Core Insights - Quintauris and Everspin Technologies have announced a strategic collaboration to enhance memory solutions within the Quintauris ecosystem [1] - The partnership focuses on improving the reliability and safety of RISC-V-based platforms, particularly in automotive and industrial applications [1] Company Overview - Quintauris is positioned as a single source for compatible RISC-V-based products [1] - Everspin Technologies is recognized as the global leader in magnetoresistive RAM (MRAM) and spin-transfer torque MRAM (STT-MRAM) [1] Industry Impact - The collaboration aims to address the growing demand for advanced memory solutions in the automotive and industrial sectors [1] - Strengthening the reliability and safety of RISC-V platforms is crucial for their adoption in critical applications [1]

Core Viewpoint - Everspin Technologies has reported its first year-over-year increase in quarterly revenue, indicating a return to growth for the company [1]. Company Summary - Everspin Technologies is recognized as the leading provider of magnetoresistive RAM (MRAM) [1]. - The company has taken measures to boost its stock performance, which includes the recent positive revenue report [1].

Everspin Technologies Q3 Investor Summit Summary Company Overview - Everspin Technologies is a leading provider of embedded technology and products for mission-critical applications, focusing on end-to-end supply from design to manufacturing [2][3] - The company has been in production for over 15 years, having shipped over 115 million units to more than 2,000 customers globally [3] Core Business and Technology - Everspin specializes in MRAM (Magnetoresistive Random Access Memory), which is radiation immune and used in various applications including data centers, industrial automation, IoT, automotive, and aerospace [3][4] - The company holds over 650 patents and has a strong financial position with zero debt and positive free cash flow [4][5] Market Opportunity - The total addressable market (TAM) for Everspin's products is projected to exceed $4.3 billion by 2029, with significant growth in sectors such as automotive, industrial automation, and aerospace [5][10] - Everspin aims to capture a revenue of $100 million by 2029, up from approximately $55 to $60 million currently [11][25] Product Categories 1. **Persist**: Designed for applications requiring fast read/write speeds and extreme temperature resilience, used in industrial automation and casino gaming [6][7] 2. **Genesis**: Aimed at replacing NOR flash memory, with production expected to start in 2026, targeting a $3.5 billion market [8][10] 3. **AgILYST**: Focused on AI applications with SRAM-like performance, expected to enter production in a few years [9][10] Key Applications - Automotive: Used in battery management systems and real-time monitoring for vehicles [12][13] - Aerospace: Designed into NASA missions and various flight control systems [15][18] - Industrial Automation: Enhances reliability and efficiency in manufacturing processes [14][20] Financial Performance - Everspin reported revenue of $26 million in the first half of 2025, with expectations to maintain a strong revenue range of $50+ million [25][26] - The company has consistently achieved gross margins in the upper 40% to 50% range [26] Business Model - Approximately 85% to 90% of Everspin's revenue comes from product sales, distributed evenly across Asia, Europe, and North America [30] - The company focuses on sectors such as industrial, gaming, medical, avionics, and data centers [31] Milestones and Future Outlook - Everspin has developed a range of memory technologies since its inception, with significant milestones including the introduction of data logging memory in 2006 and data center memory in 2017/2018 [32][34] - The company aims to revolutionize the memory market with its MRAM technology, addressing various memory needs across different applications [34] Conclusion - Everspin Technologies is positioned for growth in the MRAM market, with a strong product pipeline and a focus on mission-critical applications across multiple industries [38]

