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

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

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

Accelerating The Creation Of Semiconductors Corporate Overview Charlie Janac CEO Nick Hawkins CFO February 2026 1 © 2026 Arteris, Inc. Disclaimer This presentation and the accompanying oral presentation have been prepared by Arteris, Inc. ("Arteris" or "the "Company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Arteris or any officer, director, employee, ag ...

Core Insights - Rigetti Computing (RGTI) is focusing on chiplet technology to enhance the scalability of quantum computers, recently launching the Cepheus-1-36Q system which has achieved significant performance improvements [1][6] - The company aims to develop a 100-plus qubit system with high fidelity by the end of 2025, while also improving gate speeds [1][2] Company Developments - The Cepheus-1-36Q system has halved error rates compared to previous designs and achieved 99.5% two-qubit gate fidelity [1][6] - Rigetti raised $350 million in Q2, ending the quarter with $571.6 million in cash and no debt, despite a revenue decline to $1.8 million from $3.1 million due to delays in U.S. government funding [2][6] - The company emphasizes that achieving technology milestones is more critical than immediate sales at this stage [2] Industry Context - D-Wave Quantum (QBTS) is advancing its annealing-based systems and focusing on hybrid solvers, while also expanding customer adoption through cloud services [3] - Quantum Computing Inc. (QUBT) is making strides in software tools and middleware for different quantum hardware platforms, investing in photonic-based quantum initiatives [4] Financial Performance - Rigetti's stock has decreased by 0.7% year-to-date, contrasting with the industry growth of 21.4% [5] - The company has a price-to-book ratio of 7.96, which is above the industry average, and carries a Value Score of F [7] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests an 86.1% increase from the previous year [9]

AI Strategy Shift - Tesla is consolidating its AI efforts on the AI6 chip, discontinuing the Dojo project due to the emergence of chiplet technology, which allows for a more cost-effective and efficient design [1] - The chiplet strategy involves using a single chip design for both in-vehicle inference and data center training, reducing costs and complexity [1] - Tesla aims to achieve maximum performance per dollar spent by using the same chip design for both inference and training, amortizing costs across millions of vehicles and hundreds of thousands of server nodes [1] - Despite a potential slight performance lag in pure training compared to Nvidia, Tesla's chiplet-based Dojo 3 could lead in cost-effectiveness [1] Production and Operations - The $7,500 federal tax credit for Tesla purchases in the US is ending on September 30, with eligibility based on delivery date, not order date [1] - Tesla increased Model Y lease prices by 14% and extended estimated delivery times from 1-3 weeks to 4-6 weeks, indicating a surge in demand before the tax credit expires [1] - Saia Inc's drivers who tested Tesla's Semi trucks reported a strong preference for them over diesel trucks, praising the navigation system, camera clarity, and turning radius, with the Semi achieving 1.73% kWh per mile efficiency [2] Energy Market Expansion - Tesla is preparing to enter the UK energy market as a household electricity supplier, challenging local companies like Octopus and British Gas, with Tesla Energy Ventures applying for a electricity supply license [2] - Tesla plans to replicate its Texas electricity supply model in the UK, allowing Powerwall users to sell excess solar energy or stored electricity back to the grid, potentially saving money and promoting environmental sustainability [2] Future Outlook - Elon Musk believes Tesla will launch more innovative products and expand production, emphasizing the company's unique level of innovation in the automotive industry [2] - Musk anticipates that Optimus and autonomous driving technology will position Tesla as the world's most valuable company in the long term [2]

