0001628280-26-014733
SEC filingRevenue grew 9.5% to $55.2M, but net loss of $0.6M vs prior year profit; gross margin slightly down to 51.2%.
Everspin Technologies, Inc. describes itself as a pioneer in the successful commercialization of Magnetoresistive Random Access Memory (MRAM) technology. The company's portfolio includes Toggle MRAM, Tunnel Magneto Resistance (TMR) Sensors, and Spin-transfer Torque MRAM (STT-MRAM), delivering non-volatile memories that protect mission-critical data against power loss. Everspin targets key markets such as industrial, medical, automotive/transportation, aerospace and defense, and data center. The company is headquartered in Chandler, Arizona, with a principal design center in Austin, Texas, and additional sales operations in the Americas, Europe, and Asia-Pacific regions.
The filing does not explicitly define formal reporting segments but describes distinct product and revenue categories: Toggle MRAM, STT-MRAM, TMR Sensors, Licensing/Royalty/Patent, and Foundry Services. Revenue share percentages for these categories are not disclosed in the Business section.
Everspin's product portfolio includes Toggle MRAM (128kb to 32Mb densities with Parallel, SPI, and QSPI interfaces), STT-MRAM (1Gb density for DRAM replacement with DDR3/DDR4 interfaces, and 4Mb to 256Mb densities for SRAM/FRAM/NOR replacement with SPI, xSPI, QSPI, and OSPI interfaces), and 3D TMR sensors for consumer electronics. The company also offers foundry services for adding MRAM and TMR sensor functionality to customer CMOS wafers, and licenses its IP for embedded MRAM (e.g., to GLOBALFOUNDRIES) and radiation-tolerant aerospace applications.
Everspin sells products through a direct sales channel and a network of representatives and distributors, with the majority of customers buying through distributors. Direct sales representatives are located in North America, Germany, Italy, Japan, Hong Kong, and Taiwan. The sales cycle typically takes three to 18 months, culminating in a design win. The company has established relationships with storage controller and FPGA companies including Phison Electronics, Sage Micro, Xilinx, Cadence, and Northwest Logic. During 2025, more than 1,405 end customers purchased products. The two largest end customers together accounted for 33% of total revenue in 2025 and 37% in 2024, with one customer in each year accounting for more than 10% of revenue.
Everspin faces intense competition from a wide variety of memory technology manufacturers. Principal competitors for Toggle MRAM include Infineon, Fujitsu, ISSI, Macronix, Microchip, Micron, Renesas, Samsung, and Toshiba. STT-MRAM competes with DRAM and NVSRAM suppliers such as Hynix, Micron, Winbond, Samsung, and others. Future competition may come from companies developing MRAM technologies like Avalanche and Samsung. Indirect competition may arise from RRAM, NOR, and NAND Flash manufacturers. The company's ability to compete depends on factors including product attributes, customer adoption, manufacturing expertise, and competitive pricing.
Everspin's stated strategic priorities include continuing innovation in MRAM technology across Toggle MRAM, STT-MRAM, and TMR Sensors; leveraging its broad IP portfolio for licensing, royalty revenue, and patent sales; maintaining its strategic manufacturing relationship with GLOBALFOUNDRIES for STT-MRAM production; expanding its customer base through direct sales and distributor channels targeting key markets; and developing new products to meet future customer requirements.
As of December 31, 2025, Everspin had 85 total employees in the United States, all full-time. None of its employees are represented by a labor union or subject to a collective bargaining agreement. The company has not experienced any work stoppages and considers its relations with employees and contractors to be good.
Total revenue for fiscal year 2025 increased 9.5% to $55.2 million from $50.4 million in 2024. The growth was driven entirely by product sales, which rose 14.4% to $48.3 million, benefiting from higher volumes across Toggle and STT-MRAM products. Licensing, royalty, patent, engineering services, and other revenue declined 15.7% to $6.9 million, primarily due to the conclusion of a contractual arrangement for reliability model development for a customer's RAD-Hard product.
Gross profit increased 8.1% to $28.2 million; however, gross margin contracted 60 basis points to 51.2% from 51.8%. The margin compression reflects a shift in revenue mix toward lower-margin product sales, which now represent 87% of total revenue versus 84% in the prior year.
Operating expenses rose 4.6% to $34.8 million, with increases in R&D (2.9%), G&A (2.9%), and sales & marketing (13.4%). Despite higher spending, operating loss improved to $6.5 million from $7.1 million, as revenue growth outpaced expense growth. Net income swung to a loss of $0.6 million from a profit of $0.8 million, impacted by lower other income and interest income.
On a non-GAAP basis, adjusted net income (excluding stock-based compensation) declined to $5.2 million from $7.5 million, reflecting the negative impact of lower licensing revenue and higher operating costs.
Everspin reports revenue by three geographic regions. APAC was the standout performer, growing 20.4% to $34.5 million, representing 62% of total revenue. The increase reflects strong demand from distributors and OEMs in the region. North America revenue edged up 1.7% to $10.9 million, while EMEA revenue declined 11.1% to $9.8 million, likely due to softer demand in industrial and defense end markets.
A key leading indicator, design wins, improved each quarter: 44, 53, 55, and 85 in 2025 versus 31, 44, 50, and 53 in 2024. The accelerating pace of design wins, particularly in the final quarter, signals robust future revenue potential as customers incorporate MRAM into their products.
