Diodes Q4 2025 Diodes Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Diodes Inc Earnings Call
Speaker #1: Good afternoon, everyone, and welcome to DIODES INC's fourth quarter and full year 2025 financial results conference call. At this time, all participants are in a listen-only mode.
Leanne Sievers: Good afternoon, everyone, and welcome to Diodes Incorporated's Fourth Quarter and Full Year 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question-and-answer session. If anyone needs assistance at any time during the conference call, please press the star key followed by zero on your Touch-Tone telephones. As a reminder, this conference call is being recorded. Today is Tuesday, 10 February 2026. I would now like to turn the conference call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.
Speaker #1: At the conclusion of today's conference call, instructions will be given for the question-and-answer session. If anyone needs assistance at any time during the conference call, please press the star key followed by 0 on your touch-tone telephone.
Speaker #1: As a reminder, this conference call is being recorded. Today is Tuesday, February 10th, 2026. I would now like to turn the conference call over to Leanne Sievers of Shelton Group, Investor Relations.
Speaker #1: Leanne, please go
Speaker #1: ahead. Good afternoon and welcome
Leanne Sievers: Good afternoon and welcome to Diodes' Fourth Quarter 2025 Financial Results Conference Call. I'm Leanne Sievers, president of Shelton Group, Diodes' investor relations firm. Joining us today are Diodes' President and CEO, Gary Yu, CFO, Brett Whitmire, Senior Vice President of Worldwide Sales and Marketing, Emily Yang, and Vice President of Marketing and Investor Relations, Gurmeet Dhaliwal. 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-K for its year ended 31 December 2025. In addition, management's prepared 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.
Speaker #2: Welcome to DIODES' fourth quarter 2025 financial results conference call. I'm Leanne Sievers, President of Shelton Group, DIODES' investor relations firm. Joining us today are DIODES President and CEO, Gary Yu; CFO, Brett Whitmire; Senior Vice President of Worldwide Sales and Marketing, Emily Yang; and Vice President of Marketing and Investor Relations, Grameet Dhaliwal.
Speaker #2: 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 the customary quarterly review by the company's independent registered public accounting firm.
Speaker #2: As such, these results are unaudited and subject to revision until the company files its Form 10-K for its year-end in December 31st, 2025. In addition, management's prepared remarks contain forward-looking statements, which are subject to risk and uncertainties, and management may make additional forward-looking statements in response to your questions.
Speaker #2: 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.
Leanne Sievers: 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 Form 10-K and Form 10-Q. In addition, any projections as to the company's future performance represent management's estimates as of today, 10 February 2026. Diodes 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.
Speaker #2: 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 Form 10-K and 10-Q.
Speaker #2: In addition, any projections as to the company's future performance represent management's estimates as of today, February 10th, 2026. DIODES 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.
Speaker #2: Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in both GAAP and non-GAAP terms.
Speaker #2: Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also, throughout the company's press release and management statements during the conference call, we refer to net income attributable to common stockholders as GAAP net income.
Leanne Sievers: Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also, throughout the company's press release and management statements during the conference call, we refer to net income attributable to common stockholders as GAAP net income. 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 of Diodes' website at www.diodes.com. Now I'll turn the call over to Diodes' president and CEO, Gary Yu. Gary, please go ahead.
Speaker #2: 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 of Diodes' website at www.diodes.com.
Speaker #2: And now I'll turn the call over to DIODES president and CEO, Gary Yu. Gary, please go ahead.
Speaker #3: Welcome, everyone, and a thank you for joining us on today's conference call. As announced in our press release earlier today, we end the 2025 with the fourth quarter revenue growing 15% year over year, and the 13% for the full year.
Gary Yu: Welcome, everyone, and thank you for joining us on today's conference call. As announced in our press release earlier today, we ended 2025 with Q4 revenue growing 15% year-over-year and 13% for the full year, which is the highest level of annual growth since 2021. Additionally, this quarter represents the fourth consecutive quarter of double-digit growth year-over-year, further highlighting the success of Diodes' Design Win initiative and content expansion over the past year. We have continued to see demand improvement across our target market and geographies, with the most significant growth for the full year driven by a 25% increase in the computing market, primarily for AI server-related applications, as well as a double-digit increase in our automotive and industrial end markets.
Speaker #3: This is the highest level of annual growth since 2021. Additionally, this quarter represents the fourth consecutive quarter of double-digit growth year over year, further highlighting the success of the Diodes DesignWing initiative and content expansion over the past year.
Speaker #3: We have continued to see demand improvement across all target markets and geographies, with the most significant growth for the full year driven by a 25% increase in the computing market, primarily for AI server-related applications, as well as a double-digit increase in our automotive and industrial end markets.
Speaker #3: Also, during the quarter, we began to realize initial improvements in gross margin as product makes benefit from growth in the automotive market. Which increased 6% sequentially, and the 24% year over year.
Gary Yu: Also, during the quarter, we began to realize initial improvements in gross margin as product mix benefits from growth in the automotive market, which increased 6% sequentially and 24% year-over-year. We also remain focused on increasing manufacturing efficiency and minimize underloading costs over the next few quarters to further drive future margin expansion. As we look to the coming quarter, we anticipate extending our success by delivering above-seasonal revenue results and our fifth consecutive quarter of double-digit year-over-year growth. As we look back over this past year and the progress that has been made, I want to take this opportunity to discuss my specific near-term financial target after having been in the role of President and CEO for the past two quarters.
Speaker #3: We also remain focused on increasing manufacturing efficiency and minimize underloading costs over the next few quarters to further drive future margin expansion. As we look to the coming quarter, we anticipate extending our success by delivering above-seasonal revenue results and our fifth consecutive quarter of double-digit year over year growth.
Speaker #3: As we look back over this past year and the progress that has been made, I want to take this opportunity to discuss my specific near-term financial target after having been in the role of President and CEO for the past two quarters.
Speaker #3: After reaching $1 billion in revenue in 2017, our next billion-dollar goal is to reach $2.5 billion in revenue and $1 billion in gross profit.
