Core Insights - Everspin Technologies has launched the UNISYST MRAM family, a new generation of unified memory aimed at enhancing embedded systems by combining code storage and data memory in a high-density, non-volatile architecture [1] Product Overview - UNISYST MRAM is designed to address the limitations of traditional NOR flash memory, particularly as process nodes shrink below 40 nanometers and workloads increase [1] - The initial offering will include densities ranging from 128 megabits to 2 gigabits, utilizing a standard xSPI interface that operates up to octal SPI at 200MHz [1] - The devices will feature AEC-Q100 Grade 1 qualification and a minimum of 10-year data retention at extreme temperatures, making them suitable for automotive, aerospace, industrial, and edge AI applications [1] Performance Metrics - UNISYST MRAM boasts write endurance up to 10 times higher than typical NOR flash, with read bandwidth of up to 400 MB/s and write bandwidth of approximately 90 MB/s, which is over 400 times faster than NOR flash [1] - The architecture is designed to support software-defined systems that require frequent reconfiguration while maintaining data integrity across power cycles [1] Target Applications - Key use cases for UNISYST include industrial and casino gaming for high-traffic logging, automotive control and logging systems, military and aerospace applications for FPGA configuration, and edge AI for fast AI weight updates [1] Market Position - The launch of UNISYST represents a strategic expansion of Everspin's MRAM portfolio, positioning the company as a significant player in a multibillion-dollar market by unifying code storage and data memory [1] - Engineering samples of UNISYST are expected to be available in Q4 2026, with a formal launch planned at Embedded World 2026 [1]

Core Insights - Everspin Technologies has made significant advancements in its high-reliability PERSYST xSPI STT-MRAM portfolio, achieving full production qualification for its 64Mb MRAM and expanding to a new 256Mb density [1] - The 64Mb xSPI STT-MRAM is now available for customer orders, while the 128Mb and 256Mb options are progressing through final qualification phases, with expected completion dates in May 2026 and July 2026 respectively [1] - The expanded product offerings are aimed at meeting the needs of customers requiring validated memory solutions for long-lifecycle systems, particularly in aerospace, defense, automotive, and industrial applications [1] Product Development - The 64Mb xSPI STT-MRAM has completed full production qualification for the AEC-Q100 Grade 1 specification and supports high-volume production programs [1] - The introduction of the 256Mb density allows for higher-capacity persistent memory designs within the same xSPI-based architecture, enhancing scalability for various applications [1] - Everspin's focus on endurance, data integrity, and radiation tolerance is crucial for applications in unpredictable environments, such as space and satellite programs [1] Market Position - Everspin Technologies is recognized as the world's leading developer and manufacturer of magnetoresistive random access memory (MRAM) solutions, catering to a diverse customer base across multiple industries [1] - The company's advancements in MRAM technology reflect its commitment to a technology roadmap that broadens its high-reliability MRAM portfolio [1]

Core Insights - Everspin Technologies reported fourth-quarter 2025 results that were at the high end of its guidance, driven by strong performance in data center, energy management, and industrial automation markets [4][3] - The company aims to achieve $100 million in annual revenue over the next three to five years, with significant contributions expected from its PERSYST products and licensing solutions [18][4] Financial Performance - Everspin's fourth-quarter revenue was $14.8 million, representing a 12% year-over-year increase, with non-GAAP EPS of $0.11 per diluted share [3][6] - GAAP gross margin was 50.8%, slightly down from 51.3% in the previous year, primarily due to lower licensing and other revenue [1] - GAAP operating expenses were $8.6 million, showing a slight increase from $8.4 million in the previous quarter [1] Product and Market Developments - MRAM product sales, including Toggle and STT-MRAM, reached $13.5 million, up 22% from the year-ago quarter [2][6] - Everspin ramped its PERSYST 64 Mb xSPI STT-MRAM to full production and began shipping, with plans to qualify higher-density parts [6][12] - The company is also working on a monolithic 256 Mb xSPI device on a 16-nanometer node at TSMC, aimed at edge AI and industrial markets [12][13] Strategic Contracts and Partnerships - Everspin recognized $10.5 million to date from a $14.6 million Department of Defense sustainment contract, with completion expected in the first half of 2027 [5][9] - The company is qualifying its PERSYST 64 Mb xSPI STT-MRAM for Microchip's PIC64-HPSC series, targeting aerospace and defense markets [14] Future Outlook - For the first quarter of 2026, Everspin expects total revenue of $14 million to $15 million, consistent with the fourth quarter [17] - The company anticipates a sequential decline in non-product revenue due to project completion, but still targets gross margin in the 50% range [18] - Everspin expects its first enhanced serial NOR-like xSPI product family to be in production by 2027, contributing to the $100 million revenue target [18]

