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EVERSPIN TECHNOLOGIES INC. (MRAM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $13.20M, up 24% year over year and slightly above consensus; non-GAAP EPS was $0.03 (in line), GAAP EPS was $(0.03); gross margin was 51.3% (+230 bps y/y) .
  • Q2 results landed toward the high end of guidance as product demand strengthened across data center (high single-digit sequential growth) and industrial automation (>20% sequential growth), with steady IBM FlashCore and ramping automotive (Lucid Gravity) contributions .
  • Q3 2025 guidance: revenue $13.5–$14.5M and GAAP diluted EPS $(0.05) to $0.00; non-GAAP diluted EPS $0.02–$0.07, introducing a sequential step-up and signaling continued momentum .
  • Catalysts: improving mix from licensing/other revenue, anticipated Q4 pickup in strategic DoD-related “other income,” and newly appointed VP of Sales to accelerate go-to-market execution .

What Went Well and What Went Wrong

What Went Well

  • Strength across products drove results toward the high end of expectations; “Our consistent financial performance reflects the strength of our product portfolio and ramping design wins” — CEO Sanjeev Aggarwal .
  • End-market traction: high single-digit sequential growth in data center (RAID demand from Dell, Supermicro) and >20% sequential growth in industrial automation (PLCs), plus steady IBM FlashCore Module revenue and increasing volumes at Lucid Gravity .
  • Licensing/royalty/patent/other revenue rose to $2.1M (from $0.7M y/y), lifting gross margin to 51.3% (+230 bps y/y) and adding $1.265M in interest and other income; “We did not experience any tariff related impact” — CFO Bill Cooper .

What Went Wrong

  • GAAP net loss remained at $(0.67)M and GAAP operating loss was $(1.96)M; operating margin was (14.9)%, down slightly q/q, reflecting ongoing investment levels and product margin maturation .
  • Product margins are still below target; management reiterated a path toward 45–50%+ product gross margins over time, with yield/mix improvements needed (analyst Q&A) .
  • Some strategic program revenues have phase/renewal dependencies (e.g., AFRL-funded Front Grade next phase) and DoD other income is expected to be more back-half weighted, particularly Q4 (timing risk) .

Financial Results

Core Financials vs prior year and prior quarter

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$10.64 $13.14 $13.20
GAAP Diluted EPS ($USD)$(0.12) $(0.05) $(0.03)
Non-GAAP Diluted EPS ($USD)$(0.03) $0.02 $0.03
Gross Margin (%)49.0% 51.4% 51.3%
Operating Income ($USD Millions)$(2.82) $(1.93) $(1.96)
Operating Margin (%)(26.5)% (14.7)% (14.9)%
Net Income ($USD Millions)$(2.50) $(1.17) $(0.67)

Actual vs Consensus (Q2 2025)

MetricQ2 2025 ActualQ2 2025 Consensus
Revenue ($USD Millions)$13.20 $13.00*
Primary EPS ($USD)$0.03 $0.03*

Values marked with * retrieved from S&P Global.

Significance: Revenue was a modest beat versus consensus while Primary EPS matched; the non-GAAP basis aligns with S&P’s “Primary EPS” classification .

Segment Breakdown

MetricQ2 2024Q1 2025Q2 2025
MRAM Product Sales ($USD Millions)$9.90 $11.03 $11.09
Licensing/Royalty/Patent/Other ($USD Millions)$0.75 $2.11 $2.11

KPIs and Operating Metrics

MetricQ2 2024Q1 2025Q2 2025
GAAP Operating Expenses ($USD Millions)$8.04 $8.69 $8.73
Interest & Other Income, net ($USD Millions)$0.39 $0.80 $1.27
Weighted Avg Diluted Shares (Millions)21.57 22.19 22.50
Cash & Cash Equivalents ($USD Millions, period-end)—$42.16 $44.96

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ3 2025N/A$13.5–$14.5M New
GAAP Diluted EPSQ3 2025N/A$(0.05) to $0.00 New
Non-GAAP Diluted EPSQ3 2025N/A$0.02 to $0.07 New
RevenueQ2 2025$12.5–$13.5M Actual: $13.20M High end achieved
GAAP Diluted EPSQ2 2025$(0.05) to $0.00 Actual: $(0.03) Within range
Non-GAAP Diluted EPSQ2 2025$0.00 to $0.05 Actual: $0.03 Within range

