How did GSIT's revenue and expenses trends shift in Q3 2025 compared to previous quarters?

**GSI Technology Inc. (GSIT) demonstrated notable improvements in revenue and expense management during Q3 2025 compared to previous quarters**, as evidenced by the following key trends: 1. **Revenue Growth**: GSIT experienced a 2% year-over-year increase in revenue, reaching $5.4 million in Q3 2025. This growth was particularly significant with a 19% sequential increase from the previous quarter. The company's focus on strategic developments in defense and AI sectors seems to be paying off, as these areas showed strong revenue generation potential. 2. **Gross Margin Improvement**: The gross margin for Q3 2025 was 54%, which is a notable improvement compared to 38.6% in the preceding quarter. This indicates enhanced operational efficiency and cost control measures are yielding positive results. However, there was a slight dip from 55.9% in Q3 2024, suggesting that while the company is improving, there is still room for further optimization. 3. **Operating Expenses Reduction**: GSIT successfully reduced operating expenses from $9.7 million in Q3 2024 to $7 million in Q3 2025. This decrease was also evident when comparing the current quarter's expenses to the $7.3 million in the prior quarter. The company's cost reduction initiatives are clearly bearing fruit, contributing to improved financial performance. 4. **Research and Development Focus**: Despite the reduction in operating expenses, GSIT maintained its investment in research and development, with $4 million spent in Q3 2025. This indicates the company's ongoing commitment to innovation, which is crucial for sustaining its competitive edge in the AI and defense markets. 5. **Net Loss Improvement**: The net loss for Q3 2025 was $4 million, a significant improvement from $6.6 million in the same period the previous year and $5.6 million in the prior quarter. This reduction in net losses reflects enhanced operational efficiency and strategic financial management. 6. **Cash and Working Capital Stability**: GSIT maintained a stable cash position with $15.1 million as of December 31, 2024, compared to $14.4 million as of March 31, 2024. Working capital also remained healthy at $17.9 million as of December 31, 2024, similar to the $19.1 million recorded as of March 31, 2024. These figures suggest that the company is managing its liquidity effectively despite ongoing losses. In conclusion, GSIT's strategic focus on revenue growth, cost reduction, and innovation in Q3 2025 has led to positive shifts in revenue and expense trends, contributing to improved financial performance and stability.