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    ATOM
    Earnings call· Jun 2026(Q2 FY26)

    Atomera Q2 FY26 earnings call ATOM

    Aug 4, 2026 Source

    Executive summary

    Atomera Q2 FY26 — GaN Breakthrough and Memory Expansion Drive Momentum

    Atomera demonstrated strong Q2 momentum by achieving a key gate-all-around milestone and expanding its memory market opportunity into NAND flash. A significant technical breakthrough in GaN-on-silicon for RF applications has opened a potentially new high-growth market, attracting new customers. Despite increasing operating expenses, the company is focused on translating its technical advancements into commercial agreements and long-term revenue.

    Highlights

    4

    • Cleared a significant milestone with one of two active gate-all-around (GAA) customers, addressing manufacturability questions.

    • Established a new value proposition for 4F2 DRAM, validated through customer discussions and TCAD simulation.

    • Identified a new market opportunity in NAND flash memory, potentially doubling the TAM for MST.

    • GaN-on-silicon for RF devices achieved outstanding linearity (1,000x better than reference) and low loss, leading to new customer engagements.

    Concerns

    4

    • GAAP net loss for Q2 FY26 was $6.3 million, compared to $5 million in Q2 FY25.

    • Non-GAAP loss for Q2 FY26 was $5 million, compared to $4 million in Q2 FY25.

    • Annual non-GAAP operating expense for FY26 is now expected to be at the high end of the $18.25 million to $18.75 million range, due to cost increases in outsourced engineering work.

    • PowerAmerica GaN-on-power program, a potential $300,000 opportunity, was likely not awarded.

    Guidance & targets

    1
    CategoryTargetConfidence
    Annual non-GAAP operating expense
    $18.75 million
    medium materiality
    High

    Operational metrics

    14
    Revenue
    $158,000
    Q2 FY26

    Consisting of fees for wafer deliveries to customers, primarily to our large IDM customer.

    GAAP Net Loss
    $6.3 millionvs $5 million in Q2 FY25
    Q2 FY26

    Reported GAAP net loss for the quarter.

    GAAP EPS
    $0.17vs $0.17 in Q2 FY25
    Q2 FY26

    GAAP net loss per share.

    Non-GAAP Loss
    $5 millionvs $4 million in Q2 FY25
    Q2 FY26

    Non-GAAP loss for the quarter.

    GAAP Operating Expenses
    $6.9 millionup $1.7 million from $5.2 million in Q2 FY25
    Q2 FY26

    Total GAAP operating expenses.

    Stock-based compensation
    $1.7 millionup $463,000 YoY from $1.3 million in Q2 FY25
    Q2 FY26

    Excluded from non-GAAP results.

    Non-GAAP R&D expenses
    increased by $188,000YoY
    Q2 FY26

    Year-over-year change in non-GAAP R&D expenses.

    Non-GAAP G&A expenses
    increased by $828,000YoY
    Q2 FY26

    Year-over-year change in non-GAAP G&A expenses, mainly due to IP legal costs.

    Non-GAAP Sales and marketing expenses
    increased by $225,000YoY
    Q2 FY26

    Year-over-year change in non-GAAP sales and marketing expenses, mainly due to new executive hires in Q4 2025 and Q1 2026.

    Non-GAAP Operating Expenses
    $5.1 millionup $350,000 sequentially from $4.8 million in Q1 FY26
    Q2 FY26

    Sequential increase primarily reflecting higher G&A expense, offset partly by lower R&D expenses.

    Cash and investments balance
    $38.4 millionvs $41.1 million on March 31, 2026
    as of June 30, 2026

    Balance of cash, cash equivalents and short-term investments.

    Cash used in operating activities
    $3.9 millionvs $4.8 million in Q1 FY26 and $3.5 million in Q2 FY25
    Q2 FY26

    Cash outflow from operating activities.

    Net proceeds from registered direct offering
    $23.6 million
    Q1 FY26

    Proceeds from offering closed in Q1 FY26.

    Shares outstanding
    39 million
    as of June 30, 2026

    Total shares outstanding.

    Industry KPIs

    4
    MetricValueDetails
    Ai data center revenue—
    Design wins socket pipeline—
    Node platform ramp schedule—
    End market segment revenue mix—

    Product announcements

    3
    ProductTypeDetails
    MST for GaN-on-silicon RF devicesmilestone
    MST for 4F2 DRAMupdate
    MST for NAND flash planar peripheryexpansion

    Deals & partnerships

    3
    PowerAmericaProposal for GaN power device development and testing in partnership with other companies.$300,000

    Atomera made a proposal to PowerAmerica early this year. The program was expected to be awarded in May, but Atomera has not been notified of an award and presumes it was not selected. The company will continue to pursue CHIPS Act and other proposals.

    STMicroelectronicsOngoing discussions with business units to put together a deal.

