Executive Summary

Q1 2025 results were typical of Atomera’s pre-revenue licensing model: revenue of $4k and GAAP EPS of ($0.17); EPS missed S&P Global consensus by $0.03 while revenue, though de minimis, was above a $0 baseline estimate (see Estimates Context) .*
Management announced a strategic marketing agreement with a leading capital equipment company to accelerate MST adoption at advanced nodes (GAA/memory), positioning for faster production wins; the agreement does not alter Atomera’s license-and-royalty model .
STMicro progress remains a core pillar; teams are working weekly on manufacturability, yield, and throughput with “a clear path towards qualification,” though timing remains ST’s call .
Near-term guide: Q2 revenue expected in a $0–$50k range; FY25 non-GAAP OpEx tightened to $17.25–$17.75M from a prior $17–$18M framework, reflecting higher outsourced device fabrication and legal spend, partially offset by lower S&M headcount .
Potential stock reaction catalysts: evidence of ST formal process qualification, additional license/JDA signings (including two “very high potential” prospects), and proof-point data from first MST-enabled GaN devices at Sandia .

What Went Well and What Went Wrong

What Went Well
- Strategic partner: New agreement with a “major semiconductor equipment maker” enhances sales/marketing reach and technical validation capability for GAA and likely other areas; management expects it to “get more licensees into production faster” while the partner sells more tools .
- Customer expansion: Broader engagement at ST beyond smart power into three additional product areas; also broadening RFSOI efforts from power switches into LNAs amid rising OEM performance requirements .
- GaN milestone: Built the first-ever MST-enabled GaN devices at Sandia; early electrical data aligns with prior material-quality improvements, with a goal to assemble a customer-shareable dataset next .
What Went Wrong
- EPS miss: GAAP EPS ($0.17) vs consensus ($0.14) driven by higher R&D (outsourced fab activity) and higher legal expenses; non-GAAP net loss also widened sequentially (Q1: $4.4M vs Q4: $3.9M) .*
- Revenue cadence remains lumpy and minimal ahead of production royalties; Q2 guide is ~$0–$50k and the next major milestone at ST is tied to formal process qualification timing outside Atomera’s control .
- OpEx pressure: FY25 non-GAAP OpEx range narrowed to $17.25–$17.75M reflecting higher outsourced fabrication (TSI work has been redistributed) and legal costs; S&M headcount is still normalizing .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Thousands)	$18	$23	$4
Gross Profit ($USD Thousands)	($15)	$10	$4
Total Operating Expenses ($USD Thousands)	$5,019	$4,882	$5,467
Operating Loss ($USD Thousands)	($5,034)	($4,872)	($5,463)
Net Loss ($USD Thousands)	($4,822)	($4,657)	($5,209)
Diluted EPS ($USD)	($0.19)	($0.16)	($0.17)
Adjusted EBITDA ($USD Thousands)	($3,993)	($3,911)	($4,442)
Cash & Short-Term Investments ($USD Thousands)	$19,264	$26,773	$24,123
Weighted Avg Shares (Millions)	26.038	28.934	30.243

Actual vs. S&P Global Consensus

Metric	Q1 2025 Consensus	Q1 2025 Actual	Surprise
Revenue ($USD)	$0*	$4,000*	+$4,000*
Diluted EPS ($)	($0.14)*	($0.17)*	($0.03)*

Values marked with * were retrieved from S&P Global.

Notes:

EPS miss primarily reflects higher outsourced fabrication and legal expenses; S&M lower on headcount .
Cash usage in operations seasonally higher in Q1; company raised $2.4M via ATM (~163k shares at $15.19) early in Q1, supporting liquidity .

Segment breakdown: Not applicable; Atomera reports as a technology licensing business without segment disclosures .

KPIs (select operating indicators)

Customers/Engagements: 21 customers, 26 engagements (Q1 2025) vs 20 customers, 26 engagements (Q4 2024) .
Shares outstanding at period end: 30.7M (3/31/25); 30.1M (12/31/24) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 2025	Not provided	$0–$50,000	New
Non-GAAP OpEx	FY 2025	~$17–$18M (prior call)	$17.25–$17.75M	Narrowed

Additional color:

Next major revenue milestone under the ST agreement occurs upon entry into formal process qualification; timing controlled by ST .

