Everspin's 2025 Q2 Earnings Call: Unpacking Contradictions in Market Recovery, Contracts, and Revenue Expectations

Industrial market recovery expectations, QuickLogic contract status, industrial market trends and inventory levels, revenue contribution from Lattice Semiconductor partnership, and QuickLogic contract and future are the key contradictions discussed in Everspin Technologies' latest 2025Q2 earnings call.



Strong Revenue Performance:
- Everspin Technologies reported revenue of $13.2 million for Q2 2025, towards the high end of guidance, with high single-digit sequential growth in the data center business and over 20% sequential growth in industrial automation.
- This performance was driven by strong demand in data center, industrial automation, and low earth orbital (LEO) applications, including redundant array of independent disks (RAID) from a broad selection of data center customers.

Gross Margin Trends:
- Everspin's GAAP gross margin remained at 51.3% for Q2 2025, slightly down from 51.4% in Q1, but up from 49% in Q2 2024.
- The gross margin was impacted by a shift in product mix, with a larger proportion of high-margin licensing and other revenue affecting margins.

License and Royalty Revenue Increase:
- Everspin's licensing, royalty, patent, and other revenue increased to $2.1 million in Q2 2025 compared to $0.7 million in Q2 2024.
- This increase was primarily due to the ramp in the contract with Purdue University for MRAM technology supporting energy-efficient AI solutions.

Strategic Investments and Contract Wins:
- Everspin won a strategic contract from an Amentum contractor to develop a sustainment plan for its MRAM manufacturing facilities, with $7.4 million recognized to date from the $14.6 million contract.
- The company expects this business to pick up meaningfully in Q4, contributing to revenue growth.

Expansion into Aerospace and Defense:
- Everspin's licensing and royalty revenue saw a sequential uptick from its contract with QuickLogic for AgILYST MRAM technology in Q2 2025.
- The company is developing strategic radiation-hardened, high-reliability FPGA technology and expects to validate the design on silicon by the end of the phase.