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    MRAM
    Earnings call· Jun 2026(Q2 FY26)

    EVERSPIN TECHNOLOGIES Q2 FY26 earnings call MRAM

    Aug 5, 2026 Source

    Executive summary

    Everspin Q2 FY26 — Record Revenue and Strong Product Growth

    Everspin delivered a record-breaking quarter, driven by robust product revenue growth across key industrial and defense markets, complemented by initial revenue from a significant U.S. prime contractor agreement. The company continues to execute on its product roadmap, including the UNISYST family and CXL-based MRAM solutions, while managing increased operating expenses from litigation and NRE investments. Management remains focused on scaling the business and converting design wins into long-term growth.

    Highlights

    5

    • Achieved record revenue of $18.7 million in Q2 FY26, exceeding guidance of $15.5 million to $16.5 million.

    • Non-GAAP EPS of $0.11 significantly surpassed guidance of $0.00 to $0.03 per share.

    • Product revenue grew 38% year-over-year to $15.3 million, driven by industrial automation, energy management, and aerospace & defense.

    • Secured first design win for a GEO satellite mission with Astro Digital, utilizing PERSYST 64-megabit STT-MRAM.

    • Advanced product pipeline with UNISYST 256-megabit xSPI on schedule for tape-out and high-density 128Mb/256Mb xSPI high-reliability parts released to production ahead of schedule.

    Concerns

    3

    • GAAP operating expenses increased to $14.5 million, up from $8.7 million in Q2 FY25, primarily due to $4 million in litigation costs and $1.1 million in nonrecurring engineering expenses.

    • Product gross margins faced headwinds from price increases in back-end packaging and test services, expected to remain in the mid-to-upper 40s range.

    • Operating cash flow decreased to $0.2 million from $0.6 million in Q1, primarily due to litigation costs.

    Guidance & targets

    9
    CategoryTargetConfidence
    Total Revenue
    $19.5 million to $20.5 million
    high materiality
    High
    GAAP EPS
    net loss of $0.05 per share to $0.10 per share
    high materiality
    High
    Non-GAAP EPS
    $0.10 and $0.15 per fully diluted share
    high materiality
    High
    DoD contract completion
    estimated completion in the first half of 2027
    medium materiality
    High
    UNISYST 256-megabit xSPI tape out
    later this year
    medium materiality
    High
    UNISYST 256-megabit xSPI engineering samples
    early 2027
    medium materiality
    High
    UNISYST 256-megabit xSPI production ramp
    later in the year
    medium materiality
    High
    Microchip MRAM capabilities first qualified silicon
    18 to 24 months from project kickoff
    high materiality
    High
    UNISYST TAM capture
    5% to 10% of this market in the early years
    medium materiality
    Medium

    Operational metrics

    14
    Non-GAAP Net Income
    $2.9 millionup from $0.7 million in Q2 FY25
    Q2 FY26

    Reported non-GAAP net income.

    Cash and investments balance
    $43.9 millionup $3.4 million from prior quarter
    Q2 FY26

    Company remains debt-free.

    Product revenue
    $15.3 millionup 38% YoY, up 9% sequentially
    Q2 FY26

    Includes both Toggle and STT-MRAM revenue.

    Non-product revenue
    $3.4 millionup from $2.1 million in Q2 FY25
    Q2 FY26

    Primarily due to initial revenue recognition on the $40 million subcontract agreement with a U.S. prime contractor.

    GAAP gross margin
    53.9%up from 51.3% in Q2 FY25
    Q2 FY26
    Product gross margin
    mid to upper 40s range
    Q3 FY26

    Expected range for product gross margins.

    Total gross margin
    north of 50%
    Q3 FY26

    Expected range for total company gross margins.

    GAAP operating expenses
    $14.5 millionup from $8.7 million in Q2 FY25
    Q2 FY26
    Other income
    $0.5 milliondecreased from $0.8 million in Q2 FY25
    Q2 FY26

    Related to the winding down of the $14.6 million DoD contract.

    Litigation costs
    $4 million
    Q2 FY26

    Included in GAAP operating expenses.

    Nonrecurring engineering costs
    $1.1 million
    Q2 FY26

    Related to the build-out of the MRAM manufacturing line at Microchip's fab in Oregon.

    UNISYST addressable market
    $3 billion
    Annual

    The UNISYST family of products will serve this market.

    XPU utilization improvement target
    90% to 95%from 60% to 70% currently
    Future

    Targeted improvement using CXL attached random access memory, especially for small writes like meta or log data.

    Storage accelerator efficiency improvement target
    15% to 25%
    Future

    Believed impact on efficiency by combining Everspin's MRAM with MaxLinear's storage accelerators.

    Industry KPIs

    4
    MetricValueDetails
    Ai data center revenueDeveloping CXL interface-based MRAM solutions
    Design wins socket pipelineAstro Digital GEO satellite win; High-density 128Mb/256Mb xSPI released to production; UNISYST 256Mb xSPI test chip tape out
    Node platform ramp scheduleUNISYST 256-megabit xSPI on 16-nanometer FinFET CMOS; Microchip fab MRAM capabilities
    End market segment revenue mixIndustrial automation, energy management, aerospace and defense

    Product announcements

    4
    ProductTypeDetails
    High-density 128-megabit xSPI high-reliability partslaunch
    High-density 256-megabit xSPI high-reliability partslaunch
    UNISYST 256-megabit xSPImilestone
    CXL interface-based MRAM solutionsroadmap

    Deals & partnerships

    6
    U.S. prime contractorSubcontract for engineering services to develop and qualify Toggle MRAM process technology capabilities for U.S. defense industrial-based customers.$40 million2.5-year

    Everspin is a subcontractor on an existing prime contract.