Gary Yu: After reaching $1 billion in revenue in 2017, our next billion-dollar goal is to reach $2.5 billion in revenue and $1 billion in gross profit, or 40% in gross margin. I want to emphasize that we remain committed to achieving these long-term goals. In order to help our investors track our progress toward these goals, today I'm introducing three-year interim financial targets, which include achieving $2 billion in annual revenue with approximately $700 million in gross profit, or 35%+ in gross margin. This is equated to a revenue CAGR of 10.5% and a 15% CAGR on gross profit dollars. Most notable, when taking into account our improved cost structure, we are expecting to deliver over $4 in non-GAAP EPS, which equals to a 50% CAGR over that three-year period.
Speaker #3: Our 40% in gross margin. I want to emphasize that we remain committed to achieving these long-term goals. In order to help our investors track our progress toward these goals, today interim financial targets which include achieving $2 billion in annual revenue, with approximately $700 million in gross profit, or 35% plus in gross margin.
Speaker #3: This is equated to a revenue CAGR of 10.5% and a 15% CAGR on gross profit dollars. Most notably, when taking into account our improved cost structure, we are expecting to deliver over $4 in non-GAAP EPS, which equates to a 50% CAGR over the three-year period.
Speaker #3: This interim goal highlights the strong operating leverage in Diodes' financial model and the ability to generate significant earnings power and cash flow on each incremental dollar of revenue growth.
Gary Yu: This interim goal highlights the strong operating leverage in Diodes' financial model and the ability to generate significant earnings, power, and cash flow on each incremental dollar of revenue growth. As mentioned earlier in my remarks, we continue to prioritize product mix improvements by focusing our sales effort and R&D dollars on our three key focus areas of automotive, industrial, and computing for AI-related server applications. Content expansion, design win momentum, and a new product introduction will continue to be the cornerstones of our growth initiative, combined with increased manufacturing and cost efficiency to drive margin expansion. With that, let me now turn the call over to Brett to discuss our fourth quarter and full-year financial results, as well as our first quarter guidance in more detail.
Speaker #3: As mentioned earlier in my remarks, we continue to prioritize product mix improvements by focusing our sales effort and R&D dollars on our three key focus areas of automotive, industrial, and computing for AI-related server applications.
Speaker #3: Content expansion, DesignWing momentum, and a new product introduction will continue to be the cornerstones of our growth initiative combined with increased manufacturing and cost efficiency to drive margin expansion.
Speaker #3: With that, let me now turn the call over to Brett to discuss our fourth quarter and full-year financial results, as well as our first quarter guidance, in more detail.
Speaker #4: Thanks, Gary, and good afternoon, everyone. Revenue for the fourth quarter 2025 was $391.6 million and increased of 15.4% over $339.3 million in the fourth quarter 2024.
Brett Whitmire: Thanks, Gary, and good afternoon, everyone. Revenue for the fourth quarter 2025 was $391.6 million, an increase of 15.4% over $339.3 million in the fourth quarter 2024, and essentially flat compared to $392.2 million in the third quarter 2025. Full-year 2025 revenue increased 13% to $1.5 billion compared to $1.3 billion in 2024. Gross profit for the fourth quarter was $121.9 million, or 31.1% of revenue, compared to $110.9 million, or 32.7% of revenue in the prior year quarter, and $120.5 million, or 30.7% of revenue in the prior quarter. For the full year, GAAP gross profit was $462.4 million, or 31.3% of revenue, compared to $435.9 million, or 33.2% of revenue in 2024. GAAP operating expenses for the fourth quarter were $108.7 million, or 27.8% of revenue, and on a non-GAAP basis were $104 million, or 26.6% of revenue, which excludes $4.7 million amortization of acquisition-related intangible asset costs.
Speaker #4: And essentially flat compared to $392.2 million in the third quarter of 2025. Full year 2025 revenue increased 13% to $1.5 billion, compared to $1.3 billion in 2024.
Speaker #4: Gross profit for the fourth quarter was $121.9 million or $31.1% of revenue compared to $110.9 million or $32.7% of revenue in the prior year quarter.
Speaker #4: And $120.5 million or $30.7% of revenue in the prior quarter. For the full year, GAAP gross profit was $462.4 million or $31.3% of revenue compared to $435.9 million or $33.2% of revenue in 2024.
Speaker #4: GAAP operating expenses for the fourth quarter were $108.7 million or $27.8% of revenue and on the non-GAAP basis were $104 million or $26.6% of revenue which excludes $4.7 million amortization of acquisition-related intangible asset costs.
Speaker #4: This compares to GAAP operating expenses in the fourth quarter 2024 of $99 million, or 29.2% of revenue, and $108.9 million, or 27.8% of revenue, in the prior quarter.
Brett Whitmire: This compares to GAAP operating expenses in Q4 2024 of $99 million, or 29.2% of revenue, and $108.9 million, or 27.8% of revenue in the prior quarter. Non-GAAP operating expenses in the prior quarter were $103.1 million, or 26.3% of revenue. Total other income amounted to approximately $1.3 million for the quarter, consisting of $7 million in interest income, $2.9 million in foreign currency losses, $1.3 million in interest expense, $1.6 million loss on investment, and $0.1 million in other income. Income before taxes and non-controlling interest in Q4 2025 was $14.5 million, compared to income of $12.3 million in the prior year period and $19 million in the previous quarter. Turning to income taxes, our effective income tax rate for Q4 was approximately 14.9%. For the full year 2025, the tax rate was approximately 17.6%.
Speaker #4: Non-GAAP operating expenses in the prior quarter were $103.1 million or $26.3% of revenue. Total other income amounted to approximately $1.3 million for the quarter consisting of $7 million in interest income, $2.9 million in foreign currency losses, $1.3 million in interest expense, $1.6 million loss on investment, and $0.1 million in other income.
Speaker #4: Income before taxes and non-controlling interest in the fourth quarter 2025 was $14.5 million, compared to income of $12.3 million in the prior year period and $19 million in the previous quarter.
Speaker #4: Turning to income taxes, our effective income tax rate for the fourth quarter was approximately 14.9%. For the full year 2025, the tax rate was approximately 17.6%.
Speaker #4: For 2026, we continue to expect the tax rate for the full year to remain at approximately 18%, plus or minus 3%. GAAP net income for the fourth quarter was $10.2 million, or $22.00 per diluted share.
