Manufactures and supplies discrete, logic, analog, and mixed-signal semiconductor products for electronics, computing, communications, industrial, and automotive markets
40 added · 43 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
Twelve Months Ended December 31, 2025 2024 Increase/(Decrease) % Change Net sales $ 1,482,073 $ 1,311,120 $ 170,953 13.0 % Cost of goods sold 1,019,637 875,258 144,379 16.5 % Gross profit 462,436 435,862 26,574 6.1 % Total operating expense 426,974 385,412 41,562 10.8 % Interest income 28,304 18,303 10,001 54.6 % Interest expense (2,776 ) (2,334 ) 442 18.9 % Foreign currency loss, net (12,818 ) (6,308 ) 6,510 (103.2 %) Unrealized gain (loss) on investments 28,561 (321 ) 28,882 8997.5 % Impairment of equity investment (5,817 ) - 5,817 - Gain on disposal of subsidiary 13,730 - 13,730 - Other (expense) income (687 ) 2,892 (3,579 ) (123.8 %) Income tax provision 14,789 11,840 2,949 24.9 % Net Sales Our net sales increased approximately $171.0 million, or 13.0%, for the twelve months ended December 31, 2025, compared to the prior year, as we experienced stronger sales across all end markets.
Our audit procedures related to the identification and testing of significant assumptions used in the estimate included the following, among others: • Testing management’s process to develop the estimate for the ship and debit reserve, including: o Evaluating the reasonableness of management’s assumptions by comparing the significant assumptions (ship and debit claims percentages history and the relevant cycle time period between when sales are made by distributors to their end customers and when ship and debit credit memos are issued by the Company to distributors) used to historical trends, including testing the completeness and accuracy of the underlying data. o Vouching revenues and ship and debit credits to supporting documentation. 46 o Confirming point of sales data used within management’s reserve calculation with a sample of distributors to validate data fields. o Performing sensitivity analyses on the significant assumptions (ship and debit claims percentage history and the relevant cycle time period between when sales are made by distributors to their end customers and when ship and debit credit memos are issued by the Company to distributors) to evaluate the potential changes in the ship and debit reserve that would result from changes in the assumptions. /s/ Baker Tilly US, LLP Irvine, California February 10, 2026 We have served as the Company’s auditor since 1993. 47 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 367,212 $ 308,671 Restricted cash 5,134 6,053 Short-term investments 9,817 7,464 Accounts receivable, net of allowances of $ 4,095 and $ 7,799 at December 31, 2025 and December 31, 2024, respectively 307,055 325,517 Inventories 471,546 474,948 Prepaid expenses and other 96,198 101,500 Total current assets 1,256,962 1,224,153 Property, plant, and equipment, net 649,605 684,259 Deferred income tax 59,297 51,974 Goodwill 183,437 181,555 Intangible assets, net 45,455 67,397 Other long-term assets 253,344 176,943 Total assets $ 2,448,100 $ 2,386,281 Liabilities Current liabilities: Lines of credit $ 30,264 $ 31,429 Accounts payable 149,376 133,765 Accrued liabilities and other 180,922 186,576 Income tax payable 16,336 22,730 Current portion of long-term debt 1,442 1,096 Total current liabilities 378,340 375,596 Long-term debt, net of current portion 24,224 19,563 Deferred tax liabilities 6,145 6,953 Unrecognized tax benefits 23,454 24,646 Other long-term liabilities 77,528 90,576 Total liabilities 509,691 517,334 Commitments and contingencies (See Note 17) Stockholders' equity Preferred stock - par value $ 1.00 per share; 1,000,000 shares authorized; no shares issued or outstanding - - Common stock - par value $ 0.66 2/3 per share; 70,000,000 shares authorized; and 45,875,799 shares and 