0001558370-25-010568
SEC filingRevenue rose 24.1% QoQ driven by product sales and licensing; gross margin improved to 51.3%.
For the three months ended June 30, 2025, Everspin reported total revenue of $13.2 million, a 24.1% increase from $10.6 million in the same period last year. The growth was driven by a 12.2% rise in product sales to $11.1 million and a 181.7% surge in licensing, royalty, patent, and other revenue to $2.1 million. The licensing revenue increase was primarily due to new agreements for RAD-Hard products and an AI technology application, partially offset by the conclusion of a prior contractual arrangement. Gross margin improved to 51.3% from 49.0%, benefiting from favorable product mix and higher-margin licensing revenue, though lower FAB loadings provided a partial offset. Operating expenses rose 8.6% to $8.7 million, with increases across R&D (+3.6%), G&A (+11.9%), and sales & marketing (+13.8%). Net loss narrowed to ($0.7 million) from ($2.5 million), aided by other income of $0.8 million from a strategic award. Adjusted net income (non-GAAP) turned positive to $0.7 million versus a loss of ($0.6 million) in the prior year.
Product sales revenue grew 12.2% YoY to $11.1 million, representing 84% of total revenue. Licensing, royalty, patent, and other revenue more than doubled to $2.1 million, accounting for 16% of total revenue versus 7% in the prior year. Geographically, APAC revenue increased 36.0% to $8.6 million, EMEA rose 32.8% to $1.7 million, while North America declined 4.1% to $2.9 million. The shift toward licensing revenue drove the gross margin improvement, but also introduces variability given the small number of transactions annually.
Management stated cash and cash equivalents of $45.0 million as of June 30, 2025, up from $42.1 million at year-end 2024, and believe this is sufficient to meet anticipated capital requirements for the next 12 months. Cash from operations improved significantly to $6.5 million in the first half of 2025, driven by a one-time distributor transition that improved receivable terms. Investing activities were $3.9 million, primarily for manufacturing equipment and intangible assets. The company continues to invest in new products, including the xSPI family of STT-MRAM, and benefits from strategic awards in aerospace/defense. The recent enactment of the One Big Beautiful Bill Act (OBBBA) is being assessed for potential impacts on financial statements.
As of June 30, 2025, Everspin reported cash and cash equivalents of $44.962M, an increase of $2.865M from $42.097M at December 31, 2024. The company has no marketable securities or traditional debt. Total stockholders' equity stood at $64.075M, up from $62.593M. Inventory rose to $11.306M (from $9.110M), driven by work-in-process ($9.821M) as the company ramps production. Accounts receivable declined to $7.370M (from $11.722M), reflecting improved collections. The current ratio is approximately 5.9x (current assets $64.753M / current liabilities $11.028M), indicating strong liquidity.
Everspin has two primary commitment categories. First, lease obligations total $4.260M in undiscounted payments (operating leases for office and manufacturing facilities, finance leases for servers), with $742k due in the remainder of 2025. The weighted-average remaining lease term is 2.92 years for operating leases and 3.67 years for finance leases. Second, contract obligations of $2.733M (current liability) represent amounts billed for services not yet performed under strategic awards and development agreements. These include a $14.6M strategic award (maximum) from a U.S. government entity for manufacturing services, of which $2.0M has been billed and $1.3M recognized as other income. Additionally, two customer development contracts (total consideration $1.2M and $4.1M) are in progress, with $0.7M and $2.2M billed respectively, and revenue recognized over time.
Everspin did not repurchase shares or pay dividends during the period. Capital expenditures totaled $3.878M (six months), comprising $2.901M for property and equipment (mainly manufacturing equipment) and $0.977M for intangible assets (internal-use software). Capex as a percentage of sales was 14.7%, reflecting investments in production capacity and software. No new debt was issued; the company's only financing activities were $0.322M in proceeds from stock option exercises and ESPP purchases. Stock-based compensation was $2.996M (six months), with $8.7M unrecognized for RSUs.
Everspin operates as a single reportable segment. Revenue by geography for the six months ended June 30, 2025: APAC $15.841M (60.2%), North America $5.409M (20.5%), and EMEA $5.089M (19.3%). The APAC region grew 19.7% YoY, driven by distributor and non-distributor sales. Revenue by type: product sales $22.117M (84.0%), licensing $1.154M, royalties $0.457M, and other revenue $2.611M (including engineering services). The company recognizes revenue over time for development contracts (14.3% of total revenue in current six months).
Operating cash flow of $6,455k far exceeded the net loss of ($1,836k), indicating strong cash generation relative to accounting losses. The primary drivers were large non-cash charges (depreciation & amortization $1,695k, stock-based compensation $2,996k) and a significant working capital tailwind from accounts receivable reduction of $4,352k.
CapEx (including intangible assets) of $3,878k more than tripled year-over-year from $1,239k, reflecting increased investment in property, equipment, and intangibles. The resulting free cash flow (CFO minus capex) was positive at $2,577k, compared to negative ($811k) in the prior period.
No share repurchases or dividends were paid. Financing activities provided a modest $288k from stock option exercises.