Brett Whitmire: For 2026, we continue to expect the tax rate for the full year to remain at approximately 18% ± 3%. GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, compared to net income of $8.2 million, or $0.18 per diluted share in the prior year quarter, and net income of $14.3 million, or $0.31 per diluted share last quarter. Full-year GAAP net income was $66.1 million, or $1.43 per diluted share, compared to $44 million, or $0.95 per diluted share in 2024. The share count used to compute GAAP income per share for the fourth quarter 2025 was 46.3 million shares and 46.4 million for the full year.
Speaker #4: Compared to net income of $8.2 million or $18.00 per diluted share in the prior year quarter, the net income of $14.3 million or $31.00 per diluted share last quarter full-year GAAP net income was $66.1 million or $1.43 per diluted share.
Speaker #4: million or $95.00 Compared to $44 per diluted share in 2024. The share count used to compute GAAP income per share for the fourth quarter 2025 was 46.3 million shares and $46.4 million for the full year.
Speaker #4: Non-GAAP adjusted net income in the fourth quarter was $15.7 million or $34.00 per diluted share which excluded net of tax $3.9 million of acquisition-related intangible asset cost and $1.6 million of loss on investment.
Brett Whitmire: Non-GAAP adjusted net income in the fourth quarter was $15.7 million, or $0.34 per diluted share, which excluded net of tax $3.9 million of acquisition-related intangible asset costs and $1.6 million of loss on investment. This compares to non-GAAP adjusted net income of $12.5 million, or $0.27 per diluted share in the fourth quarter 2024, and $17.2 million, or $0.37 per diluted share in the prior quarter. For the full year, non-GAAP adjusted net income was $56.7 million, or $1.22 per diluted share, as compared to $61 million, or $1.31 per diluted share in 2024. Excluding non-cash share-based compensation expense of $5.3 million for the fourth quarter, net of tax, both GAAP net income and non-GAAP adjusted net income would have increased by $0.12 per share.
Speaker #4: This compares to non-GAAP adjusted net income of $12.5 million or $27.00 per diluted share in the fourth quarter 2024 and $17.2 million or $37.00 per diluted share in the prior quarter.
Speaker #4: For the full year non-GAAP adjusted net income was $56.7 million or $1.22 per diluted share as compared to $61 million or $1.31 per diluted share in 2024.
Speaker #4: Excluding non-cash share-based compensation expense of $5.3 million for the fourth quarter, net of tax both GAAP net income and non-GAAP adjusted net income would have increased by $0.12 per share.
Speaker #4: For the full year, excluding GAAP and non-GAAP, non-cash share-based compensation expense of $20.3 million net of tax GAAP and non-GAAP diluted earnings per share would have improved by $44.00 per share.
Brett Whitmire: For the full year, excluding GAAP and non-GAAP non-cash share-based compensation expense of $20.3 million net of tax, GAAP and non-GAAP diluted earnings per share would have improved by $0.44 per share. EBITDA for the fourth quarter was $41.9 million, or 10.7% of revenue, compared to $40.7 million, or 12% of revenue in the prior year period, and $46.6 million, or 11.9% of revenue in the prior quarter. For the full year, EBITDA was $199.2 million, or 13.4% of revenue, compared to $177.1 million, or 13.5% of revenue in 2024. We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income and GAAP net income to EBITDA, which provides additional details. Cash flow provided by operations was $38.1 million for the fourth quarter. Free cash flow was $12.4 million, which included $25.7 million of capital expenditures.
Speaker #4: EBITDA for the fourth quarter was $41.9 million or $10.7% of revenue. Compared to $40.7 million or 12% of revenue in the prior year period and $46.6 million or $11.9% of revenue in the prior quarter.
Speaker #4: For the full year, EBITDA was $199.2 million, or 13.4% of revenue, compared to $177.1 million, or 13.5% of revenue, in 2024. We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income, and GAAP net income to EBITDA, which provides additional details.
Speaker #4: Cash flow provided by operations was $38.1 million for the fourth quarter. Free cash flow was $12.4 million which included $25.7 million of capital expenditures.
Speaker #4: Net cash flow was a negative $9.7 million which includes $23.8 million that was returned to our shareholders by executing on our previously announced $100 million stock buyback program.
Brett Whitmire: Net cash flow was a negative $9.7 million, which includes $23.8 million that was returned to our shareholders by executing on our previously announced $100 million stock buyback program. The objective of our share repurchase program is to return excess capital to shareholders while partially offsetting the diluted impact of shares issued under our equity incentive plans. For the full year, cash flow provided by operations was $215.5 million, an increase of $96.1 million compared to $119 million last year. Free cash flow in 2025 was $137.2 million, which included $78.4 million of capital expenditures. This represents a $90.8 million increase over the $46.4 million in 2024. Net cash flow for the full year was a positive $57.6 million, which includes $33.8 million for the stock buyback program compared to a negative $3.8 million in net cash flow last year.
Speaker #4: The objective of our share partially offsetting the diluted impact of shares issued under our equity incentive plans. For the full year cash flow provided by operations was $215.5 million an increase of $96.1 million compared to $119 million last year.
Speaker #4: Free cash flow in 2025 was $137.2 million, which included $78.4 million of capital expenditures. This represents a $90.8 million increase over the $46.4 million in 2024.
Speaker #4: Net cash flow for the full year was a positive $57.6 million, which includes $33.8 million for the stock buyback program, compared to a negative $3.8 million in net cash flow last year.
Speaker #4: I'd also like to point out that our free cash flow per share increased threefold to $2.95 per share in 2025 from $1 per share in 2024.
Brett Whitmire: I'd also like to point out that our free cash flow per share increased threefold to $2.95 per share in 2025 from $1 per share in 2024. Turning to the balance sheet, at the end of Q4, cash, cash equivalents, restricted cash, plus short-term investments totaled approximately $382 million. Working capital was approximately $879 million, and total debt, including long-term and short-term, was approximately $56 million. In terms of inventory, at the end of Q4, total inventory days were approximately 161 as compared to 162 last quarter. Finished goods inventory days were 59 compared to 62 last quarter. Total inventory dollars increased $600,000 from the prior quarter to $471.5 million, consisting of a $2.1 million increase in work in process, a $1.2 million increase in raw materials, and a $2.7 million decrease in finished goods.