Financial Data and Key Metrics Changes - The company has seen a shift in revenue concentration from China, dropping from 50% in 2019 to around 30% by early 2023, and currently closer to high teens percentage [66][70]. - The average selling prices (ASPs) are expected to reach around $1 million by 2026, driven by increasing design complexity and the adoption of more system IP [79]. Business Line Data and Key Metrics Changes - The FlexNOC product family is transitioning from FlexNOC 4 to FlexNOC 5, with a 30% list price increase for FlexNOC 5 over FlexNOC 4, and another 30% increase for FlexGen, which adds automation features [81][82]. - The company has approximately $90 million in remaining performance obligations, indicating a backlog of revenue to be recognized in the future [83]. Market Data and Key Metrics Changes - The company is experiencing growth in various geographical markets, particularly in the US, Japan, and Korea, which are offsetting declines in China [70][75]. - The automotive sector is highlighted as a significant area of growth, with Chinese EVs performing well in the market [75]. Company Strategy and Development Direction - The company is focusing on the shift from insourcing to outsourcing in the semiconductor design space, with expectations that commercial solutions will grow from 25% to potentially 75% over the next decade [22][24]. - The introduction of FlexGen aims to address industry challenges such as the lack of skilled engineers and high costs associated with chip design [29]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing trade tensions between the US and China but notes that there is no direct impact on the company's IP at the moment [62][64]. - The company sees AI and machine learning as integral to future growth, with half of customer design starts now related to these technologies [46]. Other Important Information - The company is exploring the incorporation of AI in system IP design, focusing on analytics and verification processes [48][50]. - Cybersecurity is a significant concern, with the company taking advanced measures to protect sensitive information [60]. Q&A Session Summary Question: How much of your top line is driven from China customers? - The company's revenue from China has decreased from 50% in 2019 to around 30% in early 2023, and is now in the high teens percentage range [66][70]. Question: What is the average deal size and pricing trends? - The average selling prices are expected to grow, with projections of reaching around $1 million by 2026 due to increasing complexity in designs [79].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $16,500,000, up 28% year over year, exceeding guidance [17] - Annual contract value (ACV) plus royalties reached $66,800,000, a 15% increase year over year, marking a record high [17] - Remaining performance obligations (RPO) were $88,900,000, representing a 19% year over year increase, also a new high for the company [17] - Non-GAAP gross profit was $15,300,000 with a gross margin of 92% [17] - Non-GAAP operating loss was $3,200,000, a 40% improvement compared to the prior year [20] - Free cash flow was positive at $2,700,000 for the quarter, benefiting from early customer payments [21] Business Line Data and Key Metrics Changes - The company achieved several key design wins, including major contracts from top global technology companies and automotive OEMs [8][9] - Adoption of technology in advanced semiconductor companies continues to grow, with significant projects in AI and automotive sectors [9][10] - The FlexGen product, an AI-driven smart NOC IP technology, is being evaluated by over 20 customers, with expectations for revenue generation in the second half of the year [10] Market Data and Key Metrics Changes - The automotive sector remains robust, with ongoing design projects for future vehicles, including electric and autonomous driving technologies [12][13] - The company is seeing increased outsourcing of silicon system IP needs as customers seek efficiency and cost reduction [15][22] - The global economic uncertainty has not led to deal cancellations but may impact royalty revenues due to customer confidence [14][22] Company Strategy and Development Direction - The company is focusing on innovation and expanding ecosystem collaborations, including joining the Intel Foundry Accelerator Program [12] - The strategy includes enhancing customer support and product development through new engineering centers and partnerships [13] - The company aims to remain a neutral player in the system IP market, capitalizing on the trend of outsourcing due to increasing design complexity [42][73] Management's Comments on Operating Environment and Future Outlook - Management acknowledges economic uncertainty but maintains that licensing activity remains robust [30][32] - The company has not adjusted its overall FY 2025 revenue guidance, citing strong customer demand despite potential short-term headwinds [22][26] - There is optimism regarding the deal pipeline and customer interest in outsourcing system IP products [26][73] Other Important Information - The company received multiple awards for innovation, highlighting its technological advancements and market recognition [11] - The opening of a new engineering and customer support center in Krakow, Poland, aims to enhance product development and customer service [13] Q&A Session Summary Question: Changes in customer behavior due to tariffs and trade environment - Management noted some replanning of projects in China but observed an increased willingness to outsource system IP to commercial vendors [29][30] Question: Expectations for FlexGen revenue and traction - Management reported positive feedback from customers evaluating FlexGen, anticipating substantial bookings and revenue in the second half of the year [35][36] Question: Accelerated decision timelines by customers - Management indicated that while design cycles are being accelerated, licensing activity remains steady without significant changes in decision-making timelines [41][42] Question: Interest from joining the Intel Foundry Alliance - Management expects increased business opportunities from joining the alliance, particularly with Intel's commitment to commercial solutions [46] Question: Market size for system IP - Management estimated the system IP market to be between $1 billion and $1.2 billion, with significant growth potential as more companies outsource [59][60] Question: Underlying technological changes prompting outsourcing - Management highlighted the increasing complexity of designs, particularly with AI and chiplets, driving the need for commercial IP solutions [62][63]

Core Insights - Lisa Su's leadership has transformed AMD from a struggling company on the brink of bankruptcy in 2014 to a market leader with a valuation of $172 billion in 2022, an increase of approximately 85 times during her tenure [2][4] - AMD is currently focused on expanding its presence in the AI GPU market, where it lags behind Nvidia, which dominates with a market cap of nearly $3 trillion [5][24] - The company has committed to annual announcements of new AI chips and is building a software division to create open-source tools to compete with Nvidia's CUDA [10][27] Company Performance - AMD's revenue in 2024 reached approximately $26 billion, a 14% increase from the previous year, and nearly five times the revenue when Su took over [24] - The company spent $6.5 billion on research in 2024, over six times its expenditure in 2014 [24] - AMD recorded $5 billion in AI chip sales in 2024, a significant increase from $100 million in 2023 [25] Strategic Decisions - Su's strategy included a "blank sheet" approach to redesign AMD's processor architecture, leading to the development of the "Zen" core, which is now in its fifth generation [19][24] - The introduction of "chiplets" allowed AMD to enhance manufacturing flexibility and efficiency, which was crucial given the company's previous cash constraints [20][21] - AMD's decision to focus on high-performance chips rather than cutting costs was pivotal in its turnaround [17][18] Market Position - AMD's current market value positions it as the fourth-most valuable U.S. chip company, surpassing Intel [16] - Despite its advancements, AMD's relationship with Nvidia in the GPU market mirrors its previous competition with Intel in CPUs [24][25] - Su anticipates the AI chip market will grow to $500 billion annually by 2028, which presents a significant opportunity for AMD [29] Software Development - AMD is developing ROCm, its alternative to Nvidia's CUDA, to attract AI developers and enhance its software capabilities [26][27] - The company has reorganized its software teams into a new AI software division to improve its offerings and open-source many components [27][28] - Su is actively engaging with developers to improve AMD's software reputation and address criticisms [28]