Everspin Technologies (NasdaqGM:MRAM) Q4 2025 Earnings call March 04, 2026 05:00 PM ET Company ParticipantsBill Cooper - CFOMonica Gould - Head of Investor RelationsSanjeev Aggarwal - President and CEOConference Call ParticipantsNeil Young - Equity Research AnalystRichard Shannon - Senior Research AnalystOperatorGood afternoon, welcome to Everspin Technologies' fourth quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. After the conclusion of management' ...

Financial Data and Key Metrics Changes - The company reported revenue of $14.8 million for Q4 2025, representing a 12% year-over-year increase and aligning with the high end of the guidance range of $14 million to $15 million [19] - Non-GAAP EPS for the quarter was $0.11 per diluted share, consistent with expectations and down from $0.13 per share in Q4 2024 [21][22] - GAAP gross margin decreased slightly to 50.8% from 51.3% in Q4 2024 due to lower licensing and other revenue [20] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT-MRAM revenue, were $13.5 million, up 22% year-over-year [19] - Licensing, royalty, patent, and other revenue decreased to $1.3 million from $2.2 million in Q4 2024 due to the completion of prior projects [19] Market Data and Key Metrics Changes - Demand in data center applications was driven by ongoing work with IBM on the FCM4 module and the introduction of the FCM5 [5] - Energy management and industrial automation saw a return to normal demand levels after previous inventory consumption [6] Company Strategy and Development Direction - The company aims to reach $100 million in annual revenue over the next 3 to 5 years, driven by new product ramps, particularly in the xSPI parts of the PERSYST product portfolio [15][16] - Everspin is focusing on chiplet technology and partnerships to enhance its market position, particularly in automotive and aerospace sectors [11][14] Management's Comments on Operating Environment and Future Outlook - The semiconductor industry is experiencing memory shortages, leading to increased demand for alternatives like Everspin's xSPI STT-MRAM to replace NOR Flash [17][18] - Management expressed confidence in the recovery of inventory levels in energy management and industrial automation, expecting no issues in 2026 [30] Other Important Information - The company ended Q4 2025 with cash and cash equivalents of $44.5 million, down slightly from the previous quarter [22] - There was no material tariff-related impact on results in Q4 2025, and none is expected in the coming quarters [23] Q&A Session Summary Question: Inquiry about the NOR Flash opportunity and potential revenue upside - Management indicated that the upside depends on the qualification cycle for potential customers, with ongoing discussions about being an alternative for NOR Flash [26][27] Question: Confidence in inventory levels in energy management and industrial automation - Management expressed confidence based on distributor backlog and customer forecasts, indicating that inventory issues should not recur in 2026 [28][30] Question: Updates on the strategic Rad-Hard project and contributions from the LEO satellite market - Management noted that the LEO satellite market is still developing, with expectations of increased demand for high-reliability products [34][38] Question: Material contributions from Microchip and FPGA engagements - Management highlighted steady progress with partners like Microchip and Lattice, focusing on product qualification and integration into standard offerings [39][41] Question: Breakdown of revenue contributors towards the $100 million target - Management identified PERSYST products as the major contributor, with equal contributions expected from licensing and Unisys in the long term [42][43]