Speaker #4: Turning to the balance sheet at the end of fourth quarter cash, cash equivalents restricted cash plus short-term investments totaled approximately $382 million. Working capital was approximately $879 million and total debt including long-term and short-term was approximately $56 million.
Speaker #4: In terms of inventory at the end of fourth quarter, total inventory days were approximately 161 as compared to 162 last quarter. Finished goods inventory days were 59 compared to 62 last quarter.
Speaker #4: Total inventory dollars increased $600,000 from the prior quarter to $471.5 million consisting of a $2.1 million increase in work in process, a $1.2 million increase in raw materials, and a $2.7 million decrease in finished goods.
Speaker #4: Capital expenditures on a cash basis were $25.7 million for the fourth quarter, or 6.6% of revenue, and $78.4 million, or 5.3% of revenue, for the full year.
Brett Whitmire: Capital expenditures on a cash basis were $25.7 million for Q4, or 6.6% of revenue, and $78.4 million, or 5.3% of revenue for the full year, both of which were within our targeted annualized range of 5% to 9% of revenue. Now turning to our outlook. For Q1 2026, we expect revenue to be approximately $395 million ±3%. At the midpoint, this represents a 19% increase year-over-year and a slight increase sequentially, which is significantly better than typical seasonality. GAAP gross margin is expected to be 31.5% ±1%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 26.5% ±1%. We expect net interest income to be approximately $1 million.
Speaker #4: Both of which were within our targeted annualized range of 5% to 9% of revenue. Now turning to our outlook. For the first quarter 2026, we expect revenue to be approximately $395 3%.
Speaker #4: At the midpoint, this represents a 19% increase year over year and a slight increase sequentially which is significantly better than typical seasonality. GAAP gross margin is expected to be 31.5% plus or minus 1%.
Speaker #4: Non-GAAP operating expenses which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets are expected to be approximately $26.5% plus or minus 1%.
Speaker #4: We expect net interest income to be approximately $1 million. Our income tax rate is expected to be 18.5%, plus or minus 3%, and shares used to calculate EPS for the first quarter are anticipated to be approximately 46.4 million shares.
Brett Whitmire: Our income tax rate is expected to be 18.5% ± 3%, and shares used to calculate EPS for Q1 are anticipated to be approximately 46.4 million shares. Not included in these non-GAAP estimates is amortization of $3.9 million after tax for previous acquisitions. With that said, I now turn the call over to Emily Yang.
Speaker #4: Not included in these non-GAAP estimates is amortization of $3.9 million after tax for previous acquisitions. With that said, I now turn the call over to Emily Yang.
Speaker #2: Thank you, Brett, and good afternoon. As Gary and Brett mentioned, fourth quarter revenue was up over 15% year over year, flat sequentially, and at the high end of our guidance, mainly driven by strong demand in Asia especially in Taiwan for the AI server-related computing.
Emily Yang: Thank you, Brett, and good afternoon. As Gary and Brett mentioned, Q4 revenue was up over 15% year-over-year, flat sequentially and at the high end of our guidance, mainly driven by strong demand in Asia, especially in Taiwan for the AI server-related computing. Our global POS increased sequentially, led by North America and Europe, followed by Asia. This is a good indication of the overall market recovery in the automotive and industrial markets. Our channel inventory decreased again, both in terms of dollars and weeks, which are now within our normal range of 11 to 14 weeks. I will also highlight, with the recent supply interruption in the market, we have been strategically supporting key customers on new opportunities and orders, specifically in the automotive and communication markets, while also further extending our design-in momentum across all end markets.
Speaker #2: Our global POS increased sequentially led by North America and Europe followed by Asia. This is a good indication of the overall market recovery in the automotive and industrial markets.
Speaker #2: And our channel inventory decreased again, both in terms of dollars and weeks, which are now within our normal range of 11 to 14 weeks.
Speaker #2: I will also highlight with the recent supply interruption in the market, we have been strategically supporting key customers on new opportunities and orders specifically in the automotive and communication markets while also further extending our design in momentum across all end markets.
Speaker #2: Our key focus remained on building a strong win-win partnership with our customers for the long term. Looking at global sales in the fourth quarter, Asia represented 78% of the revenue, Europe 12%, and North America 10%.
Emily Yang: Our key focus remained on building a strong win-win partnership with our customers for the long term. Looking at global sales in Q4, Asia represented 78% of the revenue, Europe 12%, and North America 10%. In terms of our end markets, industrial was 22% of Diodes product revenue, automotive 20%, computing 28%, consumer 17%, and communication 13% of the product revenue. Our automotive industrial revenue combined was 42%, which is a one percentage point increase compared to last quarter due to stronger demand in Europe. In 2025, we introduced over 650 new part numbers, which approximately 40% of this specifically for the automotive market, where we have increased our addressable content to 239 per vehicle from 213 at the end of 2024 and from 160 at the end of 2023. Our content in the AI server applications this year increased to 103 from 90 last year.
Speaker #2: In terms of our end markets, industrial was 22% of DIODES product revenue, automotive 20%, computing 28%, consumer 17%, and communication 13% of the product revenue.
Speaker #2: Our automotive industrial revenue combined was 42% which is a 1 percentage point increase compared to last quarter due to stronger demand in Europe. In 2025, we introduced over $650 new part numbers which approximately 40% of the specifically for the automotive market where we have increased our addressable content to 239 per vehicle from 213 at the end of 2024 and from 160 at the end of 2023.
Speaker #2: And our content in the AI server applications this
Speaker #1: Increase to 103 from 90 last year . Now let me review the end markets in greater detail , in greater detail , starting with automotive market revenue in the quarter grew 6% sequentially and 20% for the full year as the inventory situation and overall demand continued to improve .
Emily Yang: Now let me review the end markets in greater detail. Starting with automotive market, revenue in the quarter grew 6% sequentially and 20% for the full year. As the inventory situation and overall demand continue to improve, the good news is we have started to see solid bookings with longer visibility on the orders. Additionally, the supply disruption I mentioned previously is expanding content opportunities for Diodes at key automotive customers. During the quarter, we broadened our content and deepened our design-in momentum across all focus areas, including connected driving, comfort, style, and safety, and electrification. Diodes level shifters gained broadened adoption in in-vehicle infotainment, ADAS, and zonal control unit platforms, while our timing solution saw additional design wins from PCI Express clock generators, buffers, and low-voltage crystal oscillators supporting high-speed ADAS modules.
