Shares of Navitas Semiconductor Corp (NASDAQ: NVTS) plummeted 16.02% in pre-market trading on Tuesday following the release of its disappointing second-quarter 2025 financial results and weak third-quarter guidance. The significant drop reflects growing investor concerns about the company's financial performance and future prospects in the competitive semiconductor market.

For the second quarter, Navitas reported revenue of $14.49 million, slightly beating analyst estimates but representing a substantial 29.3% decrease compared to the same period last year. The company's GAAP net loss widened to $49.075 million, or $0.25 per share, significantly worse than the analyst estimate of $0.05 per share loss. While Navitas managed to narrow its non-GAAP operating loss to $10.6 million from $13.3 million in Q2 2024, ongoing profitability issues continue to weigh on investor sentiment.

Adding to the negative sentiment, Navitas provided a weak outlook for the third quarter of 2025, projecting revenue of $10.0 million, plus or minus $0.5 million. This guidance suggests a further decline in revenue compared to the just-reported Q2 results, citing China tariff risks and a more selective mobile strategy as primary factors. The company's struggle to maintain growth and achieve profitability in key markets like AI data centers, electric vehicles, and solar power systems appears to be a major concern for investors, despite management's efforts to highlight progress in strategic partnerships and technological advancements.