Nordic Semiconductor ASA
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Nordic Semiconductor ASA
Nestled in the innovation-centric metropolis of Oslo, Nordic Semiconductor ASA has established itself as a stalwart in the realm of wireless technology. Founded in 1983, this Norwegian company has continuously evolved and adapted its strategies to keep pace with the rapidly changing tech landscape. Initially focused on the market for mixed-signal application-specific ICs, Nordic turned its keen eye toward the burgeoning opportunities in low-power wireless communication in the early 2000s. This strategic pivot proved prescient, as the exponential growth of the Internet of Things (IoT) created a burgeoning demand for the company's core products - the ultra-low power wireless systems that facilitate seamless connectivity in everything from smart home gadgets to cutting-edge wearables.
The heart of Nordic Semiconductor's ingenuity lies in its development of Bluetooth Low Energy (BLE) solutions and other wireless technologies, which form the backbone of the company's revenue stream. These systems-on-chip (SoCs) and related software ensure devices can communicate efficiently and with minimal power consumption. By capitalizing on the demand for wireless communication solutions that ensure robustness and extended battery life, Nordic Semiconductor generates revenue through the sale of its SoCs, supplementary development kits, and software solutions tailored to customers' specific needs. Additionally, the company has wisely invested in strategic partnerships and a strong R&D framework, keeping it agile and at the forefront of the wireless communication sector. In so doing, Nordic Semiconductor not only affirms its role as a key player in the IoT ecosystem but also consistently delivers value to its stakeholders.
Nestled in the innovation-centric metropolis of Oslo, Nordic Semiconductor ASA has established itself as a stalwart in the realm of wireless technology. Founded in 1983, this Norwegian company has continuously evolved and adapted its strategies to keep pace with the rapidly changing tech landscape. Initially focused on the market for mixed-signal application-specific ICs, Nordic turned its keen eye toward the burgeoning opportunities in low-power wireless communication in the early 2000s. This strategic pivot proved prescient, as the exponential growth of the Internet of Things (IoT) created a burgeoning demand for the company's core products - the ultra-low power wireless systems that facilitate seamless connectivity in everything from smart home gadgets to cutting-edge wearables.
The heart of Nordic Semiconductor's ingenuity lies in its development of Bluetooth Low Energy (BLE) solutions and other wireless technologies, which form the backbone of the company's revenue stream. These systems-on-chip (SoCs) and related software ensure devices can communicate efficiently and with minimal power consumption. By capitalizing on the demand for wireless communication solutions that ensure robustness and extended battery life, Nordic Semiconductor generates revenue through the sale of its SoCs, supplementary development kits, and software solutions tailored to customers' specific needs. Additionally, the company has wisely invested in strategic partnerships and a strong R&D framework, keeping it agile and at the forefront of the wireless communication sector. In so doing, Nordic Semiconductor not only affirms its role as a key player in the IoT ecosystem but also consistently delivers value to its stakeholders.
Revenue Growth: Q4 2025 revenue was $170 million, up 13% year-over-year and at the high end of guidance. Full-year revenue rose 31% to $668 million.
Guidance: Q1 2026 revenue is guided between $175 million and $195 million, implying about 20% growth year-over-year at the midpoint and 9% sequentially—an unusually strong start to the year.
Gross Margin: Q4 gross margin was 54.9%, benefiting from a $5 million reversal of prior inventory write-downs. Adjusted gross margin was 52%, up 2.9 percentage points year-on-year.
Profitability: Full-year adjusted EBITDA rose to $67 million (10% margin) from $8 million last year, and reported EBITDA swung from negative $5 million to positive $66 million.
Product & Market Momentum: Growth was broad-based across segments, with particularly strong performance in Industrial and Healthcare. New product launches, especially in the nRF54 series and Edge AI, are driving design wins and future revenue potential.
Operating Expenses: OpEx increased with heavy R&D and product launches, but management expects Q1 costs to be similar to Q4, signaling the potential for operating leverage going forward.
Strategic Shift: Nordic is evolving from a hardware vendor to a full solutions provider, integrating software and cloud services, notably strengthened by the Memfault and Neuton.AI acquisitions.
