QuickLogic (QUIK) Q3 2025 earnings summary

Executive summary

• Achieved significant engineering milestones, including Storefront design wins for Strategic Rad Hard FPGA and expansion into high-density eFPGA Hard IP for advanced nodes, with strong interest from Defense Industrial Base (DIB) customers.

• Storefront revenue expected to begin in early 2026, with meaningful contribution to total 2026 revenue; license revenue may surpass NRE revenue for the first time.

• Delivered SRH FPGA test chip design files to GlobalFoundries for 12LP process, with test chips expected in early Q1 2026 and Dev Kit orders anticipated soon after.

• Secured multiple contracts with strategic customers, including a $1 million eFPGA Hard IP contract for a TSMC 12-nm ASIC and Intel 18A test chips, expanding addressable markets.

• Initiated Digital Proof of Concept Chiplet program, advancing Storefront Chiplet initiative with strategic partners; further development pending external funding.

Financial highlights

• Q3 2025 revenue was $2.0 million, down 52.5% year-over-year and 45% sequentially; new product revenue was $1.0 million, mature product revenue $1.1 million.

• Non-GAAP gross margin in Q3 was negative 11.9%, compared to 65.3% in Q3 2024 and 31% in Q2 2025; GAAP gross margin was negative 23.3%.

• Non-GAAP net loss was $3.2 million ($0.19 per share), compared to $0.9 million loss in Q3 2024 and $1.5 million loss in Q2 2025; GAAP net loss was $4.0 million ($0.24 per share).

• Cash at Q3 end was $17.3 million, including $15 million drawn from a $20 million credit facility; total assets were $46.1 million, liabilities $21.4 million.

• Operating expenses for Q3 2025 were $2.9 million non-GAAP and $3.5 million GAAP, down year-over-year.

Outlook and guidance

• Q4 2025 revenue guidance is $3.5 million to $6.0 million, depending on timing of a nearly $3 million contract; at high end, new product revenue would be $5 million.

• Non-GAAP gross margin expected at 45% (low end) to 68% (high end) for Q4; full-year 2025 non-GAAP gross margin expected at 38% ±5%.

• Q4 non-GAAP OpEx expected at ~$3 million; full-year 2025 non-GAAP OpEx projected at $11.3 million.

• Q4 non-GAAP net loss forecast at $1.9 million (low end) or net profit of $600,000 (high end); positive cash flow anticipated even at low end, barring government payment delays.

• Storefront revenue in 2026 expected to be meaningful, potentially around 10% of total revenue, with overall 2026 revenue expected to be notably higher than 2025.