Revenue Growth - Total revenue increased by $2.6 million, or 24.1%, from $10.6 million during the three months ended June 30, 2024, to $13.2 million during the same period in 2025[85] - Product sales rose by $1.2 million, or 12.2%, from $9.9 million in Q2 2024 to $11.1 million in Q2 2025[83] - Licensing, royalty, patent, and other revenue surged by $1.4 million, or 181.7%, from $0.7 million in Q2 2024 to $2.1 million in Q2 2025[86] - Total revenue increased by $1.3 million, or 5.1%, from $25.1 million in the first half of 2024 to $26.3 million in the first half of 2025, driven by a $1.4 million increase in product sales[99] - Product sales revenue rose by $1.4 million, or 6.6%, from $20.7 million in H1 2024 to $22.1 million in H1 2025[100] Cost and Expenses - Total cost of sales increased by $1.0 million, or 18.7%, from $5.4 million in Q2 2024 to $6.4 million in Q2 2025[87] - Research and development expenses increased by $0.1 million, or 3.6%, from $3.5 million in Q2 2024 to $3.6 million in Q2 2025, focusing on the development of new STT-MRAM products[91] - General and administrative expenses rose by $0.4 million, or 11.9%, from $3.3 million in Q2 2024 to $3.6 million in Q2 2025, primarily due to one-time professional services[94] - Sales and marketing expenses increased by $0.2 million, or 13.8%, from $1.3 million in Q2 2024 to $1.5 million in Q2 2025[95] - Research and development expenses increased by $0.1 million, or 0.9%, from $6.9 million in H1 2024 to $6.9 million in H1 2025, focusing on new STT-MRAM products[106] - General and administrative expenses rose by $0.2 million, or 2.6%, from $7.3 million in H1 2024 to $7.5 million in H1 2025, mainly due to one-time professional services[109] Profitability and Loss - The net loss for Q2 2025 was $670,000, compared to a net loss of $2.5 million in Q2 2024, reflecting a significant improvement[81] - Gross margin improved from 49.0% in Q2 2024 to 51.3% in Q2 2025, attributed to a favorable product mix and increased licensing revenue[89] - Gross margin decreased from 53.4% in H1 2024 to 51.3% in H1 2025, attributed to lower FAB loadings and decreased other revenue[104] Cash Flow and Liquidity - Cash provided by operating activities was $6.5 million in H1 2025, compared to $0.4 million in H1 2024, despite a net loss of $1.8 million[116] - As of June 30, 2025, cash and cash equivalents were $45.0 million, up from $42.1 million at the end of 2024, indicating sufficient liquidity for anticipated capital requirements[114] - Cash used in investing activities during the six months ended June 30, 2025, was $3.9 million, primarily due to $2.9 million in purchases of manufacturing equipment and $1.0 million in purchases of intangible assets[118] - Cash provided by financing activities during the six months ended June 30, 2024, was $0.6 million, consisting of proceeds from the exercise of employee stock options and purchase of shares under the employee stock purchase plan[120] - Cash used in investing activities during the six months ended June 30, 2024, was $1.2 million, reflecting purchases of manufacturing equipment[118] - Cash provided by financing activities during the six months ended June 30, 2025, was $0.3 million, primarily from proceeds of employee stock options and employee stock purchase plan[119] Other Income - Other income increased by $0.9 million, or 2906.7%, from a $30,000 expense in Q2 2024 to $842,000 in Q2 2025, primarily due to a strategic award for aerospace and defense manufacturing services[96] - Other income (expense), net increased by $1.3 million, or 1,832.4%, from a $71,000 expense in H1 2024 to $1.2 million in H1 2025, primarily from a strategic award for manufacturing services[112] Accounting Policies - The company has not made any changes to critical accounting policies and estimates that have materially impacted the condensed financial statements[123] - The preparation of condensed financial statements requires estimates and assumptions that affect reported amounts of assets and liabilities[121] - Actual results may differ from estimates under different assumptions or conditions[122] - The company is classified as a smaller reporting company, thus not required to disclose quantitative and qualitative disclosures about market risk[124] Operational Efficiency - Operating expenses as a percentage of revenue decreased from 76% in Q2 2024 to 66% in Q2 2025, indicating improved operational efficiency[90] - The company continues to focus on strategic partnerships and product development, including RAD-Hard products and AI technology applications, to drive future growth[86]

[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]

