GSI Technology reported second‑quarter 2026 results for the quarter ended September 30, 2025. Revenue increased 41.6% to $6.44 million, up from $4.6 million in the same period a year earlier. Gross margin improved to 54.8% from 38.6% in Q2 FY2025, while the net loss narrowed to $3.2 million from $5.5 million a year earlier. Research and development expense fell to $3.8 million, down from $4.8 million in Q2 FY2025, reflecting a shift in cost structure. In Q1 FY2026, revenue was $6.3 million, gross margin 58.1%, and net loss $2.2 million.
Management guided for Q3 FY2026 net revenues of $6.0 to $6.8 million and a gross margin of 54% to 56%. The company had previously guided for revenue of $5.9 to $6.7 million and gross margin of 56% to 58%; the actual results fell slightly below the upper end of the margin range but met revenue expectations.
The earnings release underscores the company’s strategic pivot toward its compute‑in‑memory APU platform. GSI is advancing Gemini‑II and Plato chips, and is developing a multi‑modal large‑language model with benchmarks due by December 31, 2025. The company also secured a $50 million registered direct offering after the quarter‑end to fund Gemini‑II completion and Plato chip design. In addition, the company’s APU technology has attracted interest from defense and edge AI markets, with Gemini‑II approved for prototyping by an offshore defense contractor for synthetic aperture radar applications.
Gross margin contraction from Q1 to Q2 FY2026 was primarily due to product mix shifts, while the increase in R&D spending compared to the prior quarter was driven by changes in stock‑based compensation and government SBIR funding. The company’s focus on cost control and strategic investments positions it to capture new revenue streams from high‑performance computing initiatives.
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