Management did not provide explicit financial guidance for future periods. However, the MD&A highlights several strategic priorities: (1) driving manufacturing excellence and yield improvements to sustain product margins; (2) investing in the new Extended Serial Peripheral Interface (xSPI) family of STT-MRAM products; and (3) leveraging a strategic award to develop long-term manufacturing services for aerospace and defense segments.
The company believes its $44.5 million cash position is sufficient to meet capital requirements for the next 12 months. Long-term capital needs depend on growth rates, R&D spending, sales expansion, and new product introductions. The OBBBA tax law change, enacted in July 2025, provides cash flow benefits through immediate expensing of domestic R&D, which may positively impact near-term liquidity.
As of December 31, 2025, Everspin held $44.5 million in cash and cash equivalents, no marketable securities, and no outstanding borrowings under any credit facility. Total stockholders' equity stood at $68.9 million. Inventory increased to $10.7 million from $9.1 million a year earlier, driven primarily by work-in-process ($9.3 million). The company has a net deferred tax asset of $0.1 million. Current liabilities total $13.5 million, including $5.2 million in accounts payable and $3.7 million in accrued liabilities.
Everspin's primary contractual commitments are lease obligations for fabrication, lab and office space. Undiscounted future non-cancellable lease payments amount to $3.5 million as of December 31, 2025, with $1.5 million due within one year. The weighted-average remaining lease term is 2.44 years for operating leases. Additionally, the company has a contract obligations liability of $1.5 million related to a strategic award from the U.S. government, representing amounts invoiced but not yet recognized as income. There are no purchase commitments for inventory or capacity beyond normal operations.
Everspin did not repurchase any common stock or declare dividends during fiscal 2025. The company maintains no debt, with capital leases and software liabilities being the only interest-bearing obligations. Capital expenditures totaled $6.8 million in 2025, primarily for manufacturing equipment and construction in progress ($11.1 million in CIP). This compares to $3.0 million in 2024. The increase reflects investments in production capacity and infrastructure. Stock-based compensation expense was $5.8 million, down from $6.7 million in 2024.
The company operates as a single reportable segment. Revenue is disaggregated by channel (distributor $41.7 million, non-distributor $13.5 million), timing (point in time $49.1 million, over time $6.1 million), and type (product sales $48.3 million, licensing $1.1 million, royalties $0.8 million, engineering services $5.0 million). Geographically, APAC accounted for $34.5 million (63%), North America $10.9 million (20%), and EMEA $9.8 million (18%) of total revenue. Property and equipment is primarily in the United States ($13.8 million) with a small amount in Singapore ($0.2 million).
Everspin's reliance on a single foundry, GLOBALFOUNDRIES, for higher density products on advanced nodes is a critical risk. The manufacturing agreement includes minimum purchase obligations, and any disruption or termination could force costly redesigns or loss of product availability. The company also depends on third-party assembly and test facilities primarily in Asia, exposing it to geopolitical tensions, natural disasters, and capacity constraints. Yield issues, especially in newer STT-MRAM products, could increase costs and delay shipments.
A significant development is the January 2026 patent infringement lawsuit filed by Avalanche Technology. Regardless of merit, litigation is costly and could result in damages, injunctions, or licensing fees. The company also disclosed voluntary self-disclosure to BIS for apparent export control violations, which may lead to fines or penalties.
Export controls, trade tariffs, and sanctions pose material risks. The company's operations and sales are subject to U.S. export regulations, and violations have been self-reported. Tariffs on raw materials and components increase costs, and trade tensions between the U.S. and China could reduce demand or disrupt supply chains. International operations also expose the company to anti-corruption laws, foreign tax changes, and political instability.
Everspin has $44.5M cash but no committed funding. Future capital may be needed for R&D or operations, potentially diluting shareholders. Net operating loss carryforwards are substantial but limited by Section 382, with $43.8M expiring unused. Customer concentration is high; loss of a key customer could materially affect revenue. The company's success depends on design wins for new MRAM products, which have long sales cycles and uncertain adoption.
Intense competition from larger semiconductor companies and potential customers' internal solutions pressures pricing and market share. Rapid technological change requires continuous innovation; failure to achieve design wins or product adoption could harm growth. The cyclical nature of the semiconductor industry adds to revenue volatility.
Cybersecurity threats, including ransomware, are a growing concern. The company maintains insurance but may suffer losses from breaches. Natural disasters and health crises (e.g., pandemics) could disrupt operations. Stock price volatility is expected, and anti-takeover provisions in corporate charter may deter beneficial acquisitions.
For FY2025, CFO of $4.2M exceeds net loss of $0.6M, indicating strong cash generation from non-cash charges (depreciation & amortization, stock-based compensation) and favorable working capital movements. The primary working capital benefit came from a $2.9M increase in accounts payable and a $2.6M decrease in accounts receivable, partially offset by a $1.6M inventory build.
Capex of $12.5M (versus $0.8M in FY2024) represents a major increase in capital intensity, reflecting investment in property and equipment to support growth. This produced negative free cash flow of -$8.3M. The financing section shows $11.2M in net cash raised, primarily from stock option exercises and issuance of common stock, which funded the capex and overall cash balance increase.
No share repurchases or dividends were made. The steep rise in capex warrants monitoring for future returns on this investment.