Financial Data and Key Metrics Changes - The company reported revenue of $13.1 million for Q1 2025, exceeding the guidance range of $12 million to $13 million, driven by stronger-than-expected product revenue [5][14] - Non-GAAP EPS 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 Q4 2024 but down from 56.5% in Q1 2024 due to a lower mix of high-margin licensing revenue [15][16] - The company ended the quarter with cash and cash equivalents of $42.2 million, a slight increase from $42.1 million in the previous quarter [17] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT MRAM revenue, 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 is experiencing increased interest in its products, as evidenced by strong customer engagement at the Embedded World event in Germany [10] - The company anticipates that product revenue from ongoing projects will remain consistent for the remainder of the year [6] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue while maintaining financial discipline [19] - Everspin is committed to advancing its MRAM technology, with ongoing projects in various sectors, including automotive and aerospace [6][13] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half of the year due to typical seasonality [14][18] - The company does not anticipate a direct material impact from tariffs on its results, as direct sales to China are not significant [22][24] Other Important Information - The company is entering the second phase of its project with Front Grade Technologies to develop a custom radiation-hardened STT MRAM macro [7] - Everspin has partnered with Blue Origin for a lunar mission and is involved in projects with AstroDigital for deep space missions [13] Q&A Session Summary Question: Impact of tariffs on products manufactured in the U.S. and shipped to China - The company indicated that while some wafers are sourced from GlobalFoundries, direct sales to China are not significant, thus minimizing tariff risk [22][24] Question: Signs of cyclical recovery in the industrial segment - Management noted an improvement in backlog and traction on STT products, indicating signs of cyclical recovery [30][40] Question: Guidance for second quarter revenue split between products and licensing - The company expects overall revenue to move upward but did not provide specific guidance on the split [33] Question: Commentary on gross margins and expectations for the rest of the year - Management stated that gross margins are expected to remain consistent at around 51% for the rest of the year [37] Question: Expectations for operating expenses throughout the year - Operating expenses are expected to remain in the same range, with some increases due to product development work [46]

Exhibit 99.1 Everspin Reports Unaudited First Quarter 2025 Financial Results Chandler, AZ, April 30, 2025 — Everspin Technologies, Inc. (NASDAQ: MRAM), the world's leading developer and manufacturer of magnetoresistive random access memory (MRAM) persistent memory solutions, announced preliminary unaudited financial results for the first quarter ended March 31, 2025. "Our recent design wins showcase the strength of our solutions for mission critical applications, as evidenced by our recent contract with Ast ...

PART I [Business](index=6&type=section&id=Item%201.%20Business) Everspin Technologies, a pioneer in MRAM, reported reduced revenue and net income in FY2024, operating a hybrid manufacturing model and serving a concentrated customer base Fiscal Year 2024 vs 2023 Financial Highlights | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $50.4 million | $63.8 million | | Gross Margin | 51.8% | 58.4% | | Net Income | $0.8 million | $9.1 million | - The company is a leading supplier of discrete MRAM components and also generates revenue through licensing its technology and intellectual property[17](index=17&type=chunk) - Everspin's product portfolio includes: - **Toggle MRAM:** In production since 2008, used in industrial, medical, automotive, and data center markets - **STT-MRAM:** Targets DRAM, SRAM, and NOR Flash replacement, with applications in SSDs, persistent memory, and FPGAs - **TMR Sensors:** 3D magnetic field sensors for consumer electronics[21](index=21&type=chunk)[22](index=22&type=chunk)[27](index=27&type=chunk) - The company utilizes a hybrid manufacturing strategy, performing back-end-of-line (BEOL) processing at its 200mm facility in Chandler, AZ, and partnering with GLOBALFOUNDRIES for full-flow 300mm STT-MRAM production[19](index=19&type=chunk)[39](index=39&type=chunk) - A significant portion of revenue comes from a concentrated customer base. In 2024, the two largest end customers accounted for **37% of total revenue**, with one customer representing more than 10%. In 2023, the two largest customers accounted for **32% of revenue**[36](index=36&type=chunk) - As of December 31, 2024, the company held **563 issued patents** and had **131 pending patent applications**[56](index=56&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the cyclical semiconductor industry, supply chain dependencies, intense competition, customer concentration, and cybersecurity threats - The business is subject to the highly cyclical nature