How will the customer transition from Intel 18A to 18A-P affect revenue from existing 18A engagements, given the de minimis porting costs?

The company has good coverage, with the 1 million LUT IP contract expected to transition to 18A-P. Subsequent licenses for 18A-P will be cost and time-effective. While some customers might continue with 18A if far along, the 18A-P transition is expected to accelerate design activity and new opportunities. “I think we've got good coverage. It shows I think the operating leverage we have with our model and the fact that we have the automation with Australis in order to deliver for these customers in a timely fashion.”

Can the company quantify how many dev kit customers are expected to transition to Storefront revenue next year?

Management could not quantify specific numbers due to non-disclosure agreements but expressed high confidence that dev kits will lead to Storefront sales next year. They are engaged with customers who have a need for strategic rad-hard FPGAs. “I do believe that we will have Storefront revenue next year related to the valuations that are going on, on those dev kits. As far as like how many or what percent, I won't go into that. But I have high confidence that they will lead to Storefront sales next year.”

Has the strategic rad-hard opportunity, previously estimated at 10-20 sockets, expanded since dev kits are now with customers?

Yes, the opportunity set has expanded, with the company now engaged with more groups than previously. This is a natural progression as real silicon and dev kits encourage new opportunities from customers who were in a 'wait-and-see' mode. “I guess the way I'd say it is that we are engaged with more groups now than we were the last time we spoke on our Q1 call. So the opportunity set has expanded, which is a good thing.”

QUIK

QuickLogic (QUIK) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 11, 2026

Source: earnings call transcript

Executive summary

QuickLogic Q2 FY26 — Full-Year Growth Outlook Narrowed to 70-80% Despite Q2 Delay

QuickLogic reported Q2 FY26 revenue at the low end of guidance and forecast flat Q3 revenue, primarily due to a delayed 7-figure contract extension and the removal of an Intel 18A ASIC design from the 2026 forecast. Despite these near-term headwinds, the company narrowed its full-year growth outlook to 70-80% and reiterated expectations for non-GAAP profitability and positive cash flow in the second half of 2026, driven by government contracts, RadPro, and new market opportunities.

Highlights

Full-year growth outlook narrowed to a range of 70% to 80%.
Non-GAAP profitability and cash flow positive operations are modeled for the second half of 2026.
Q2 non-GAAP gross margin of 46.8% exceeded the 42% outlook.
Net cash increased by $9.7 million in the first half of fiscal 2026, reaching $13.5 million at Q2 close.
Expansion of RadPro Dev Kit opportunities and new customer engagements in automotive, robotics, and commercial satellite applications.