Everspin Fireside Chat Summary Company Overview - **Company Name**: Everspin Technologies - **Ticker Symbol**: MRAM - **Industry**: Semiconductor Manufacturing, specifically focusing on magnetic-based memory solutions [1][4] Core Points and Arguments - **Technology and Product Offerings**: - Everspin specializes in MRAM (Magnetoresistive Random Access Memory), which offers faster read and write speeds compared to traditional NOR flash memory, with read/write times in nanoseconds versus microseconds [6][7] - The company has shipped over 200 million units since its inception in 2008, serving over 2,000 customers globally [5] - Product categories include: - **Persist**: Performance memories for systems, suitable for extreme temperatures [12][13] - **UNESYS**: Unified data and code for systems, enhancing FPGA configurations [14] - **Agilus**: Agile memories targeting future applications like AI [12][13] - **Market Applications**: - Key applications include industrial automation, automotive (battery management systems), casino gaming, and aerospace/defense [9][25][26] - Everspin's MRAM is positioned as a solution for mission-critical applications, particularly in environments where data integrity is essential [18][52] - **Business Model**: - Revenue streams include product sales, licensing and royalty agreements, and government contracts [17][20] - The company has a diversified customer base, including major corporations like Siemens, IBM, and Schneider [23][54] Growth Opportunities - Everspin anticipates growth in sectors where traditional NOR flash memory is limited, particularly in high-density applications [26][52] - The total addressable market (TAM) for Everspin's products is projected to be approximately $4.3 billion by 2029 [52] - The company is focusing on expanding its product offerings to include higher density MRAM solutions, targeting densities from 256 megabits to 2 gigabits [28][52] Competitive Landscape - Everspin's primary competitor is NetSol, which offers a limited range of MRAM products [30][31] - Everspin differentiates itself with a broader product range and a focus on various applications, including aerospace and defense [32] Market Trends - The memory industry is shifting away from NOR flash due to scaling limitations, creating opportunities for MRAM [33] - The low earth orbital (LEO) market is emerging, with a projected increase in satellite deployments, where Everspin's radiation-tolerant MRAM can be advantageous [34] - The rise of AI applications in data centers presents further opportunities for MRAM, as it can replace traditional SRAM and NOR flash with faster, non-volatile memory solutions [36][38] Financial Performance - Everspin reported a solid financial quarter, exceeding guidance with revenues of $13.2 million and a non-GAAP EPS of $0.03 [45][46] - The company is seeing a recovery in order growth after a period of inventory overbuild [46][47] Strategic Vision - The CEO envisions MRAM as the future of memory technology, emphasizing its versatility and reliability across various applications [55][56] - Everspin aims to reduce power consumption and improve efficiency in memory solutions, particularly in the context of increasing demands from AI applications [56][57]

Financial Data and Key Metrics Changes - The company reported revenue of $13.2 million for Q2 2025, which is at the high end of the guidance range of $12.5 million to $13.5 million [6][13] - Non-GAAP earnings per share were $0.03, a significant improvement from a non-GAAP net loss of $0.03 per share in Q2 2024 [16] - GAAP gross margin was 51.3%, slightly down from 51.4% in Q1 2025 but up from 49% in Q2 2024 [14] - Cash and cash equivalents increased to $45 million, up $2.8 million from the previous quarter [17] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT MRAM revenue, were $11.1 million, compared to $9.9 million in Q2 2024 and $11 million in Q1 2025 [13] - Licensing, royalty, patent, and other revenue increased to $2.1 million, up from $0.7 million in Q2 2024, driven by the ramp in the contract with Purdue [14] Market Data and Key Metrics Changes - The data center business experienced high single-digit sequential growth, driven by strong demand from customers like Dell and Supermicro [6] - Industrial automation saw sequential growth in excess of 20% from Q1 2025, indicating strong momentum in this segment [6] - The company noted a