Everspin Technologies, Inc. announced a $40 million contract with a U.S. prime contractor to deliver Toggle MRAM process‑technology capabilities and engineering services for Mil‑Aero applications. The two‑and‑a‑half‑year agreement will expand the company’s on‑shore manufacturing footprint and deepen its presence in the defense‑industrial‑base market.
In its first quarter of 2026, Everspin reported revenue of $14.9 million, up 14 % year‑over‑year from $13.1 million in Q1 2025. GAAP gross margin rose to 52.7 %, an increase from 51.4 % in the prior year, while GAAP net loss narrowed to $0.3 million. Non‑GAAP net income reached $2.6 million, up from $0.4 million in Q1 2025. Earnings per share of $0.40 beat analyst expectations of $0.01, a $0.39 or 3900 % surprise, driven by disciplined cost management and a favorable product mix.
Revenue growth was largely powered by a 28 % year‑over‑year increase in MRAM product sales, reflecting strong demand from aerospace and industrial automation customers. Industrial automation and transportation segments also recovered, offsetting a decline in licensing, royalty, patent and other revenue, which fell to $0.8 million from $2.1 million in Q1 2025.
CEO Sanjeev Aggarwal said the contract “builds on Everspin’s long history supporting U.S. DoW programs where performance, reliability, longevity and U.S. domestic production are critical.” He added that the new work “allows us to continue advancing technology to meet evolving program requirements.” Aggarwal also noted that the contract is expected to have a significant positive impact on revenue and margins, while reminding investors that the UNISYST product line will contribute to the company’s $100 million revenue target only after an 18‑24‑month qualification period.
The announcement was met with a positive market reaction, with analysts highlighting the contract as a key driver of the company’s strong earnings beat and the potential to accelerate its path toward the $100 million revenue goal.
Headwinds include litigation costs and higher compensation, which have increased operating expenses, and a decline in licensing revenue. Tailwinds are the new defense contract, continued growth in MRAM product sales, and the company’s strategy to expand on‑shore manufacturing, all of the reinforce Everspin’s competitive position in the high‑reliability memory market.
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