Everspin Revenue Climbs 47% To $20.6 Million, But Legal Costs Push It To A $7.2 Million Loss
Litigation and a regulatory provision swamped a strong quarter, while adjusted net income doubled to $3.1 million.
Everspin Technologies, which makes MRAM memory chips that keep data when power is cut, reported third-quarter revenue of $20.6 million, up from $14.1 million a year earlier. Litigation expenses of $6.0 million and a $2.7 million regulatory provision still turned the quarter into a $7.2 million net loss, the company said Wednesday.
Growth on top, legal bills underneath
The GAAP net loss — the figure under standard accounting — was $(0.29) per share, against net income of $54,000 in the third quarter of 2025. Operating expenses rose to $18.5 million from $8.8 million, and general and administrative costs alone reached $13.0 million, from $3.7 million.
Stripping out stock-based pay, litigation costs and the regulatory provision, adjusted net income was $3.1 million, or $0.12 per diluted share, versus $1.5 million, or $0.06, a year earlier.
Gross margin held at 51.4%, against 51.3% a year ago. Revenue rose 10% from the second quarter, when it was $18.7 million.
Chips and licensing both grew
MRAM product sales, covering Toggle and spin-transfer torque chips, reached $16.9 million from $12.7 million. Licensing, royalty, engineering services and other revenue rose to $3.7 million from $1.4 million.
CEO Sanjeev Aggarwal said growth was led by industrial automation, data center, medical and energy management customers. CFO Bill Cooper called it "another quarter of record revenue at the high end of our expectations" and said the company is balancing technology investment with expense management "including ongoing litigation costs."
Everspin sells MRAM for industrial, medical, automotive, aerospace and data center uses, and also earns money from licensing and manufacturing services at its Chandler, Arizona facility.
Cash and the fourth-quarter outlook
Cash and equivalents stood at $43.0 million on September 30, against $44.5 million at the end of 2025. For the first nine months, operating activities provided $1.6 million in cash, while purchases of property and equipment were $7.1 million.
For the fourth quarter, Everspin expects revenue of $21.5 million to $22.5 million and a GAAP loss of $0.08 to $0.13 per share. It expects adjusted earnings of $0.13 to $0.18 per share.
Management hosts its earnings call at 5:00 p.m. Eastern on Wednesday.