depletion of inventories at customers globally, particularly in the Asian region, which is expected to lead to increased orders [30] Company Strategy and Development Direction - The company is focused on expanding its executive team to enhance sales efforts, with the addition of a dedicated VP of Sales [12] - Everspin aims to ramp up production of new products in the XPy family by late 2025, targeting aerospace, defense, and extreme industrial environments [8] - The company continues to expect 2025 to be weighted more heavily towards the second half of the year due to typical seasonality [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for MRAM technology and the successful execution of their business plan [2] - The company does not expect a material impact from tariffs on its results in the coming quarters [17] - Management anticipates total revenue for Q3 2025 to be in the range of $13.5 million to $14.5 million, with non-GAAP net income per share expected between $0.02 and $0.07 [18] Other Important Information - The company recognized $800,000 in other income related to a strategic award for developing a long-term plan for manufacturing services in aerospace and defense [15] - Everspin continues to ship and recognize revenue from its ongoing project with Lucid Motors for their gravity SUV, expecting volumes to increase as production ramps up [8] Q&A Session Summary Question: Inquiry about product gross margins - Management acknowledged that product gross margins are slightly lower than previous quarters but are working on improving yields and margins [20][22] Question: Expectations for new product contributions - Management indicated that new products are ramping up, particularly in the aerospace segment, and expect to see contributions in Q3 and Q4 [25][28] Question: Dynamics in broader industrial markets - Management noted a depletion of inventories at customers globally, particularly in Asia, leading to increased orders in automation and data center applications [30] Question: Update on specific contracts - Management confirmed a pickup in activity related to the Amentum contract expected in the second half of the year [32][34] Question: Status of QuickLogic relationship - Management stated that they completed the first phase of the QuickLogic project and are awaiting renewal for the next phase [41][42] Question: Progress with Lattice Semiconductor - Management reported ongoing evaluation activities with Lattice Semiconductor, with parts available for customer evaluation [45]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) Delaware 26-2640654 (S ...

[Introduction and Company Overview](index=1&type=section&id=Introduction%20and%20Company%20Overview) Everspin's leadership highlighted strong financial performance and strategic expansion, reinforcing its global leadership in MRAM technology [Executive Commentary and Strategic Expansion](index=1&type=section&id=Executive%20Commentary%20and%20Strategic%20Expansion) Everspin's CEO highlighted consistent financial performance, product portfolio strength, and ramping design wins. The company expanded its executive team with a dedicated VP of Sales and VP of Business Development to accelerate revenue monetization and strategic expansion. The CFO noted Q2 results met high expectations, driven by product strength and prudent expense management, with no material tariff impact anticipated - CEO Sanjeev Aggarwal noted consistent financial performance, product portfolio strength, and ramping design wins[2](index=2&type=chunk) - Everspin expanded its executive team with a dedicated VP of Sales and VP of Business Development to accelerate direct revenue monetization and strategic expansion[2](index=2&type=chunk) - CFO Bill Cooper stated Q2 results were at the high end of expectations, driven by product strength and prudent expense management, with no tariff-related impact on Q2 results or anticipated material impact on future results[4](index=4&type=chunk) [About Everspin Technologies](index=3&type=section&id=About%20Everspin%20Technologies) Everspin Technologies, Inc. is the global leader in magnetoresistive RAM (MRAM), providing robust, high-performance non-volatile memory solutions for critical applications in industrial IoT, data centers, and