Diodes Posts Fifth Straight Quarter of Double-Digit Growth
The chipmaker’s non-GAAP earnings per share more than doubled year-over-year to $0.43.
The analog and mixed-signal semiconductor supplier Diodes (DIOD) reported first-quarter results that extended its streak of double-digit revenue growth while lifting profitability to a five-year high. Revenue rose 22% from a year earlier to $405.5 million, the fastest pace since late 2021.
The quarter marked the fifth consecutive period of year-over-year gains above 10%, an inflection that began after four quarters of mid-single-digit growth. Sequential revenue climbed 3.5%, defying typical seasonal patterns that call for a 5-6% decline.
Non-GAAP earnings per share reached $0.43, up 126% from the year-ago period and 26.5% from the prior quarter. GAAP net income swung to $15.0 million from a $4.4 million loss in the first quarter of 2025, while EBITDA expanded to $49.4 million, or 12.2% of revenue.
Gross margin improved to 31.8%, up 70 basis points sequentially and 30 basis points year-over-year, driven by a richer mix of automotive and industrial products, which accounted for 44% of product revenue. Cash flow from operations jumped 69% sequentially to $64.3 million, and free cash flow more than doubled to $32.4 million.
Demand signals strengthened across the quarter. Inventory days fell to 157 from 187 a year earlier, and channel inventory reached the lower end of the normal 11-14 week range, suggesting orders were not inflated by restocking. Pricing stabilized after several quarters of erosion, a shift the company attributed to constrained supply conditions.
Diodes also raised its second-quarter outlook. Revenue is now expected to grow 18.8% year-over-year to $435 million at the midpoint, up from prior guidance of 7.3% sequential growth. Non-GAAP earnings per share are projected at $0.60, and gross margin is guided to 32.8%.
The company announced the $250 million acquisition of ElevATE Semiconductor, a move that expands its portfolio into the Automated Test Equipment market. ElevATE is expected to add roughly $50 million in revenue in the first year post-close, with gross margins above Diodes’ corporate average and immediate accretion to earnings.