Speaker #1: The good news is we have started to see solid bookings with longer visibility on the orders . Additionally , the supply disruption I mentioned previously is expanding content opportunities for diodes at Key Automotive customers during the quarter , we broadened our content and deepen our designing momentum across all focus areas , including connected driving , comfort , style and safety , and electrification .
Speaker #1: Bios level shifter gained broadened adoption in vehicle infotainment , Adas and zonal control unit platforms . While our timing solutions additional design wins from PCI express generators , buffers low crystal voltage supporting oscillators high speed Adas modules .
Emily Yang: Complementing this momentum, our USB power delivery controllers and DC/DC converters continue to see strong traction across infotainment, charging interfaces, and body electronics, while our Hall-effect sensors expanded into new applications, including e-latches, steering locks, and cooling fans. In lighting and motor control applications, we achieved significant wins for multi-channel LED drivers across several next-generation lighting programs. Demand for our current monitor remains strong in comfort-focused motor systems, such as power seats and power windows, while our LDO solutions continue to ramp in wireless charging and ADAS-related subsystems. Our bipolar junction transistors portfolio also gained momentum with new program wins supporting actuators and millimeter wave radar systems. Turning to the industrial market, revenue in the quarter was flat sequentially but increased 13% for the full year. Similar to the automotive market, the inventory situation continues to improve.
Speaker #1: Complementing this momentum , our USB power Delivery controllers and Dc-dc converters continue to see strong traction across infotainment , charging interfaces and body electronics , while our Hall effect sensors expanded into new applications , including Elac's steering locks and cooling fans in lighting and control motor applications .
Speaker #1: We achieved significant wins for multichannel LED drivers across several next generation lighting programs . Demand for our current monitor remains strong in focus comfort , motor system such as power seats and power While windows .
Speaker #1: our LDO solutions continue to ramp in wireless charging and Adas related subsystems , our bipolar junction transistors portfolio also gained momentum new with program wins supporting a curators millimeter wave and radar systems .
Speaker #1: Turning to the industrial market , revenue in the quarter was flat sequentially , but increased 13% for the full year , similar to the automotive market , the inventory situation continues to improve .
Emily Yang: We are beginning to see overall demand visibility and backlog improvement and are seeing more rush orders than ever before, which is further indication of the market recovery in 2026. During the quarter, we saw solid momentum across power, sensing, and automation applications. Our LED driver family continued to win designs in traffic signage projects, while current monitor experienced strong demand as power supply unit volumes increased. Diodes Hall-effect sensor and DC-DC buck converters also maintain steady growth driven by expanding use in the fan motors and energy meter platforms. Our SBR product family also remained a key enabler in industrial power with design-ins across power racks and server power manufacturers supporting AI applications. In energy-related applications, our 1,200-volt silicon carbide Schottky barrier diodes were designed into next-generation energy storage platforms.
Speaker #1: We are beginning to see overall demand , visibility , and backlog improvement , and are seeing more rush orders than ever which is further indication of the market recovery in 2026 .
Speaker #1: During the quarter, we saw solid momentum across power-sensing and automation applications. Our LED driver family continues to win designs in traffic signage projects.
Speaker #1: While current monitor experience strong demand as power supply unit volumes increased . Diastolic sensor and Dc-dc buck converters also maintain growth , driven by steady expanding use in the fan motors energy meter and platforms .
Speaker #1: Our SBR product family also remained a key enabler in the industrial power , with design , across power rack and server power manufacturers supporting AI applications in energy related applications .
Speaker #1: Our 1200 volt silicon carbide Schottky barrier diodes were designed into next generation energy storage platforms . Similarly , our gay driver ICS secure new design wins in battery storage , inverters , reinforcing our position across industrial electrification and power control infrastructures in .
Emily Yang: Similarly, our gate driver ICs secure new design wins in battery storage inverters, reinforcing our position across industrial electrification and power control infrastructures. In the computing market, although revenue was flat sequentially, we saw the strongest growth in this market for the full year, growing 25% over 2024. The highlight in this market continued to be strong demand across multiple product categories driven by AI server adoption and data center expansion. Diodes' I2C repeaters, multipliers, and USB switches remain in high demand for server and AI-related server platforms from major global customers. Our DDR Mux product line also experienced robust growth as AI server and data center consumers expanded memory bandwidth to support the accelerated AI workloads. We also achieved strong momentum for our PCI Express 5.0, 6.0 clock solutions, especially as server and mobile OEMs migrate to high-performance architectures optimized for AI systems.
Speaker #1: The computing market . Although revenue was flat sequentially , we saw the strongest growth in this market for the full year , growing 25% over 2020 for the highlight in this market continued to be strong demand across multiple product categories , driven AI server adoption and data center expansion .
Speaker #1: Diodes ITC repeaters , multipliers and USB switches remain in high demand for server and AI related server platforms from major global customers . Our DDR mux product line also experienced robust growth as AI server and data center consumers , expanded memory bandwidth to support the accelerated AI workloads .
Speaker #1: also We achieved strong momentum for our PCI express 5.06.0 clock solutions , especially as and server notebook OEMs migrate to high performance architectures optimized for AI systems in connectivity and power .
Emily Yang: In connectivity and power, our USB-C source switches with integrated CC controllers, along with our 20-volt low-noise LDOs, continue to gain traction, especially in 15-watt USB-C power ports for desktop and docking station applications. Additionally, our low power switches saw increased adoption in data center SSD configurations, while our smart load switches capture multiple design wins for notebook power delivery systems. We also secure several design wins for our SBR product in power delivery adapters for the notebook. In the consumer market, revenue was down 5% sequentially and up 8% for the full year. During the quarter, our WLED driver gained momentum in the virtual reality headsets, supporting next-generation high-brightness display architectures, while our 5.0 OCP switches expanded in USB and HDMI port protection designs as connectivity requirements increased across personal electronics.
Speaker #1: Our USB-C source switches with integrated controllers CC with , along our Ldos , noise 20 volt low continue to gain traction , especially in USB-C 15 watt power ports for desktop and docking station applications .