46,332,891 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively 37,259 37,083 Additional paid-in capital 538,087 523,744 Retained earnings 1,785,439 1,719,298 Treasury stock, at cost, 10,008,905 shares and 9,288,420 shares at December 31, 2025 and December 31, 2024, respectively ( 371,914 ) ( 338,100 ) Accumulated other comprehensive loss ( 110,747 ) ( 146,724 ) Total stockholders' equity 1,878,124 1,795,301 Noncontrolling interest 60,285 73,646 Total equity 1,938,409 1,868,947 Total liabilities and stockholders' equity $ 2,448,100 $ 2,386,281 The accompanying notes are an integral part of these consolidated financial statements. 48 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATE D STATEMENTS OF INCOME (In thousands, except per share data) Twelve Months Ended December 31, 2025 2024 2023 Net sales $ 1,482,073 $ 1,311,120 $ 1,661,739 Cost of goods sold 1,019,637 875,258 1,003,557 Gross profit 462,436 435,862 658,182 Operating expenses Selling, general, and administrative 241,606 233,913 257,939 Research and development 162,175 134,051 134,868 Amortization of acquisition related intangible assets 22,227 16,499 15,282 Loss (gain) on disposal of fixed assets 572 ( 7,641 ) ( 2,045 ) Restructuring charge 394 8,591 1,583 Other operating income - ( 1 ) ( 16 ) Total operating expense 426,974 385,412 407,611 Income from operations 35,462 50,450 250,571 Other (expense) income Interest income 28,304 18,303 13,338 Interest expense ( 2,776 ) ( 2,334 ) ( 5,700 ) Foreign currency loss, net ( 12,818 ) ( 6,308 ) ( 5,264 ) Unrealized gain (loss) on investments 28,561 ( 321 ) 18,267 Impairment of equity investment ( 5,817 ) - - Gain on disposal of subsidiary 13,730 - - Other (expense) income ( 687 ) 2,892 6,721 Total other (expense) income 48,497 12,232 27,362 Income before income taxes and noncontrolling interest 83,959 62,682 277,933 Income tax provision 14,789 11,840 47,285 Net income 69,170 50,842 230,648 Less: net income attributable to noncontrolling interest ( 3,029 ) ( 6,818 ) ( 3,466 ) Net income attributable to common stockholders $ 66,141 $ 44,024 $ 227,182 Earnings per share attributable to common stockholders: Basic $ 1.43 $ 0.95 $ 4.96 Diluted $ 1.43 $ 0.95 $ 4.91 Number of shares used in earnings per share computation: Basic 46,340 46,208 45,803 Diluted 46,414 46,408 46,311 The accompanying notes are an integral part of these consolidated financial statements. 49 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATE MENTS OF COMPREHENSIVE INCOME (In thousands) Twelve Months Ended December 31, 2025 2024 2023 Net income $ 69,170 $ 50,842 $ 230,648 Unrealized gain (loss) on defined benefit plan, net of tax 6,609 5,988 ( 1,466 ) Unrealized (loss) gain on swaps and collars, net of tax ( 7,240 ) 2,388 ( 13,619 ) Unrealized foreign currency gain (loss), net of tax 36,608 ( 11,873 ) 91 Comprehensive income 105,147 47,345 215,654 Less: Comprehensive income attributable to noncontrolling interest ( 3,029 ) ( 6,818 ) ( 3,466 ) Total comprehensive income attributable to common stockholders $ 102,118 $ 40,527 $ 212,188 The accompanying notes are an integral part of these consolidated financial statements. 50 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STAT EMENTS OF EQUITY (In thousands) Common stock Treasury stock Additional paid-in Retained Accumulated other comprehensive Total Diodes Incorporated stockholders' Noncontrolling Total Shares Amount Shares Amount capital earnings loss equity interest equity Balance, December 31, 2022 54,751 36,503 ( 9,282 ) ( 337,490 ) 494,773 1,448,092 ( 128,233 ) 1,513,645 69,274 1,582,919 Total comprehensive income - - - - - 227,182 ( 14,994 ) 212,188 3,466 215,654 Net changes in noncontrolling interests - - - - - - - ( 3,804 ) ( 3,804 ) Common stock issued for share-based plans 474 316 - - ( 316 ) - - - - - Share-based compensation - - - - 30,545 - - 30,545 - 30,545 Deferred compensation