QuickLogic (QUIK) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue was significantly below expectations due to contract delays, but major milestones were achieved, including expansion of the U.S. SRH FPGA government program with the contract ceiling raised to $89 million and a $13 million tranche secured, positioning the company for strong growth in 2026.

• Achieved multiple new commercial eFPGA Hard IP design wins, including a high-performance data center ASIC, and entered the hardware cybersecurity market via partnership with Idaho Scientific.

• Strategic investments in SRH FPGA test chips and architectural enhancements have expanded addressable markets and set the stage for future contract wins.

• Advanced presence in space and high-reliability computing with university adoption of eFPGA IP.

• The company forecasts nearly 50% sequential revenue growth in Q1 2026 and expects 50%-100% revenue growth for the full year.

Financial highlights

• Q4 2025 revenue was $3.7 million, down 34.2% year-over-year but up 84% sequentially from Q3.

• New product revenue in Q4 was $2.8 million, down 38.5% year-over-year, but up 199% sequentially, accounting for 76% of Q4 revenue.

• Non-GAAP gross margin in Q4 was 20.8%, impacted by inventory reserves and higher professional services costs.

• Q4 non-GAAP net loss was $2.9 million ($0.17/share), compared to net income of $0.6 million ($0.04/share) in Q4 2024.

• Cash and equivalents at year-end 2025 were $18.8 million, including $15 million from a credit facility.

Outlook and guidance

• Q1 2026 revenue guidance is $5.5 million ±10%, with $4.5 million from new products and $1 million from mature products.

• Full-year 2026 mature product revenue is expected to be about $4 million.

• Q1 non-GAAP gross margin expected at 45% ±5%; full-year modeled at 57%.

• Q1 non-GAAP operating expenses forecasted at $3.2 million ±5%; full-year OpEx expected to grow 14% to $13.5 million.

• Cash flow and net income expected to turn positive in the second half of 2026.

• Management expects significant revenue growth in 2026, supported by expanded government contracts and new design wins.