Everspin's 2025 Q2 Earnings Call: Unpacking Contradictions in Market Recovery, Contracts, and Revenue Expectations
Generated by AI AgentAinvest Earnings Call Digest
Wednesday, Aug 6, 2025 10:35 pm ET1min read
MRAM--
Aime Summary
Aime SummaryIndustrial market recovery expectations, QuickLogicQUIK-- contract status, industrial market trends and inventory levels, revenue contribution from Lattice SemiconductorLSCC-- partnership, and QuickLogic contract and future are the key contradictions discussed in EverspinMRAM-- 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.
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.
Discover what executives don't want to reveal in conference calls
Latest Articles
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet