GSI (GSIT) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue grew 22.4% year-over-year to $25.1 million, driven by strong SRAM business and chip design customer demand.

• Gross margin expanded to 54.5% from 49.4% in the prior year, reflecting a favorable product mix.

• The company reaffirmed its standalone strategy after a strategic review, focusing on key milestones and APU business development.

• Completed software deliverables for a defense agency-funded proof of concept, supporting a planned June 2026 demonstration of the G2 Tech Sentinel drone powered by Gemini-II.

• Awarded over $5 million in non-dilutive government funding aligned with edge AI applications.

Financial highlights

• Fiscal 2026 revenue increased 22.4% year-over-year to $25.1 million, with Q4 revenue at $6.3 million.

• Gross margin for fiscal 2026 was 54.5%; Q4 gross margin was 52.4%.

• Operating expenses rose to $31.2 million, mainly due to increased R&D for Plato.

• Operating loss widened to $17.5 million from $10.8 million year-over-year.

• Cash and equivalents at March 31, 2026, were $67.2 million, up from $13.4 million a year earlier.

Outlook and guidance

• Fiscal Q1 2027 net revenues expected between $5.9 million and $6.7 million, with gross margin of 54%-56%.

• Cash usage projected at approximately $4 million per quarter, or $16 million annually.

• Sufficient cash runway to support Gemini-II commercialization and Plato tape-out, both targeted for late fiscal 2027.

• Focus for fiscal 2027 is on converting engagements into design wins and progressing toward initial Gemini-II revenue.