plan - - ( 5 ) ( 496 ) 496 - - - - - Tax related to net share settlement - - - - ( 15,637 ) - - ( 15,637 ) - ( 15,637 ) Balance, December 31, 2023 55,225 36,819 ( 9,287 ) ( 337,986 ) 509,861 1,675,274 ( 143,227 ) 1,740,741 68,936 1,809,677 Total comprehensive income - - - - - 44,024 ( 3,497 ) 40,527 6,818 47,345 Net changes in noncontrolling interests - - - - 853 - - 853 ( 2,108 ) ( 1,255 ) Common stock issued for share-based plans 396 264 - - ( 264 ) - - - - - Share-based compensation - - - - 22,741 - - 22,741 - 22,741 Deferred compensation plan - - ( 1 ) ( 114 ) 114 - - - - - Tax related to net share settlement - - - - ( 9,561 ) - - ( 9,561 ) - ( 9,561 ) Balance, December 31, 2024 55,621 37,083 ( 9,288 ) ( 338,100 ) 523,744 1,719,298 ( 146,724 ) 1,795,301 73,646 1,868,947 Total comprehensive income - - - - - 66,141 35,977 102,118 3,029 105,147 Net changes in noncontrolling interests - - - - ( 6,854 ) - - ( 6,854 ) ( 16,390 ) ( 23,244 ) Common stock issued for share-based plans 263 176 - - ( 176 ) - - - - - Share-based compensation - - - - 25,712 - - 25,712 - 25,712 Tax related to net share settlement - - - - ( 4,339 ) - - ( 4,339 ) - ( 4,339 ) Stock buyback - - ( 720 ) ( 33,814 ) - - - ( 33,814 ) - ( 33,814 ) Balance, December 31, 2025 55,884 $ 37,259 ( 10,008 ) $ ( 371,914 ) $ 538,087 $ 1,785,439 $ ( 110,747 ) $ 1,878,124 $ 60,285 $ 1,938,409 The accompanying notes are an integral part of these consolidated financial statements. 51 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Twelve Months Ended December 31, 2025 2024 2023 Cash flows from operating activities Net income $ 69,170 $ 50,842 $ 230,648 Adjustments to reconcile net income to net cash provided by operating activities, net of effects of acquisitions Depreciation 121,520 120,637 122,048 Amortization of intangible assets 22,227 16,499 15,282 Amortization of debt-issuance costs 301 302 1,117 Share-based compensation expense 25,745 22,767 30,911 Deferred income taxes ( 7,477 ) ( 1,001 ) ( 13,349 ) Investment (gain) loss ( 25,870 ) 267 ( 19,398 ) Gain on sale of subsidiary ( 13,730 ) - - Impairment of long-lived assets 5,816 - - Gain on disposal of fixed assets 572 ( 7,641 ) ( 2,045 ) Interest income from derivative financial instruments ( 20,034 ) ( 10,409 ) ( 4,304 ) Other 796 ( 2,341 ) ( 2,409 ) Changes in operating assets: Change in accounts receivable 22,687 47,276 ( 2,611 ) Change in inventory 9,095 ( 87,497 ) ( 28,947 ) Change in other operating assets 12,357 3,478 ( 17,971 ) Changes in operating liabilities: Change in accounts payable 13,786 ( 23,436 ) ( 2,165 ) Change in accrued liabilities ( 13,670 ) ( 3,144 ) ( 17,749 ) Change in income tax (refundable) payable ( 7,478 ) 12,408 ( 9,307 ) Change in unrealized tax benefit liability ( 1,422 ) ( 15,312 ) 2,942 Change in other operating liabilities 1,122 ( 4,260 ) ( 1,779 ) Net cash and cash equivalents from operating activities 215,513 119,435 280,914 Cash flows from investing activities Acquisitions, net of cash received ( 5,310 ) ( 56,661 ) ( 3 ) Purchases of property, plant, and equipment ( 78,362 ) ( 73,024 ) ( 150,769 ) Proceeds from sale of property, plant, and equipment 6,991 816 2,769 Proceeds from short-term investments 7,629 16,360 6,157 Purchases of short-term investments ( 9,720 ) ( 14,026 ) ( 9,323 ) Purchases of equity securities ( 49,303 ) - ( 17,901 ) Proceeds from sale of subsidiary 15,958 - - Receipt of government grants 585 8,659 471 Receipt of insurance recovery - 4,725 1,413 Proceeds from disposal of wafer fabrication facility - - 6,292 Net amounts (paid) received for hedge termination ( 4,000 ) - 374 Other ( 646 ) ( 4,889 ) 2,198 Net cash and cash equivalents from investing activities ( 116,178 ) ( 118,040 ) ( 158,322 ) Cash flows from financing activities Advances on lines of credit and short-term debt 59,073 90,766 29,036 Repayments of lines of credit and short-term debt ( 61,922 ) ( 