Speaker #1: Additionally , our low on power switches saw increased adoption in data center SSD configurations . While smart low our switches capture multiple design wins for notebook power delivery systems .
Speaker #1: We also secured several design wins for our SBR product in power delivery adapters for notebooks in the consumer market. Revenue was down 5% sequentially and up 8% for the full year.
Speaker #1: During the quarter , our driver gained momentum in the virtual reality headsets supporting next generation high brightness display architectures . While are Fifo , OCP switches expanded in USB and HDMI port protection designs as requirements connectivity increase across electronics personal .
Emily Yang: Also, our bipolar junction transistor portfolio secures new design-ins across home security devices, whereas our discrete switching components remain essential for reliable sensing and control functions. Lastly, in the communication market, revenue was flat sequentially and up 7% for the full year. We're seeing strong momentum across high-speed connectivities and networking applications driven by AI infrastructures. Our bidirectional level shifters continue to win designs in smartphones, and our SBR rectifiers are also gaining traction in both smartphones and SSDs. We are also seeing growing demand for our differential crystal oscillators in SmartNIC and optical modules, targeting next-generation 800G 1.6T transceivers supporting the industry's transition to higher bandwidth network infrastructures. Finally, our USB ReDrivers secure major design wins in the next-generation Wi-Fi routers. In summary, our focus in 2026 is executing towards our three-year financial targets to drive continuous year-over-year growth momentum and margin expansion.
Speaker #1: our Also , bipolar junction transistor portfolio secure new designs across home security devices where our discrete switching components remain essential for reliable sensing and control functions .
Speaker #1: Lastly , in the communication market , revenue was flat sequentially and up 7% for the full year . We're seeing strong momentum across high speed connectivity and networking applications driven by AI infrastructures .
Speaker #1: Our bidirectional level shifters continue to win designs in smartphones and our SBR rectifiers are also gaining traction in both smartphones and SSDs . We are also seeing growing demand for our differential crystal oscillators in smart car and optical modules , targeting next generation and 800 Gbps 1.60 transceivers supporting the industrial to transition bandwidth network infrastructure .
Speaker #1: And finally , our USB drivers secure major design wins in the next generation Wi-Fi routers . In summary , our focus in 2026 is executing towards our three year financial targets to drive continuous year over year growth momentum and margin expansion with channel inventory at more normalized level and further signs of recovery in the automotive , industrial market , we expect to see improvements in overall business outlook throughout the year .
Emily Yang: With channel inventory at a more normalized level and further signs of recovery in the automotive industrial market, we expect to see improvements in overall business outlook throughout the year. Additionally, our continued investment in contact expansion initiatives targeting our key focus markets of automotive, industrial, and computing for AI server-related applications should contribute to our future top and bottom line growth. With that, we now open the floor to questions. Operator.
Speaker #1: Additionally , our continued investment in content expansion initiatives targeting our key focus markets of automotive , industrial and computing for AI server related should applications contribute to our future top and bottom line growth .
Speaker #1: With that, we now open the floor to questions. Operator.
Operator: Ladies and gentlemen, at this time, we'll begin the question and answer session. If you would like to ask a question, please press star and then one using a Touch-Tone telephone. To withdraw your questions, you may press star and two. If you are using a speakerphone, we do ask that you please pick up the headset, handset to ensure the best sound quality. Once again, that is star and then one to join the question queue. We'll pause momentarily to assemble the roster. Our first question today comes from David Williams from Benchmark. Please go ahead with your question.
Speaker #2: Ladies and gentlemen , at this time , we'll begin the question and answer session . If you would like to ask a question , please press star .
Speaker #2: And then one using a touchstone telephone . To withdraw your questions , you may press star and two if you are using a speakerphone .
Speaker #2: We do ask that you please pick up the headset handset to ensure the best sound quality . Once again , that is star and then one to join the question queue .
Speaker #2: We'll pause momentarily to assemble the roster . And our first question today comes from David Williams from benchmark . Please go ahead with your question .
David Williams: Hey, thanks, everyone. Congrats on the really solid results here and the better outlook.
Speaker #3: Hey , thanks everyone . And congrats on the really solid results here in the better outlook .
Gary Yu: Thank you, David.
Speaker #4: Thank you David . Yeah , I guess maybe you gave some first Gary , pretty aggressive .
David Williams: Yeah, I guess maybe first, Gary, you gave some pretty aggressive targets there that you've outlined. Can you kind of maybe walk us through the puts and takes and maybe how you see getting there, maybe just stepping through the trajectory would be helpful. Thank you.
Speaker #3: Targets that there you've that you've outlined . Can you kind of maybe walk us through the puts and takes and maybe you know how you see getting there .
Speaker #3: Maybe just stepping through the trajectory would be would be helpful . Thank you .
Gary Yu: Yes. David, I think this is really, really a very good question. First, I really want to emphasize again, we still committed to achieving the $1 billion GP long-term goal, right? I do believe since the market is still kind of dynamic and the interim target of a $2 billion revenue is an important milestone for investors to understand and modeling how and when we are going to achieve our long-term $1 billion GP target. So as in my speech, continue to drive and gaining share in the three key end market segments like automotive, industrial, and AI server-related applications, and also continue to improve cost structure and economics enhancement. The $2 billion represents 10.5% CAGR, which is about $700 million gross profit. It's about 15% CAGR and 35%+ GP percent will deliver $4 EPS, which equivalent probably 50% CAGR for the three-year period.
Speaker #5: Yes . And I think that's really , really a very good question . You know , first , I really want to emphasize that again , we're still committed to achieving the $1 billion GP long term goal .
Speaker #5: Right . And you know , I do believe since the market is still kind of dynamic and interim target of a $2 billion revenue is an important milestone for investors to understand .
Speaker #5: And the modeling how and when we are going to achieve our long term $1 billion GP target . So I in my speech , you know , continue to drive and gaining share in the three key and market segments like automotive , industrial and AI server related applications and also continue to improve cost structure and product mix enhancement .
Speaker #5: And that the $2 billion , you know , represented 10.5% CAGR with about like 700 million gross about profit , is like 15% CAGR and 35% and plus a GP percent will deliver for dollars EPs , which is equivalent probably 50% for the three year period .