of the semiconductor industry, which can lead to significant fluctuations in product demand, capacity, and pricing[65](index=65&type=chunk) - Everspin relies on third parties for manufacturing, packaging, and testing, particularly a single foundry, GLOBALFOUNDRIES, for higher-density products. This exposes the company to risks of capacity constraints, price fluctuations, and reduced control over production[69](index=69&type=chunk)[70](index=70&type=chunk) - The loss of one or several major customers could significantly harm financial results, as a large portion of revenue is derived from a small group of customers[88](index=88&type=chunk)[89](index=89&type=chunk) - The company's ability to use its net operating loss (NOL) carryforwards is limited. As of Dec 31, 2024, federal NOLs were approximately **$89.2 million**. A 2016 ownership change under IRC Section 382 is expected to cause **$43.8 million** of these federal NOLs to expire unutilized[133](index=133&type=chunk)[134](index=134&type=chunk) - Cybersecurity threats, including ransomware and data breaches, pose a significant risk to operations, intellectual property, and sensitive data, both within the company's systems and those of its third-party service providers[119](index=119&type=chunk)[121](index=121&type=chunk)[125](index=125&type=chunk) [Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[154](index=154&type=chunk) [Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Everspin implements a cybersecurity risk management program, overseen by its board and managed by a dedicated team, to identify, assess, and mitigate threats to its information systems - The company implements processes to identify, assess, and manage material risks from cybersecurity threats to its information systems and data[155](index=155&type=chunk) - A Cybersecurity Team, led by the Senior Director of IT and involving internal functions and external service providers, manages cybersecurity risks[156](index=156&type=chunk)[159](index=159&type=chunk) - The board of directors oversees the cybersecurity risk management process, receiving periodic reports from management on significant threats and mitigation efforts[162](index=162&type=chunk)[165](index=165&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) The company leases all its facilities, including headquarters and manufacturing in Arizona and a design facility in Texas, deemed adequate for operations - The company leases office and manufacturing space in Chandler, Arizona, and a design facility in Austin, Texas[166](index=166&type=chunk) - Lease terms for its main facilities extend to 2027, 2028, and 2029, with options to renew[167](index=167&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is not aware of any legal proceedings that would materially adversely affect its financial position or operations - The company is not aware of any legal matters that will have a material adverse effect on its financial condition[169](index=169&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=49&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Everspin's common stock trades on Nasdaq under 'MRAM'; the company has never paid dividends and plans to retain earnings for growth - The company's common stock trades on the Nasdaq Global Market under the symbol "MRAM"[172](index=172&type=chunk) - Everspin has never declared or paid cash dividends and does not currently plan to, intending to retain earnings for growth[174](index=174&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, revenue and net income declined significantly due to lower product sales and gross margin, resulting in an operating loss, despite an improved cash position Results of Operations (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total revenue | $50,402 | $63,765 | | Gross profit | $26,126 | $37,245 | | (Loss) income from operations | $(7,091) | $5,885 | | Net income | $781 | $9,052 | Revenue Breakdown (in thousands) | Revenue Type | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Product sales | $42,203 | $53,123 | $(10,920) | (20.6)% | | Licensing, royalty, etc. | $8,199 | $10,642 | $(2,443) | (23.0)% | | **Total revenue** | **$50,402** | **$63,765** | **$(13,363)** | **(21.0)%** | Adjusted EBITDA Reconciliation (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net income | $781 | $9,052 | | Depreciation and amortization | $1,731 | $1,205 | | Stock-based compensation | $6,713 | $5,005 | | Interest expense | $— | $63 | | Income tax benefit | $(40) | $(16) | | **Adjusted EBITDA** | **$9,185** | **$15,309** | - Gross margin decreased from **58.4% in 2023 to 51.8% in 2024**, attributed to a shift in product mix, decreased FAB loadings, and lower licensing revenue, partially offset by yield improvements[191](index=191&type=chunk) - Research and development expenses increased by **16.2% to $13.7 million in 2024**, mainly for the development of the new xSPI family of STT-MRAM