98,354 ) ( 24,509 ) Proceeds from long-term debt 11,746 6,439 25,204 Repayments of long-term debt ( 7,729 ) ( 6,458 ) ( 154,019 ) Debt issuance costs - ( 188 ) ( 948 ) Repayment of and proceeds from finance lease obligation ( 85 ) ( 64 ) ( 115 ) Taxes paid related to net share settlement ( 4,339 ) ( 9,561 ) ( 15,637 ) Net changes in noncontrolling interests ( 18,104 ) ( 2,079 ) ( 3,647 ) Repurchases of common stock ( 33,814 ) - - Other 363 155 ( 88 ) Net cash and cash equivalents from financing activities ( 54,811 ) ( 19,344 ) ( 144,723 ) Effect of exchange rate changes on cash and cash equivalents 13,098 14,190 ( 485 ) Change in cash and cash equivalents, including restricted cash 57,622 ( 3,759 ) ( 22,616 ) Cash and cash equivalents, beginning of period, including restricted cash 314,724 318,483 341,099 Cash and cash equivalents, end of period, including restricted cash $ 372,346 $ 314,724 $ 318,483 The accompanying notes are an integral part of these consolidated financial statements. 52 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (In thousands) Twelve Months Ended December 31, 2025 2024 2023 Supplemental Cash Flow Information Interest paid during the period $ 1,683 $ 2,035 $ 4,607 Taxes paid during the period $ 24,157 $ 21,534 $ 97,668 Non-cash investing and financing activities: Accounts payable balance related to the purchase of property, plant, and equipment $ 15,841 $ 13,065 $ 14,602 Dividend payable balance to noncontrolling interests $ - $ - $ 100 The accompanying notes are an integral part of these consolidated financial statements. 53 DIODES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Table amounts in thousands except per share data) Note 1 – Summary of Operations and Significant Accounting Policies Nature of operations GENERAL Diodes Incorporated, together with its subsidiaries (collectively the “Company,” “we,” or “our” (Nasdaq: DIOD)), a Standard and Poor’s Smallcap 600 and Russell 3000 Index company, is a leading global manufacturer and supplier of high-quality application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets.
Amortization of acquisition-related intangibles increased approximately 34.7% reflecting a full year of the increased amortization expense due to the acquisition of Fortemedia in October 2024.
During the the twelve months ended December 31, 2025, the Company recognized an impairment loss on an equity investment of $5.8 million, due to a decline in the value of the investment.
The Company made purchases of equity securities of $49.3 million, including making an investment in ATX of approximately $30.0 million, increasing its investment in Atlas by approximately $17.3 million, and the acquisition of the minority interest in a joint venture in Taiwan for approximately $4.1 million, bringing the Company’s ownership to 100%.
The Company has continued to see demand improvements across all target markets and geographies, with the most significant growth for the full year driven by strength in the computing market for AI server-related applications as well as increases in our automotive and industrial end markets. 33 More recently, we have been strategically supporting key customers on new opportunities and orders specifically in the automotive and communications markets, while also further extending our design-in momentum across all end markets.
December 2025 2020 2021 2022 2023 2024 2025 Diodes Incorporated Return % 55.76 (30.67 ) 5.74 (23.42 ) (20.00 ) Cum $ 100 155.76 107.99 114.18 87.44 69.95 NASDAQ Industrial Index Return % 8.81 (35.05 ) 28.93 25.67 5.07 Cum $ 100 108.81 70.67 91.12 114.52 120.32 NASDAQ Composite-Total Returns Return % 22.18 (32.54 ) 44.64 29.57 21.14 Cum $ 100 122.18 82.43 119.22 154.48 187.14 Issuer Purchases of Equity Securities The following table provides information about repurchases of our common stock during the three months ended December 31, 2025.
