Everspin Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue reached $20.6 million for the third quarter of 2026, a 47% year-over-year increase from $14.1 million in the third quarter of 2025.
• MRAM product sales totaled $16.9 million, up from $12.7 million in the prior year period.
• Licensing, royalty, engineering services, and other revenue was $3.7 million, compared to $1.4 million in the third quarter of 2025.
• Gross margin was 51.4%, compared to 51.3% in the third quarter of 2025.
• GAAP operating expenses were $18.5 million, significantly higher than $8.8 million in the third quarter of 2025, driven by litigation and regulatory costs.
• GAAP net loss was $7.2 million, or $(0.29) per diluted share, compared to a net income of $54,000, or $0.00 per diluted share, in the third quarter of 2025.
• GAAP results included $6.0 million in litigation expenses and a $2.7 million regulatory provision.
• Non-GAAP net income was $3.1 million, or $0.12 per diluted share, compared to $1.5 million, or $0.06 per diluted share, in the third quarter of 2025.
• Cash and cash equivalents totaled $43.0 million as of September 30, 2026, down from $44.5 million at December 31, 2025.
• Accounts receivable increased to $11.1 million from $8.1 million at the end of 2025.
• Inventory increased to $14.0 million from $10.7 million at the end of 2025.
• Total liabilities were $22.5 million as of September 30, 2026, compared to $15.7 million at December 31, 2025.

Guidance and Future Outlook:

• For the fourth quarter of 2026, Everspin expects total revenue between $21.5 million and $22.5 million.
• GAAP net loss per share for Q4 2026 is anticipated to be between $(0.13) and $(0.08).
• Non-GAAP net income per diluted share for Q4 2026 is expected to be between $0.13 and $0.18.
• The company notes that a reconciliation of non-GAAP guidance to GAAP is not available without unreasonable effort due to the uncertainty of future stock-based compensation, litigation expenses, and other variable costs.
• Future results may be impacted by evolving external conditions, supply chain constraints, and semiconductor industry volatility.

Business Segments and Product Lines:

• Growth in the third quarter was led by strength in Industrial Automation, Data Center, Medical, and Energy Management end markets.
• The company is executing on opportunities to grow its core business by bringing new products to market and developing next-generation solutions.
• MRAM product sales include revenue from both Toggle and STT-MRAM technologies.
• The company maintains a foundry agreement with Microchip, with non-recurring engineering expenses related to this agreement excluded from non-GAAP measures.

Market and Competitive Landscape:

• Everspin positions itself as the world's leading developer and manufacturer of Magnetoresistive Random Access Memory (MRAM) persistent memory solutions.
• The company serves a large and diverse customer base across industrial, data center, automotive, aerospace, and other mission-critical applications.
• Management emphasized a focus on strengthening competitive position across different industries.

Risks and Challenges:

• Litigation expenses and regulatory provisions significantly impacted GAAP results in the current quarter.
• Future litigation expenses are highly dependent on case-related activity and third-party actions, which are difficult to predict.
• Stock-based compensation charges are subject to constant change based on employee stock transactions, stock price volatility, and hiring/retention needs.
• Risks include supply chain constraints, public health events, and general market and semiconductor industry volatility.

Management Commentary and Tone:

• CEO Sanjeev Aggarwal stated that third-quarter results were driven by continued strong product revenue growth and noted the company is executing on opportunities to grow its core business.
• CFO Bill Cooper expressed pleasure at reporting another quarter of record revenue at the high end of expectations.
• Management highlighted a focus on balancing strategic technology investments with prudent expense management, including ongoing litigation costs.
• The tone emphasized intense focus on commercial execution to grow revenue and enhance long-term shareholder value.

Other Key Points:

• The company will host a conference call for analysts and investors on Wednesday, October 28, 2026, at 5:00 p.m. Eastern Time.
• The live webcast will be accessible on the company's investor relations website.
• GAAP tax rate is effectively zero due to NOL carryforwards; therefore, a Non-GAAP tax rate is not included.
• Non-GAAP financial measures exclude the effect of stock-based compensation, non-recurring engineering expenses related to the foundry agreement, and litigation costs.
• Shares issued and outstanding increased to 24.4 million as of September 30, 2026, from 23.0 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $1.6 million, compared to $7.3 million in the same period of 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $8.6 million, primarily due to purchases of property and equipment ($7.1 million) and intangible assets ($1.5 million).
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $5.6 million, driven by proceeds from the exercise of stock options and employee stock purchase plans.