other mission-critical sectors - Everspin Technologies, Inc. is the world's leading provider of magnetoresistive RAM (MRAM)[13](index=13&type=chunk) - Everspin MRAM offers robust, high-performance non-volatile memory for industrial IoT, data centers, and other mission-critical applications requiring data persistence[13](index=13&type=chunk) - The company is headquartered in Chandler, Arizona, and provides commercially available MRAM solutions to a diverse customer base[13](index=13&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Everspin reported strong Q2 2025 financial performance with significant revenue growth, improved gross margin, and a narrowed GAAP net loss, alongside positive non-GAAP net income [Q2 2025 Key Financial Highlights](index=1&type=section&id=Q2%202025%20Key%20Financial%20Highlights) Everspin reported strong financial performance for Q2 2025, with total revenue increasing by 24.5% year-over-year to $13.2 million. MRAM product sales grew by 12.1%, and licensing revenue saw a significant increase of 190.7%. Gross margin improved to 51.3%, and the GAAP net loss significantly narrowed to $(0.7) million, while non-GAAP net income turned positive at $0.7 million | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :---------------------------------- | :------------------ | :------------------ | :--------- | | Total revenue | $13.2 | $10.6 | +24.5% | | MRAM product sales | $11.1 | $9.9 | +12.1% | | Licensing, royalty, patent, and other revenue | $2.1 | $0.7 | +190.7% | | Gross margin | 51.3% | 49.0% | +2.3 ppts | | GAAP operating expenses | $8.7 | $8.0 | +8.8% | | Interest and Other income, net | $1.3 | $0.4 | +225.0% | | GAAP net loss | $(0.7) | $(2.5) | +72.0% | | GAAP net loss per diluted share | $(0.03) | $(0.12) | +75.0% | | Non-GAAP net income | $0.7 | $(0.6) | N/A (from loss to income) | | Non-GAAP net income per diluted share | $0.03 | $(0.03) | N/A (from loss to income) | | Cash and cash equivalents (as of June 30, 2025) | $45.0 | N/A | +$2.9M from Dec 31, 2024 | [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements detail Everspin's balance sheet, income statement, and cash flow performance, showing increased assets, narrowed net loss, and strong operating cash flow [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, Everspin's total assets increased slightly to $78.9 million from $77.8 million at December 31, 2024, primarily driven by an increase in cash and cash equivalents. Total liabilities decreased, while total stockholders' equity grew to $64.1 million | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $44,962 | $42,097 | +$2,865 | | Accounts receivable, net | $7,370 | $11,722 | -$4,352 | | Inventory | $11,306 | $9,110 | +$2,196 | | Total current assets | $64,753 | $64,201 | +$552 | | Total assets | $78,922 | $77,789 | +$1,133 | | Total current liabilities | $11,028 | $9,914 | +$1,114 | | Total liabilities | $14,847 | $15,196 | -$349 | | Total stockholders' equity | $64,075 | $62,593 | +$1,482 | [Condensed Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended June 30, 2025, Everspin reported a significant reduction in net loss to $(0.7) million from $(2.5) million in the prior year, driven by a 24.1% increase in total revenue and improved gross profit. Year-to-date, the net loss also narrowed, reflecting stronger revenue and gross profit performance | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product sales | $11,091 | $9,887 | $22,117 | $20,747 | | Licensing, royalty, patent, and other revenue | $2,110 | $749 | $4,222 | $4,319 | | Total revenue | $13,201 | $10,636 | $26,339 | $25,066 | | Total cost of sales | $6,433 | $5,420 | $12,818 | $11,690 | | Gross profit | $6,768 | $5,216 | $13,521 | $13,376 | | Total operating expenses | $8,729 | $8,035 | $17,414 | $16,795 | | Loss from operations | $(1,961) | $(2,819) | $(3,893) | $(3,419) | | Interest income | $423 | $423 | $831 | $862 | | Other income (expense), net | $842 | $(30) | $1,230 | $(71) | | Net loss before income taxes | $(696) | $(2,426) | $(1,832) | $(2,628) | | Net loss and comprehensive loss | $(670) | $(2,502) | $(1,836) | $(2,704) | | Net loss per common share (Diluted) | $(0.03) | $(0.12) | $(0.08) | $(0.13) | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Everspin