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1, 2025 to October 31, 2025 - $ - - - November 1, 2025 to November 30, 2025 332,867 $ 45.08 332,867 - December 1, 2025 to December 31, 2025 176,674 $ 49.83 176,674 - Total 509,541 509,541 $ 66,186,357 All open-market purchases during the quarter were made under the authorization received from our board of directors on May 8, 2025, to purchase up to $100.0 million of the Company’s common stock.
Average unit cost increased 1.3% for the twelve months ended December 31, 2025, compared to the same period last year, due to the mix of the product being on lower margin/lower cost products, as well as raw material price increases, including gold.
Additionally, the fourth quarter of 2025 represented the fourth consecutive quarter of double-digit growth year-over-year, further highlighting the success of the Company’s design win initiatives and content expansion over the past year.
The change in unrealized gain on investments in 2025 compared to 2024 was due to mark-to-market adjustments to adjust the value of the investments, including a $33.3 million increase in the value of the Company’s investment in Atlas.
The decrease in the effective tax rate for 2025 compared to 2024 is primarily attributable to an increase in overall pre-tax book income and the impact of the geographical mix of pre-tax income.
No longer disclosed
Diodes enters the new year having strong POS in Asia for 2024, improved levels of channel inventory and a solid balance sheet combined with a committed focus on expanding growth in our target markets, especially the automotive and industrial markets, and capitalizing on new opportunities in AI-related applications.
Our audit procedures related to the identification and testing of the significant assumptions used in the estimate included the following, among others: • Testing management’s process to develop the estimate for finished goods write-down for shelf-life, including: o Evaluating the reasonableness of the significant assumptions used, including but not limited to ▪ Performing inquiries with non-financial personnel, and evaluating related supporting documentation and external industry data regarding shelf-life assumptions. ▪ Evaluating the results, including validating the mathematical accuracy, of management’s historical look-back analysis of inventory disposals to historical write-downs. o Testing the completeness and accuracy of the underlying data, including the age of finished goods. o Testing the mathematical accuracy of management’s calculations. • Developing an independent expectation of the total finished goods write-down based on historical finished goods sales activity. /s/ Moss Adams LLP Irvine, California February 14, 2025 We have served as the Company’s auditor since 1993. 48 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 308,671 $ 315,457 Restricted cash 6,053 3,026 Short-term investments 7,464 10,174 Accounts receivable, net of allowances of $ 7,799 and $ 5,641 at December 31, 2024 and December 31, 2023, respectively 325,517 371,930 Inventories 474,948 389,774 Prepaid expenses and other 101,500 97,024 Total current assets 1,224,153 1,187,385 Property, plant, and equipment, net 684,259 746,169 Deferred income tax 51,974 51,620 Goodwill 181,555 146,558 Intangible assets, net 67,397 63,937 Other long-term assets 176,943 171,990 Total assets $ 2,386,281 $ 2,367,659 Liabilities Current liabilities: Lines of credit $ 31,429 $ 40,685 Accounts payable 133,765 158,261 Accrued liabilities and other 186,576 179,674 Income tax payable 22,730 10,459 Current portion of long-term debt 1,096 4,419 Total current liabilities 375,596 393,498 Long-term debt, net of current portion 19,563 16,979 Deferred tax liabilities 6,953 13,662 Unrecognized tax liabilities 24,646 34,035 Other long-term liabilities 90,576 99,808 Total liabilities 517,334 557,982 Commitments and contingencies (See Note 17) Stockholders' equity Preferred stock - par value $ 1.00 per share; 1,000,000 shares authorized; no shares issued or outstanding - - Common stock - par value $ 0.66 2/3 per share; 70,000,000 shares authorized; and 46,332,891 shares and 45,938,382 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively 37,083 36,819 Additional paid-in capital 523,744 509,861 Retained earnings 1,719,298 1,675,274 Treasury stock, at cost, 9,288,420 shares and 9,286,862 shares at December 31, 2024 and December 31, 2023, respectively ( 338,100 ) ( 337,986 ) Accumulated other comprehensive loss ( 146,724 ) ( 143,227 ) Total stockholders' equity 1,795,301 1,740,741 Noncontrolling interest 73,646 68,936 Total equity 1,868,947 1,809,677 Total liabilities and stockholders' equity $ 2,386,281 $ 2,367,659 The accompanying notes are an integral part of these consolidated financial statements. 