GSI (GSIT) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenue grew 14% year-over-year and 9% sequentially to $5.9 million, driven by strong eSRAM and legacy SRAM demand and improved operating discipline.

• Fiscal year 2025 revenue declined 6% to $20.5 million, but net loss was reduced by 47% to $10.6 million due to a 35% reduction in operating expenses.

• Cost management and a $5.8 million gain from a headquarters sale contributed to reduced net loss and lower cash burn.

• Ended the year with $13.4 million in cash and a more disciplined operating structure.

• Initial order secured for radiation-hardened eSRAM/SRAM with higher margins and anticipated follow-on orders.

Financial highlights

• Q4 gross margin was 56.1%, up from 51.6% a year ago; full-year gross margin was 49.4%, down from 54.3% due to product mix and lower revenue.

• Q4 net loss was $2.2 million ($0.09 per share), improved from $4.3 million ($0.17 per share) a year ago.

• Fiscal 2025 operating expenses dropped to $21.0 million from $32.3 million, mainly due to R&D cost reductions.

• Cash and cash equivalents at March 31, 2025, were $13.4 million; working capital was $16.4 million.

• Cash used in operating activities for the year was $12.9 million; CapEx was minimal at $45,000.

Outlook and guidance

• Expect to maintain current operating expense levels to minimize cash burn until new funding is secured.

• Q1 fiscal 2026 net revenues expected between $5.5 million and $6.3 million; gross margin projected at 56% to 58%.

• Anticipate continued strong eSRAM demand and follow-on orders for radiation-hardened SRAM in fiscal 2026, with some variability in shipment timing.

• Strategic focus on securing funding for Plato development and exploring alternatives for new cash sources.