Everspin Technologies (MRAM) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $18.7 million, up 42% year-over-year, driven by strong MRAM product and non-product revenue, including initial revenue from a $40 million U.S. defense contract.

• Product revenue rose 38% year-over-year and 9% sequentially, led by industrial automation, energy management, and aerospace/defense sectors.

• Gross margin improved to 53.9% from 51.3% year-over-year, reflecting a favorable revenue mix.

• Non-GAAP net income was $2.9 million ($0.11 per diluted share), up from $0.7 million in Q2 2025, while GAAP net loss widened to $3.6 million due to increased litigation and operating expenses.

• Expanded addressable market with new MRAM product launches and strategic partnerships in data center and storage markets.

Financial highlights

• Q2 2026 revenue: $18.7 million, up 41.9% year-over-year, exceeding guidance.

• MRAM product sales were $15.3 million, up 38% year-over-year and 9% sequentially.

• Licensing, royalty, and engineering services revenue rose to $3.4 million, up 62.2% year-over-year.

• Operating expenses increased to $14.5 million, mainly due to $4 million in litigation and $1.1 million in non-recurring engineering costs.

• Cash and cash equivalents at quarter-end: $43.9 million.

Outlook and guidance

• Q3 2026 revenue expected between $19.5 million and $20.5 million.

• GAAP net loss per share projected between $(0.10) and $(0.05); non-GAAP EPS: $0.10-$0.15 per share, excluding litigation, NRE, and stock-based compensation.

• Non-product revenue from the $40 million contract expected to remain similar in Q3, not scaling linearly.

• Product gross margins expected to remain in the mid-upper 40% range due to ongoing cost headwinds.

• Guidance subject to risks including supply chain constraints, market volatility, and litigation expenses.