49 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATE D STATEMENTS OF INCOME (In thousands, except per share data) Twelve Months Ended December 31, 2024 2023 2022 Net sales $ 1,311,120 $ 1,661,739 $ 2,000,580 Cost of goods sold 875,258 1,003,557 1,173,343 Gross profit 435,862 658,182 827,237 Operating expenses Selling, general, and administrative 233,913 257,939 280,877 Research and development 134,051 134,868 126,316 Amortization of acquisition related intangible assets 16,499 15,282 15,610 Gain on disposal of fixed assets ( 7,641 ) ( 2,045 ) ( 3,651 ) Restructuring charge 8,591 1,583 - Other operating income ( 1 ) ( 16 ) ( 108 ) Total operating expense 385,412 407,611 419,044 Income from operations 50,450 250,571 408,193 Other (expense) income Interest income 18,303 13,338 3,672 Interest expense ( 2,334 ) ( 5,700 ) ( 8,320 ) Foreign currency (loss) gain, net ( 6,308 ) ( 5,264 ) 2,122 Unrealized (loss) gain on investments ( 321 ) 18,267 ( 16,514 ) Other income 2,892 6,721 6,787 Total other income (expense) 12,232 27,362 ( 12,253 ) Income before income taxes and noncontrolling interest 62,682 277,933 395,940 Income tax provision 11,840 47,285 56,685 Net income 50,842 230,648 339,255 Less: net income attributable to noncontrolling interest ( 6,818 ) ( 3,466 ) ( 7,972 ) Net income attributable to common stockholders $ 44,024 $ 227,182 $ 331,283 Earnings per share attributable to common stockholders: Basic $ 0.95 $ 4.96 $ 7.31 Diluted $ 0.95 $ 4.91 $ 7.20 Number of shares used in earnings per share computation: Basic 46,208 45,803 45,330 Diluted 46,408 46,311 46,036 The accompanying notes are an integral part of these consolidated financial statements. 50 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATE MENTS OF COMPREHENSIVE INCOME (In thousands) Twelve Months Ended December 31, 2024 2023 2022 Net income $ 50,842 $ 230,648 $ 339,255 Unrealized gain (loss) on defined benefit plan, net of tax 5,988 ( 1,466 ) ( 697 ) Unrealized gain (loss) on swaps and collars, net of tax 2,388 ( 13,619 ) 4,279 Unrealized foreign currency (loss) gain, net of tax ( 11,873 ) 91 ( 81,298 ) Comprehensive income 47,345 215,654 261,539 Less: Comprehensive income attributable to noncontrolling interest ( 6,818 ) ( 3,466 ) ( 7,972 ) Total comprehensive income attributable to common stockholders $ 40,527 $ 212,188 $ 253,567 The accompanying notes are an integral part of these consolidated financial statements. 51 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STAT EMENTS OF EQUITY (In thousands) Common stock Treasury stock Additional paid-in Retained Accumulated other comprehensive Total Diodes Incorporated stockholders' Noncontrolling Total Shares Amount Shares Amount capital earnings loss equity interest equity Balance, December 31, 2021 54,290 36,195 ( 9,273 ) ( 336,894 ) 471,649 1,116,809 ( 50,517 ) 1,237,242 65,482 1,302,724 Total comprehensive income - - - - - 331,283 ( 77,716 ) 253,567 7,972 261,539 Net changes in noncontrolling interests - - - - ( 1,014 ) - ( 1,014 ) ( 4,180 ) ( 5,194 ) Common stock issued for share-based plans 461 308 - - ( 168 ) - - 140 - 140 Share-based compensation - - - - 36,010 - - 36,010 - 36,010 Deferred compensation plan - - ( 9 ) ( 596 ) 596 - - - - - Tax related to net share settlement - - - - ( 12,300 ) - - ( 12,300 ) - ( 12,300 ) Balance, December 31, 2022 54,751 36,503 ( 9,282 ) ( 337,490 ) 494,773 1,448,092 ( 128,233 ) 1,513,645 69,274 1,582,919 Total comprehensive income - - - - - 227,182 ( 14,994 ) 212,188 3,466 215,654 Net changes in noncontrolling interests - - - - - - - - ( 3,804 ) ( 3,804 ) Common stock issued for share-based plans 474 316 - - ( 316 ) - - - - - Share-based compensation - - - - 30,545 - - 30,545 - 30,545 Deferred compensation plan - - ( 5 ) ( 496 ) 496 - - - - - Tax related to net share settlement - - - - ( 15,637 ) - - ( 15,637 ) - ( 15,637 ) Balance, December 31, 2023 55,225 36,819 ( 9,287 ) ( 337,986 ) 509,861 1,675,274 ( 143,227 ) 1,740,741 68,936 1,809,677 Total comprehensive income - - - - - 44,024 ( 3,497 ) 40,527 6,818 47,345 Net changes in noncontrolling interests - - - - 853 - - 853 ( 2,108 ) ( 1,255 ) Common stock issued for share-based plans 396 264 - - ( 264 ) - - - - - Share-based compensation - - - - 22,741 - - 22,741 - 22,741 Deferred compensation plan - - ( 1 ) ( 114 ) 114 - - - - - Tax related to net share settlement - - - - ( 9,561 ) - - ( 9,561 ) - ( 9,561 ) Balance, December 31, 2024 55,621 $ 37,083 ( 9,288 ) $ ( 338,100 ) $ 523,744 $ 1,719,298 $ ( 146,724 ) $ 1,795,301 $ 73,646 $ 1,868,947 The accompanying notes are an integral part of these consolidated financial statements. 52 DIODES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Twelve Months Ended December 31, 2024 2023 2022 Cash flows from operating activities Net income $ 50,842 $ 230,648 $ 339,255 Adjustments to reconcile net income to net cash provided by operating activities, net of effects of acquisitions Depreciation 120,637 122,048 112,149 Amortization of intangible assets 16,499 15,282 15,610 Amortization of debt-issuance costs 302 1,117 950 Share-based compensation expense 22,767 30,911 36,287 Deferred income taxes ( 1,001 ) ( 13,349 ) ( 39,225 ) Investment (gain) loss 267 ( 19,398 ) 16,225 (Gain) on disposal of property, plant, and equipment ( 7,641 ) ( 2,045 ) ( 3,626 ) Interest income form forwards and collars ( 10,409 ) ( 4,304 ) - Other ( 2,341 ) ( 2,409 ) ( 4,016 ) Changes in operating assets: Change in accounts receivable 47,276 ( 2,611 ) ( 20,163 ) Change in inventory ( 87,497 ) ( 28,947 ) ( 29,675 ) Change in other operating assets 3,478 ( 17,971 ) 1,847 Changes in operating liabilities: Change in accounts payable ( 23,436 ) ( 2,165 ) ( 50,076 ) Change in accrued liabilities ( 3,144 ) ( 17,749 ) 31,760 Change in income tax payable 12,408 ( 9,307 ) ( 8,333 ) Change in unrealized tax benefit liability ( 15,312 ) 2,942 1,922 Change in other operating liabilities ( 4,260 ) ( 1,779 ) ( 8,390 ) Net cash and cash equivalents from operating activities 119,435 280,914 392,501 Cash flows from investing activities Acquisitions, net of cash received ( 56,661 ) ( 3 ) ( 83,979 ) Proceeds from disposal of wafer fabrication facility - 6,292 19,270 Receipt of cash for termination of cross currency swap - 374 9,429 Receipt of government grants 8,659 471 272 Receipt of insurance recovery 4,725 1,413 6,067 Purchases of property, plant, and equipment ( 73,024 ) ( 150,769 ) ( 211,728 ) Proceeds from sale of property, plant, and equipment 816 2,769 418 Proceeds from short-term investments 16,360 6,157 8,002 Purchases of short-term investments ( 14,026 ) ( 9,323 ) ( 9,361 ) Purchases of equity securities - ( 17,901 ) ( 4,051 ) Other ( 4,889 ) 2,198 398 Net cash and cash equivalents from investing activities ( 118,040 ) ( 158,322 ) ( 265,263 ) Cash flows from financing activities Advances on lines of credit and short-term debt 90,766 29,036 114,291 Repayments of lines of credit and short-term debt ( 98,354 ) ( 24,509 ) ( 93,498 ) Proceeds from long-term debt 6,439 25,204 372,751 Repayments of long-term debt ( 6,458 ) ( 154,019 ) ( 505,746 ) Debt issuance costs ( 188 ) ( 948 ) ( 134 ) Repayment of and proceeds from finance lease obligation ( 64 ) ( 115 ) ( 69 ) Taxes paid related to net share settlement ( 9,561 ) ( 15,637 ) ( 12,300 ) Net changes in noncontrolling interests ( 2,079 ) ( 3,647 ) ( 1,160 ) Other 155 ( 88 ) 152 Net cash and cash equivalents from financing activities ( 19,344 ) ( 144,723 ) ( 125,713 ) Effect of exchange rate changes on cash and cash equivalents 14,190 ( 485 ) ( 27,244 ) Change in cash and cash equivalents, including restricted cash ( 3,759 ) ( 22,616 ) ( 25,719 ) Cash and cash equivalents, beginning of period, including restricted cash 318,483 341,099 366,818
Amortization of acquisition-related intangibles increased approximately 8.0% reflecting the increase in the balance of intangible assets subject to amortization.
