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EVERSPIN TECHNOLOGIES INC. (MRAM)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 revenue was $14.06M, up 16% YoY and 7% QoQ, with non-GAAP EPS of $0.06; revenue landed within guidance and non-GAAP EPS near the high end, driven by strength in LEO satellites, gaming, energy management, and steady data center RAID demand .
  • Non-GAAP gross margin remained in the low-52% range (52.4% vs. 52.5% in Q2), with management attributing stability to improved STT-MRAM yields and factory utilization; CFO expects this margin range to continue .
  • Mix shift favored product revenue (MRAM products $12.69M, +22% YoY) while licensing/other decreased YoY to $1.37M due to project timing; other income was $1.2M as DoD sustainment contract recognition continues .
  • Q4 guidance: revenue $14.0–$15.0M; GAAP EPS $0.02–$0.07; non-GAAP EPS $0.08–$0.13; management reiterated no tariff impact and expects other income to pick up meaningfully in Q4, a potential near-term catalyst .

What Went Well and What Went Wrong

What Went Well

  • Broad-based demand strength: LEO satellites, casino gaming, and energy management led growth; data center RAID demand remained solid (customers include Dell and Supermicro) .
  • Product rev acceleration: MRAM product sales rose to $12.69M (+22% YoY) with total gross margin up ~210 bps YoY to 51.3% on process/yield improvements .
  • Strategic programs on track: Continued shipments to Lucid’s Gravity SUV and ramp of EM064/EM128 LXHR for LEO; collaboration with Purdue for energy-efficient AI and ongoing foundry services for a leading sensor provider .

What Went Wrong

  • Non-product revenue lapped tough comps: Licensing/royalty/patent/other fell YoY to $1.37M (from $1.65M) and is inherently lumpy given project timing .
  • GAAP profitability muted: GAAP net income was $54K ($0.00 diluted EPS), down from $2.27M in Q3’24 due largely to lower other income vs. an unusually strong prior-year contribution .
  • Cash flow normalization: Operating cash flow declined to $0.9M from $5.0M in Q2 as collections timing normalized after distributor changes .

Financial Results

Headline results – trend (oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($M)$13.14 $13.20 $14.06
GAAP Gross Margin (%)51.4% 51.3% 51.3%
Non-GAAP Gross Margin (%)52.8% 52.5% 52.4%
GAAP OpEx ($M)$8.69 $8.73 $8.75
Non-GAAP OpEx ($M)$7.29 $7.47 $7.51
GAAP Diluted EPS ($)$(0.05) $(0.03) $0.00
Non-GAAP Diluted EPS ($)$0.02 $0.03 $0.06
Gross Profit ($M)$6.75 $6.77 $7.21
Cash from Ops ($M)$1.44 $5.00 $0.90
Cash & Equivalents ($M)$42.16 $44.96 $45.26

Q3 2025 actual vs prior periods and S&P consensus

MetricQ3 2024Q2 2025Q3 2025 ActualS&P Consensus
Revenue ($M)$12.09 $13.20 $14.06 $14.00*
GAAP Diluted EPS ($)$0.10 $(0.03) $0.00 $0.04*
Non-GAAP Diluted EPS ($)$0.17 $0.03 $0.06 n/a
  • Q3 revenue modestly beat S&P consensus; non-GAAP EPS of $0.06 exceeded the S&P Primary EPS consensus of $0.04*, though GAAP diluted EPS was $0.00 as reported . Values with asterisk retrieved from S&P Global; coverage thin (EPS estimates: 1; Revenue: 2). [GetEstimates]*

Segment/Revenue mix

Revenue Component ($M)Q1 2025Q2 2025Q3 2025
MRAM Product Sales$11.03 $11.09 $12.69
Licensing/Royalty/Patent/Other$2.11 $2.11 $1.37

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2025n/a$14.0–$15.0M Initial
GAAP EPS (diluted)Q4 2025n/a$0.02–$0.07 Initial
Non-GAAP EPS (diluted)Q4 2025n/a$0.08–$0.13 Initial
Non-product revenue/Other incomeQ4 2025n/a“Pick up meaningfully” expected Qualitative raise
Non-GAAP Gross MarginForward viewn/aSustain “in that range” (~low-52%) Maintain
OpEx (non-GAAP)Forward viewn/aAbout $7.5M “safe assumption” (steady) Maintain
Tariff impactQ4 2025n/aNot expecting impact Maintain (no impact)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
LEO/Space momentumShipped xSPI EM064/EM128 samples; strong traction; Blue Origin and Astro Digital wins highlighted Continued traction; samples shipped; production ramp on track for Q4’25 Strengthening toward production
Data center RAIDHigh-single-digit seq growth in Q2; IBM FCM4 steady-state contribution Continued strong demand for toggle MRAM in RAID with Dell, Supermicro Stable/positive
Automotive (Lucid)Shipping Gravity SUV; expect volume increase with production ramp Continued shipments; expect volumes to increase as Lucid ramps Building
R&D/AI initiativesPurdue energy-efficient AI PDK delivered; low-power MTJ work ongoing Higher %MR materials, device characterization; next phase prepared Progressing
DoD/Frontgrade/AmentumDoD sustainment contract other income: $0.4M Q1; $0.8M Q2; stronger H2 expected $1.2M other income Q3; expect meaningful pickup in Q4 Re-accelerating Q4
Tariffs/MacroLow direct China exposure; minimal risk noted; parts assembled in Taiwan No tariff impact in Q3; none expected in Q4 Neutral
Gross margin sustainability~51–53% range; target >50% product GM over time Maintain low-52% non-GAAP range; yield/factory utilization improvements Sustained

