MRAM

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Investor Relations - Monica Gould President and Chief Executive Officer - Sanjeev Aggarwal Chief Financial Officer - Bill Cooper Operator: Good afternoon, and welcome to Everspin Technologies Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to Monica Gould, Investor Relations for Everspin. Monica Gould: Thank you, operator, and good afternoon, everyone. Everspin released results for the second quarter 2026 ended June 30th, 2026, this afternoon after market close. I'm Monica Gould, Investor Relations for Everspin. And with me on today's call are Sanjeev Aggarwal, President and Chief Executive Officer; and Bill Cooper, Chief Financial Officer. Before we begin the call, I would like to remind you that today's discussion may contain forward-looking statements regarding future events, including, but not limited to, the company's expectations for Everspin's future business, financial performance and goals, customer and industry adoption of MRAM technology, successfully bringing to market and manufacturing products in Everspin's design pipeline and executing on its business plan. These forward-looking statements are based on estimates, judgments, current trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. We would encourage you to review the company's SEC filings, including the annual report on Form 10-K and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in Everspin. All forward-looking statements are made as of the date of this call, and except as required by law, the company undertakes no obligation to update or alter any forward-looking statements made on this call, whether as a result of new information, future events or otherwise. The financial results discussed today reflect the company's preliminary estimates are based on the information available as of the date hereof and are subject to further review by Everspin and its external auditors. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments and other developments arising between now and the time that the financial results for the period are finalized. Additionally, the company's press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP net income to non-GAAP net income, which provide additional details. A copy of the press release is posted on the Investor Relations section of Everspin's website at www.everspin.com. And now I would like to turn the call over to Everspin's President and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead. Sanjeev Aggarwal: Thank you, Monica, and thanks, everyone, for joining us on the call today. We are pleased to report second quarter revenue of $18.7 million and non-GAAP EPS of $0.11. These results reflect the highest revenue quarter in Everspin's history, which exceeded our guidance range on both the top and bottom line, driven by strong product revenue growth and the $40 million agreement we announced with a U.S. prime contractor on our last earnings call. During the quarter, we began to recognize nonproduct revenue under the 2.5-year agreement. As a reminder, Everspin is a subcontractor on an existing prime contract and is providing engineering services to develop and qualify Toggle MRAM process technology capabilities for U.S. defense industrial-based customers. In addition to this new contract, we also recorded strong product revenue growth, which rose 38% year-over-year and was up 9% sequentially. This growth was driven by strength in industrial automation, energy management and aerospace and defense applications. Growth in Industrial and Energy Management was driven by a continued recovery in customer demand, particularly in Japan and Europe, respectively. In aerospace and defense, we saw continued broad-based growth across our customer base, including several low earth orbit customers, who are expanding the mission profile, where Everspin MRAM delivers long-term reliability for mission-critical applications. Recently, Astro Digital selected Everspin's PERSYST 64-megabit STT-MRAM for use on an upcoming Raven Bus Geosynchronous Earth Orbit or GEO satellite mission. Our MRAM is deployed as the primary fail-safe memory for the system boot memory, which stores the essential code needed in case of power loss and fast access to initialize spacecraft electronics during start-up or recovery. As we noted last quarter, our $14.6 million contract with a DoD contractor to develop a sustainment plan for our MRAM manufacturing facilities to provide continuous onshore MRAM capabilities to their aerospace and defense customers is beginning to wind down. In the second quarter, we recognized $0.5 million in other income related to this contract and $13.3 million to date. We expect this business to continue to wind down over the coming quarters with estimated completion in the first half of 2027. Turning to some of our product development efforts, our first UNISYST family of MRAM products, the 256-megabit xSPI is on schedule to tape out later this year. As a reminder, this is a test chip designed on 16-nanometer FinFET CMOS at TSMC. Engineering samples are expected to be available in early 2027 with ramp to production later in the year. The UNISYST family of products will serve the high-density stand-alone NOR Flash market, which will expand our addressable market by approximately $3 billion. Our goal is to capture 5% to 10% of this market in the early years and then grow further. We are pleased to announce that our high-density 128 megabit and 256-megabit xSPI high-reliability parts were made available to our customers ahead of schedule. During the second quarter, we released 128-megabit high reliability parts to production. Subsequent to the quarter end, we released all SKUs of xSPI 256 megabit density to production, including high reliability parts. Customers now have these parts on hand to evaluate them in their designs. We kicked off our project with Microchip in April to build MRAM capabilities in their Gresham, Oregon fab. This project comprises 2 phases with the first phase focused on Toggle MRAM and the second phase on STT-MRAM. We are finalizing the installation of unique MRAM equipment and completing process gap analysis, if any, for the non-MRAM equipment. This project is on schedule with a goal to deliver the first qualified silicon in 18 to 24 months from project kickoff. We continue to see strong growth across our existing business, while executing on our product pipeline and developing solutions that will further expand Everspin's addressable market and drive long-term growth. One of these future opportunities is focused on expanding our TAM in the data center market, and we are planning to introduce some new products over the next 3 years based on the Compute Express Link or CXL interface. To provide a little background, in the memory hierarchy, there is 100x to 1,000x latency gap between storage with a latency of approximately 100 microseconds and main memory with a latency of approximately 100 nanoseconds. CXL attached random access memory can provide approximately 100x lower latency when compared to SSD solutions available today. We continue to advance our development work on CXL interface-based MRAM solutions, which will address the demand for nanosecond class persistent memory solutions, bringing storage closer to XPUs, enhancing compute and power efficiency, resulting in significant overall cost savings. We are targeting to improve XPU utilization from 60% to 70% currently to as much as 90% to 95%, especially from small rights, for example, meta or log data. We are currently working on developing proof-of-concept demo vehicles to validate the expected gains. Subsequent to quarter end, we signed a contract with a high-performance data interface and controller company to develop and provide CXL controller IP for MRAM. We are collaborating on an AMD UltraScale plus FPGA-based platform using the CXL controller IP under development to connect to Everspin MRAM DIMMs dual in-line memory modules. We plan to demonstrate this solution at the SNIA Developers Conference, or SDC in September. We also recently announced that we signed a memorandum of understanding with MaxLinear to evaluate the use of Everspin CXL attached MRAM with MaxLinear storage accelerators for next-generation storage and acceleration architectures. Together, we will assess opportunities to apply persistent bytaccessible, low-latency MRAM to storage functions such as metadata, log data, write buffers and caches with the goal of improving system performance, reliability, power efficiency and data persistence in next-generation storage architectures. By combining Everspin's industry-leading MRAM with MaxLinear's storage accelerators, we believe we can enable new persistent memory solutions for hyperscale cloud, AI infrastructure and enterprise Tier 1 customers. I will now turn it over to our CFO, Bill Cooper, who will walk you through our second quarter financials and third quarter 2026 guidance. Bill? William Cooper: Thank you, Sanjeev. During the second quarter, we delivered record revenue of $18.7 million, up 42% year-on-year, exceeding our guidance range of $15.5 million to $16.5 million, driven by both strong product and nonproduct revenue growth. MRAM product sales, which include both Toggle and STT-MRAM revenue were $15.3 million, an increase of 38% over the second quarter of the prior year and up 9% sequentially. Licensing, royalty, engineering services and other revenue increased to $3.4 million from $2.1 million in Q2 of '25, primarily due to initial revenue recognition on the $40 million subcontract agreement with the U.S. prime contractor we announced on our last earnings call. Our GAAP gross margin increased to 53.9% from 51.3% in the second quarter of 2025 due to a favorable mix from higher nonproduct revenues. GAAP operating expenses were $14.5 million, up from $8.7 million in the second quarter of 2025 due primarily to litigation costs of $4 million and $1.1 million of nonrecurring engineering costs. Other income of $0.5 million decreased from $0.8 million in the prior year quarter as our $14.6 million contract with the DoD contractor begins to wind down. We recorded second quarter non-GAAP net income of $2.9 million or $0.11 per diluted share based on 25.9 million weighted average diluted shares outstanding. This exceeded our guidance range of non-GAAP net income of $0.00 per share to $0.03 per share and compares to non-GAAP net income of $0.7 million or $0.03 per share in the second quarter of 2025. Our reported non-GAAP results exclude the impact of stock-based compensation, litigation expenses as well as nonrecurring engineering expenses related to the build-out of the MRAM manufacturing line at Microchip's fab in Oregon. Our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalents of $43.9 million, up $3.4 million from $40.5 million at the end of the prior quarter. Cash flow generated from operations decreased to $0.2 million for the second quarter, down from $0.6 million in the first quarter, primarily due to litigation costs. We believe our cash and cash equivalents are sufficient to meet our anticipated capital requirements to continue to execute upon our foundry services agreement with Microchip, our subcontract agreement with the U.S. prime contractor and continued investment in product development to support our future road map and enable the company to drive growth. Turning to guidance, we expect Q3 total revenue to be in the range of $19.5 million to $20.5 million and GAAP results per fully diluted share to be between a net loss of $0.05 per share to $0.10 per share. On a non-GAAP basis, we anticipate earnings between $0.10 and $0.15 per fully diluted share. These non-GAAP figures exclude the impact of litigation costs, NRE related to the Microchip MRAM line and stock-based compensation expense. In summary, we are pleased with our solid performance