Earnings Call Themes & Trends

Topic	Q3 2024	Q4 2024	Q1 2025	Trend
STMicro progress	ST “on track” to production post-development/qualification; focus on manufacturability and modeling; royalties expected at production	Continued progress toward commercialization highlighted in the quarter’s materials	Weekly joint work on manufacturability/yield/throughput; multiple lots running; “clear path towards qualification” though no schedule disclosed	Advancing toward qual, cadence still customer-controlled
GAA/Advanced logic & Memory	Stronger focus on epi/materials; multiple customers; MST blocks P diffusion to improve yield	Expanded offerings for gate-all-around products	Strategic marketing agreement with top equipment maker to accelerate GAA adoption and validation	Building momentum with added partner leverage
RFSOI	Thinner wafers/LNA opportunity emerging; proposals outstanding	Highlighted RF substrate solution; Soitec collaboration	LNA benefits now a customer priority; new wafer runs with ultrathin RFSOI to prove LNA performance	Demand pivoting from switches to LNAs; testing underway
GaN on Si	Sandia partnership to move from material to device-level validation; CHIPS Act proposals submitted	N/A in press release, but ongoing GaN theme	First MST-enabled GaN devices built; early electrical results consistent with improved quality; Sandia access renewed	Proof points emerging; faster time-to-revenue potential
Pipeline & “Transformative” deals	Active negotiations for a potentially transformative agreement; multiple JDAs/licensing discussions	Newly initiated development efforts with two large customers	Two “very high potential” customers moving quickly; broader ST expansion; ongoing talks with JDA1/2, fabless and foundry licensees	Pipeline broadening; pace accelerating

Management Commentary

CEO on strategic partner: “This partnership will help us to promote and ultimately close sales [in GAA]… we will be rowing downstream with our partner on the sales and marketing side… their direct sales force will be assisting us” .
CEO on business model: “The terms do not have a significant impact on our long-standing business model of license fees and royalties… [we] grow the pie larger” .
CEO on ST: “Our biggest focus… has been on optimizing manufacturability, yield and throughput… many different lots are in the fab with frequent test results indicating a clear path towards qualification” .
CEO on GaN: “We completed the world’s first GaN devices produced using MST… now seeing indications of improved electrical performance” .
CFO on OpEx and Q2 revenue: “Non-GAAP operating expense for 2025 will be in the range of $17.25M to $17.75M… For Q2, revenue… will be in the range of $0 to $50,000” .

Q&A Highlights

Capital equipment partner depth: The partner will commit equipment and engineering resources; Atomera and the partner go “to production together,” aligning incentives and accelerating data generation for complex customer requests .
Focus areas: Work is centered on GAA/advanced nodes; techniques applicable to leading memory manufacturers as well .
ST engagement: Multiple groups beyond smart power now interacting with Atomera; potential to expand into FDSOI, RFSOI, GaN, and other power areas within ST .
RFSOI pivot to LNAs: New OEM/operator specs spurred industry-wide interest; Atomera believes LNA co-optimization could catalyze faster adoption than prior switch-only focus .
GaN results timing: Electrical results now in-hand and consistent with physical improvements; next step is optimization and assembling a complete, shareable dataset for customers .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue $4,000 vs $0; EPS ($0.17) vs ($0.14), a miss of $0.03 per share. Drivers of EPS variance: higher outsourced R&D (device fabrication) and legal costs; S&M lower on headcount .*
Coverage remains light, consistent with Atomera’s pre-royalty stage; as ST qualification and/or additional licenses materialize, estimate dispersion and depth could expand.*

Values retrieved from S&P Global.

Key Takeaways for Investors

Execution leverage: The strategic partner adds validation muscle and sales reach in GAA/memory without diluting Atomera’s royalty model, potentially shortening time-to-production wins .
ST remains the near-term linchpin: Progress toward formal qualification is the gating catalyst for first meaningful, high-margin royalties; any visibility here should drive estimate revisions and valuation re-rating .
Pipeline broadening: Multiple large prospects (including two “very high potential” customers) plus ST expansion across product areas increase the chances of parallel monetization paths beyond SPX smart power .
RFSOI momentum shifts to LNAs: New OEM/operator spec focus on LNAs could unlock a faster route to adoption versus past switch-only efforts .
GaN proof-points emerging: First MST-enabled GaN devices with early positive electrical signals and renewed Sandia access suggest a nearer-term monetization path in a fast-growing market .
Expense profile stabilizing: FY25 non-GAAP OpEx narrowed to $17.25–$17.75M; investors should monitor outsourced fab cadence and S&M rebuild vs. revenue milestones .
Trading setup: Near-term, headlines on ST qualification steps, new license/JDA signings, and GaN/LNA datasets are likely stock movers; medium-term thesis turns on first production royalties and demonstration of the partner-enabled GAA/memory funnel converting to contracts .

Footnotes:

Financials, KPIs, and operational commentary sourced from Atomera’s Q1 2025 8-K and investor materials, and the Q1 2025 earnings call/transcript –.
Prior quarter comparatives sourced from Q4 2024 8-K and investor presentation, and Q3 2024 call – –.
Strategic marketing agreement press release and RF workshop media alert provide additional Q1 context – .
S&P Global consensus used for estimate comparisons; asterisks denote S&P Global values.*

Atomera Inc (ATOM)·Q1 2025 Earnings Summary