Concerns

Q2 revenue of $5.5 million was at the low end of guidance due to a delayed 7-figure contract extension.
Q3 revenue is forecast flat at $5.5 million (+/- 10%) primarily due to contract delays.
A commercial ASIC design targeting Intel 18A was removed from the second half 2026 forecast.
Full-year 2026 mature product revenue is now estimated to be flat with 2025 at approximately $3.3 million.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year revenue growth outlook	70% to 80% high materiality	FY26	High
Non-GAAP profitability	profitable high materiality	H2 2026 · FY26	High
Cash flow operations	positive high materiality	H2 2026 · FY26	High
Q3 total revenue	$5.5 million plus or minus 10% high materiality	Q3 · FY26	High
Q3 new product revenue	$4.7 million medium materiality	Q3 · FY26	High
Q3 mature product revenue	$0.8 million medium materiality	Q3 · FY26	High
Full-year 2026 mature revenue	approximately $3.3 million medium materiality	FY26	Medium
Q3 non-GAAP gross margin	approximately 47% plus or minus 5% medium materiality	Q3 · FY26	High
Full-year non-GAAP gross profit margin	approximately 51% medium materiality	FY26	High
Q3 non-GAAP operating expenses	approximately $3.6 million plus or minus 5% medium materiality	Q3 · FY26	High
Full-year non-GAAP OPEX	$13.7 million to $13.9 million medium materiality	FY26	High
Q3 non-GAAP net loss	about $900,000 medium materiality	Q3 · FY26	High
Q3 non-GAAP EPS	approximately $0.05 per share loss medium materiality	Q3 · FY26	High
Q3 stock-based compensation	approximately $900,000 low materiality	Q3 · FY26	High
Q3 cash use	approximately $400,000 medium materiality	Q3 · FY26	High
Q3 net cash balance	slightly over $13 million medium materiality	Q3 · FY26	High
eFPGA IP architectural license	potential to sign medium materiality	late 2026 · FY26	Medium
Initial Storefront device demand	expected medium materiality	2027 · FY27	High
12LP eval kit release	scheduled for Q4 low materiality	Q4 · FY26	High
Follow-on 1 million LUT contract for Intel 18A-P	targeting Q4 delivery medium materiality	Q4 · FY26	High
Meaningful chiplet revenue	beginning in 2027 medium materiality	2027 · FY27	Medium
New small package option for mature products	multi-million-dollar market medium materiality	beginning in 2027 · FY27	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
New Product Revenue for Q2 2026.	$4.7 million	59.7%	8.6%	—
Mature Product Revenue for Q2 2026.	$0.8 million	6.9%	8.8%	—

Orderbook & backlog

U.S. government contract $89 million last year

increased

Total ceiling value. Revenue recognition from this contract will contribute a significant percentage of total Q4 revenue.

Product announcements

Product	Type	Timeline	Details
12LP eval kit	launch	Q4 FY26

Deals & partnerships

Existing customer 7-figure extension of an existing contract 7-figure

Customer is reevaluating functions for embedded FPGA versus fixed ASIC logic. This delay caused Q2 revenue to be at the low end of guidance and Q3 revenue to be flat.

Commercial ASIC design customer eFPGA hard IP contract for commercial ASIC design targeting Intel 18A

Several uncertainties arose recently, making it a 2027 opportunity.

Customer that funded 1 million LUT developments in Intel 18A Follow-on contract for Intel 18A-P implementation

Leveraging development work completed for Intel 18A; time and cost to develop for 18A-P will be de minimis.

New customer Design targeting automotive, industrial automation and robotic applications

One of several new customers for ASIC designs incorporating eFPGA hard IP.

International customer ASIC for a LEO satellite application

One of several new customers for ASIC designs incorporating eFPGA hard IP.

New customer eFPGA architectural license

Interest in an eFPGA architectural license, following a 5-figure feasibility study with promising initial results.

DIB (Defense Industrial Base) Contract to fund and qualify smaller package for mature products

For existing devices in smaller packages than currently offered, for new designs.

Risks & headwinds

Delayed 7-figure contract extension Q2 FY26, Q3 FY26, FY26

7-figure revenue removed from 2026 forecast; caused Q2 revenue to be at low end of guidance and Q3 revenue to be flat.

Mitigation:Confident in securing the extension for 2027; customer reevaluating design functions for optimal partitioning.

Commercial ASIC design targeting Intel 18A removed from forecast H2 FY26

Revenue opportunity removed from H2 2026 forecast.

Mitigation:Now a 2027 opportunity due to uncertainties; focus shifting to Intel 18A-P.

Mature product revenue flat FY26

Full-year 2026 mature revenue estimated flat with 2025 at approximately $3.3 million.

Mitigation:Previously anticipated an increase in H2; new small package option for DIBs expected to open multi-million dollar market from 2027.

What to watch in Q3 FY26

7-figure contract extension

2027

Current Delayed from 2026

Target Signed and contributing revenue

Why it matters

This contract represents a significant revenue contribution that was previously expected in 2026 and its realization is key to future growth.

