Everspin Q2 Revenue Jumps 42% but Litigation Costs Widen Loss; $80M in New Contracts Secured
MRAM has more than doubled off its 52-week low of $5.759.
Summary
Everspin's Q2 revenue grew 42% to $18.7M, but a patent lawsuit drove a $3.6M net loss. The company secured over $80M in new contracts, extending revenue visibility through 2028.
Key Events · Earnings and Guidance · MRAM
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Revenue Surges 42%
Q2 2026 revenue reached $18.7M, up from $13.2M a year ago, driven by a 38% increase in product sales and a 62% jump in licensing and engineering services.
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Litigation Costs Widen Loss
Net loss expanded to $3.6M from $0.7M, primarily due to $4.0M in legal expenses related to a patent infringement lawsuit filed by Avalanche Technology. Excluding these costs, adjusted net income was $2.9M.
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$80M+ in New Contracts Secured
Everspin signed a 10-year foundry services agreement with Microchip Technology and a $40M IDIQ subcontract with Amentum Services. Additionally, two engineering services agreements totaling $40.3M were executed, with $37.0M in revenue to be recognized through 2028.
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Gross Margin Improves
Gross margin expanded to 53.9% from 51.3% a year ago, benefiting from a higher mix of engineering services revenue.
Analysis · MRAM · Manufacturing
Strong top-line momentum defined Everspin's second quarter, with revenue climbing 42% year-over-year to $18.7 million on the back of higher product shipments and fresh engineering services. Gross margin expanded to 53.9%, a reflection of a more favorable revenue mix. The bottom line, however, swung to a net loss of $3.6 million from a $0.7 million loss a year ago, almost entirely because of a $4.0 million spike in legal fees tied to a patent infringement suit brought by Avalanche Technology. Two major new agreements were also disclosed: a 10-year foundry services deal with Microchip Technology aimed at securing domestic manufacturing capacity, and a $40 million government subcontract to strengthen MRAM production resiliency. Together with $40.3 million in new engineering services agreements, these contracts provide substantial revenue visibility through 2028. The balance sheet remains solid with $43.9 million in cash, though operating cash flow was a modest $0.7 million for the half. The litigation overhang and the sharp increase in G&A expenses are the key risks to watch.
At the time of this filing, MRAM was trading at $15.90 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $378.4M. The 52-week trading range was $5.76 to $51.50. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.