0001628280-25-049703
SEC filingRevenue grew 16.3% QoQ driven by product sales; gross margin improved to 51.3% on better yields and fab utilization.
For the three months ended September 30, 2025, Everspin Technologies reported total revenue of $14.1 million, a 16.3% increase from $12.1 million in the same period of 2024. The growth was driven entirely by product sales, which rose 21.5% to $12.7 million, partially offset by a 17.0% decline in licensing, royalty, patent, and other revenue to $1.4 million. The decrease in licensing revenue was attributed to a reduced pace of deliverables in RAD-Hard development agreements and the conclusion of a reliability model contract, partially offset by a new AI technology development agreement.
Gross margin improved to 51.3% from 49.2% in the prior-year quarter, reflecting better yields and improved fabrication facility utilization. Cost of product sales increased 15.2% to $6.6 million, while cost of licensing revenue fell 42.1% to $0.2 million. Operating expenses rose 8.5% to $8.8 million, with research and development up 5.9%, general and administrative up 9.7%, and sales and marketing up 12.0%. Loss from operations narrowed to $1.5 million from $2.1 million. Net income dropped sharply to $0.1 million from $2.3 million, primarily due to a $2.8 million decline in other income, which included a strategic award for aerospace/defense manufacturing services.
Product sales remain the dominant revenue segment, accounting for 90% of total revenue in Q3 2025 versus 86% in Q3 2024. The 21.5% growth in product sales was driven by improved yields and fab utilization, with no specific product mix or volume details provided. Licensing, royalty, patent, and other revenue, while smaller, is highly variable and characterized by a small number of transactions annually. Its decline reflects the lumpy nature of development contracts, with the company noting the conclusion of one agreement and the start of another in AI technology.
Geographically, revenue increased across all regions: APAC grew 8.2% to $8.6 million, North America rose 33.2% to $2.5 million, and EMEA increased 30.3% to $3.0 million. The company generated 86% of product revenue from distributors in Q3 2025, up from 84% in Q3 2024.
The MD&A does not provide explicit forward guidance or management outlook for future periods. However, the company highlights its focus on the development of the new Extended Serial Peripheral Interface (xSPI) family of STT-MRAM products as a key driver of research and development spending. The strategic award for aerospace and defense manufacturing services is noted as a source of other income, though its recurring nature is unclear. The company believes its $45.3 million cash position is sufficient for the next 12 months, with long-term capital requirements dependent on growth rate, R&D spending, and new product introductions. The recently enacted One Big Beautiful Bill Act (OBBBA) is being assessed for its impact on financial statements.
As of September 30, 2025, Everspin held $45.3M in cash and equivalents (up from $42.1M at year-end 2024). The company has no bank debt; total liabilities consist of $3.7M in lease liabilities and $2.2M in software liabilities, totaling $5.9M. Shareholders' equity stands at $65.8M, reflecting a net loss of $1.8M YTD. Inventory increased to $11.8M (from $9.1M), driven by work-in-process for manufacturing. Deferred revenue rose to $1.0M due to new engineering service contracts.
The notes disclose no material purchase commitments or off-balance-sheet arrangements. Operating lease obligations total $3.9M (undiscounted), spread through 2029. The company has a strategic award of up to $14.6M over 2.5 years for aerospace/defense manufacturing services, with $3.0M billed and $2.5M recognized as other income YTD. Contract obligations of $2.5M represent the unearned portion of that award.
Everspin did not repurchase shares or pay dividends during the period. Capital expenditures totaled $4.7M YTD ($3.2M for property and equipment, $1.5M for intangible/internal-use software), representing 11.7% of revenue. No new debt was issued. The company continues to fund operations through cash reserves.
Everspin operates as a single MRAM technology segment. The CODM uses net income to allocate resources. Revenue by geography for the nine months: APAC $24.4M (60%), EMEA $8.1M (20%), North America $7.9M (20%). Q3 2025 revenue grew 16% YoY, driven by product sales ($12.7M) and other revenue ($1.2M from the strategic award). Licensing revenue was minimal at $9K in Q3.
Net cash from operations (CFO) of $7.3M significantly exceeded the net loss of $1.8M, indicating strong cash generation from non-cash items and working capital management. Depreciation and amortization ($2.6M) and stock-based compensation ($4.4M) were major add-backs. Working capital provided $2.2M, mainly from a $3.0M decrease in receivables, partially offset by inventory build ($2.7M). Capex totaled $4.7M, including $3.2M for property and equipment and $1.5M for intangible assets, representing a 3.6x increase from the prior year. Despite higher capex, free cash flow (CFO minus capex) was positive at approximately $2.6M. No share repurchases or dividends were reported. The financing section showed negligible activity. Overall, cash flow quality is solid, with CFO covering capex and operational losses.