    DoD contractorContract to develop a sustainment plan for MRAM manufacturing facilities to provide continuous onshore MRAM capabilities to aerospace and defense customers.$14.6 million

    This contract is expected to wind down over coming quarters.

    Astro DigitalSelection of Everspin's PERSYST 64-megabit STT-MRAM for use on an upcoming Raven Bus Geosynchronous Earth Orbit (GEO) satellite mission.

    MRAM deployed as primary fail-safe memory for system boot memory.

    MicrochipProject to build MRAM capabilities in Microchip's Gresham, Oregon fab, comprising two phases (Toggle MRAM then STT-MRAM).

    Goal to deliver first qualified silicon in 18 to 24 months from April kickoff.

    High-performance data interface and controller companyContract to develop and provide CXL controller IP for MRAM.

    Collaboration on an AMD UltraScale plus FPGA-based platform using the CXL controller IP to connect to Everspin MRAM DIMMs.

    MaxLinearMemorandum of Understanding (MOU) to evaluate the use of Everspin CXL attached MRAM with MaxLinear storage accelerators for next-generation storage and acceleration architectures.

    Assessing opportunities to apply persistent bytaccessible, low-latency MRAM to storage functions.

    Capital programs

    1
    Microchip MRAM Capabilities Build-outon schedule
    Period spend: $1.1 million
    Start: April

    Benefit: MRAM manufacturing capabilities (Toggle MRAM in Phase 1, STT-MRAM in Phase 2)

    Project with Microchip in their Gresham, Oregon fab to build MRAM capabilities. $1.1 million in nonrecurring engineering costs recognized in Q2 FY26 for this project. Goal is to deliver first qualified silicon within the expected timeframe.

    Risks & headwinds

    4
    Litigation costsQ2 FY26, expected similar in Q3 FY26

    $4 million in Q2 FY26

    Mitigation: Excluded from non-GAAP results; management is committed to maintaining financial discipline.

    Back-end price increases impacting product gross marginsOngoing

    Product gross margins in mid-to-upper 40s range

    Mitigation: None explicitly stated, but management acknowledges the dynamic.

    Winding down of $14.6 million DoD contractExpected completion H1 2027

    Other income decreased from $0.8 million to $0.5 million in Q2 FY26; $13.3 million recognized to date

    Mitigation: Partially offset by new $40 million prime contractor agreement; continued investment in product development to drive future growth.

    Uncertainty regarding NXP Chandler fab sale impactPost-2028

    NXP retains ownership until Q1 2029; Nokia acquisition completes Q1 2029

    Mitigation: Microchip partnership provides alternative capacity; planned conversations with Nokia to understand their plans for Everspin.

    What to watch in Q3 FY26

    5

    Total Revenue

    next quarter
    Current$18.7 million (Q2 FY26)
    Target$19.5 million to $20.5 million

    Why it matters

    Verifies the company's ability to meet its top-line guidance and sustain growth momentum.

    Turning to guidance, we expect Q3 total revenue to be in the range of $19.5 million to $20.5 million

    Q&A highlights

    6

    Are you seeing strength in drones within defense, beyond LEO satellites?

    Management confirmed continued engagement in the drone sector and healthy demand across all segments of the business, but did not announce any specific deals in that area.

    “What I would say is, certainly, right, we continue to engage in that sector. We haven't announced any particular specific deals on that area. And certainly, we still see very healthy demand across all segments of the business.”

    asked by Neil Young · answered by William Cooper

    2 min read6 chapters

    Detailed Narrative

    01

    Record Revenue and Profitability

    Everspin achieved its highest-ever quarterly revenue of $18.7 million, significantly exceeding guidance. This performance was driven by robust product revenue growth of 38% year-over-year and initial revenue recognition from a new $40 million agreement with a U.S. prime contractor. Non-GAAP EPS of $0.11 also surpassed expectations, demonstrating strong operational execution despite increased litigation and NRE costs.

    02

    Strategic Defense Contracts

    The company began recognizing non-product revenue from a 2.5-year, $40 million agreement to develop Toggle MRAM process technology for U.S. defense industrial-based customers. Concurrently, a separate $14.6 million DoD contract for MRAM manufacturing sustainment is winding down, with $0.5 million recognized this quarter and $13.3 million to date, expected to complete in H1 2027.

    03

    Product Pipeline Expansion

    Everspin is on track with its UNISYST family, with the 256-megabit xSPI test chip scheduled for tape-out later this year and production ramp in late 2027, targeting a new $3 billion NOR Flash market. High-density 128Mb and 256Mb xSPI high-reliability parts were released to production ahead of schedule, enabling customer evaluations.

    04

    Microchip Partnership Progress

    The project with Microchip to establish MRAM capabilities in their Gresham, Oregon fab is proceeding on schedule. This initiative, which began in April, aims to deliver the first qualified silicon within 18 to 24 months, ensuring future production scalability and continuity, especially in light of NXP's Chandler fab sale.

    05

    CXL Interface Development for Data Centers

    Everspin is actively developing CXL interface-based MRAM solutions to address the demand for nanosecond-class persistent memory, aiming to reduce latency by 100x compared to SSDs and improve XPU utilization to 90-95%. The company signed a contract for CXL controller IP development and a memorandum of understanding with MaxLinear to explore applications in next-generation storage architectures for hyperscale cloud and AI infrastructure.

    06

    End-Market Strength and Satellite Wins

    Product revenue growth was robust across industrial automation, energy management, and aerospace and defense. Notably, the company secured its first design win for a Geosynchronous Earth Orbit (GEO) satellite mission with Astro Digital, using PERSYST 64-megabit STT-MRAM for mission-critical applications, expanding beyond its established presence in Low Earth Orbit (LEO) satellites.

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