Gary Yu: And also, to make this happen, we are talking about more than 45% GP flow-through for any incremental dollar contribute to our revenue. And that's very important.
Speaker #5: And also to make this happen , you know , we are talking about a more than 45% GP flow through for any incremental dollar , contribute to our revenue .
Speaker #5: And that's very important .
David Williams: That's very helpful. So I guess from the gross margin standpoint, very nice fall-through. Is that simply just the leverage, or are you seeing some of the operational efficiencies that you've kind of worked on the last several quarters or through the downturn? Is that really beginning to flow through? And then how should we think about the cadence of that gross margin improvement?
Speaker #3: That's very helpful . So I guess from the gross margin standpoint , very nice flow through . What are the is that simply just the leverage or are you seeing some of the operational efficiencies that you've kind of worked on in the last several quarters or through the downturn ?
Speaker #3: Is that really beginning to flow through? And then, how should we think about the cadence of that gross margin?
Speaker #3: improvement ?
Gary Yu: Well, actually, that's a very good question too, because we have been working a lot to improve our cost structure, including improving the manufacturing efficiency and the product mix improvement. And the most important is we bring the revenue up, and that's going to try to help our underloading issue in our manufacturing currently.
Speaker #5: Well ,
Speaker #5: actually , you know , that's a very good question too , because , you know , we have been working a lot to improve our cost structure , you know , including the improving the manufacturing efficiency and productivity improvement .
Speaker #5: And the most importantly , we bring the revenue up . And that's going to try to help our underlying issue in manufacturing . Currently .
David Williams: Great. Just one more, if I may. Just, if you kind of think about the growth trajectory through the year, how should we kind of think about that for the full year?
Speaker #3: And just one more , if I may , just as you kind of think about the growth trajectory through the year , how should we kind of think about that for the for the full year ?
Gary Yu: Well, we usually don't talk about the full year, but I do get a good feeling of the market demand getting much better this year, right, especially on the key segment that we're focusing on. As we continue to drive this kind of initiative, including product mix improvement, pushing more cost reduction, and manufacturing efficiency, as well as continue to qualify and port our process products to our fabs, this will help minimize an underloading costs impact. So overall, the margin improvement for 2026 to me is very promising.
Speaker #5: Well , we usually don't talk about the full year , but I do get a good feeling of the market demand getting much better this year .
Speaker #5: Right ? Especially on the key segment and we're focusing on and as we continue to drive this kind of initiative , including product mix improvement and pushing more cost reduction , and then manufacturing efficiency , as well as continue qualify and PCR processed product to our fans and this will help minimize and underlying cost impact .
Speaker #5: So overall , the margin improvement for 2026 to me is very promising .
Emily Yang: Yeah, I think, David, let me just add a little bit, right? So if you look at the Q1 guidance, we actually guided a 19% year-over-year growth, right? So even we don't really guide a whole-year guidance, we usually say, "Hey, usual seasonality." If you just plug in the usual seasonality, it kind of would give you a good estimate for the year, right? So I think you can use that as a reference.
Speaker #1: Yeah , I think David , just add a let me little bit . Right . So if you look at the Q1 guidance , we actually guided a 19% year over year growth , right ?
Speaker #1: even So we don't really guide the whole year guidance . We usually , you know , say , you show hey , seasonality if you just plug usual in the seasonality , it kind of will you a give for estimate good the year , right ?
Speaker #1: So I think you can use a reference that as .
Speaker #1: So I think you can use a reference that as .
David Williams: Great. Thanks so much.
Speaker #3: Great . Thanks so much .
Operator: Our next question comes from William Stein from Truist Securities. Please go ahead with your question.
Speaker #2: next question comes from And our William Stein from Truist Securities . Please go ahead with your question .
William Stein: Great. Thanks for taking my questions and congrats on the good results. Regarding the new targets, I think you said that's a three-year target. So should we contemplate this interim goal as something you plan to achieve in calendar 2028?
Speaker #6: Great . Thanks for taking my questions . And congrats on the good results regarding the new targets , I think you said that's a three year target .
Speaker #6: So should we contemplate this interim goal as something you plan to achieve in calendar 28 ?
Gary Yu: Yeah, definitely, yes. This is what I committed to the board and also committed to the street.
Speaker #5: Yeah, definitely. Yes. This is what I committed to the Board and also coming to the Street.
William Stein: Great. And a couple of others, if I can. The delta between your current gross margins and the target that you laid out today, should we think about the majority of that as getting through underutilization charges? Is that the major driver of this? I think you highlighted a 45% drop-through. That doesn't sound like it's sort of normal operating leverage. It sounds like it's an underutilization charge going away. Is that the way we should think about that dynamic from here through 2028?
Speaker #6: Great . And a couple of others , if I can . The the Delta between your current gross margins and the target that you laid out today , should we think about the majority of that as getting underutilization charges ?
Speaker #6: Is that the major driver of this? I think you highlighted a 45% drop through. That doesn't sound like it's sort of normal operating leverage.
Speaker #6: It sounds like it's an underutilization charge . Going away . Is that is that the way we should think about that dynamic from here through 28 ?
Gary Yu: Yes, definitely. Underloading costs are going to be the key factor for our GP percent. But that's the only thing we want to improve, right? Not only the underloading costs, but also want to improve the product mix enhancement and also want to concentrate focus on high-margin segments like automotive, industrial, and AI-related server. Altogether, we'll contribute more GP dollars and GP percent.
Speaker #5: Yeah , definitely . Under is going low charge to be the key factor . You for GP percent . But that's the only thing we want to improve , right .
Speaker #5: Not only the under charge but also want to improve the product mix . You know , enhancement and also want to concentrate , focus on high margin segment like automotive and and AI related service all together will contribute more GP dollars and GP percent .
William Stein: One final one, if I can. You have these manufacturing services agreements that I think are coming to an end this year, or maybe they're just diminishing. If you can clarify that for us and help us prepare for any changes that might cause either positive or negative to profitability. Thank you.
Speaker #6: Okay , one final one if I can . You have these manufacturing services agreements that I think are coming to an end this year or maybe maybe they're just diminishing .
Speaker #6: If you can clarify that us for help and us . Prepare for any changes that might cause either positive or negative to profitability .