this quarter and remain committed to maintaining financial discipline, while focusing on scaling our business and converting additional design wins to revenue. And finally, I want to thank all of the Everspin employees for their continued contributions and supporting the company's growth. Operator, you may now open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Neil Young of Needham & Company. Neil Young: The first question I wanted to ask was sort of on end market strength. So I know you guys cited the industrial automation, energy management and A&D as sort of the growth drivers. And you talked a lot about in the aerospace and defense being driven by LEO. But if I recall from some of your comments at conferences intra-quarter, I thought you guys talked a little bit about drones and maybe some strength you're seeing there. So maybe if you could just expand on anything that you're seeing outside of the LEO satellites within defense and yes. Thanks. William Cooper: Thanks, Neil. What I would say is, certainly, right, we continue to engage in that sector. We haven't announced any particular specific deals on that area. And certainly, we still see very healthy demand across all segments of the business. Neil Young: And then the second one I wanted to ask was about the $40 million contract. So last quarter, you only had about, if I remember correctly, 2 months of that was recognized in the quarter. William Cooper: That's right. Neil Young: So should we expect maybe another step-up now in 3Q that's a full quarter? Or is it not going to scale sort of in an evenly manner? William Cooper: Yes, that's correct. It won't necessarily scale in a very linear manner. So I would expect to see nonproduct in the similar area from Q2 to Q3. Operator: Our next question comes from the line of Richard Shannon of Craig-Hallum. Richard Shannon: Maybe I'll ask a way of thinking about the last question more directly here in terms of the guidance for the quarter here and thinking about it holistically here, I'd love to get a sense of the degree to which products versus licensing will be growing here. And I just want to -- I guess, I'd also love to get a sense of the -- quantify the amount of contribution in the second quarter from the $40 million contract so we can convey that over the third quarter as well. Let's start with that one. Sanjeev Aggarwal: Yes. Richard, a couple of things. I would say, yes, definitely, the significant majority of the nonproduct revenue did come from the new $40 million subcontract and some of the revenue that was recognized for that. But as Neil rightly pointed out, it was only for a partial quarter. And then in terms of, again, as we go forward, it won't necessarily be linear. And so we'll see possibly some sort of more -- something more like a bell curve as well. Richard Shannon: Fair enough then. As I oftentimes ask here, I noticed in the second quarter, your product gross margins were a bit lower than the first quarter and kind of similar to the range you had in most of 2025. I want to get a sense of kind of the forward outlook there. Is this kind of the baseline to think? Or can we get back towards that 50% level? Just kind of high level, how do you think about that? William Cooper: Yes. Good question. So what I would say is definitely saw some headwinds in product costs, both in terms of -- in Q2. And so what we've always guided is, hey, we expect product gross margins to kind of be in that mid to upper 40s range. And then in total, we expect the company to be north of 50% for total gross margins. Sanjeev Aggarwal: So Richard, just to add a little bit to that, right? We did see some headwinds like Bill was saying, from price increases that we saw on the back end. And I think that is impacting or directly showing up in the gross margins for our product revenue. So even though we might have made improvements from Q1 to Q2, some of them are lost in the price increases that we see with the back end. And by back end, I mean, packaging and [indiscernible] test in -- at the OSATs. Richard Shannon: That sounds like a sustainable dynamic here as well that you don't expect to improve anytime soon. Is that fair, Sanjeev? Sanjeev Aggarwal: Yes. I mean the price of gold, for example, right? It just keeps going up. Richard Shannon: Maybe one quick question for Bill and then maybe 1 or 2 for Sanjeev here. So the difference here between the pro forma and the GAAP EPS here, I'm assuming this is mostly from legal expenses. I know you quantified this roughly $4 million in the second quarter. I didn't have time to do the math here, but is that a similar number that's baked into the third quarter as well? Or how do you think about that? William Cooper: Yes. Yes, that's correct. We baked in a similar number. Richard Shannon: Okay. Perfect. Sanjeev, I noticed that NXP has sold the -- or has an agreement to sell the Chandler fab. And obviously, noting that you've already have an agreement with Microchip to expand capacity here. How do you think about this in the context of your needs here? Can you -- when the Chandler fab conveys over completely, do you expect to be out of there or not? And to what degree does Microchip alone or do you expect them to be able to cover your needs for the products that are affected -- possibly affected by the Chandler fab sale? Sanjeev Aggarwal: Yes. So what we understand or what has been communicated to us, Richard, by NXP is or actually by Nokia's announcement was that they would complete the acquisition of the Chandler facilities by Q1 of 2029. So NXP retains the ownership through the end of 2028. And one of the fabs, which is basically for gallium nitride would be converted to indium phosphide through a lease that Nokia would get starting Q1 or Q2 of 2027. So we don't see any interruption to our operations, at least through the end of 2028. And we are in conversations or we have some planned conversations with Nokia to understand what are their plans for Everspin. We have heard positive things, but we haven't directly spoken to them yet. So in an ideal case scenario, we would have both facilities. And if the business requires us to keep both facilities, that would be great. And if not, then we obviously brought on Microchip so that we can actually scale production if Nokia had other plans for the fab. Richard Shannon: Good to hear that you have some continuity here. So that's good to hear. Last question for me, Sanjeev, I didn't get a chance to ask you about this after the announcement with Astro, I forget their full name with the win for -- this is for GEO satellites. I think this is your first win in the GEO area after having talked about LEO satellites a lot. Let me get a sense of the importance of that win. And ultimately, do you see the opportunity here being bigger for GEO, LEO, MEO or just kind of characterize the opportunity holistically in satellites, please? Sanjeev Aggarwal: Yes, that's a good question, Richard. You're right. This is our first design win for a GEO satellite mission using our commercially developed MRAM. I mean, obviously, it's qualified for extended temperatures. But we do -- we have not done any radiation hardening for these parts that Astro Digital has designed in their satellite mission. That's really good news. So I think they have figured out a way of how to take advantage of our reliability. They're using it for exactly what we've been talking about for so long, the boot speed, reliability, recording the telemetry for the satellite. And they must have somehow figured out how to use this non-radiation hardened or radiation tolerant MRAM in this GEO application. So there must be some redundancy or I don't really know what they're doing. But yes, it's huge for us if they have figured it out and they have several customers, which means that it can actually perpetuate in the GEO, MEO and LEO missions over there. So overall, we're very excited with this partnership. Operator: Our next question comes from the line of Josh Sullivan of Jones Trading. Joshua Sullivan: Just looking at the $40 million defense contract win, what does the pipeline look like in defense at this point? Sanjeev Aggarwal: Josh, thank you for joining the call and asking the question. Do you mean what is the pipeline for future contracts or how the revenue would be recognized from this $40 million contract? Joshua Sullivan: Your bid pipeline within similar applications. Sanjeev Aggarwal: Yes. So as you know, we've had a few contracts now over the last 5 years with the U.S. government. So we work very closely with them, keeping them informed of the technology development that we're doing at Everspin. And whenever there is an overlap between the goals of the U.S. government and Everspin's road map, it typically leads to a first a small contract and then a bigger contract to actually do the development. So we do have a few irons in the fire, but there's nothing concrete yet. So I do think that we will continue to work with the U.S. government on various STT-MRAM, SOT-MRAM projects as well. But obviously, all our contracts actually come -- so we are a subcontractor in all our contracts to a prime contractor. So we're always a sub and not the prime. Joshua Sullivan: And then I guess as far as the European market, growing drones and space exposure, what is your footprint as far as those markets? Sanjeev Aggarwal: Yes. So basically, the European Space Agency and the DoD, I think those are 2 of our primary customers in the aerospace and defense industry. And we work very closely with both of them. And I would say that we have a pretty good footprint for the LEO satellites as well as any -- the helicopters, the helicopter taxis that we have, the eVTOLs is the phrase that we have in our investor deck. I think those are the applications that we are designed in and have activity ongoing for the last couple of years, and we expect them to grow. Joshua Sullivan: And then I guess just lastly, as far as the CXL interface and 3-year product road map you mentioned, can you just provide some color on what that rollout might look like and kind of the external guide points we might see? Sanjeev Aggarwal: I would say, first of all, that it is -- it's a huge market, and I think it's very, very well suited for using MRAM technology. Having said that, I would also say that we are in the early stages of just building proof of concepts and prototypes, and that's what I mentioned in my prepared remarks. So we'll have our first proof of concept here at the end of September that will actually hopefully successfully demonstrate the use of the CXL protocol using the MRAM technology. And with that solution, then we'll actually be able to work with MaxLinear, for example, in their storage accelerator systems to improve the efficiency of the accelerators that they're using. And we believe that we can actually impact the efficiency by almost 15% to 25%. So I think it's a huge market, but it's a little bit early for me to say how the revenue will build up over the next 3 years or so. So I think once we have the prototypes working and we have a design identified, I think then we can talk about projections of revenue and percent of market capture. Operator: Thank you. This concludes the question-and-answer session. I'd like to thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Everspin Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Everspin Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Everspin Tech? Here are five stocks we like better. Record Q2 performance: Revenue rose 42% year over year to $18.7 million, exceeding guidance, while non-GAAP earnings reached $0.11 per share. Growth came from MRAM product sales and initial revenue from a $40 million U.S. defense subcontract. Product and manufacturing momentum: MRAM sales increased 38% to $15.3 million, supported by industrial, energy-management, aerospace and defense demand. Everspin’s Microchip manufacturing project remains on schedule, and its 256Mb UNISYST product is expected to tape out later this year. Positive Q3 outlook with emerging opportunities: Everspin expects third-quarter revenue of $19.5 million to $20.5 million and non-GAAP earnings of $0.10 to $0.15 per share. The company is also developing CXL-connected MRAM for data-center applications, though it is not yet projecting revenue from the initiative. 