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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.
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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