Speaker #6: Thank you .
Gary Yu: Yes. Your assumptions are correct. We cannot disclose too much detail about that. But they are about to act about this year. That's the reason we try to continue reporting our product and processing to the manufacturer in our GFAB and SPFAB. So far, the progress is quite promising. We do see quite a few key customers already adopted the product produced from those two wafer fabs. I will say probably starting from next year, you're going to see the benefit contributing to our GP percent from those two wafer fabs.
Speaker #5: know , Yes . You and your assumptions are correct . And , you know , and we cannot disclose too much detail about that .
Speaker #5: But they are about X , you know , about this year . And that's the reason we try to , you know , continue reporting on product process and into the manufacturing in our G fab and Sp5 .
Speaker #5: And so far the progress is quite promising . And we do see that quite a few in key customers already adopted the product from produced from those two wafer fab .
Speaker #5: And you know , I will say , you know , probably starting from next year , you're going to see the benefit contributed to our GP percent from those two wafer fab .
William Stein: Thank you.
Speaker #6: Thank you .
Gary Yu: Thank you.
Speaker #5: Thank you .
Speaker #4: Thank you .
David Williams: Once again, if you would like to ask a question, please press star and then one. To withdraw your questions, you may press star and two. Again, that is star and then one to join the question queue. And we do have a follow-up question from David Williams from Benchmark. Please go ahead with your follow-up.
Speaker #2: Once again , if you would like to ask a question , please press star and then one to withdraw your questions . You may press star and two again that is star .
Speaker #2: And then question one to join the queue . And we do have a follow up question from David Williams from benchmark . Please go ahead with your follow up .
Gary Yu: Hey, thanks for letting me jump back in here.
Speaker #4: Hey , thanks .
Speaker #3: For letting me jump back in here .
David Williams: You're always welcome.
Speaker #4: I guess .
Speaker #5: You're always .
Speaker #3: Welcome . Well , you were so efficient answering my first questions , I figured I should throw in a couple of more , but maybe just on the the opportunity within or the the customer that you that you discussed earlier .
Gary Yu: Well, you were so efficient answering my first questions. I figured I should throw in a couple more. But maybe just on the opportunity with Nexperia or the customer that you discussed earlier, can you maybe size the magnitude of that? And then I know that that has historically been lower-margin business. Can you talk maybe about what you're doing to help stabilize the margin and not see the pressure here that you would typically see with that business that you picked up?
Speaker #3: you Can maybe size the magnitude of that . And then I know that that is historically been lower margin business . Can you talk maybe about what you're doing to help help stabilize the margin and not cede the pressure here that you would typically see with that business ?
Speaker #3: Picking up
Emily Yang: Yeah. So David, this is Emily, right? So I mentioned this before. Anytime there's supply interruption, market strategic change, direction, or anything, it's always favorable for Diodes, right? So definitely, we're not interested to pick up a lot of de-commodity business and stuff like that, but we actually use the opportunity to work with the customer to really deepen the relationship and make it really, I would say, beneficial long-term for both of the companies, right? So that's pretty much the approach we're taking. So we are using the opportunity to expand our overall portfolio as well as our print position.
Speaker #3: ?
Speaker #1: David , Yeah . this is Emily , right . So I mentioned this before . Anytime there's supply interruption market strategic direction change or anything is always favorable for diodes .
Speaker #1: Right . So you know definitely we're not interested to lot up a of commodity business and stuff like that . But we actually use the opportunity work with the to customer to really deepen the relationship and make it really I would say beneficial long term for both of the companies .
Speaker #1: Right? So that's pretty much the approach we're taking. So, we are using the opportunity to expand our overall portfolio as well as our print position.
David Williams: Just one last one. Just kind of thinking about the lunar holiday coming up in Asia, I know that that typically drives some seasonality. Are you sidestepping that, or are you just not seeing the impact? Or maybe talking about anything you're doing there to offset that typical weakness?
Speaker #3: And just one last one . Just kind of thinking about the lunar holiday coming up in in Asia . I know that that is typically drive some seasonality .
Speaker #3: Are you sidestepping that or are you just not seeing the impact or maybe talking about anything you're doing there to offset that typical weakness ?
Emily Yang: Yeah, Chinese New Year is pretty standard, right? Definitely, there's going to be some shutdowns and some of the customers as well as taking the break, right? So we actually included all these estimates into our number. But like I mentioned, right, we're definitely seeing really strong backlog, really strong booking, strong book-to-bill ratio, and everything. So that's the reason we actually guided a very strong Q1 estimate guidance to the street. So like I said, right, we're seeing a lot of recovery in the market, which is really a very good indication of the recovery.
Speaker #1: Yeah , Chinese New Year is pretty standard , right ? Definitely . There's going to be some shutdowns and some of the customers as well as taking the break , right .
Speaker #1: So we actually included all these estimates into our number. But, like I mentioned, definitely we are seeing a really strong backlog, really strong bookings, a strong book-to-bill ratio, and everything.
Speaker #1: So that's the reason we actually guided a very strong Q1 estimate the street . So you know , we see a lot of recovery in the market .
Speaker #7: We really .
Speaker #1: Very good indication of the recovery .
David Williams: Thanks again for the help. And congrats once again.
Speaker #3: for the help Thanks . Congrats once again .
Emily Yang: Thank you.
Gary Yu: Thanks, David.
Speaker #1: Thank you .
Speaker #5: Thanks ,
Speaker #8: .
Operator: Ladies and gentlemen, at this time, we'll be concluding today's question and answer session. I'd like to turn the floor back over to the management team for any closing remarks.
Speaker #2: And ladies and gentlemen , at this time we'll be concluding today's question and answer session . I'd like to turn the floor back over to the management team any for closing remarks .
Leanne Sievers: Thank you, everyone, for participating on today's call. We look forward to reporting our progress on next quarter's conference call. Operator, you may now disconnect.
Speaker #5: Thank you , everyone for participating on today's call . We look forward to reporting our progress on next quarter's conference call . Operator .
Speaker #5: You may now disconnect .
Operator: Ladies and gentlemen, we will conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.
Speaker #2: Ladies and gentlemen , we will conclude today's conference call . And presentation . We thank you for joining . disconnect You may now your lines .
