Aeluma's 2026 Q1 Earnings Call: Contradictions in Fab Capacity, Government Contracts, and Commercialization Strategy Spark Investor Scrutiny

Date of Call: September 30, 2025

Financials Results

• Revenue: $1.4M, compared to $481K a year ago and $1.3M in the prior quarter
• EPS: GAAP net loss $0.09 per share, versus $0.06 loss a year ago and $0.05 loss in prior quarter; Non-GAAP net loss $0.03 per share, versus $0.04 loss a year ago and $0.01 loss in prior quarter

Guidance:

• Fiscal 2026 revenue expected in the range of $4.0M–$6.0M.
• Revenue recognition tied to achievement of technical milestones; quarter-to-quarter variability expected.
• Goal to achieve initial commercial product revenue sometime during fiscal 2026.
• Will prudently increase spending to support production validation and hiring in BD, manufacturing, and ops.
• Ended the quarter with $38.1M cash and raised $23.4M net proceeds in a follow-on offering to support the transition to commercialization.

Business Commentary:

• AI Adoption and Semiconductor Demand:
• Aeluma is experiencing rapid acceleration in demand for optical component technologies for AI infrastructure.

• The company is fast-tracking the transition to commercial-scale production of high-performance semiconductors to meet this demand.

• Manufacturing Readiness and Capacity Expansion:

• Aeluma has increased wafer fabrication levels at its foundry partners by nearly fivefold to support anticipated customer demand.
• The company's ongoing efforts include investing in wafer-scale test capabilities and acquiring significant capital equipment assets.

• Government and Commercial Contracts:
• Aeluma has signed a new contract with NASA to leverage its scalable semiconductor platform for quantum applications.
• The company is pursuing additional development contracts, aiming for three to seven new contracts this year.

• Financial Position and Funding:
• Aeluma's cash position is boosted to $38 million after a successful capital raise.
• The company has no long-term debt, aiming to transition from exclusively R&D revenue to initial commercial product revenue.

Sentiment Analysis:

Overall Tone: Positive

• CEO: 'fast-tracked the transition to commercial-scale production' and 'demand for high-performance semiconductor components continues to rise.' CFO: 'expect revenue in the range of $4M-$6M' and 'ended the quarter with $38.1 million in cash' after a $23.4M follow-on offering, emphasizing readiness to transition to commercialization.

Q&A:

• Question from David Williams (Benchmark): Update on ~20 engagements—any fallouts or progress? You increased wafer runs ~5x; how quickly could fabs deliver volume if you got an order today? Can you support near-term aerospace/defense and optical volumes? What exactly are your transceiver components and how do you size that market (low/mid/high speed)? Timeline for design wins/qualifications and revenue (possibly into 2027)? Does current cash position get you to cash-neutral?
  Response: We’ve advanced engagements—notably in defense/aerospace and AI infrastructure—ramped wafer runs fivefold to support reasonable near-term defense/aerospace and optical volumes, aim for initial commercial product revenue this fiscal year, and believe current cash (~$38.1M plus $23.4M proceeds) can fund reaching initial revenue though additional capacity investments may be needed to reach cash-flow positive.

• Question from Richard Shannon (Craig-Hallum): What does 'fast-tracking photonics' entail? Beyond quantum-dot lasers, what components are drawing interest (detectors, others)? You previously targeted three-to-seven new development contracts—where will these come from (govt vs commercial)? Any impacts from the government shutdown? Any update on fab partners and when you might formalize/announce relationships?
  Response: Fast-tracking means dedicating resources, hiring, and increasing wafer runs to prioritize emitters and detectors (including quantum-dot lasers and high-speed detectors); one NASA contract has been signed toward the 3–7 target, several bids are pending, the government shutdown has slowed reviews but hasn’t materially impacted us, and while no new formal fab partners were added, runs at existing fabs and supply-chain partners have increased.

• Question from David Williams (Benchmark): What’s driving the accelerated opportunity in optical interconnects—economics, volume, or performance? Do you engage with hyperscalers or module/OEM levels in the supply chain? Why are you seeing pull across low, mid, and high data-rate segments?
  Response: Demand and volumes are rapidly growing across multiple use cases; we engage across the full value chain (hyperscalers to module/OEM), and the biggest near-term pull is for short- and mid-reach high-performance transceiver components where our scalable manufacturing can lower cost and meet rising volumes—co-packaged optics is a longer-term opportunity.

Contradiction Point 1

Fab Capacity and Ramp-up Time

It impacts expectations regarding the company's production capabilities and ability to meet potential demand, which could influence revenue and investor expectations.

How quickly can Aeluma establish the fabs upon receiving an order today? - David Williams (Benchmark)

2026Q1: Capacity at current levels supports reasonable volumes in defense and aerospace, and AI infrastructure. For significant consumer markets like mobile, additional capacity would be required. Current capacity enables Aeluma to deliver for evaluation and qualify for customer requirements, supporting near-term engagements in defense, aerospace, and optical component technologies. - Jonathan Klamkin(CEO)

When will the company announce its plans to expand supply chain partnerships under this strategic priority this year? - Richard Shannon (Craig Hallum)

2025Q4: We're in discussions with multiple fab partners and have delivered wafers to four fabs for development and small volume fabrication. We're opportunistic about sharing supply chain information to avoid limiting opportunities with prospective customers. Our fab partners are strategically located and vary in size, providing flexibility in volume production. - Tony Rossi(Investor Relations)

Contradiction Point 2

Government Contracts and Revenue Expectations

It involves changes in financial forecasts and strategic focus, which are critical indicators for investors and stakeholders.

Can you provide a timeline for potential design wins or qualifications? - David Williams (Benchmark)

2026Q1: Aeluma is dedicated to supporting strategic government contracts, with recent contract signing with NASA and others pending. Fiscal year 2026 focuses on positioning for transition to commercialization. Goals include initial commercial product revenue before the end of the fiscal year, though specifics on volumes, prices, and total revenue are not yet available. - Jonathan Klamkin(CEO)

Could you quantify the potential revenue from the three to seven government contracts you mentioned and specify what areas they might focus on? - Richard Shannon (Craig Hallum)

2025Q4: We're being selective, bidding only on those that align with our strategic objectives. The size of contracts varies significantly, ranging from a couple of hundred thousand dollars to over ten million dollars over three years. - Tony Rossi(Investor Relations)

Contradiction Point 3

Commercialization and Revenue Strategy

It impacts expectations regarding the company's commercialization strategy and ability to generate revenue, which could influence investor expectations.

Can you provide an update on the status of the 20 engagements? - David Williams (Benchmark)

2026Q1: We've been successful in attracting strategic customers to commercialize our technology. The demand we're seeing across industries is surging, with a distinct market need for next-gen, high-speed optical interconnects. We're well positioned to be the leader in the global photonics market. - Jonathan Klamkin(CEO)

What are the new engagements and their markets? Which markets are likely to reach commercial agreements soon? - Richard Shannon (Craig Hallum)

2025Q4: Our near term commercial focus is defense and aerospace, AI infrastructure including data center interconnects, and mobile and consumer electronics. We believe defense and aerospace could move faster as there are active engagements with defense and aerospace tech companies evaluating our technology. AI infrastructure and data center interconnects are markets starting to adopt new technologies, presenting an opportunity for us. - Tony Rossi(Investor Relations)