This article first appeared on GuruFocus .
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Revenue:$14.9 million, up 14% year-over-year.
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MRAM Product Sales:$14.1 million, an increase of 28% over the prior year.
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Licensing, Royalty, Patent, and Other Revenue:$0.8 million, down from $2.1 million in Q1 '25.
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GAAP Gross Margin:52.7%, up from 51.4% in Q1 2025.
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GAAP Operating Expenses:$10.6 million, up from $8.7 million in Q1 2025.
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Non-GAAP Net Income:$2.6 million or $0.11 per diluted share.
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Cash and Cash Equivalents:$40.5 million, down $4 million from the prior quarter.
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Cash Flow from Operations:$0.5 million, down from $2.6 million in the previous quarter.
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Q2 Revenue Guidance:$15.5 million to $16.5 million.
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Q2 GAAP EPS Guidance:Net loss of $0.12 to a loss of $0.07 per share.
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Q2 Non-GAAP EPS Guidance:Breakeven to net income of $0.03 per share.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Everspin Technologies Inc ( NASDAQ:MRAM ) announced a new 2.5-year $40 million agreement with a US prime contractor, enhancing its position in the defense sector.
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The company reported first-quarter revenue of $14.9 million, at the high end of its guidance range, driven by strong performance in Industrial Automation, Transportation, and Data Center applications.
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Everspin's MRAM technology is gaining traction in critical applications, such as railway signal systems, due to its robustness and reliability.
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The introduction of the UNISYST MRAM family is expected to expand Everspin's addressable market by approximately $3 billion, targeting high-density stand-alone NOR Flash markets.
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Everspin maintains a strong balance sheet, ending the quarter with $40.5 million in cash and cash equivalents, and remains debt-free.
Negative Points
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Licensing, royalty, patent, and other revenue decreased to $0.8 million from $2.1 million in the first quarter of the previous year due to fewer active projects.
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GAAP operating expenses increased to $10.6 million from $8.7 million in the first quarter of 2025, primarily due to litigation and higher compensation costs.
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Cash flow generated from operations decreased to $0.5 million for the first quarter from $2.6 million in the previous quarter, impacted by litigation costs and increased working capital needs.
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The company anticipates continued litigation expenses, which are expected to remain in the range of $1.6 million per quarter for the foreseeable future.
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Guidance for the second quarter includes a potential GAAP net loss, with expected results ranging from a net loss of $0.12 to a loss of $0.07 per share.
Q & A Highlights
Q: Can you provide details on the $40 million contract announced, including revenue expectations and milestone risks? A: William Cooper, CFO: We aren't providing specific guidance on the subcontract agreement yet, but we expect a significant positive impact over the next 2.5 years. We are confident in meeting the negotiated milestones.
Q: What drove the gross margin strength this quarter, and can we expect it to hold? A: William Cooper, CFO: The strong margins were due to higher capacity utilization and cost reductions. We target a 50%-plus gross margin and expect it to remain in this range as volume increases.
Q: How does the $40 million contract relate to other activities like the $14.6 million contract and the Microchip agreement? A: Sanjeev Aggarwal, CEO: The $40 million contract is independent of the $14.6 million contract and the Microchip Foundry Services Agreement. The new contract involves providing technology and production support for military and aerospace applications.
Q: Can you elaborate on the expected capital expenditures related to the Microchip Foundry Services Agreement? A: William Cooper, CFO: Significant capital spend is expected over the next two years, spread out over time. It will align with our historical annual spend levels.
Q: How does the UNISYST product line fit into your $100 million revenue goal? A: Sanjeev Aggarwal, CEO: UNISYST is not expected to significantly contribute to the $100 million target in the next three to five years due to the 18-24 month qualification period. It will contribute some revenue after this period.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
