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NVE (NVEC) investor relations material

NVE Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary23 Jul, 2025

Executive summary

  • Revenue for the quarter ended June 30, 2025, declined 10% year-over-year, mainly due to an 11% drop in product sales, partially offset by a 17% increase in contract R&D revenue.

  • Net income decreased 13% year-over-year to $3.58 million (74¢/share), primarily from lower revenue and gross margin, partially offset by reduced operating expenses.

  • Gross margin fell to 81% from 86% due to a less profitable product mix and higher distributor sales.

  • Operating expenses decreased 20% year-over-year, with R&D down 18% and SG&A down 23% due to project completions and resource reallocations.

  • Product development advanced with launches of wafer level chip scale sensors and advanced magnetic switch sensors, showcased at major trade shows.

Financial highlights

  • Total revenue was $6.1 million, down from $6.8 million year-over-year.

  • Net income was $3.58 million, compared to $4.10 million in the prior-year quarter.

  • Basic and diluted EPS were $0.74, down from $0.85 year-over-year.

  • Gross profit fell to $4.92 million from $5.81 million year-over-year.

  • Cash and cash equivalents were $3.2 million as of June 30, 2025, down from $8.0 million at March 31, 2025.

Outlook and guidance

  • Defense-related sales are expected to grow sequentially in coming quarters, returning to historical levels next fiscal year.

  • Advanced Manufacturing Investment Tax Credits of $700K–$800K anticipated if equipment deployment proceeds as planned in fiscal 2026.

  • Future dividends will depend on operational results, cash balances, and Board approval, and may be modified or discontinued at any time.

  • Industry recovery is reflected in increasing distributor sales, indicating a positive outlook.

  • Management expressed satisfaction with revenue and earnings despite lower defense product sales.

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Frequently asked questions

NVE Corporation is a technology company that develops and sells devices based on spintronics, a form of nanotechnology that relies on electron spin. Its products include magnetic sensors and couplers used in industrial, scientific, and medical applications. The company focuses on high-performance sensing and signal isolation solutions for demanding environments. NVE Corporation is headquartered in Eden Prairie, Minnesota, and its shares are listed on the NASDAQ.

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