Everspin Technologies(MRAM) - 2025 Q2 - Quarterly Results

Introduction and Company Overview Everspin's leadership highlighted strong financial performance and strategic expansion, reinforcing its global leadership in MRAM technology Executive Commentary and Strategic Expansion 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] - 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] - 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] About Everspin Technologies 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] - Everspin MRAM offers robust, high-performance non-volatile memory for industrial IoT, data centers, and other mission-critical applications requiring data persistence[13] - The company is headquartered in Chandler, Arizona, and provides commercially available MRAM solutions to a diverse customer base[13] Second Quarter 2025 Financial Performance 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 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 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 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 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 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 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 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 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 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 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] Cautionary Statement Regarding Forward-Looking Statements 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] - 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] - Everspin disclaims any obligation to update or alter these forward-looking statements in the future, except as required by law[14] Non-GAAP Financial Measures Explanation 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] - Management and the board use these Non-GAAP measures to understand operating performance, trends, and for budgeting and planning purposes[10] - 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] Corporate Information This section provides details for the Q2 2025 conference call and contact information for investor relations inquiries Conference Call Details 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] - Dial-in details were provided via a link, and a live webcast was accessible on investor.everspin.com[11][12] - An archived webcast of the conference call will be available on the Investor Relations section of Everspin's website for twelve months[12] Investor Relations Contact 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]