Summary of QuickLogic Corporation Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $3.7 million, down 35% year-over-year (YoY) and up 84% sequentially from Q3 2025.

New Product Revenue: $2.8 million, down 39% YoY but up 199% from Q3 2025.

Mature Product Revenue: $0.9 million, down from $1 million YoY and $1.1 million QoQ.

Non-GAAP Gross Margin: 20.8%, impacted by inventory reserves and unexpected professional services costs.

Non-GAAP Operating Expenses: Approximately $3.5 million, exceeding guidance due to executive incentives.

Net Loss: $2.9 million ($0.17 per share), compared to a profit of $0.6 million ($0.04 per share) in Q4 2024.

Cash Position: $18.8 million at quarter-end, up from $17.3 million in Q3 2025.

2Strategic Updates and Business Highlights

Awarded a $13 million tranche for a U.S. government contract, with revenue recognition starting in Q1 2026.

Development of a strategic radiation hard FPGA (SRH FPGA) test chip, with strong demand indicated by orders for development kits.

Expansion of the storefront business model anticipated to contribute significantly to revenue starting in 2026.

Ongoing negotiations for large contracts related to high-density eFPGA Hard IP cores.

Successful completion of multiple contracts with defense industrial base (DIB) customers, including a $1.1 million contract for eFPGA Hard IP.

3Forward Guidance and Outlook

Q1 2026 Revenue Guidance: $5.5 million (±10%), with expectations of $4.5 million from new products and $1 million from mature products.

Full Year 2026 Revenue Forecast: Anticipating 50% to 100% growth, driven by government contracts and new product introductions.

Gross Margin Expectations: Projected at approximately 45% for Q1, with an anticipated increase to 57% for the full year.

Operating Expenses: Expected to be around $3.2 million for Q1, with a full-year estimate of $13.5 million.

4Bad News, Challenges, or Points of Concern

Revenue Decline: Significant drop in Q4 revenue YoY due to contract delays and lower-than-expected market acceptance of new products.

Impairment Charge: A large impairment charge related to SensiML, reflecting challenges in divesting the asset.

Dependence on Government Contracts: Revenue growth heavily reliant on the timing and funding of government contracts, which introduces uncertainty.

Competitive Pressures: While QuickLogic is well-positioned in the rad-hard FPGA market, competition exists from established players in the FPGA space, and the company must navigate potential challenges in the eFPGA IP market.

5Notable Q&A Insights

Revenue Growth Breakdown: Management indicated that the expected revenue growth includes contributions from defense contracts and commercial opportunities, with a focus on high-density eFPGA cores.

Contract Delays: Some anticipated contracts have been pushed into 2026, impacting revenue timing but not overall expectations for growth.

Chiplet Opportunities: QuickLogic is exploring chiplet applications in defense and cybersecurity, with a focus on programmability and adaptability to changing threats.

Market Demand: The company is optimistic about the demand for its rad-hard solutions, with several major programs in the pipeline, although the exact number of bids remains confidential. Overall, QuickLogic is navigating a challenging environment with a focus on strategic growth through government contracts and innovative product development, while also addressing operational hurdles and competitive dynamics.