Everspin Tech Q2 Earnings Call Highlights
Key Points
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- Record Q2 performance: Revenue rose 42% year over year to $18.7 million, exceeding guidance, while non-GAAP earnings reached $0.11 per share. Growth came from MRAM product sales and initial revenue from a $40 million U.S. defense subcontract.
- Product and manufacturing momentum: MRAM sales increased 38% to $15.3 million, supported by industrial, energy-management, aerospace and defense demand. Everspin’s Microchip manufacturing project remains on schedule, and its 256Mb UNISYST product is expected to tape out later this year.
- Positive Q3 outlook with emerging opportunities: Everspin expects third-quarter revenue of $19.5 million to $20.5 million and non-GAAP earnings of $0.10 to $0.15 per share. The company is also developing CXL-connected MRAM for data-center applications, though it is not yet projecting revenue from the initiative.
Everspin Tech (NASDAQ:MRAM) reported record second-quarter revenue as growth in MRAM product sales and initial revenue from a new U.S. defense-related subcontract lifted results above the company’s guidance range.
For the quarter ended June 30, 2026, Everspin posted revenue of $18.7 million, up 42% from the year-earlier period and above its prior outlook of $15.5 million to $16.5 million. Non-GAAP earnings were $0.11 per diluted share, exceeding the company’s forecast of breakeven to $0.03 per share.
“These results reflect the highest revenue quarter in Everspin’s history,” President and Chief Executive Officer Sanjeev Aggarwal said, attributing the performance to product-revenue growth and the company’s recently announced $40 million agreement with a U.S. prime contractor.
Product Sales and Defense Contract Support Revenue Growth
MRAM product sales totaled $15.3 million, rising 38% year over year and 9% sequentially. Aggarwal said demand was strong in industrial automation, energy management, and aerospace and defense. Industrial demand benefited from continued customer-demand recovery in Japan, while energy-management growth was led by Europe.
Within aerospace and defense, the company cited broad-based customer growth, including low-Earth-orbit satellite customers expanding the types of missions using Everspin’s MRAM products. Everspin also said Astro Digital selected its PERSYST 64Mb STT-MRAM for an upcoming Raven bus geosynchronous-Earth-orbit satellite mission. The memory will be used as a fail-safe boot-memory solution for startup and recovery functions following power loss.
During the analyst question-and-answer session, Aggarwal described the Astro Digital program as Everspin’s first design win for a GEO satellite mission using its commercially developed MRAM. He said the company sees potential for the relationship to extend across GEO, medium-Earth-orbit, and low-Earth-orbit missions, though he did not provide revenue expectations.
Licensing, royalties, engineering services and other revenue rose to $3.4 million from $2.1 million a year earlier. Chief Financial Officer Bill Cooper said the increase was primarily driven by initial revenue recognition under Everspin’s two-and-a-half-year, $40 million subcontract agreement with a U.S. prime contractor. Under that agreement, Everspin is providing engineering services to develop and qualify Toggle MRAM process technology capabilities for U.S. defense industrial-base customers.
Cooper said the company expects non-product revenue in the third quarter to remain in a similar range to the second quarter, but cautioned that recognition under the contract will not necessarily be linear and could resemble “more like a bell curve.”
Margins, Expenses and Cash Position
GAAP gross margin was 53.9%, up from 51.3% a year earlier, reflecting a favorable revenue mix from higher non-product revenue. Product gross margins, however, faced cost pressure during the quarter. Cooper said Everspin continues to expect product gross margin in the mid-to-upper 40% range and total company gross margin above 50%.
Aggarwal said the cost headwinds included increases in back-end costs such as packaging and outsourced semiconductor assembly and test services. He specifically cited rising gold prices as a factor.
GAAP operating expenses increased to $14.5 million from $8.7 million in the prior-year quarter, primarily due to $4 million in litigation costs and $1.1 million in non-recurring engineering costs. The engineering costs were related to the build-out of an MRAM manufacturing line at Microchip’s facility in Gresham, Oregon.
Non-GAAP net income was $2.9 million, or $0.11 per diluted share, compared with $0.7 million, or $0.03 per share, in the second quarter of 2025. The company’s non-GAAP figures exclude stock-based compensation, litigation expenses and the Microchip-related non-recurring engineering costs.
Everspin ended the quarter with $43.9 million in cash and cash equivalents, up from $40.5 million at the end of the first quarter. Operating cash flow was $0.2 million, down from $0.6 million in the preceding quarter, primarily due to litigation costs. Cooper said the company believes its cash position is sufficient to support its Microchip foundry-services agreement, the U.S. prime-contractor subcontract and ongoing product-development investments.
Manufacturing and Product Roadmap
Everspin said its project with Microchip remains on schedule. The two-phase effort began in April and is intended to establish Toggle MRAM and STT-MRAM capabilities at Microchip’s Oregon fab. Everspin is completing installation of specialized MRAM equipment and conducting process-gap analysis, with a goal of delivering first qualified silicon 18 to 24 months after the project began.
The company also said its first UNISYST-family MRAM product, a 256Mb xSPI test chip designed using 16-nanometer FinFET CMOS technology at TSMC, remains on track to tape out later this year. Engineering samples are expected in early 2027, followed by a production ramp later that year. Aggarwal said the product family is intended to address the high-density standalone NOR flash market, which he estimated could expand Everspin’s addressable market by about $3 billion.
Separately, Everspin released 128Mb high-reliability xSPI products to production during the second quarter and released all 256Mb xSPI stock-keeping units, including high-reliability products, after quarter-end.
CXL Development and Third-Quarter Outlook
Everspin is also pursuing data-center opportunities through planned products based on the Compute Express Link, or CXL, interface. Aggarwal said the company is developing proof-of-concept platforms for CXL-connected MRAM and expects to demonstrate an AMD UltraScale+ FPGA-based platform at the SNIA Developers Conference in September.
The company recently signed a contract with a high-performance data-interface and controller company to develop CXL controller intellectual property, and it also signed a memorandum of understanding with MaxLinear to evaluate CXL-attached MRAM alongside MaxLinear storage accelerators.
Aggarwal said the company is in the early stages of CXL development and was not prepared to project revenue from the initiative over the next three years.
For the third quarter, Everspin forecast total revenue of $19.5 million to $20.5 million. It expects GAAP results to range from a loss of $0.05 to $0.10 per diluted share, while non-GAAP earnings are projected at $0.10 to $0.15 per diluted share. The non-GAAP outlook excludes litigation costs, Microchip manufacturing-line engineering expenses and stock-based compensation.
About Everspin Tech (NASDAQ:MRAM)
Everspin Technologies, Inc (NASDAQ: MRAM) is a semiconductor company specializing in the design, development and marketing of magnetoresistive random access memory (MRAM) solutions. Established in 2008 as a spin-out from Freescale Semiconductor, the company pioneered commercial MRAM products and continues to advance the technology through successive generations, including Toggle MRAM and spin-transfer torque (STT) MRAM. Everspin's non-volatile memory devices offer a unique combination of performance, endurance and data retention for a variety of applications.
The company's product portfolio includes discrete MRAM chips, embedded MRAM IP for integration into system-on-chip (SoC) designs and companion devices that leverage MRAM's fast write speeds and low power consumption.
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Everspin Technologies Inc Stock
Currently there is a rather positive sentiment for Everspin Technologies Inc with 5 Buy predictions and 0 Sell predictions.
With a target price of 15 € there is a slightly positive potential of 10.05% for Everspin Technologies Inc compared to the current price of 13.63 €.
