Vicor Corp filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $560.7 million, which rose 27.0% on the year before. That growth rate was up 15.3 percentage points on the rate a quarter earlier.
What stands out
Reported profit and cash are moving at different speeds. Net income rose 119.1% over the year while free cash flow fell 56.7%. This divergence highlights a disconnect between accounting earnings and actual liquidity generation.
Less of the cash generated was left over due to accelerated investment. The company is deploying capital at a pace that outstrips its operational cash inflows.
Growth and profit
The trailing gross margin stood at 60.6%. This top-line efficiency supports the broader profitability picture seen in the filings.
The trailing operating margin was 24.9%, up 7.8 percentage points from a year earlier. This expansion reflects better cost control relative to sales volume.
The bottom line benefited directly from these margin gains. The trailing net margin reached 32.2%. Net income over the twelve months was $180.3 million, which rose 119.1% on the year before.
Cash flow
Operating cash flow over the twelve months was $96.1 million, down 28.3% on the year before. This decline occurred despite higher revenue, indicating pressure on working capital or other operational costs.
Capital spending consumed a notable portion of resources. It totaled $45.2 million, or 8.1% of revenue. This level of investment represents a substantial commitment to future capacity or technology.
Free cash flow, operating cash flow less capital spending, was $50.8 million, down 56.7% on the year before. The free-cash-flow margin stood at 9.1%, down 17.5 percentage points from a year earlier. This sharp drop shows that heavy spending is eroding the cash available to shareholders.
The average diluted share count rose 4.0% over the year.
In context
Today’s free-cash-flow margin of 9.1% is higher than 84% of the company’s own past quarterly readings, which have ranged from −10.3% to 26.6%. While down year-over-year, it remains above most historical levels.
Today’s operating margin of 24.9% is above every one of past readings (−10.9% to 21.0%). This marks a new high point in the company’s profitability history relative to revenue.
Today’s twelve-month revenue growth rate of 27.0% is higher than 91% of past readings (−17.3% to 29.3%). The current pace of expansion sits near the top of its historical range.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 19.5%, and 5 percentage points higher would raise it by 24.9%. Valuation is highly sensitive to changes in the revenue growth assumption.
A free-cash-flow margin 1 percentage point lower would lower it by 9.0%. Small shifts in cash conversion efficiency have a material impact on the calculated value.
What to watch
The next filing will reveal whether capital spending moderates as new projects come online. Investors should look for signs that operating cash flow stabilizes or recovers its growth trajectory. The trend in the free-cash-flow margin will determine if the current gap between profit and cash persists.