3 Small-Cap Stocks Getting a Russell 2000 Rebalance Boost Everspin Tech (NASDAQ:MRAM) reported record second-quarter revenue as growth in MRAM product sales and initial revenue from a new U.S. defense-related subcontract lifted results above the company’s guidance range. For the quarter ended June 30, 2026, Everspin posted revenue of $18.7 million, up 42% from the year-earlier period and above its prior outlook of $15.5 million to $16.5 million. Non-GAAP earnings were $0.11 per diluted share, exceeding the company’s forecast of breakeven to $0.03 per share. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 5 Under-the-Radar AI Stocks to Watch in June “These results reflect the highest revenue quarter in Everspin’s history,” President and Chief Executive Officer Sanjeev Aggarwal said, attributing the performance to product-revenue growth and the company’s recently announced $40 million agreement with a U.S. prime contractor. MRAM product sales totaled $15.3 million, rising 38% year over year and 9% sequentially. Aggarwal said demand was strong in industrial automation, energy management, and aerospace and defense. Industrial demand benefited from continued customer-demand recovery in Japan, while energy-management growth was led by Europe. → 3 Drone Stocks That Should Soar After the Summer Slump MarketBeat Week in Review – 05/18 - 05/22 Within aerospace and defense, the company cited broad-based customer growth, including low-Earth-orbit satellite customers expanding the types of missions using Everspin’s MRAM products. Everspin also said Astro Digital selected its PERSYST 64Mb STT-MRAM for an upcoming Raven bus geosynchronous-Earth-orbit satellite mission. The memory will be used as a fail-safe boot-memory solution for startup and recovery functions following power loss. During the analyst question-and-answer session, Aggarwal described the Astro Digital program as Everspin’s first design win for a GEO satellite mission using its commercially developed MRAM. He said the company sees potential for the relationship to extend across GEO, medium-Earth-orbit, and low-Earth-orbit missions, though he did not provide revenue expectations. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Licensing, royalties, engineering services and other revenue rose to $3.4 million from $2.1 million a year earlier. Chief Financial Officer Bill Cooper said the increase was primarily driven by initial revenue recognition under Everspin’s two-and-a-half-year, $40 million subcontract agreement with a U.S. prime contractor. Under that agreement, Everspin is providing engineering services to develop and qualify Toggle MRAM process technology capabilities for U.S. defense industrial-base customers. Cooper said the company expects non-product revenue in the third quarter to remain in a similar range to the second quarter, but cautioned that recognition under the contract will not necessarily be linear and could resemble “more like a bell curve.” GAAP gross margin was 53.9%, up from 51.3% a year earlier, reflecting a favorable revenue mix from higher non-product revenue. Product gross margins, however, faced cost pressure during the quarter. Cooper said Everspin continues to expect product gross margin in the mid-to-upper 40% range and total company gross margin above 50%. Aggarwal said the cost headwinds included increases in back-end costs such as packaging and outsourced semiconductor assembly and test services. He specifically cited rising gold prices as a factor. GAAP operating expenses increased to $14.5 million from $8.7 million in the prior-year quarter, primarily due to $4 million in litigation costs and $1.1 million in non-recurring engineering costs. The engineering costs were related to the build-out of an MRAM manufacturing line at Microchip’s facility in Gresham, Oregon. Non-GAAP net income was $2.9 million, or $0.11 per diluted share, compared with $0.7 million, or $0.03 per share, in the second quarter of 2025. The company’s non-GAAP figures exclude stock-based compensation, litigation expenses and the Microchip-related non-recurring engineering costs. Everspin ended the quarter with $43.9 million in cash and cash equivalents, up from $40.5 million at the end of the first quarter. Operating cash flow was $0.2 million, down from $0.6 million in the preceding quarter, primarily due to litigation costs. Cooper said the company believes its cash position is sufficient to support its Microchip foundry-services agreement, the U.S. prime-contractor subcontract and ongoing product-development investments. Everspin said its project with Microchip remains on schedule. The two-phase effort began in April and is intended to establish Toggle MRAM and STT-MRAM capabilities at Microchip’s Oregon fab. Everspin is completing installation of specialized MRAM equipment and conducting process-gap analysis, with a goal of delivering first qualified silicon 18 to 24 months after the project began. The company also said its first UNISYST-family MRAM product, a 256Mb xSPI test chip designed using 16-nanometer FinFET CMOS technology at TSMC, remains on track to tape out later this year. Engineering samples are expected in early 2027, followed by a production ramp later that year. Aggarwal said the product family is intended to address the high-density standalone NOR flash market, which he estimated could expand Everspin’s addressable market by about $3 billion. Separately, Everspin released 128Mb high-reliability xSPI products to production during the second quarter and released all 256Mb xSPI stock-keeping units, including high-reliability products, after quarter-end. Everspin is also pursuing data-center opportunities through planned products based on the Compute Express Link, or CXL, interface. Aggarwal said the company is developing proof-of-concept platforms for CXL-connected MRAM and expects to demonstrate an AMD UltraScale+ FPGA-based platform at the SNIA Developers Conference in September. The company recently signed a contract with a high-performance data-interface and controller company to develop CXL controller intellectual property, and it also signed a memorandum of understanding with MaxLinear to evaluate CXL-attached MRAM alongside MaxLinear storage accelerators. Aggarwal said the company is in the early stages of CXL development and was not prepared to project revenue from the initiative over the next three years. For the third quarter, Everspin forecast total revenue of $19.5 million to $20.5 million. It expects GAAP results to range from a loss of $0.05 to $0.10 per diluted share, while non-GAAP earnings are projected at $0.10 to $0.15 per diluted share. The non-GAAP outlook excludes litigation costs, Microchip manufacturing-line engineering expenses and stock-based compensation. Everspin Technologies, Inc (NASDAQ: MRAM) is a semiconductor company specializing in the design, development and marketing of magnetoresistive random access memory (MRAM) solutions. Established in 2008 as a spin-out from Freescale Semiconductor, the company pioneered commercial MRAM products and continues to advance the technology through successive generations, including Toggle MRAM and spin-transfer torque (STT) MRAM. Everspin's non-volatile memory devices offer a unique combination of performance, endurance and data retention for a variety of applications. The company's product portfolio includes discrete MRAM chips, embedded MRAM IP for integration into system-on-chip (SoC) designs and companion devices that leverage MRAM's fast write speeds and low power consumption. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Everspin Tech Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly revenue of $18.7 million, exceeding guidance due to a combination of 38% year-over-year product growth and initial revenue from a new $40 million U.S. defense subcontract. Product revenue strength was primarily driven by a recovery in customer demand within industrial automation and energy management sectors, particularly in Japan and Europe. Aerospace and defense growth was bolstered by expanding mission profiles in Low Earth Orbit (LEO) and a milestone design win for a Geosynchronous Earth Orbit (GEO) satellite mission. Strategic positioning in the data center market is advancing through the development of CXL-attached MRAM solutions aimed at bridging the 100x-1000x latency gap between storage and main memory. Management attributes product gross margin pressure to rising back-end costs, specifically citing increased pricing for packaging, testing, and raw materials like gold at OSAT providers. The company is executing a dual-fab strategy, maintaining operations at the NXP Chandler facility through 2028 while simultaneously building MRAM capabilities at Microchip's Oregon fab to ensure long-term supply continuity. Q3 2026 revenue guidance of $19.5 million to $20.5 million assumes continued contributions from the $40 million defense contract, though non-product revenue recognition is expected to follow a non-linear 'bell curve' pattern. The UNISYST product family, targeting the $3 billion high-density stand-alone NOR Flash market, is on track for a late 2026 tape-out with engineering samples expected in early 2027. The Microchip foundry project is scheduled to deliver first qualified silicon within 18 to 24 months of its April 2026 kickoff, focusing first on Toggle MRAM followed by STT-MRAM. Future data center initiatives target improving XPU utilization from current 60%-70% levels to 90%-95% by utilizing MRAM for small-write metadata and log data tasks. The $14.6 million DoD sustainment contract is expected to continue winding down with a projected completion date in the first half of 2027. GAAP profitability was impacted by $4 million in litigation costs and $1.1 million in non-recurring engineering (NRE) expenses related to the Microchip fab build-out. Management flagged a potential transition at the Chandler fab following NXP's agreement to sell the facility to Nokia, though no operational interruption is expected before 2029. Product gross margins are expected to remain in the mid-to-upper 40% range due to sustainable headwinds in the semiconductor back-end supply chain. The company maintains a debt-free balance sheet with $43.9 million in cash, which management deems sufficient for current foundry and product development commitments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that revenue recognition will not be linear and Q3 non-product revenue should be similar to Q2 levels. The contract involves providing engineering services to develop Toggle MRAM capabilities for the U.S. defense industrial base. NXP retains ownership through 2028, providing a multi-year window for Everspin to transition or negotiate with Nokia. The Microchip partnership serves as a strategic hedge to ensure production can scale even if the Chandler facility's long-term availability changes. This represents the first design win for a GEO mission using commercially developed, non-radiation-hardened MRAM. The customer is utilizing MRAM's inherent reliability for critical boot speed and telemetry functions, potentially opening a broader market in GEO and MEO missions. Everspin is collaborating with MaxLinear to evaluate MRAM for storage accelerators, targeting a 15% to 25% improvement in system efficiency. A proof-of-concept demonstration is scheduled for the SNIA Developers Conference in September 2026 to validate the CXL protocol integration.