This contract extension has been delayed as the customer is reevaluating what functions it wants to put in embedded FPGA versus the functions that will be locked down in the fixed portion of its ASIC prior to finalizing the design. This delay is the sole reason why Q2 revenue was at the low end of our guidance range and the primary reason why we will forecast flat Q3 revenue. We remain confident in securing this contract extension, but this delay removes it from our 2026 forecast.

Find out whether QUIK delivers this. Inve re-checks your case every morning.

Q&A highlights

Given Q4 is critical for full-year growth, what is the confidence level on revenue timing, and are there risks of milestones slipping into 2027?

Management expressed high confidence, stating that engineering resources are aligned to meet revenue recognition milestones. Work is being scheduled, and in some cases, engineering has already commenced. The primary remaining factor is the business side closing a couple of contracts.

“We look at these contracts that I was alluding to in the call and when we would need to make delivery of these items, and we are scheduling work now so that we can hit those milestones for rev rec. And so now it's a matter of closing on a couple of these contracts in order to make that happen.”

asked by Neil Young · answered by Brian C. Faith

3 min read 6 chapters

Detailed narrative

Q2 Revenue Performance and Delays

QuickLogic's Q2 FY26 revenue of $5.5 million landed at the low end of its guidance range. This was primarily attributed to the delay of a 7-figure extension of an existing customer contract, which was originally forecasted for Q2 and Q3 recognition.

The customer is reevaluating eFPGA functions versus fixed ASIC logic, pushing this opportunity into 2027. Additionally, a commercial ASIC design targeting Intel 18A was removed from the H2 2026 forecast due to uncertainties, also becoming a 2027 opportunity. These delays are the main reasons for the flat Q3 revenue forecast.

Full-Year Outlook and Growth Drivers

Despite the Q2 headwinds, QuickLogic narrowed its full-year growth outlook to a robust 70-80% and reiterated expectations for non-GAAP profitability and positive cash flow in the second half of 2026. This confidence is underpinned by the ongoing U.S. government contract, which has a total ceiling value of $89 million and is expected to contribute a significant percentage of total Q4 revenue.

Other drivers include a stable base of mature product business, continued demand for RadPro Dev Kits, and existing IP contracts scheduled for Q4.

Intel 18A-P Transition and Opportunities

The company is observing a shift in development and customer design activity from Intel 18A to Intel 18A-P, which offers improved performance (9% higher) or lower power (18% lower). QuickLogic expects the time and cost to develop eFPGA hard IP for 18A-P to be de minimis due to prior 18A development work.

A follow-on contract for a 1 million LUT Intel 18A-P implementation is targeted for Q4 delivery, and the release of 18A-P is anticipated to accelerate design activity and eFPGA hard IP opportunities.

New Market Sectors and Architectural Licensing

QuickLogic is actively pursuing new customer engagements and market sectors. The company is in late-stage negotiations for two potential contracts: one for automotive, industrial automation, and robotic applications, and another with an international customer for a LEO satellite application. Furthermore, a 5-figure feasibility study for an eFPGA IP architectural license has been successfully completed, with promising initial results that could lead to a full architectural license by late 2026.

Storefront and Chiplet Strategy Advancement

The digital proof of concept strategy has generated over 5 active chiplet proposals targeting GlobalFoundries 12LP, Intel 18A, and 18A-P. A new 12LP eval kit, incorporating discrete FPGA test chips and compatible with common third-party development environments, is scheduled for Q4 release.

This kit aims to accelerate customer evaluations and is expected to lead to meaningful chiplet revenue starting in 2027, alongside initial Storefront device demand from RadPro evaluations.

Mature Products and Government Interest

QuickLogic's mature products, utilizing one-time-programmable anti-fuse technology, continue to see demand from defense and aerospace contractors and have been designed into new programs. A DIB has contracted with QuickLogic to fund and qualify a smaller package option for these devices, which is projected to open a new multi-million-dollar market starting in 2027 with minimal operational investment.

The company is also seeing a significant increase in RFIs/RFPs from government channels, indicating expanding opportunities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.