Management Commentary

  • “Revenue of $14.1 million and non-GAAP EPS of $0.06… performance driven by strength across LEO, casino gaming, and energy management; data center RAID demand remained strong” .
  • “MRAM product sales… $12.7 million, up 22% over the third quarter of last year… GAAP gross margin improved to 51.3%” .
  • “We continue to ship… for Lucid Motors’ Gravity SUV and expect volumes to increase as the automaker ramps production” .
  • “We recognized $1.2 million in other income in the third quarter… expect this business to pick up meaningfully in the fourth quarter” .
  • “We expect Q4 total revenue in the range of $14 million–$15 million… non-GAAP EPS between $0.08 and $0.13” .

Q&A Highlights

  • Gross margin durability: CFO expects non-GAAP gross margin to remain in the ~low-52% range, supported by yield improvements and utilization .
  • Non-product revenue cadence: Licensing/royalty/foundry revenues are lumpy; expect this bucket to run ~10–15% of revenue, skewing closer to 10% going forward .
  • OpEx discipline: Non-GAAP OpEx should remain roughly $7.5M per quarter near term; consistency expected in Q4 .
  • Tariffs: No tariff impact experienced in Q3, none expected in Q4 .

Estimates Context

  • Q3 2025: Revenue $14.06M vs S&P consensus $14.00M*; Primary EPS $0.06 vs $0.04* (note: company GAAP diluted EPS was $0.00; S&P Primary EPS tracked $0.06) . Values marked with asterisk retrieved from S&P Global; limited coverage (EPS: 1 estimate; Revenue: 2 estimates). [GetEstimates]*
  • Q4 2025: Guidance revenue $14.0–$15.0M and non-GAAP EPS $0.08–$0.13; S&P consensus revenue $14.45M* and EPS $0.12*, implying consensus is near the high end of guidance for non-GAAP EPS and centered within the revenue range . Values marked with asterisk retrieved from S&P Global. [GetEstimates]*
  • Implication: With consensus perched near the top of EPS guidance, the Q4 “other income” pickup and LEO production ramp execution may determine beat/miss risk .

Key Takeaways for Investors

  • Product-led growth is accelerating (product rev +22% YoY) with multiple end-market drivers (LEO, gaming, energy mgmt, RAID), supporting continued top-line expansion into Q4 .
  • Margin structure appears durable in the low-52% non-GAAP range due to yield/process improvements; sustained gross margin is a core part of the bull case .
  • Non-product revenue is inherently lumpy; watch Q4 for an “other income” pickup tied to DoD sustainment activity—a likely swing factor for EPS versus consensus .
  • Execution milestones: Q4 production ramp for EM064/EM128 LXHR in LEO and steady IBM FCM4 revenues—both are catalysts for mix and volume into 2026 .
  • OpEx control remains firm (~$7.5M non-GAAP/quarter), giving operating leverage if revenue continues to build in H2 .
  • Minimal tariff exposure reduces macro headline risk versus peers with China-heavy routes; inventory digestion trends in Asia improved through Q2 .
  • Near-term trading setup: modest Q4 beat potential if other income steps up and LEO ramps on time; watch revenue cadence and non-product mix to gauge EPS sensitivity .

Appendix: Additional Details from the Q3 2025 Press Release and Supplemental Tables

  • Q3 2025: GAAP net income $54K; non-GAAP net income $1.461M; GAAP gross margin 51.3%; non-GAAP gross margin 52.4% .
  • YoY comps: Revenue $14.06M vs $12.09M; non-GAAP EPS $0.06 vs $0.17 (prior year benefitted from higher other income) .
  • Balance sheet: Cash & equivalents $45.26M as of 9/30/2025; total stockholders’ equity $65.82M; no debt .

Note: Asterisk-marked values in estimates tables are Values retrieved from S&P Global.