CHANDLER, Ariz., August 05, 2026--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world’s leading developer and manufacturer of Magnetoresistive Random Access Memory (MRAM) persistent memory solutions, today announced preliminary unaudited financial results for the second quarter ended June 30, 2026. "Our second quarter results were driven by strong product revenue coupled with initial non-product revenue under our recently signed $40 million contract with a US prime contractor. From an end market perspective, growth was led by strength in Industrial Automation, Energy Management, and Aerospace and Defense," said Sanjeev Aggarwal, President and Chief Executive Officer. "We continue to see strong growth across our existing business while executing on our product pipeline and developing solutions that will further expand Everspin's addressable market and drive long-term growth." Second Quarter 2026 Results Total revenue of $18.7 million, compared to $13.2 million in the second quarter of 2025. MRAM product sales, which include both Toggle and STT-MRAM revenue, of $15.3 million, compared to $11.1 million in the second quarter of 2025. Licensing, royalty, engineering services and other revenue of $3.4 million, compared to $2.1 million in the second quarter of 2025. Gross margin of 53.9%, compared to 51.3% in the second quarter of 2025. GAAP operating expenses of $14.5 million, compared to $8.7 million in the second quarter of 2025. Interest and Other income, net of $0.8 million, compared to $1.3 million in the second quarter of 2025. GAAP net loss of $(3.6) million, or $(0.15) per diluted share, compared to net loss of $(0.7) million, or $(0.03) per diluted share, in the second quarter of 2025. Non-GAAP net income of $2.9 million, or $0.11 per diluted share, compared to non-GAAP net income of $0.7 million, or $0.03 per diluted share, in the second quarter of 2025. Cash and cash equivalents as of June 30, 2026, totaled $43.9 million. "We are pleased to report record quarterly revenue with second quarter results above our expectations, driven by both strong product and non-product revenue growth. We remain focused on balancing strategic investments in our technology roadmap with prudent expense management, strengthening our competitive position while enhancing long-term shareholder value," said Bill Cooper, Everspin’s Chief Financial Officer. Business Outlook For the third quarter of 2026, Everspin expects total revenue in a range of $19.5 million to $20.5 million and GAAP net loss per share to be between ($0.10) and ($0.05). Non-GAAP net income per diluted share is anticipated to be between $0.10 and $0.15. A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation-related charges are impacted by the timing of employee stock transactions, the future fair market value of Everspin’s common stock, and Everspin’s future hiring and retention needs, all of which are difficult to predict and subject to constant change. Additionally, litigation expenses are highly dependent on case related activity in any given period and based on the actions of a third-party which are difficult to predict and subject to change. These factors could be material to Everspin’s results computed in accordance with GAAP. This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as public health-related events or outbreaks, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including general market and semiconductor industry volatility, and the other risk factors described in Everspin's filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, its Quarterly Reports on Form 10-Q filed with the SEC during 2026, as well as in its subsequent filings with the SEC. Use of Non-GAAP Financial Measures Everspin supplements the reporting of its financial information determined under generally accepted accounting principles in the United States of America (GAAP) with Non-GAAP financial measures including gross profit, gross margin, operating expenses, operating income (loss), operating margin, net income (loss), and EPS which are defined as the GAAP financial measures excluding the effect of stock-based compensation, non-recurring engineering expenses related to the company's foundry agreement with Microchip and litigation costs. Everspin’s GAAP tax rate is effectively zero due to NOL carryforwards, thus a Non-GAAP tax rate is not included as a Non-GAAP financial measure. Everspin’s management and board of directors use these non-GAAP measures to understand and evaluate its operating performance and trends, to prepare and approve its annual budget and to develop short-term and long-term operating and financing plans. Accordingly, Everspin believes that these non-GAAP measures provide useful information for investors in understanding and evaluating its operating results in the same manner as its management and board of directors. These non-GAAP financial measures should be considered in addition to, not as superior to, or as a substitute for, financial measures reported in accordance with GAAP. Moreover, other companies may define these non-GAAP measures differently, which limits the usefulness of this measure for comparisons with such other companies. Everspin encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results. Conference Call Everspin will host a conference call for analysts and investors on Wednesday, August 5th, 2026, at 5:00 p.m. Eastern Time. Dial-in details: To access the call by phone, please go to this link and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The live webcast of the call will be accessible on Everspin’s website at investor.everspin.com. Approximately two hours after the conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of Everspin’s website for twelve months. About Everspin Technologies Everspin Technologies, Inc. is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance non-volatile memory for industrial, data center, automotive, aerospace and other mission-critical applications where data persistence is essential. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements regarding future results that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the statements made under the caption "Business Outlook." Forward-looking statements are identified by words such as "expects" or similar expressions. These include, but are not limited to, Everspin’s future financial performance, including the outlook for third quarter 2026 results. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption "Risk Factors" in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026, and its Quarterly Reports on Form 10-Q filed with the SEC during 2026, as well as in its subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805302730/en/ Contacts Investor Relations: Monica GouldThe Blueshirt GroupT: [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Everspin Technologies (MRAM) has drawn fresh attention after securing subcontract agreements tied to its Toggle MRAM technology for U.S. defense programs, along with first quarter results that showed higher revenue and a smaller net loss. See our latest analysis for Everspin Technologies. The recent subcontract wins and earnings update arrive alongside a sharp shift in sentiment, with a 30 day share price return of 328.95% and a very large 1 year total shareholder return. This suggests momentum has accelerated sharply in a short period. If you are looking beyond MRAM related growth stories in semiconductors and infrastructure, this could be a useful moment to scan 39 AI infrastructure stocks With revenue at $56.94 million, a recent quarterly loss of $0.30 million and a market cap near $928.52 million, the key question now is whether recent defense contracts and MRAM momentum leave upside on the table or if the stock already reflects future growth. With Everspin Technologies last closing at $44.01 against a widely followed fair value estimate of $18, the current price sits far above that narrative benchmark. This puts the focus squarely on whether future growth can bridge the gap. Read the complete narrative. Curious what kind of revenue curve, margin lift, and future earnings profile would support that valuation path and premium P/E expectation? The core assumptions may surprise you. Result: Fair Value of $18 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still a real risk that MRAM margins stay constrained by manufacturing efficiency challenges, or that key defense and government contracts fail to renew on expected terms. Find out about the key risks to this Everspin Technologies narrative. With sentiment in this article sounding mixed, with both concerns and optimism in play, it makes sense to look at the data yourself and move quickly to form an informed view using 2 key rewards and 2 important warning signs If you stop with just one stock, you could miss opportunities that better fit your goals, so put a few smart alternatives on your radar today. Target long term compounding potential by scanning quality companies trading below their implied value with the 44 high quality undervalued stocks. Prioritize resilience and sleep better at night by focusing on companies in the 69 resilient stocks with low risk scores. Hunt for future standouts hiding in plain sight by running the screener containing 22 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MRAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Revenue growth was driven by a recovery in Industrial Automation demand, particularly in Japan, as customer inventory levels normalized. The Transportation segment benefited from design wins transitioning to production, specifically in Asian railway applications where MRAM's vibration resistance and safety integrity (SIL4) provide a competitive edge. Data Center growth remains anchored by ongoing module work with IBM and RAID reference designs at a top-five hyperscale operator. Management announced a new $40 million, 2.5-year subcontract with a U.S. prime contractor to provide Toggle MRAM technology and engineering services for the defense industrial base. A strategic 10-year manufacturing agreement with Microchip will establish a second domestic production source in Oregon to enhance supply chain resiliency. The UNISYST product family was introduced to target the $3 billion high-density stand-alone NOR Flash market, aiming for 5% to 10% market share in its early years. Q2 2026 revenue is projected between $15.5 million and $16.5 million, excluding any potential impact from the newly announced $40 million defense subcontract. Engineering samples for the UNISYST family are expected in Q4 2026, with a typical 18-to-24-month qualification cycle before significant production ramps. High-reliability 128-megabit and 256-megabit parts are on track for qualification and high-volume availability in the second half of 2026. The first product shipments from the new Microchip manufacturing line are anticipated in the second half of 2027. A $14.6 million DoD sustainment contract is expected to wind down over coming quarters with an estimated completion in the first half of 2027. Litigation costs significantly impacted GAAP operating expenses, totaling $1.6 million in Q1, and are expected to remain at similar levels for at least the next two quarters. The company maintains a debt-free balance sheet with $40.5 million in cash, which management deems sufficient for upcoming capital requirements related to the Microchip agreement. Gross margins reached 52.7% due to higher capacity utilization and yield improvements, with a long-term target of maintaining 50% plus. The new $40 million defense contract includes provisions for technology transfer and second-source rights for the contractor in the event Everspin exits the business. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management declined to provide specific Q2 guidance for the contract as the agreement was recently finalized, but expects a significant positive impact over the 2.5-year term. The company expressed high confidence in achieving the negotiated milestones. Management clarified that the Microchip agreement was an independent move to increase capacity due to high demand, separate from government-funded supply chain initiatives. The new $40 million contract involves providing technology 'recipes' and NRE for a new government product tape-out, utilizing the Microchip line for qualification. The 5% to 10% market share goal for UNISYST refers to the period following an 18-to-24-month qualification window. UNISYST is not expected to be the primary driver for the company's $100 million revenue target within the next 3 to 5 years due to these long lead times. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Revenue: $14.9 million, up 14% year-over-year. MRAM Product Sales: $14.1 million, an increase of 28% over the prior year. Licensing, Royalty, Patent, and Other Revenue: $0.8 million, down from $2.1 million in Q1 '25. GAAP Gross Margin: 52.7%, up from 51.4% in Q1 2025. GAAP Operating Expenses: $10.6 million, up from $8.7 million in Q1 2025. Non-GAAP Net Income: $2.6 million or $0.11 per diluted share. Cash and Cash Equivalents: $40.5 million, down $4 million from the prior quarter. Cash Flow from Operations: $0.5 million, down from $2.6 million in the previous quarter. Q2 Revenue Guidance: $15.5 million to $16.5 million. Q2 GAAP EPS Guidance: Net loss of $0.12 to a loss of $0.07 per share. Q2 Non-GAAP EPS Guidance: Breakeven to net income of $0.03 per share. Warning! GuruFocus has detected 5 Warning Sign with MRAM. Is MRAM fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Everspin Technologies Inc (NASDAQ:MRAM) announced a new 2.5-year $40 million agreement with a US prime contractor, enhancing its position in the defense sector. The company reported first-quarter revenue of $14.9 million, at the high end of its guidance range, driven by strong performance in Industrial Automation, Transportation, and Data Center applications. Everspin's MRAM technology is gaining traction in critical applications, such as railway signal systems, due to its robustness and reliability. The introduction of the UNISYST MRAM family is expected to expand Everspin's addressable market by approximately $3 billion, targeting high-density stand-alone NOR Flash markets. Everspin maintains a strong balance sheet, ending the quarter with $40.5 million in cash and cash equivalents, and remains debt-free. Licensing, royalty, patent, and other revenue decreased to $0.8 million from $2.1 million in the first quarter of the previous year due to fewer active projects. GAAP operating expenses increased to $10.6 million from $8.7 million in the first quarter of 2025, primarily due to litigation and higher compensation costs. Cash flow generated from operations decreased to $0.5 million for the first quarter from $2.6 million in the previous quarter, impacted by litigation costs and increased working capital needs. The company anticipates continued litigation expenses, which are expected to remain in the range of $1.6 million per quarter for the foreseeable future. Guidance for the second quarter includes a potential GAAP net loss, with expected results ranging from a net loss of $0.12 to a loss of $0.07 per share. Q: Can you provide details on the $40 million contract announced, including revenue expectations and milestone risks? A: William Cooper, CFO: We aren't providing specific guidance on the subcontract agreement yet, but we expect a significant positive impact over the next 2.5 years. We are confident in meeting the negotiated milestones. Q: What drove the gross margin strength this quarter, and can we expect it to hold? A: William Cooper, CFO: The strong margins were due to higher capacity utilization and cost reductions. We target a 50%-plus gross margin and expect it to remain in this range as volume increases. Q: How does the $40 million contract relate to other activities like the $14.6 million contract and the Microchip agreement? A: Sanjeev Aggarwal, CEO: The $40 million contract is independent of the $14.6 million contract and the Microchip Foundry Services Agreement. The new contract involves providing technology and production support for military and aerospace applications. Q: Can you elaborate on the expected capital expenditures related to the Microchip Foundry Services Agreement? A: William Cooper, CFO: Significant capital spend is expected over the next two years, spread out over time. It will align with our historical annual spend levels. Q: How does the UNISYST product line fit into your $100 million revenue goal? A: Sanjeev Aggarwal, CEO: UNISYST is not expected to significantly contribute to the $100 million target in the next three to five years due to the 18-24 month qualification period. It will contribute some revenue after this period. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

$40 million two-and-a-half-year subcontract announced with a U.S. prime contractor to provide Toggle MRAM process technology and engineering services for defense customers, which management expects to have a "significant positive impact" on revenue and margins but has not yet provided detailed guidance on timing. Q1 revenue was $14.9 million, up 14% year-over-year (MRAM product sales $14.1M, +28% YoY) with GAAP gross margin of 52.7%, while operating expenses rose due to litigation and higher compensation. Product and manufacturing roadmap: Everspin introduced the UNISYST MRAM family (samples expected Q4 2026) and signed a 10-year foundry agreement with Microchip to establish a second domestic MRAM line (first shipments H2 2027); management expects UNISYST to expand the addressable market by ~$3 billion but not materially lift near-term revenue targets due to multi-quarter customer qualification timelines. Interested in Everspin Tech? Here are five stocks we like better. 3 Technologies to Challenge NAND Flash Dominance in AI Everspin Tech (NASDAQ:MRAM) reported first-quarter 2026 results at the high end of its guidance range and highlighted a newly announced $40 million, two-and-a-half-year agreement with a U.S. prime contractor focused on defense-related Toggle MRAM process technology and engineering services. President and CEO Sanjeev Aggarwal said the company announced “a new two-and-a-half year, $40 million agreement with a U.S. prime contractor” after market close. Under the agreement, Everspin will act as a subcontractor on an existing prime contract, providing “Toggle MRAM process technology capabilities and engineering services for U.S. defense industrial-based customers,” according to Aggarwal. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Aggarwal also said Everspin will provide “engineering and foundry services for U.S. Department of War, or DOW, products” through its recently announced foundry services agreement with Microchip. He positioned the deal as an extension of Everspin’s history in military and aerospace applications where “performance, reliability, longevity, and domestic production are critical.” Asked about how revenue will be recognized and the timing of contributions, CFO Bill Cooper said the company was not yet providing guidance tied to the subcontract agreement. “The ink on that is just drying,” Cooper said, adding that Everspin expects a “significant positive impact over the next 2.5 years” and that management would provide better guidance as the contract kicks off and the company progresses through the second quarter. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Cooper said he would expect the contract to have “a bit of a beneficial impact to margin as well,” while reiterating the company’s target of 50%-plus gross margins. For the quarter ended March 31, 2026, Everspin reported revenue of $14.9 million, up 14% year over year and near the high end of its $14 million to $15 million guidance range. Aggarwal said the quarter’s performance was driven by strength in “industrial automation, transportation, and data center applications.” → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Cooper said MRAM product sales (including Toggle and STT MRAM) were $14.1 million, up 28% year over year and up 5% sequentially. Licensing, royalty, patent, and other revenue fell to $0.8 million from $2.1 million in the first quarter of 2025, which Cooper attributed to “fewer currently active projects.” GAAP gross margin increased to 52.7% from 51.4% in the year-ago quarter. Cooper attributed margin performance primarily to higher capacity utilization and ongoing yield and cost improvements, noting that increased top-line volume can drive utilization benefits. GAAP operating expenses were $10.6 million versus $8.7 million a year ago, driven “primarily to litigation costs” along with higher compensation and professional fees, Cooper said. Aggarwal said industrial automation growth reflected a recovery in customer demand, including in Japan, as inventory levels normalized. In transportation, he said growth came from design wins moving into production at several customers, including two rail applications. He highlighted one customer described as a railroad operator in Asia using Everspin’s MRAM for “critical railway signal applications, such as train axle counters.” Aggarwal said axle counters must operate in harsh vibratory conditions, and that MRAM can withstand those conditions better than other memory technologies. He also said modern axle counters use MRAM to store diagnostic and maintenance data for real-time monitoring and predictive maintenance, and that MRAM supports high safety integrity levels (SIL four) for axle counter systems. Aggarwal also cited a “leading embedded computing company in Asia” that selected Everspin’s MRAM solutions for rail transit systems because they preserve critical data during power loss and support “unlimited erase and write cycles.” In the data center segment, Aggarwal