generated $6.5 million in net cash from operating activities, a significant increase from $0.4 million in the prior year. This was partially offset by increased cash used in investing activities, primarily for purchases of property, equipment, and intangible assets. Overall, cash and cash equivalents increased by $2.9 million during the period | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | Net loss | $(1,836) | $(2,704) | | Depreciation and amortization | $1,695 | $795 | | Stock-based compensation | $2,996 | $3,576 | | Changes in Accounts receivable | $4,352 | $1,440 | | Changes in Inventory | $(2,196) | $404 | | Net cash provided by operating activities | $6,455 | $428 | | Purchases of property and equipment | $(2,901) | $(1,239) | | Purchases of intangible assets | $(977) | $0 | | Net cash used in investing activities | $(3,878) | $(1,239) | | Net cash provided by financing activities | $288 | $629 | | Net increase (decrease) in cash and cash equivalents | $2,865 | $(182) | | Cash and cash equivalents at end of period | $44,962 | $36,764 | [Supplemental Financial Data and Non-GAAP Reconciliation](index=8&type=section&id=Supplemental%20Financial%20Data%20and%20Non-GAAP%20Reconciliation) This section provides supplemental quarterly financial results and reconciliations from GAAP to Non-GAAP measures, highlighting adjustments for stock-based compensation [Supplemental Quarterly Financial Results](index=8&type=section&id=Supplemental%20Quarterly%20Financial%20Results) Everspin's supplemental results show strong year-over-year growth in Q2 2025, with GAAP revenue up 24% and gross profit up 30%. GAAP net loss improved by 73%, and diluted EPS improved by 75%. On a non-GAAP basis, net income turned positive at $0.7 million, a 217% increase from a loss in Q2 2024, with diluted EPS at $0.03 **GAAP Financial Results (Three Months Ended June 30):** | Metric | 2025 | 2024 | Y/Y Change | Q1 2025 | Q/Q Change | | :--------------------- | :------- | :------- | :--------- | :-------- | :--------- | | Revenue | $13,201 | $10,636 | 24 % | $13,138 | — % | | Gross Profit | $6,768 | $5,216 | 30 % | $6,753 | — % | | Gross Margin | 51.3 % | 49.0 % | Up 2.3 ppts | 51.4 % | Down 0.1 ppts | | Operating Expenses | $8,729 | $8,035 | 9 % | $8,685 | 1 % | | Operating Income (Loss) | $(1,961) | $(2,819) | 30 % | $(1,932) | (2)% | | Operating Margin | (14.9)% | (26.5)% | Up 11.6 ppts | (14.7)% | Down 0.2 ppts | | Net Income (Loss) | $(670) | $(2,502) | 73 % | $(1,166) | 43 % | | Diluted Earnings Per Share | $(0.03) | $(0.12) | 75 % | $(0.05) | 40 % | **Non-GAAP Financial Results (Three Months Ended June 30):** | Metric | 2025 | 2024 | Y/Y Change | Q1 2025 | Q/Q Change | | :--------------------- | :------- | :------- | :--------- | :-------- | :--------- | | Revenue | $13,201 | $10,636 | 24 % | $13,138 | — % | | Gross Profit | $6,929 | $5,216 | 33 % | $6,939 | — % | | Gross Margin | 52.5 % | 49.0 % | Up 3.5 ppts | 52.8 % | Down 0.3 ppts | | Operating Expenses | $7,471 | $6,173 | 21 % | $7,294 | 2 % | | Operating Income (Loss) | $(542) | $(957) | 43 % | $(355) | (53)% | | Operating Margin | (4.1)% | (9.0)% | Up 4.9 ppts | (2.7)% | Down 1.4 ppts | | Net Income (Loss) | $749 | $(640) | 217 % | $411 | 82 % | | Diluted Earnings Per Share | $0.03 | $(0.03) | 200 % | $0.02 | 50 % | [Supplemental Reconciliations of GAAP to Non-GAAP Measures](index=9&type=section&id=Supplemental%20Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) Everspin provides reconciliations from GAAP to Non-GAAP financial measures, primarily by adjusting for stock-based compensation. For Q2 2025, stock-based compensation adjustments increased gross profit by $0.16 million, reduced operating expenses by $1.26 million, and improved net income by $1.42 million, leading to a positive Non-GAAP net income of $0.75 million **Reconciliation of GAAP to Non-GAAP Gross Profit (Three Months Ended):** | Metric (in thousands) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------- | :------------ | :------------ | :------------- | | GAAP Gross Profit | $6,768 | $5,216 | $6,753 | | Stock-Based Compensation, COGS | $161 | $0 | $186 | | Non-GAAP Gross Profit | $6,929 | $5,216 | $6,939 | **Reconciliation of GAAP to Non-GAAP Operating Expenses (Three Months Ended):** | Metric (in thousands) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------- | :------------ | :------------ | :------------- | | GAAP Operating Expenses | $8,729 | $8,035 | $8,685 | | Stock-Based Compensation, R&D | $(437) | $(689) | $(497) | | Stock-Based Compensation, SG&A | $(821) | $(1,173) | $(894) | | Non-GAAP Operating Expenses | $7,471 | $6,173 | $7,294 | **Reconciliation of GAAP to Non-GAAP Operating Income (Loss) (Three Months Ended):** | Metric (in thousands) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------- | :------------ | :------------ | :------------- | | GAAP Operating Income (Loss) | $(1,961) | $(2,819) | $(1,932) | | Stock-Based Compensation | $1,419 | $1,862 | $1,577 | | Non-GAAP Operating Income (Loss) | $(542) | $(957) | $(355) | **Reconciliation of GAAP to Non-GAAP Net Income (Loss) (Three Months Ended):** | Metric (in thousands, except per share) | June 30, 2025 | June 30, 2024 | March 31, 2025 | | :-------------------------------------- | :------------ | :------------ | :------------- | | GAAP Net Income (Loss) | $(670) | $(2,502) | $(1,166) | | Stock-Based Compensation | $1,419 | $1,862 | $1,577 | | Non-GAAP Net Income (Loss) | $749 | $(640) | $411 | | Non-GAAP Earnings Per Share | $0.03 | $(0.03) | $0.02 | [Business Outlook and Forward-Looking Statements](index=1&type=section&id=Business%20Outlook%20and%20Forward-Looking%20Statements) Everspin provides its Q3 2025 business outlook, including revenue and EPS guidance, alongside a cautionary statement on forward-looking information and associated risks [Third Quarter 2025 Business Outlook](index=1&type=section&id=Third%20Quarter%202025%20Business%20Outlook) For the third quarter of 2025, Everspin anticipates total revenue to be between $13.5 million and $14.5 million. GAAP net (loss) / income per diluted share is projected to range from $(0.05) to $0.00, while non-GAAP net income per diluted share is expected to be between $0.02 and $0.07 **Third Quarter 2025 Business Outlook:** | Metric | Range | | :-------------------------------- | :-------------------- | | Total revenue | $13.5 million to $14.5 million | | GAAP net (loss) / income per diluted share | $(0.05) to $0.00 | | Non-GAAP net income per diluted share | $0.02 to $0.07 | - A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to uncertainty regarding future expenses like stock-based compensation[6](index=6&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements, including the business outlook, involve risks and uncertainties that could cause actual results to differ materially. It advises investors to review risk factors detailed in Everspin's SEC filings and notes that the company disclaims any obligation to update these statements - Forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from expectations[14](index=14&type=chunk) - Actual results could differ due to risks outlined in Everspin's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC[14](index=14&type=chunk) - Everspin disclaims any obligation to update or alter these forward-looking statements in the future, except as required by law[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Everspin uses Non-GAAP financial measures, such as gross profit, operating expenses, and net income, which exclude stock-based compensation charges, to provide additional insight into its operating performance. Management and the board use these measures for evaluation, budgeting, and planning, believing they offer useful information for investors, though they should not be considered a substitute for GAAP measures - Everspin supplements GAAP reporting with Non-GAAP financial measures, primarily by excluding stock-based compensation charges[9](index=9&type=chunk) - Management and the board use these Non-GAAP measures to understand operating performance, trends, and for budgeting and planning purposes[10](index=10&type=chunk) - These Non-GAAP measures are provided for investors to understand operating results in the same manner as management, but should not be considered superior to or a substitute for GAAP measures, and may differ from those used by other companies[10](index=10&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides details for the Q2 2025 conference call and contact information