Financial Data and Key Metrics Changes - The company reported revenue of $14.8 million for Q4 2025, representing a 12% year-over-year increase and aligning with the high end of the guidance range of $14 million to $15 million [17] - Non-GAAP EPS for the quarter was $0.11 per diluted share, consistent with expectations and compared to $0.13 per share in Q4 2024 [19] - GAAP gross margin decreased slightly to 50.8% from 51.3% in Q4 2024 due to lower licensing and other revenue [18] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT-MRAM revenue, reached $13.5 million in Q4 2025, up 22% year-over-year [17] - Licensing, royalty, patent, and other revenue decreased to $1.3 million from $2.2 million in Q4 2024 due to the completion of prior projects [17] Market Data and Key Metrics Changes - The company noted a return to normal demand levels in energy management and industrial automation after a period of inventory consumption that affected demand in the previous year [5] - The semiconductor industry is experiencing memory shortages, leading to increased demand for alternatives like MRAM to replace NOR flash [16] Company Strategy and Development Direction - The company aims to reach $100 million in annual revenue over the next 3 to 5 years, driven by new product ramps, particularly in the xSPI parts of the PERSYST product portfolio [13][14] - The focus is on expanding the xSPI STT-MRAM portfolio and engaging in partnerships to enhance product offerings in various markets, including aerospace and defense [9][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of inventory levels and demand in key markets, expecting no significant issues in 2026 [26] - The company is actively engaging with customers to evaluate its X5 STT-MRAM as a replacement for NOR flash, with potential upside dependent on customer qualification cycles [24][16] Other Important Information - The company ended Q4 2025 with cash and cash equivalents of $44.5 million, down slightly from the previous quarter, and reported an increase in cash flow generated from operations to $2.8 million [19][20] - The company does not anticipate any material tariff-related impacts on its results in the upcoming quarters [20] Q&A Session Summary Question: Inquiry about the NOR flash opportunity and potential revenue upside - Management indicated that the timeline for seeing revenue upside from NOR flash replacements depends on customer qualification cycles, with ongoing discussions indicating potential demand [24] Question: Confidence in inventory levels in energy management and industrial automation - Management expressed confidence based on distributor backlog and customer forecasts, indicating that inventory issues should not recur in 2026 [26] Question: Update on the strategic RadHard project and contributions from the LEO satellite market - Management noted that the LEO satellite market is growing, with expectations for increased demand for high-reliability products [36] Question: Material contributions from Microchip and FPGA engagements - Management highlighted ongoing progress with partners like Microchip and Lattice, with expectations for product qualification and integration into standard offerings [38] Question: Breakdown of revenue contributors towards the $100 million target - Management identified PERSYST products as the major contributor, with additional contributions expected from licensing and Unisys in the coming years [41]

Revenue Performance - Total revenue increased by $4.8 million, or 9.5%, from $50.4 million in 2024 to $55.2 million in 2025, driven by a $6.1 million increase in product sales revenue [176]. - Product sales accounted for 87% of total revenue in 2025, up from 84% in 2024, while licensing and other revenue decreased to 13% from 16% [173]. - Revenue from the APAC region increased to $34.5 million in 2025, up from $28.7 million in 2024, highlighting strong market performance [175]. Profitability and Income - Adjusted net income for 2025 was $5.2 million, compared to $7.5 million in 2024, reflecting a decrease due to stock-based compensation expenses [171]. - Gross profit margin slightly decreased from 51.8% in 2024 to 51.2% in 2025, attributed to a different revenue mix [180]. Expenses - Research and development expenses rose by $0.4 million, or 2.9%, to $14.1 million in 2025, focusing on the development of new STT-MRAM products [182]. - Operating expenses increased to $34.8 million in 2025, up from $33.2 million in 2024, primarily due to higher personnel-related costs [173]. Cash Flow and Liquidity - As of December 31, 2025, the company had $44.5 million in cash and cash equivalents, an increase from $42.1 million as of December 31, 2024, indicating sufficient liquidity for anticipated capital requirements in the next 12 months [188]. - Cash provided by operating activities for the year ended December 31, 2025, was $10.0 million, up from $7.1 million in 2024, despite a net loss of $0.6 million [190][191]. - Cash used in investing activities increased to $8.7 million in 2025 from $3.1 million in 2024, primarily for capital expenditures on manufacturing equipment and software [193]. - Cash provided by financing activities was $1.1 million in 2025, consistent with the previous year, reflecting proceeds from stock option exercises and employee stock purchase plan [194]. Accounts and Inventory Management - The company recorded a decrease in accounts receivable of $3.6 million in 2025, attributed to the timing of cash receipts for outstanding balances [190]. - Inventory increased by $1.6 million in 2025 to meet anticipated production volumes, indicating proactive management in response to demand [190]. Strategic Initiatives - New design wins for MRAM products increased to 85 in Q4 2025, compared to 53 in Q4 2024, indicating strong growth in product qualification [171]. - The company has entered into multiple contractual agreements for the development of new products, including a RAD-Hard product and a strategic radiation-hardened FPGA product, with revenue recognized over time based on costs incurred [204][206]. Taxation - The company maintains a 21 percent corporate tax rate under the OBBBA, with beneficial tax provisions for R&D expenditures effective in 2025 [187]. - The company continues to amortize existing capitalized R&D expenditures while electing to immediately expense new domestic R&D expenditures starting in Q4 2025 [187]. Other Income - Interest income decreased by $0.1 million, or 6.8%, from $1.8 million in 2024 to $1.6 million in 2025, mainly due to lower interest rates [185]. - Other income, net fell by $1.7 million, or 27.4%, from $6.1 million in 2024 to $4.4 million in 2025, related to a strategic award for manufacturing services [186]. Revenue Recognition - The company recognized revenue from product sales at a point in time, with revenue from licenses and royalties recognized upon delivery of technology or when sales occur [196][202].