said growth continued to be driven by Everspin’s work with IBM on “the FCM4 and FCM5 modules” and a RAID reference design at top-five hyperscale operators. Aggarwal said Everspin recognized $2.1 million in other income in the first quarter and has recognized $12.8 million to date from a $14.6 million contract with a DoD contractor tied to developing a sustainment plan for MRAM manufacturing facilities to provide “continuous onshore MRAM capabilities” for aerospace and defense customers. He said the $14.6 million effort is expected to wind down over the coming quarters, with estimated completion in the first half of 2027. In the Q&A, Aggarwal clarified that revenue from this effort was recognized “below the line,” and said the contract was intended to improve the supply chain for Toggle MRAM for the U.S. government and involved capital expenditures and supply chain robustness. Aggarwal said the company formally introduced its UNISYST MRAM family at Embedded World in early March, describing it as “a new generation of unified memory solutions” aimed at changing how embedded systems store and access code and data. He said UNISYST is intended to deliver high read/write bandwidth in a non-volatile device, enabling fast boot and predictable performance. Everspin expects to initially offer UNISYST in densities ranging from 128 Mb to two gigabits using an XSPI interface up to octal SPI at 200 MHz. Target use cases include AI at the edge, military and aerospace, automotive, industrial, and casino gaming. Engineering samples are expected to be available in the fourth quarter of 2026, Aggarwal said. Aggarwal also said UNISYST would address the high-density standalone NOR flash market, which he estimated would expand Everspin’s addressable market by about $3 billion. He said the company’s goal is to capture 5% to 10% of that market “in the early years and then grow further.” Later in the Q&A, he noted that UNISYST is not expected to “strongly contribute” to Everspin’s previously discussed $100 million revenue target over the next three to five years because customer qualification can take 18 to 24 months after product availability. He suggested that if samples are available in Q4 2026 and production begins in early 2027, it could take another 18 months to ramp. On other product efforts, Aggarwal said customers have Everspin’s PERSYST 64 Mb XSPI STT-MRAM devices and are engaged in design activity. He added that the company remains on track to qualify 128 Mb and 256 Mb high-reliability parts and expects them to be available in high volume in the second half of 2026, with customers already evaluating engineering samples. Aggarwal also reiterated a strategic manufacturing agreement with Microchip to create a second domestic source of supply. Under a 10-year agreement, Everspin plans to establish an MRAM line at Microchip’s Oregon fab to manufacture MRAM and TMR sensor products currently produced in Chandler, Arizona, with first shipments expected in the second half of 2027. Responding to questions on capital spending, Cooper said recent elevated CapEx reflected “a unique period of capital spend” tied to Chandler facility improvements “across a couple of different contracts.” He said that activity should settle down until the company reaches “the real heart” of the Microchip foundry services agreement. Cooper added that there will be “some significant capital spend over the next two years,” spread over time, but not so large that the company cannot manage it, and generally in line with historical annual spend. Everspin ended the quarter with $40.5 million in cash and cash equivalents, down from $44.5 million at the end of the prior quarter, and Cooper said the company remains debt-free. Operating cash flow was $0.5 million in Q1, down from $2.6 million in Q4, driven by litigation costs and increased working capital needs. Cooper said the company believes its cash position is sufficient to support capital needs related to the Microchip foundry services agreement and continued product development investment. For the second quarter of 2026, excluding any impact from the newly announced subcontractor agreement, Everspin guided to total revenue of $15.5 million to $16.5 million. The company expects GAAP results per diluted share to be a net loss of $0.12 to $0.07, and non-GAAP results ranging from breakeven to net income of $0.03 per diluted share. Cooper said the non-GAAP outlook excludes stock-based compensation and patent litigation costs. On litigation spending, Cooper said Everspin incurred $1.6 million in litigation costs in Q1 and expects it to continue “in that range for at least… the next couple of quarters,” while noting the ultimate trajectory remains uncertain. Everspin Technologies, Inc (NASDAQ: MRAM) is a semiconductor company specializing in the design, development and marketing of magnetoresistive random access memory (MRAM) solutions. Established in 2008 as a spin-out from Freescale Semiconductor, the company pioneered commercial MRAM products and continues to advance the technology through successive generations, including Toggle MRAM and spin-transfer torque (STT) MRAM. Everspin's non-volatile memory devices offer a unique combination of performance, endurance and data retention for a variety of applications. The company's product portfolio includes discrete MRAM chips, embedded MRAM IP for integration into system-on-chip (SoC) designs and companion devices that leverage MRAM's fast write speeds and low power consumption. The article "Everspin Tech Q1 Earnings Call Highlights" was originally published by MarketBeat.

CHANDLER, Ariz., April 29, 2026--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world’s leading developer and manufacturer of magnetoresistive random access memory (MRAM) persistent memory solutions, today announced preliminary unaudited financial results for the first quarter ended March 31, 2026. "Our first quarter results were driven by strength in Industrial Automation, Transportation, and Data Center applications," said Sanjeev Aggarwal, President and Chief Executive Officer. "Additionally, we have started to see a recovery in customer demand especially in Japan as inventory levels have been worked down. We are also very excited to announce a new $40 million contract with a US prime contractor to provide State of the Art (SOTA) MRAM process technology capabilities and engineering services for United States Defense Industrial Base customers." First Quarter 2026 Results Total revenue of $14.9 million, compared to $13.1 million in the first quarter of 2025. MRAM product sales, which include both Toggle and STT-MRAM revenue, of $14.1 million, compared to $11.0 million in the first quarter of 2025. Licensing, royalty, patent, and other revenue of $0.8 million, compared to $2.1 million in the first quarter of 2025. Gross margin of 52.7%, compared to 51.4% in the first quarter of 2025. GAAP operating expenses of $10.6 million, compared to $8.7 million in the first quarter of 2025. Interest and Other income, net of $2.4 million, compared to $0.8 million in the first quarter of 2025. GAAP net loss of $0.3 million, or $(0.01) per diluted share, compared to net loss of $1.2 million, or $(0.05) per diluted share, in the first quarter of 2025. Non-GAAP net income of $2.6 million, or $0.11 per diluted share, compared to non-GAAP net income of $0.4 million, or $0.02 per diluted share, in the first quarter of 2025. Cash and cash equivalents as of March 31, 2026, totaled $40.5 million. "We are pleased with our first quarter results, which came in at the high end of our expectations, driven by increasing product revenue. Our balance sheet remains strong, providing us with the necessary capital to execute our recently signed Foundry Services Agreement with Microchip, as well as continuing to invest in product development to deliver on our roadmap and enabling the Company to address opportunities that will drive future growth. We continue to prioritize strong operational execution and prudent expense management," said Bill Cooper, Everspin’s Chief Financial Officer. Business Outlook For the second quarter of 2026, Everspin expects total revenue in a range of $15.5 million to $16.5 million and GAAP net loss per share to be between ($0.12) and $(0.07). Non-GAAP net income per diluted share is anticipated to be between $0.00 and $0.03. This guidance excludes any impact from the new sub-contractor agreement announced today. A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation-related charges are impacted by the timing of employee stock transactions, the future fair market value of Everspin’s common stock, and Everspin’s future hiring and retention needs, all of which are difficult to predict and subject to constant change. These factors could be material to Everspin’s results computed in accordance with GAAP. This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as public health-related events or outbreaks, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including general market and semiconductor industry volatility, and the other risk factors described in Everspin's filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, its Quarterly Reports on Form 10-Q filed with the SEC during 2026, as well as in its subsequent filings with the SEC. Use of Non-GAAP Financial Measures Everspin supplements the reporting of its financial information determined under generally accepted accounting principles in the United States of America (GAAP) with Non-GAAP financial measures including gross profit, gross margin, operating expenses, operating income (loss), operating margin, net income (loss), and EPS which are defined as the GAAP financial measures excluding the effect of stock-based compensation and litigation costs. Everspin’s GAAP tax rate is effectively zero due to NOL carryforwards, thus a Non-GAAP tax rate is not included as a Non-GAAP financial measure. Everspin’s management and board of directors use these non-GAAP measures to understand and evaluate its operating performance and trends, to prepare and approve its annual budget and to develop short-term and long-term operating and financing plans. Accordingly, Everspin believes that these non-GAAP measures provide useful information for investors in understanding and evaluating its operating results in the same manner as its management and board of directors. These non-GAAP financial measures should be considered in addition to, not as superior to, or as a substitute for, financial measures reported in accordance with GAAP. Moreover, other companies may define these non-GAAP measures differently, which limits the usefulness of this measure for comparisons with such other companies. Everspin encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP results. Conference Call Everspin will host a conference call for analysts and investors on Wednesday, April 29, 2026, at 5:00 p.m. Eastern Time. Dial-in details: To access the call by phone, please go to this link and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The live webcast of the call will be accessible on Everspin’s website at investor.everspin.com. Approximately two hours after the conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of Everspin’s website for twelve months. About Everspin Technologies Everspin Technologies, Inc. is the world’s leading provider of magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest-performance non-volatile memory for industrial IoT, data centers and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements regarding future results that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the statements made under the caption "Business Outlook." Forward-looking statements are identified by words such as "expects" or similar expressions. These include, but are not limited to, Everspin’s future financial performance, including the outlook for second quarter 2026 results. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption "Risk Factors" in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 4, 2026, and its Quarterly Reports on Form 10-Q filed with the SEC during 2026, as well as in its subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260429957879/en/ Contacts Investor Relations: Monica Gould The Blueshirt Group T: 212-871-3927 [email protected]