December 2024 2019 2020 2021 2022 2023 2024 Diodes Incorporated Return % 25.07 55.76 (30.67 ) 5.74 (23.42 ) Cum $ 100 125.07 194.80 135.05 142.80 109.36 NASDAQ Industrial Index Return % 52.72 8.81 (35.05 ) 28.93 25.67 Cum $ 100 152.72 166.18 107.93 139.16 174.89 NASDAQ Composite-Total Returns Return % 44.92 22.18 (32.54 ) 44.64 29.57 Cum $ 100 144.92 177.06 119.45 172.77 223.87 Issuer Purchases of Equity Securities There were no repurchases of our Common Stock during the fourth quarter of 2024.
Net cash flow was a negative $22.6 million, which includes the net pay-down of $124.3 million of total debt. 33 Business Outlook and Factors Relevant to Our Results of Operations Fiscal year 2024 continued to be challenging as overall global demand environment remains challenging, especially in Europe and North America.
Twelve Months Ended December 31, 2024 2023 Increase/(Decrease) % Change Net sales $ 1,311,120 $ 1,661,739 $ (350,619 ) (21.1 %) Cost of goods sold 875,258 1,003,557 (128,299 ) (12.8 %) Gross profit 435,862 658,182 (222,320 ) (33.8 %) Total operating expense 385,412 407,611 (22,199 ) (5.4 %) Interest income 18,303 13,338 4,965 37.2 % Interest expense (2,334 ) (5,700 ) (3,366 ) (59.1 %) Foreign currency (loss) gain, net (6,308 ) (5,264 ) 1,044 (19.8 %) Unrealized (loss) gain on investments (321 ) 18,267 (18,588 ) 101.8 % Other income 2,892 6,721 (3,829 ) (57.0 %) Income tax provision 11,840 47,285 (35,445 ) (75.0 %) Net Sales Our net sales decreased approximately $350.6 million, or 21.1%, for the twelve months ended December 31, 2024, compared to the prior year, due to widespread decreased demand for our semiconductor products and the continued inventory adjustments by the customers that we serve.
The decline in weighted-average sales price was primarily due to weaker end-user demand in the automotive and industrial markets which collectively comprised 42% and 46% of product revenue for the twelve months ended December 31, 2024 and 2023, respectively.
Average unit cost decreased 6.0% for the twelve months ended December 31, 2024, compared to the same period last year, due to the mix of the product being on lower margin/lower cost products, cost decreases from various foundries, as well as cost reductions from our own factories.
The increase in the effective tax rate for 2024 compared to 2023 is primarily attributable to a decrease in overall pre-tax book income, the impact of the geographical mix of pre-tax income and the impact of changes to the outside basis difference in foreign subsidiaries where the Company does not assert permanent reinvestment.
With our revenue contribution from auto and industrial remaining consistently above our target model, we are well positioned for growth and margin expansion as the market recovery broadens across our end markets in 2025 and beyond.
In 2024 we were able to maintain our automotive and industrial mix percentage at 42 percent of total product revenue, which is a testament to the progress we have made on our new product and content expansion initiatives.
Other (expense)/income Interest income increased $5.0 million or 37.2% when compared to 2023 due to increased interest rates on our short-term investments and income from cross-currency swaps.