Management reiterated no tariff impact in Q2 and no material impact expected in coming quarters, while noting fluidity of the situation .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Data center demand (RAID/storage)Emphasis on storage market expansion and strong product revenue High single-digit sequential growth; steady IBM FCM4 MRAM shipments Improving
Industrial automationDesign wins and robust mission-critical use cases announced (Orion xSPI) >20% sequential growth; PLC demand strengthening Accelerating
Automotive (Lucid Gravity)New automotive-temp xSPI parts; mission-critical deployments Persist MRAM solution shipping; volumes expected to increase with production ramp Ramping
Licensing/Strategic programs (AFRL/Front Grade, QuickLogic)RAD-Hard projects and strategic programs supported full-year performance Front Grade phase 1 completed (PDK); renewal pending; QuickLogic deliverables on track Mixed timing (steady with renewal dependency)
Tariffs/macroNo tariff impact; monitoring No Q2 tariff impact; none expected near term; situation fluid Stable, monitored
AI/Technology partnerships (Purdue)Ongoing initiatives for low-power MRAM devices Steady progress on low-power MTJ devices for energy-efficient AI Steady execution
Supply chain/inventory2024 design wins, macro caution Customer inventory depletion, especially in Asia; order uptick Improving

Management Commentary

  • “Our consistent financial performance reflects the strength of our product portfolio and ramping design wins.” — Sanjeev Aggarwal, CEO .
  • “We are pleased with our second quarter results, which came in toward the high end of our expectations, driven by strength across our product portfolio.” — Bill Cooper, CFO .
  • “We did not experience any tariff related impact on our Q2 results and don’t anticipate any material impact on future results.” — Bill Cooper, CFO .
  • Operational highlights: “High single digit sequential growth in the data center business… strong demand on RAID from… Dell, Supermicro… sequential growth in excess of 20% [in] industrial automation… steady state revenue from… 1Gb STT MRAM into IBM’s FlashCore Module 4… expect [Lucid Gravity] volumes to increase” — CEO .
  • Strategic programs: “Completed the first phase of the Front Grade project… recognized revenue for delivering the PDK… goal… embedded radiation hard STT MRAM macros… progress with Purdue… QuickLogic Agilist MRAM… $0.8M other income in Q2 and $7.4M to date under $14.6M DoD contract; expect business to pick up meaningfully in Q4” — Management .

Q&A Highlights

  • Product gross margins: management targets 45–50% range for product margins, working yields/mix improvements over time .
  • New product ramp: aerospace-focused xSPI parts are ramping; contributions expected to build through late 2025 with broader industry traction .
  • End-market dynamics: inventory depletion across Asia and stronger orders in data center and industrial automation; continued RAID demand from Dell, Supermicro, Broadcom ecosystems .
  • Other income outlook: expecting a back-half pickup, particularly Q4, in the Amentum/DoD-related contract activity .
  • QuickLogic and Lattice collaborations: QuickLogic project continues with multi-year timeline; Lattice co-packaged solution evaluation ongoing via distributors (e.g., Digi-Key) with drivers available on GitHub .

Estimates Context

  • Q2 2025: Revenue $13.20M vs $13.00M consensus (beat); Primary EPS $0.03 vs $0.03 consensus (in line). Q1 2025 had revenue above consensus ($13.14M vs $12.50M) and Primary EPS slightly below consensus ($0.02 vs $0.03). Q4 2024 Primary EPS exceeded consensus (actual ~$0.126 vs $0.06) with revenue above consensus ($13.24M vs $12.50M). Q3 2024 was slightly above revenue consensus and well above EPS consensus.
    Values marked with * retrieved from S&P Global.
MetricQ3 2024Q4 2024Q1 2025Q2 2025
Revenue Consensus ($USD Millions)$12.00*$12.50*$12.50*$13.00*
Revenue Actual ($USD Millions)$12.09*$13.24*$13.14*$13.20
Primary EPS Consensus ($USD)$(0.01)*$0.06*$0.03*$0.03*
Primary EPS Actual ($USD)$0.173*$0.126*$0.02*$0.03

Implications: Minor revenue beat and EPS in-line in Q2; Q3 guidance suggests sequential revenue growth, which may lead models to reflect sustained product and licensing momentum and incorporate back-half “other income” pickup. Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue momentum broad-based: data center (RAID) and industrial automation drove high-end guidance achievement; licensing/other revenue mix supported margins .
  • Modest beat: revenue slightly above consensus and Primary EPS in line; narrative of consistent execution remains intact .
  • Forward setup constructive: Q3 guide ($13.5–$14.5M) implies sequential growth; watch for Q4 pickup in DoD-related other income as a potential upside lever .
  • Margin vector: total gross margin stable (~51%); product margin targeted to 45–50%+ over time as yields/mix improve — monitor progress each quarter .
  • Strategic programs: Front Grade (AFRL), Purdue AI MRAM devices, QuickLogic FPGA MRAM, and Lattice co-packaging provide multi-quarter optionality; timing/phase renewals remain a variable .
  • Tariffs: no impact in Q2 and none expected near term, but management continues to monitor — reduces macro headline risk, near term .
  • Execution catalyst: appointment of VP of Sales (ex-Altera) should sharpen commercial focus and accelerate design-win monetization into revenue .