    Discussions are still on the table, but there is nothing to announce at this time.

    IncizeCharacterization partner for GaN-on-silicon RF data.

    Incize independently confirmed the benefits of MST GaN-on-silicon on their own world-class baseline, providing third-party validation for customers.

    Risks & headwinds

    3
    Increased operating costsFY26 and beyond

    FY26 non-GAAP operating expense expected at high end of $18.25M-$18.75M range

    Mitigation: Disciplined cost control; ongoing negotiations for long-term contracts (e.g., tool leases) to manage future increases.

    Uncertainty in GAA licensing timelineLate 2026 to 2027

    Potential delay of 9 months or more if re-testing is required

    Mitigation: Continued focus on completing the current cycle and achieving good electrical results to move to the next step.

    PowerAmerica program not awardedQ2 FY26

    Lost opportunity of approximately $300,000

    Mitigation: Re-prioritizing engineering focus to GaN-on-RF, which is now considered the primary market, and continuing to pursue other CHIPS Act proposals.

    What to watch in Q3 FY26

    5

    GAA licensing negotiations

    Next quarter / late 2026
    CurrentDiscussions ongoing, milestone cleared
    TargetProgress towards licensing agreement for in-fab testing

    Why it matters

    A licensing deal for GAA would be a significant commercial validation and revenue driver for Atomera's advanced logic technology.

    I mean we've been in discussions with them about what that would imply and what our license terms would look like since we started working with them. And as we get close to the end of this, then it will accelerate so that we can close the deal.

    Q&A highlights

    7

    Can you explain the importance and difficulty of the GAA milestone, compare it to past dynamics, and describe the next steps towards licensing and production?

    The milestone involved demonstrating MST deposition in a complex GAA structure, addressing manufacturability. The next step for the customer is to license the technology to test it in their own fab, which is a critical IP protection step. This process is similar to how equipment OEMs introduce new materials, but for Atomera, it directly leads to licensing. Discussions on license terms are ongoing.

    “The next step for them will be to license from us, install it on one of their tools in their own fab and do that testing.”

    asked by Richard Shannon · answered by Scott Bibaud

    2 min read5 chapters

    Detailed Narrative

    01

    Gate-All-Around (GAA) Progress

    Atomera achieved a significant milestone with one of its two active gate-all-around (GAA) customers, successfully demonstrating manufacturability of its unique silicon structures. This step addresses a key hurdle in the customer's evaluation process. The next phase involves the customer licensing Atomera's technology for in-fab testing, which could potentially lead to a deal as early as late this year or beyond, though further testing rounds could extend the timeline by approximately nine months.

    02

    Memory Market Expansion

    The company established a new value proposition for 4F2 DRAM, a 3D structure, leveraging MST's doping profile control to simplify manufacturing and reduce costs. This concept has been validated through customer discussions and TCAD simulations, with results accepted for an IEEE conference. Additionally, Atomera identified a new opportunity in NAND flash memory, where AI demand is now pushing the need for planar periphery boost, making MST's previously developed DRAM technology applicable and potentially doubling Atomera's total addressable market (TAM) in memory.

    03

    GaN-on-Silicon Breakthrough for RF

    Atomera announced a technical breakthrough in GaN-on-silicon for RF devices, with characterization partner Incize delivering outstanding RF data. The devices demonstrated effectively lossless RF with exceptional linearity, roughly 1,000x better than the GaN-on-silicon reference, and approaching the performance of advanced trap-rich RF-SOI. This advancement could enable fully integrated RF front ends, including power amplifiers, on low-cost silicon substrates, potentially shifting traditional RF-SOI designs to GaN-on-silicon and opening a new high-growth market.

    04

    Ongoing Pipeline Activities

    Progress continues with a large IDM customer program, with new device test data coming in and further experiments underway. Development efforts in power, TrenchFET, and HBT are advancing, targeting efficiency and high-frequency demands from AI data centers. Wafers are still running with the second JDA partner in RF-SOI, with confidence in replicating positive results. Internal work on a high-throughput manufacturing process for RF-SOI substrate supply chain is also progressing well.

    05

    Financial Performance and Cost Outlook

    Q2 FY26 revenue was $158,000. The GAAP net loss was $6.3 million ($0.17 per share), and the non-GAAP loss was $5 million. GAAP operating expenses increased to $6.9 million, up from $5.2 million in Q2 FY25, driven by higher stock-based compensation, G&A, and sales and marketing expenses. Cash, cash equivalents, and short-term investments stood at $38.4 million as of June 30, 2026. The company expects FY26 non-GAAP operating expenses to be at the high end of its $18.25 million to $18.75 million range due to increasing costs for outsourced engineering work, tool leases, metrology, and device fabrication.

    AI-generated summary of the company’s earnings call. Not investment advice.