Image source: The Motley Fool. Wednesday, April 29, 2026 at 5 p.m. ET President and Chief Executive Officer — Sanjeev Aggarwal Chief Financial Officer — Bill Cooper Sanjeev Aggarwal, president and chief executive officer, and Bill Cooper, chief financial officer. Before we begin the call, I would like to remind you that today's discussion may contain forward-looking statements regarding future events including, but not limited to, the company's expectations for Everspin Technologies, Inc.'s future business, financial performance and goals, customer and industry adoption of MRAM technology, successfully bringing to market and manufacture products in Everspin Technologies, Inc.'s design pipeline, and executing on its business plan. These forward-looking statements are based on estimates, judgments, current trends and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. We would encourage you to review the company's SEC filings including the annual report on Form 10-K and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in Everspin Technologies, Inc. All forward-looking statements are made as of the date of this call and, except as required by law, the company undertakes no obligation to update or alter any forward-looking statement made on this call, whether as a result of new information, future events, or otherwise. The financial results discussed today reflect the company's preliminary estimates, are based on the information available as of the date hereof, and are subject to further review by Everspin Technologies, Inc. and its external auditors. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments, and other developments arising between now and the time that the financial results for the period are finalized. Additionally, the company's press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP net income to non-GAAP net income, which provide additional details. A copy of the press release is posted on the Investor Relations section of Everspin Technologies, Inc.'s website at www.everspin.com. And now I would like to turn the call over to Everspin Technologies, Inc.'s president and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead. Sanjeev Aggarwal: Thank you, Amy, and thanks everyone for joining us on the call today. Before I discuss our first quarter results, I would like to share some exciting news. Today, after market close, we announced a new two-and-a-half-year $40 million agreement with a U.S. prime contractor. Under the agreement, Everspin Technologies, Inc. will be a subcontractor on an existing prime contract and will provide Toggle MRAM process technology capabilities and engineering services for U.S. defense industrial base customers. In addition, Everspin Technologies, Inc. will provide engineering and foundry services for U.S. Department of War, or DOW, products through its recently announced foundry services agreement with Microchip. This agreement builds on our long history of supporting military and aerospace applications where performance, reliability, longevity, and domestic production are critical. Now turning to our first quarter results. We are pleased to report results at the high end of our guidance range with revenue of $14.9 million and non-GAAP EPS of $0.11 per diluted share. Our performance this quarter was driven by strength in industrial automation, transportation, and data center applications. Industrial automation growth was driven by a recovery in customer demand, including Japan, as inventory levels have been worked down. In the transportation segment, growth was driven by the transition of design wins to production at several customers including two rail applications. One such customer is a railroad operator in Asia who is utilizing our MRAM technology for critical railway signal applications such as train axle counters. Axle counters, and by extension their components, must operate in harsh vibratory conditions which MRAM can withstand better than other memory technologies. Modern axle counters use MRAM for storing large amounts of diagnostic and maintenance data allowing for real-time monitoring such as wheel detection and predictive maintenance. Additionally, MRAM enables more robust data storage, contributing to the high safety integrity levels, SIL 4, required for axle counter systems, ensuring accurate detection and reducing false alarms. Another customer is a leading embedded computing company in Asia who chose Everspin Technologies, Inc.'s MRAM solutions for rail transit systems because they reliably preserve critical data during power loss and support unlimited erase and write cycles. In data center, growth continues to be driven by our ongoing work with IBM on the FCM4 and FCM5 modules and the redundant array of independent disks, or RAID, reference design at the top five hyperscale operators. With respect to below-the-line items, we recognized $2.1 million in other income in the first quarter and $12.8 million to date from the $14.6 million contract we have with the DoD contractor to develop a sustainment plan for our MRAM manufacturing facilities to provide continuous onshore MRAM capabilities to their aerospace and defense customers. We expect this business to begin to wind down over the coming quarters with estimated completion in 2027. Turning to some of our product development efforts. During the quarter, we formally introduced our Unisys MRAM family at Embedded World in early March. This product family represents a new generation of unified memory solutions designed to fundamentally change how embedded systems store and access code and data. Unisys delivers high bandwidth read and write speeds in a non-volatile memory device, enabling fast boot, rapid updates, and predictable performance without the trade-offs of traditional flash-based designs. Unisys will extend our MRAM roadmap to higher densities while giving customers a practical way to start with Persist today and migrate to a code-and-data MRAM architecture as soon as it is available. Everspin Technologies, Inc. will initially offer the Unisys family in densities ranging from 128 megabits to 2 gigabits, using a standard xSPI interface operating up to octal SPI at 200 megahertz. Target use cases include AI at the edge, military and aerospace, automotive, industrial, and casino gaming. Engineering samples of Unisys are expected to be available in 2026. As a reminder, the Unisys family of products will serve the high-density, stand-alone NOR flash market, which will expand our addressable market by approximately $3 billion. Our goal is to capture 5% to 10% of this market in the early years and then grow further. With respect to the high-reliability parts that we announced last quarter, customers have our Persist 64 megabit xSPI STT-MRAM devices in hand and are engaged in design activity. Additionally, we remain on track to qualify our 128 megabit and 256 megabit high-reliability parts and continue to expect them to be available in high volume in the second half of this year. Customers have engineering samples of these parts on hand as they evaluate them in their designs. Building on our existing relationship with Microchip, we recently announced a strategic manufacturing agreement with the company to expand our onshore production capacity and strengthen our long-term supply chain resiliency by creating a second domestic source of supply for our customers. Under the 10-year agreement, we will establish an MRAM line at Microchip's fab in Oregon to manufacture MRAM and TMR sensor products currently produced at our line in Chandler. We expect to ship the first products from the new line in 2027. I will now turn it over to our CFO, Bill Cooper, who will walk you through our first quarter financials and second quarter 2026 guidance. Bill? Bill Cooper: Thank you, Sanjeev. Our results reflect the consistency of our execution. During the first quarter, we delivered revenue of $14.9 million, up 14% year-over-year and toward the high end of our guidance range of $14 million to $15 million, driven by higher product sales. MRAM product sales, which include both Toggle and STT-MRAM revenue, were $14.1 million, an increase of 28% over the first quarter of the prior year and up 5% sequentially. Licensing, royalty, patent, and other revenue decreased to $0.8 million from $2.1 million in Q1 2025 due to fewer currently active projects. Our GAAP gross margin increased to 52.7% from 51.4% in 2025 due to higher capacity utilization. GAAP operating expenses were $10.6 million, up from $8.7 million in 2025, due primarily to litigation costs as well as higher compensation costs for new and existing employees and professional fees. Other income of $2.1 million was related to the strategic award we won in mid-2024 to upgrade manufacturing equipment in our existing manufacturing facility located in Chandler, Arizona. We recorded first quarter non-GAAP net income of $2.6 million, or $0.11 per diluted share, based on 23.1 million weighted average diluted shares outstanding. This was at the high end of our guidance range of non-GAAP net income of $0.07 to $0.12 per share, and compares to non-GAAP net income of $0.4 million, or $0.02 per share, in 2025. Our reported non-GAAP results exclude the impact of stock-based compensation as well as litigation expenses. Our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalents of $40.5 million, down $4 million from the $44.5 million at the end of the prior quarter. Cash flow generated from operations decreased to $0.5 million for the first quarter from $2.6 