for investor relations inquiries [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Everspin hosted a conference call on Wednesday, August 6, 2025, at 5:00 p.m. Eastern Time to discuss its second quarter 2025 results. Dial-in details were provided via a link, and a live webcast was accessible on the investor relations section of Everspin's website, with an archived webcast available for twelve months - Everspin hosted a conference call on Wednesday, **August 6, 2025**, at **5:00 p.m. Eastern Time** to discuss Q2 2025 results[11](index=11&type=chunk) - Dial-in details were provided via a link, and a live webcast was accessible on investor.everspin.com[11](index=11&type=chunk)[12](index=12&type=chunk) - An archived webcast of the conference call will be available on the Investor Relations section of Everspin's website for **twelve months**[12](index=12&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) For investor relations inquiries, Monica Gould of The Blueshirt Group can be contacted via phone at 212-871-3927 or email at ir@everspin.com - Investor Relations contact: Monica Gould, The Blueshirt Group, T: **212-871-3927**, ir@everspin.com[15](index=15&type=chunk)

Company Overview & Technology - Everspin is a leading provider of MRAM technology and products for mission-critical applications[6] - The company has shipped over 150 million MRAM units[7] - MRAM combines the performance of memory with the persistence of storage[19] - MRAM is suitable for harsh environments due to its radiation and temperature resistance[37] Market Opportunity & Products - The total addressable market (TAM) for MRAM is projected to exceed $4.3 billion by 2029[10] - In 2024, PERSYST products serve a market of $1.1 billion[21] - UNISYST products address NOR Flash and Embedded Compute markets[22] - Everspin offers a range of MRAM products including Toggle-MRAM, STT-xSPI, and STT-DDRx[15] Financial Performance - In FY24, Everspin's revenue was $56.5 million[59] - Everspin's gross margin in FY24 was 51.8%[59] - Everspin's free cash flow in FY24 was $4.0 million[59]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $13.1 million, exceeding the guidance range of $12 million to $13 million, driven by stronger than expected product revenue [5][14] - Non-GAAP EPS for the first quarter was $0.02, above the guidance range of a non-GAAP net loss of $0.05 to breakeven [16] - GAAP gross margin was 51.4%, slightly up from 51.3% in the previous quarter but down from 56.5% in Q1 2024 [15] - Non-GAAP net income was $400,000, compared to $1.5 million in Q1 2024 [16] Business Line Data and Key Metrics Changes - MRAM product sales in Q1 were $11 million, consistent with Q4 2024 and slightly up from $10.9 million in Q1 2024 [14][15] - Licensing, royalty, patent, and other revenue decreased to $2.1 million from $3.6 million in Q1 2024, attributed to lower revenue from the Front Grade project [15] Market Data and Key Metrics Changes - The company continues to see strong engagement in the automotive sector, with MRAM technology being utilized by five companies for data capture [6] - The company attended Embedded World in Germany, marking its largest presence since 2017, indicating strong interest in its products [10] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue, with expectations for a stronger second half of 2025 due to typical seasonality [18][19] - New products announced include the Persist EM064LX HR and EM128LX HR, designed for automotive applications, with engineering samples available in June 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half, reflecting typical seasonality and no significant impact from tariffs [14][18] - There are signs of cyclical recovery in the industrial segment, with improvements in backlog and traction on STT products [30][42] Other Important Information - The company maintains a strong balance sheet with cash and cash equivalents of $42.2 million, up from $42.1 million in the previous quarter [17] - The company is involved in projects with the Department of Defense and other strategic partners, indicating a focus on high-reliability applications [9][13] Q&A Session Summary Question: Impact of tariffs on products going to China - Management indicated that direct sales to China are not