Oct 28, 2026 earnings call — Record revenue and MRAM product growth
Everspin reported record revenue of $20.6 million and non-GAAP EPS of $0.12.
Revenue $0.0B (est $0.0B) · EPS $-0.29 (est $-0.04)
Key quotes
"This growth was driven by strength in Industrial Automation, Data Center, Medical and Energy Management applications."
"We remain on schedule with our goal of delivering first qualified silicon for our Toggle and sensor products by the second half of 2027 and STT products by the first half of 2028."
"To this end, Everspin led the effort to form a LPDDR persistent memory task group at JEDEC, the standards-setting organization for the semiconductor industry, during their August committee meeting and our VP of Corporate Strategy, Steffen Hellmold, is serving as the Task Group Chair."
Analyst Q&A 4
litigation costs and Europe data center wins
Q (Neil Young · Needham & Company): The analyst asked what litigation cost assumptions are in the Q4 '26 guide and how OpEx may trend next year. He also asked for more detail on the new data center wins in Europe.
A: Management said litigation costs rose in Q3 and Q4 will still have fairly substantial costs but should be slightly lower than Q3. They expect the matter to go to the ALJ at the end of this year and litigation expenses should reduce significantly in 2027. For the data center wins, the RAID storage configuration is journal memory with hyperscalers like Google, Amazon and NXP, and European shipments were mostly energy management applications that moved from design wins to production this quarter.
"And then as we move and look forward into 2027, those litigation expenses should reduce significantly." — William Cooper (CFO)
design wins and market upside
Q (Jack Vander Aarde · Maxim Group): He asked whether design wins are up this year and how big those opportunities are. He also asked which end markets show the most upside and about the margin profile of the new licensing/engineering revenue.
A: Management said they report annual design wins in the 10-K and that product revenue growth shows how many design wins have moved into production; they do not have a specific number but said design wins are increasing. They highlighted low Earth orbit satellites in aerospace and defense and strong traction in data center, followed by industrial automation in Japan and Europe. On licensing and engineering revenue, management said this is a high-margin area and that margins can be in the 70%, 80%, up to 90% range depending on the mix.
"So you can kind of think of it in terms of the 70%, 80%, up to 90% range." — William Cooper (CFO)
product margins, export fine, NOR Flash shift
Q (Richard Shannon · Craig-Hallum Capital Group): He asked why product gross margins declined and what the manufacturing costs were. He also asked what the regulatory provision is and how MRAM fits as a replacement for NOR Flash, including whether that replacement is in the Q4 guide and any quantification.
A: Management said product margins were a few points lower due to product headwinds from materials and services costs, and they have instituted a price increase in Q4; those headwinds are confined to the product side. They explained the regulatory provision is for a fine related to export controls from BIS and that they took the provision anticipating settling the fine, though it is not settled yet. On NOR Flash, management said fabs are converting capacity to DRAM so distributors are asking for MRAM replacements, they are seeing traction and some Q3 revenue from that, they expect the UNISYST prototype in Q1 of '27 and follow-on later in the year, they do not think distributor-driven replacement is material yet but it could become significant in Q4 and Q1, and that this is baked into the Q4 guide; they typically do not quantify the exact amount and will follow up.
"So on that one, we actually have a fine that's related to export controls from BIS, a government agency within the Department of Commerce." — William Cooper (CFO)
CXL demo, standards timeline, medical market
Q (Joshua Sullivan · JonesTrading): He asked how the CXL MRAM demo was received and whether customers showed interest. He also asked the JEDEC/standards timeline and why management highlighted the medical market now.
A: Management said the CXL demo went very well with visitors all day for 2 days, several repeat visitors, and follow-on discussions to identify use cases; they hope to identify something in Q4 or Q1. On standards, they said JEDEC work typically takes 18 to 24 months, expect agreement with participants in 12 to 15 months, then a quarter to publish the spec, start designs early next year, samples by the end of '28 and early revenue in '29. They highlighted medical because they saw a significant uptick in product revenue there, with new design wins and more pull from customers.
"Yes, the demo at CXL went actually very well." — Sanjeev Aggarwal (CEO)