million in the fourth quarter due to the litigation costs I mentioned earlier as well as increased working capital needs. We believe our cash and cash equivalents are sufficient to meet our anticipated capital requirements to support our foundry services agreement with Microchip and continue to invest in product development to support our future roadmap and enable the company to drive growth. Turning to guidance, excluding any impact from the new subcontractor agreement that Sanjeev mentioned, we expect Q2 total revenue to be in the range of $15.5 million to $16.5 million and GAAP results per fully diluted share to be between a net loss of $0.12 to a loss of $0.07. On a non-GAAP basis, we anticipate results to be between breakeven and net income of $0.03 per fully diluted share. These non-GAAP figures exclude the impact of patent litigation costs in addition to stock-based compensation expense. In summary, we are pleased with our solid performance this quarter and remain committed to maintaining financial discipline while focusing on scaling our business and converting additional design wins to revenue. We will now open the call for questions. Operator, you may now open the line for questions. Operator: Thank you. Ladies and gentlemen, to ask a question, please press 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Neil Young with Needham and Company. Your line is open. Neil Young: Hey, everyone. Thank you for letting me ask a question. So the $40 million contract that you just announced, could you give us a shape on how you are thinking that revenue layers in, or anything you can share on the milestone payments such as how achievable you think the milestones are, what are the biggest risks to the milestones? And then, lastly, will that revenue live in the licensing, royalty, patent bucket? And I have a follow-up. Thank you. Bill Cooper: Hey, Neil. Thanks for the question. We really are not giving any guidance related to that particular subcontract agreement just yet. But, of course, we do expect it to have a significant positive impact over the next two and a half years to the financials. In terms of meeting and achieving the milestones, that was negotiated with the group involved and we are very confident in our ability to deliver on the milestones. Neil Young: Okay. And then could you maybe speak to what drove the gross margin strength in the quarter? As the STT portfolio continues to evolve, are you starting to see higher ASPs come through? And then, also, should we expect to see gross margin hold in this range or revert back to similar levels of 4Q 2025? Thank you. Bill Cooper: Good question. A strong quarter on the margins. As we have always noted, we target 50% plus in terms of gross margin. As we see lift in the top line and volume increase, we get the benefit of higher capacity utilization. The team is always looking at ways to reduce costs and improve yields, so all those things factor in. Operator: Thank you. Neil Young: Thank you. Operator: Our next question comes from the line of Richard Shannon with Craig-Hallum Capital Group. Your line is open. Richard Shannon: Hey, Sanjeev and Bill. Thanks for letting me ask some questions. I am going to follow up on this $40 million contract. A few questions here, and one to follow up from your response, Bill, about why you do not have any revenue thoughts you can give today. Is that because you are not allowed to, or because you do not know what the shape and structure and timing looks like? And then also, I want to get a sense of what kind of margin profile we should expect over the life of the contract. Bill Cooper: Good questions. I will elaborate a little bit further. The contract itself, the ink on that is just drying, and it is going to have a significant impact on the financials. We are looking at all of the various impacts. As we run through Q2, get the results, get the kickoff of the contract and all the various pieces, we will give you better guidance as we go into the end of Q2. In terms of margin, I would expect it to have a beneficial impact to margin as well. We do target the 50% plus gross margin, and we have to sort through all the pillars of that significant contract. Richard Shannon: I want to ask a follow-up on this contract in context of other activities you have or may have going on in the future. You have referenced today and in the past the $14.6 million contract for, I forget the word you used, continuity plan or something. And I think there is an RFQ out there from the U.S. government about maybe establishing 300 millimeter capacity. And then you have recently announced adding more capacity at Microchip. To what degree do all of these things interrelate? Can you tie these things together, or if they are not tied together, tell us? I would love some context. Sanjeev Aggarwal: Hi, Richard. Good question. The RFI for the 300 millimeter MRAM line is independent of the three other items you mentioned, namely the $14.6 million contract that we got in 2024, the Microchip foundry services agreement, and the new contract that we just talked about today. As far as the $14.6 million contract that we got in 2024, that is the one where we got some support from the U.S. government to improve the supply chain for MRAM, or Toggle MRAM, for the U.S. government, and that revenue is being recognized below the line. There is a lot of CapEx and supply chain robustness involved in that discussion. The Microchip Foundry Services Agreement was between Everspin Technologies, Inc. and Microchip to increase our capacity, independent of those two contracts, given the high demand we have been seeing over the last couple of quarters. This new agreement that we just signed is where we will provide technology information, a recipe, a compendium for MIL and aerospace Toggle MRAM to this U.S. prime contractor. In addition, they would have a right to second source the Everspin Technologies, Inc. Toggle MRAM for MIL-Aero applications in case Everspin Technologies, Inc. decides to exit the business—obviously, we have no intention of doing that—but we do give them the rights and all the technology and recipes associated with it in case we do exit. Under this agreement, they get access to the Microchip fab that we are bringing up to qualify their existing products on that line. There is NRE associated with getting that activity done. Finally, there is a new product that the U.S. government is planning to tape out, so the R&D for that product and the production support for that product would also be part of this contract. Richard Shannon: That helps a lot. I appreciate that. If you do not mind, I am going to throw one more question before jumping back into the queue, and that is about the guidance. It sounds like we should expect most of the sequential growth in dollar terms to come from products. How do we think about it between the STT that is mostly going to IBM versus other products within that? And then can you give us a sense of what kind of litigation spend you are expecting in the second quarter? Thanks. Bill Cooper: On the first point, we are seeing very strong product sales—up 28% year-on-year. Most of the growth from Q1 to Q2 is going to be in that product category. We are seeing solid product sales across all the various categories. On your second question, we did show the $1.6 million that we had to expend in Q1 on litigation costs. Unfortunately, litigation is expensive, and we are expecting it to continue in that range for at least the next couple of quarters, but we will see how that ultimately plays out. Richard Shannon: Okay. Appreciate that detail. I will jump off the line. Thank you. Sanjeev Aggarwal: Okay. Operator: Thank you. Ladies and gentlemen, I am showing no further questions in the queue. We did have a follow-up question come through. One moment. We have a follow-up question from the line of Richard Shannon with Craig-Hallum. The line is open. Richard Shannon: I noticed you have had a couple of quarters of above-trend CapEx numbers in the fourth quarter and now the first quarter. I could expect some of that coming from your Microchip agreement, or not, I am not sure. How should we look at that going forward? Bill Cooper: We had a unique period of capital spend related to some of the improvements in the Chandler facility, primarily across a couple of different contracts. That flurry of activity will start to settle down until we get into the heart of the foundry services agreement. Richard Shannon: This foundry services agreement—does that refer to Microchip specifically? Bill Cooper: That is right. Richard Shannon: When do we start to see that pick up? Any idea how to think about that sum total over the period of time? I assume it is at least a couple of years. Bill Cooper: There will be some significant capital spend over the next two years. It will be spread out over time—some later this year as well as early next year. In terms of overall CapEx, not so significant that we cannot manage it. It is going to be in the range of what our historical spend has been annually. Richard Shannon: Okay. Fair enough. My last question. If I took the notes right, regarding the Unisys product line, you talked about a $3 billion TAM and expecting 5% to 10% share early on. Five percent of that is $150 million in a year. Last quarter you talked about getting to a goal of $100 million within three to five years. A 5% to 10% share “early on” seems a little longer than what would fit here. Are we thinking it will take a while to get that share, or is there upside in timing to hit that $100 million total company-level goal? Sanjeev Aggarwal: Good clarification question, Richard. We have talked about this in the past. I do not think that Unisys is going to strongly contribute to the $100 million target that we have in the next three to five years. It takes about 18 to 24 months for qualification of these products at our customers. If we have samples in 2026 and production in, say, January 2027, then you basically have another 18 months before it ramps to production. It will contribute some, but not significantly, to that $100 million target. Richard Shannon: So “early on” would be after that qualification period that you said takes up to two years? Sanjeev Aggarwal: That is correct. Richard Shannon: That makes sense. Perfect. That is all for me. Thank you. Operator: I will now turn the call back over to Sanjeev for closing remarks. Sanjeev Aggarwal: I just want to say thank you everyone for joining the call today. We look forward to talking to you at the end of Q2. Thanks a lot for your time. Bye now. Operator: Ladies and gentlemen, that concludes today's conference call. 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See the 10 stocks » *Stock Advisor returns as of April 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Everspin (MRAM) Q1 2026 Earnings Transcript was originally published by The Motley Fool