Everspin Technologies (MRAM -0.34%), a developer of magnetic RAM (MRAM) memory chips, reported its second quarter results on August 6, 2025. The company posted non-GAAP earnings and GAAP revenue that surpassed analyst expectations, with higher gross margins and an improved net income position. Earnings per share (EPS) (non-GAAP) came in at $0.03, above the expected loss of $(0.035), while GAAP revenue reached $13.2 million, topping the $13.0 million consensus estimate The quarter marked a notable year-over-year improvement, showing progress in both MRAM sales and licensing revenue Management characterized the results as in line with the upper end of guidance and noted ongoing discipline around costs and investments.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.03 | $(0.04) | $(0.03) | 200% |
| Revenue (GAAP) | $13.2 million | $13.0 million | $10.6 million | 24 % |
| Gross Margin (Non-GAAP) | 52.5 % | 49.0 % | Up 3.5 ppts | |
| Operating Income (Loss) (Non-GAAP) | $(0.54 million) | N/A | N/A | |
| Net Income (Loss) (GAAP) | $(0.7 million) | $(2.5 million) | 72 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Recent Focus
Everspin Technologies makes and sells magnetoresistive random-access memory (MRAM) products. MRAM is a type of non-volatile memory, meaning it retains information without power. The company is known for two main groups of chips: Toggle MRAM and Spin-transfer Torque (STT)-MRAM, each targeting different industries and use cases such as automotive, aerospace, industrial controls, and data centers.
Recently, Everspin Technologies has concentrated efforts on expanding its leadership role in MRAM technologies, growing its executive team, and winning more design opportunities in important end markets like automotive and aerospace. A major focus has been on enhancing the reliability and performance of its chips while partnering with manufacturing specialists for efficient scaling. The company is also working on diversifying revenue streams through both direct product sales and licensing its portfolio of intellectual property (IP).
Quarter Highlights: Financials and Operations
Notable growth occurred in both sales of MRAM memory chips and in licensing, royalty, and other contract revenue. MRAM product sales, which include both Toggle and STT-MRAM revenue, increased to $11.1 million, up 12% year over year. Customer wins included ongoing shipments for IBM’s Flash Core Module 4 (a data storage solution for data centers) and Lucid’s Gravity SUV (an all-electric vehicle), with MRAM chips used in real-time data capture and system reliability.
Licensing and royalty revenue, which can vary quarter by quarter based on contract milestones, surged to $2.1 million from $0.7 million compared to Q2 2024 (GAAP). This jump was attributed to the completion of phase milestones in government-funded projects and higher activity in technology licensing. Management pointed out that licensing revenue is less predictable but can have a sizable impact in periods when major agreements are finalized.
Gross margin (non-GAAP) rose to 52.5%. This represented an increase of 3.5 percentage points over Q2 2024. The company also grew its cash balance, with cash and cash equivalents rising to $45.0 million as of June 30, 2025, up $2.9 million from December 31, 2024.
On the expense side, GAAP operating expenses increased 9% year over year to $8.7 million. The net result was a narrowing of the company's GAAP net loss by 73% compared to Q2 2024. The company remains debt-free and continues to invest in research and capital projects, funded by strong operating cash flows.
Looking Ahead: Guidance and Key Areas to Watch
Management forecasts Q3 2025 GAAP revenue between $13.5 million and $14.5 million. Depending on margin mix and project timing, Q3 2025 non-GAAP EPS is expected in the range of $0.02 to $0.07, with management citing continued optimism around the backlog and broader sector recovery in the second half of fiscal 2025. The company expects stronger results in the second half of 2025, supported by automotive and industrial design wins starting to ship in volume.
The company provided no formal guidance beyond the third quarter and noted that licensing revenue remains variable. The company also highlighted persistent risks related to concentrated customers, inventory build-up, and competition from larger memory chip makers. Investors are encouraged to monitor the progress of new product introductions, growth in non-product revenues, and the ability of the company to further diversify its customer base over the coming quarters.
MRAM does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