Everspin Technologies FY Conference Summary Company Overview - **Company**: Everspin Technologies (NasdaqGM:MRAM) - **Industry**: Semiconductor, specifically in MRAM (Magnetoresistive Random Access Memory) technology - **Founded**: Spun off from Freescale in 2008, went public in 2016 - **Key Milestones**: - Partnership with GlobalFoundries in 2014 to scale MRAM densities from less than 32 megabits to 1 gigabit using STT MRAM technology - Commercialization of DDR-like interface with 1 gigabit density, shipping to IBM since 2018 - Recent commercialization of XPi parts with densities from 4 megabit to 256 megabit, gaining traction in low Earth orbit satellite, FPGA, and aerospace markets [5][6][17] Product Portfolio - **MRAM Technologies**: - **Toggle MRAM**: Limited to 32 megabit, used in applications requiring fast data logging - **Spin Transfer Torque (STT) MRAM**: Scalable up to 1 gigabit, preferred for applications needing high density and low power consumption - **Applications**: - Industrial automation (e.g., Siemens, Mitsubishi) for real-time data logging - Casino gaming for rapid event recording - Aerospace and defense for low Earth orbit satellites due to radiation immunity and fast write speeds [12][14][15][20] Manufacturing and Partnerships - **Manufacturing Facilities**: - Owns an eight-inch factory in Chandler, Arizona for Toggle MRAM - Partners with GlobalFoundries for STT MRAM manufacturing on 12-inch wafers - **Government Interest**: U.S. government is interested in Everspin for national security applications, particularly in establishing a domestic 300mm MRAM production line [16][36][38] Market Opportunities - **Low Earth Orbit Satellites**: - Estimated 70,000 satellites to be launched in the next five years, with each satellite potentially using 4 to 10 MRAM units - Average Selling Price (ASP) of $50-$100 per unit, indicating significant revenue potential [27][28] - **Data Center Applications**: - Current focus on IBM for cache memory, with plans to develop socket-compatible products for broader market adoption [21][31] Competitive Landscape - **Competitors**: - Competes with NOR Flash, non-volatile SRAM, battery-backed SRAM, and ferroelectric RAM (FRAM) - Everspin does not compete in the embedded MRAM market, as it focuses on standalone MRAM [29][30] - **Market Size**: - Data logging market estimated at $700 million, while the NOR Flash market is $3-$4 billion [30] Licensing and Royalties - **IP Portfolio**: Over 650 patents developed with an investment of over $100 million - **Revenue from Licensing**: Targeting 10%-15% of revenue from licensing, which tends to be lumpy but high margin [22][23] Conclusion - Everspin Technologies is well-positioned in the MRAM market with a strong focus on innovation, manufacturing capabilities, and strategic partnerships. The company is targeting significant growth opportunities in aerospace, defense, and data center applications while maintaining a robust IP portfolio to support its licensing business [43][44]

Core Viewpoint - Everspin Technologies, Inc. (MRAM) is positioned as a promising investment in the future of memory technologies, demonstrating strong growth metrics and an attractive valuation supported by a solid balance sheet [1]. Group 1: Company Performance - Everspin is showing convincing growth metrics, indicating a positive trajectory in its business performance [1]. - The company is trading at an attractive valuation, suggesting potential for future appreciation [1]. - A strong balance sheet underpins the company's financial stability, enhancing its investment appeal [1].

Core Insights - Everspin Technologies, Inc. has introduced new high-reliability MRAM products, the EM064LX HR and EM128LX HR, enhancing its PERSYST MRAM product line [1] Product Development - The new xSPI MRAM devices are specifically designed for extreme operating environments, showcasing the industry's leading combination of endurance, temperature performance, and data retention [1]