what you'd expect in terms of success. Thanks for all that detail, Chris. I guess a follow-up just, longer term, do you guys have a view or are you seeing customers push the intermediate bus voltage to, you know, for, 48, 12 or 6, in that 800, to step down? Do you think that 800 to 6 ultimately wins? Or do you think there's gonna be a mix of different intermediate bus voltages across different hyperscaler platforms? In the first phase, as we talked about, right, at the end of the year, the bus bar stays at 50, right? I think you're referring to the true Navitas 800 V HVDC, right? Yes, yeah, the in-tray. At this point, I would say it depends on the hyperscaler. I think you're gonna see different flavors. You probably seen that we announced at GTC [IMGX] with NVIDIA, they are going to six. I think that's kind of one of the trend we see. Will that scale back to 12? Okay. It's a possibility. Some other hyperscalers might decide to stay at 50. Okay? You might see some hyperscalers ramping next year with a in-tray native 800 V HVDC, keeping 50 V as a bus bar, but moving the DC/DC conversion from top of rack to inside the rack, right? The short answer to your question is, I think we're gonna see multiple flavors. Directionally, I would say the trend is the same. Reduced number of conversion as you move to a higher density rack, which means that the secondary voltage is gonna go down over time. Got it. Thank you, Chris. Thank you, Quinn Bolton. With that, I will now turn the call back over to Chris Allexandre for closing remarks. Thank you for joining us today. As I said early on, too early to declare victory, but what I see is the company is on track and accelerating the pivot and the transformation to Navitas 2.0. We have a lot of work to do still ahead of us, but if you look at our momentum in high power, the growth in high power, the growth in AI infrastructure, which I mentioned quarter-over-quarter, and the trend that we have ahead of us, I'm confident this will continue. I want to close by thanking our teams, the Navitas team. It's a lot of work. This was a big pivot that we asked the team to go from winning from a historically called consumer, low-end, mobile type of business to high power. It's a big shift in terms of geographical coverage and in terms of product mix. I want to thank them for the effort, the resilience, and the effort that they are putting into making that happen. Of course, our customers, okay, that are supporting us as well. Thank you. Thank you again for joining us today. This does conclude today's conference call. You may now disconnect.