significant, and tariffs would primarily affect the importer, not the company directly [22][24][26] Question: Signs of cyclical recovery in industrial business - Management confirmed improvements in backlog and traction on STT products, indicating a positive trend in the industrial segment [30][32][42] Question: Commentary on second quarter guidance and revenue split - Management expects overall revenue to increase, but did not provide specific guidance on the split between product and licensing revenue [32][34] Question: Dynamics of gross margins - Management stated that gross margins are expected to remain consistent around 51% for the rest of the year [38] Question: Expectations for operating expenses - Management anticipates operating expenses to remain in the same range throughout the year, with some increases due to product development work [48]

Revenue Performance - Total revenue decreased by $1.3 million, or 9.0%, from $14.4 million in Q1 2024 to $13.1 million in Q1 2025, primarily due to a decrease in licensing, royalty, patent, and other revenue of $1.5 million[83] - Product sales accounted for $11.0 million, or 84% of total revenue in Q1 2025, compared to $10.9 million, or 75% in Q1 2024[79] - Licensing, royalty, patent, and other revenue decreased by $1.5 million, or 40.8%, from $3.6 million in Q1 2024 to $2.1 million in Q1 2025[83] - The company generated 60% and 71% of its revenue from products sold to distributors in Q1 2025 and Q1 2024, respectively[80] Profitability - Gross margin decreased from 56.5% in Q1 2024 to 51.4% in Q1 2025, attributed to a shift in product mix and decreased FAB loadings[86] - Adjusted net income for Q1 2025 was $411,000, compared to $1.5 million in Q1 2024, reflecting a significant decline[77] Expenses - Research and development expenses remained consistent at $3.4 million in both Q1 2025 and Q1 2024, representing 26% and 24% of revenue respectively[88] - General and administrative expenses decreased by $0.2 million, or 4.9%, from $4.0 million in Q1 2024 to $3.8 million in Q1 2025[91] - Sales and marketing expenses increased by $0.2 million, or 14.2%, from $1.3 million in Q1 2024 to $1.5 million in Q1 2025[92] Cash Flow - Cash provided by operating activities was $1.4 million in Q1 2025, compared to cash used of $1.3 million in Q1 2024, reflecting a turnaround in operational cash flow[97] - Non-cash charges in Q1 2025 included stock-based compensation of $1.6 million and depreciation and amortization of $0.8 million, contributing to the positive cash flow from operations despite a net loss of $1.2 million[98] - Cash used in investing activities was $1.4 million in Q1 2025, primarily for $0.9 million in manufacturing equipment and $0.5 million in intangible assets, compared to $1.2 million in Q1 2024 for manufacturing equipment purchases[100] - Cash provided by financing activities was $0.01 million in Q1 2025, a decrease from $0.4 million in Q1 2024, reflecting lower proceeds from employee stock options[101] Liquidity and Capital Requirements - As of March 31, 2025, the company had $42.2 million in cash and cash equivalents, a slight increase from $42.1 million as of December 31, 2024, indicating sufficient liquidity for anticipated capital requirements over the next 12 months[95] - The company anticipates future capital requirements will depend on growth rate, research and development spending, and new product introductions[96] Changes in Assets and Liabilities - Changes in net operating assets and liabilities in Q1 2025 included a $1.1 million increase in accounts payable and deferred revenue, offset by a $1.9 million increase in inventory[98] Accounting and Market Risk - The company has not made any changes to critical accounting policies that would materially impact financial statements since the last annual report[104] - There were no significant market risk disclosures required for the company as a smaller reporting entity[105] Other Income - Other income increased by $0.4 million, or 1,046.3%, from a net expense of $0.04 million in Q1 2024 to a net income of $0.4 million in Q1 2025, primarily due to a strategic award for aerospace and defense manufacturing services[94] - Interest income remained consistent at $0.4 million during Q1 2025 and Q1 2024[93]