products[193](index=193&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash provided by operating activities | $7,099 | $13,128 | | Cash used in investing activities | $(3,060) | $(1,385) | | Cash provided by (used in) financing activities | $1,112 | $(1,592) | [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required as Everspin is a smaller reporting company - Not required for a smaller reporting company[225](index=225&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited financial statements for 2024 and 2023, including the auditor's unqualified opinion and critical audit matters, along with detailed notes [Report of Independent Registered Public Accounting Firm](index=66&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the financial statements, highlighting critical audit matters related to inventory accounting and a strategic award - The auditor, Ernst & Young LLP, issued an unqualified (clean) opinion on the financial statements[231](index=231&type=chunk) - Critical Audit Matters identified were: - **Accounting for Inventory:** Challenging due to high transaction volume and multiple data sources, including third-party suppliers - **Accounting for the strategic award:** Challenging due to the complex and judgmental nature of evaluating its terms and applying accounting guidance by analogy[236](index=236&type=chunk)[238](index=238&type=chunk) [Financial Statements](index=68&type=section&id=Financial%20Statements) Financial statements show asset growth and increased cash in 2024, despite a significant decline in net income and revenue compared to 2023 Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $42,097 | $36,946 | | Total current assets | $64,201 | $57,879 | | Total assets | $77,789 | $67,303 | | Total current liabilities | $9,914 | $8,778 | | Total liabilities | $15,196 | $13,382 | | Total stockholders' equity | $62,593 | $53,921 | Income Statement Highlights (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total revenue | $50,402 | $63,765 | | Gross profit | $26,126 | $37,245 | | (Loss) income from operations | $(7,091) | $5,885 | | Net income | $781 | $9,052 | | Diluted EPS | $0.04 | $0.42 | [Notes to Financial Statements](index=72&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, a significant strategic award, debt repayment, and limitations on substantial NOL carryforwards - In August 2024, the company received a strategic award to develop a manufacturing plan for aerospace and defense, potentially worth **$14.6 million** over 2.5 years. In 2024, **$6.1 million** was recognized as other income from this award[321](index=321&type=chunk)[323](index=323&type=chunk) - The company's credit facility was paid in full in March 2023, and there was no outstanding debt as of December 31, 2024[339](index=339&type=chunk) - As of Dec 31, 2024, the company has federal NOL carryforwards of **$89.2 million** and state NOLs of **$48.3 million**. Utilization is limited by IRC Section 382 due to a 2016 ownership change[365](index=365&type=chunk)[366](index=366&type=chunk) - The company has a joint development agreement (JDA) with GLOBALFOUNDRIES for STT-MRAM technology, which grants GF exclusive manufacturing rights for a defined period[357](index=357&type=chunk)[358](index=358&type=chunk) Revenue by Geography (in thousands) | Region | 2024 | 2023 | | :--- | :--- | :--- | | Hong Kong | $16,220 | $10,748 | | United States | $9,968 | $14,599 | | Germany | $7,168 | $9,767 | | Japan | $5,974 | $12,216 | | All other | $11,072 | $16,435 | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=105&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[372](index=372&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes reported - The CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2024[375](index=375&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework[377](index=377&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) This section discloses an amended employment agreement for the CFO and a Rule 10b5-1 trading plan adopted by the CEO - On February 26, 2025, the company entered into an amended Executive Employment Agreement with CFO William Cooper, specifying severance benefits upon termination without cause or resignation for good reason[380](index=380&type=chunk) - CEO Sanjeev Aggarwal adopted a Rule 10b5-1 trading plan on December 6, 2024, for the potential sale of up to **100,000 shares** of common stock[385](index=385&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=109&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[386](index=386&type=chunk) PART III Part III incorporates information on directors, executive compensation, security ownership, and related party transactions by reference from the 2025 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding directors, executive officers, and corporate governance will be included in the definitive proxy statement for the 2025 Annual Meeting of Stockholders and is incorporated herein by