QuickLogic (QUIK 3.09%), a semiconductor company specializing in programmable logic chips and tools, reported earnings for Q2 FY2025 on August 12, 2025. The period brought disappointing financial results, with GAAP revenue dropped to $3.7 million against an expected $4.0 million. Non-GAAP earnings per share showed a loss of $0.09, wider than consensus expectations of a $0.07 non-GAAP loss. GAAP gross margin also compressed sharply, missing company forecasts. The weak results were primarily attributed to delayed recognition of a large embedded FPGA contract, which management now expects to land late in the year. Overall, the quarter continued to demonstrate technology and partnership progress but was overshadowed by meaningful financial underperformance compared to expectations, as non-GAAP EPS of -0.09 missed the analyst estimate of -0.07 and GAAP revenue of $3.7 million missed the estimate of $4.0 million.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | ($0.09) | ($0.07) | ($0.05) | 80.0% |
| Revenue (GAAP) | $3.7 million | $4.0 million | $4.1 million | (9.8%) |
| Non-GAAP Gross Margin | 31.0% | 58.2% | (27.2 pp) | |
| Non-GAAP Operating Expenses | $2.5 million | $2.8 million | (10.7%) | |
| Non-GAAP Operating Income (Loss) | N/A | ($0.4 million) | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding QuickLogic and Its Current Focus
QuickLogic develops programmable semiconductor solutions known as field-programmable gate arrays (FPGAs) and embedded FPGA (eFPGA) intellectual property. FPGAs are chips that users can program even after production, making them valuable for devices needing flexibility, customization, or upgrades after deployment. The company’s core business is providing these chips and IP to sectors like aerospace, defense, industrial, and consumer electronics.
Recently, QuickLogic’s business has emphasized advanced eFPGA IP and supporting tools, such as its Aurora PRO FPGA User Tool and Australis IP Generation software. Strong research and development investment fuels these innovations. Key success factors include driving adoption of new technologies, forming strategic partnerships with industry leaders, and reducing reliance on legacy products.
Key Events and Performance During the Quarter
The most significant headline was a revenue shortfall linked to the postponed recognition of a material eFPGA IP contract. In earlier forecasts, management had anticipated this contract would contribute to the quarter, but updates now point to recognition in Q4 FY2025. This delay directly impacted the company’s top line and caused it to miss its publicly stated revenue and non-GAAP EPS targets.
GAAP sales declined both year-over-year and sequentially. GAAP revenue dropped 10.0% compared to Q2 FY2024, largely because of the contract delay and ongoing softness in new product shipments. New product sales made up 79% of the revenue mix, up from 73% in Q2 FY2024 but lower than the 87% in the previous quarter (Q1 FY2025). This shows some progress in shifting away from mature products, but the transition has not fully offset the impact of contract and market timing.
Non-GAAP gross margin dropped to 31.0%, well below both the 58.2% non-GAAP gross margin posted in Q2 FY2024 and management’s prior 50% guidance. This reflects not only the lower revenue base, but also increased cost absorption and product mix challenges. GAAP operating expenses fell to $3.5 million from $3.9 million in Q1 FY2025, but Rising cost of goods meant profitability deteriorated, as GAAP gross margin from continuing operations fell to 25.9% from 54.7% in Q2 FY2024 and 43.4% in Q1 FY2025, with the non-GAAP operating loss widened compared to both Q2 FY2024 and Q1 FY2025.
In terms of business development, the company continued to advance its eFPGA Hard IP, securing a new licensing contract for a customer’s Intel 18A test chip and landing a feasibility study for a high-density IP core. It also deepened partnerships by joining the Intel Foundry Chiplet Alliance and securing a high-profile collaboration with Faraday Technology, which uses QuickLogic eFPGA IP in its FlashKit-22RRAM SoC development platform. In government contracts, QuickLogic received $1.4 million in additional funding for its Strategic Radiation Hard FPGA program in Q1 FY2025, underlining long-term opportunity but also adding to delayed revenue recognition issues.
Looking Forward
Management expressed continued confidence in a “significant revenue rebound” starting in the third quarter, pointing to delayed IP contracts and expected further milestone achievements in government programs as the main drivers. Leaders reiterated full-year goals of solid revenue growth, non-GAAP profitability, and positive cash flow. Non-GAAP gross margin is targeted in the “low 60% range” for FY2025, but actual achievement will depend on contract timing and mix. No additional guidance was provided for individual product or market segments.
QuickLogic does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