reference[388](index=388&type=chunk) [Executive Compensation](index=110&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2025 Proxy Statement[391](index=391&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=110&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding security ownership is incorporated by reference from the 2025 Proxy Statement[392](index=392&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=110&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding related party transactions and director independence is incorporated by reference from the 2025 Proxy Statement[393](index=393&type=chunk) [Principal Accountant Fees and Services](index=110&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the 2025 Proxy Statement[394](index=394&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=112&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with or incorporated by reference into the Form 10-K report - This section lists all financial statements, schedules, and exhibits filed with the report[396](index=396&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk) [Form 10-K Summary](index=125&type=section&id=Item%2016.%20Form%2010-K%20Summary) A Form 10-K summary was not provided in this report - Not provided[417](index=417&type=chunk)

Company Overview - Everspin Technologies, Inc. operates in the Magneto Resistive Random Access Memory (MRAM) sector and was established in 2008 as a spin-off from Freescale Semiconductor [1] Mission and Research Focus - The mission of Grassroots Trading emphasizes providing objective, unbiased, and balanced research, focusing on small- to mid-cap companies while also identifying opportunities in larger companies [1]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $13.2 million, exceeding guidance of $12 million to $13 million, with EPS at $0.05, at the high end of guidance [10][35] - Full year 2024 total revenue was $50.4 million, down 21% year-over-year due to lower product shipments [35] - GAAP gross margin for Q4 was 51.3%, up from 49.2% in Q3 but down from 58.1% in Q4 2023 [36] - GAAP net income for Q4 was $1.2 million, or $0.05 per diluted share, compared to $2 million, or $0.09 per diluted share in Q4 2023 [39] Business Line Data and Key Metrics Changes - MRAM product sales in Q4 were $11 million, down from $12.4 million in Q4 2023 but up from $10.4 million in Q3 2024 [35] - Licensing, royalty, patent, and other revenue decreased to $2.2 million in Q4 from $4.3 million in Q4 2023 due to project completions [36] Market Data and Key Metrics Changes - The company is seeing traction in various sectors, including aerospace, industrial automation, and automotive transportation across different geographies [18] - The low Earth orbit (LEO) market is expected to grow at a CAGR of 13%, increasing from approximately $10 billion to $23 billion by 2029, which may benefit Everspin's MRAM products [20] Company Strategy and Development Direction - Everspin aims to replace or scale NOR flash devices with STT-MRAM technology, which offers faster writes and higher endurance [25] - The company is focusing on expanding its product portfolio and technology, with a strong pipeline of design wins despite pressures on customer R&D budgets [14][15] - Everspin is also involved in partnerships to advance AI hardware and develop strategic RadHard FPGA technology [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half due to typical seasonality and inventory consumption in Asia [32] - The company anticipates initial revenue recognition from the Purdue University project in Q1 2025, with a total project value of approximately $10.5 million over four years [67] Other Important Information - The company ended Q4 2024 with cash and cash equivalents of $42.1 million, up from $39.6 million in the prior quarter [40] - Everspin will shift its non-GAAP metrics from adjusted EBITDA to non-GAAP EPS starting in 2025 for better clarity [41] Q&A Session Summary Question: Clarification on Q1 guidance and loss per share - The anticipated loss per share is primarily due to lower other income in Q1 compared to Q4, with a significant decrease expected [49][50] Question: Revenue contributions from the Lattice partnership - The partnership with Lattice is expected to accelerate design wins and qualifications, but no direct revenue will be generated from Lattice [59][60] Question: Visibility on market recovery in Europe and Japan - Management believes that inventory levels are at the bottom and expects improvement in the second half of 2025 [62] Question: Details on the Purdue University project - The project is milestone-based, with an estimated $4 million expected in the first year, and revenue will be recognized based on achieved milestones [68] Question: Risks and opportunities in defense markets - Management has limited visibility but expects ongoing projects to continue without issues, while new projects may take time due to policy decisions [72]