QuickLogic Corporation reported fiscal third‑quarter 2025 results that saw total revenue fall 51.8% year‑over‑year to $2.0 million, a 45.0% decline from the $3.7 million earned in Q2 2025. The company posted a GAAP net loss of $4.0 million, or $0.24 per share, and a non‑GAAP net loss of $3.2 million, or $0.19 per share. Gross margin slipped to a negative 23.3% GAAP and a negative 11.9% non‑GAAP, reflecting a sharp contraction in revenue and the impact of cost absorption. The operating expense total of $3.5 million was driven largely by research and development and selling, general and administrative costs.
New product revenue plunged 72.6% year‑over‑year to $0.6 million, while mature product revenue grew 67.3% from $0.7 million in Q3 2024 to $1.1 million in Q3 2025. The decline in new product sales is attributed to a slowdown in demand for the company’s flagship programmable logic devices, which have been hit by competitive pressure and a broader semiconductor slowdown. In contrast, mature product revenue benefited from a 30% increase in sales of legacy ASICs and support services, driven by a few large, long‑term contracts that offset the new‑product shortfall.
Margin compression is largely driven by the allocation of $300,000 of R&D expenses to cost of goods sold and the unfavorable absorption of fixed costs as revenue shrank. With revenue halved, the company’s fixed manufacturing and support costs were spread over a smaller top line, pushing gross margin into negative territory. The negative gross margin signals that QuickLogic is still investing heavily in product development and that its current revenue base is insufficient to cover the cost structure, a short‑term headwind that management acknowledges will be mitigated as new contracts mature.
Management reiterated that a revenue rebound is expected in Q4 2025, with guidance of $3.5 million to $6 million for the quarter. CEO Brian Faith noted that the company is on track to secure a $1 million eFPGA hard‑IP contract for a high‑performance data‑center ASIC, with delivery slated for Q4. Faith also highlighted progress on the Strategic Radiation‑Hardened (SRH) FPGA program, stating that the test‑chip investment is generating positive market response and could open new defense‑sector opportunities. The company remains confident that it will achieve non‑GAAP profitability and positive cash flow for the full year 2025.
Analysts had forecast revenue of $2.1 million and a non‑GAAP EPS of –$0.21. QuickLogic’s actual revenue missed the consensus by $0.1 million, while the non‑GAAP EPS beat expectations by $0.02, a 9.5% improvement. The revenue miss was the primary driver of a 0.83% decline in the company’s after‑hours trading, as investors reacted to the shortfall relative to analyst expectations.
Looking ahead, QuickLogic’s strategic focus on SRH FPGA and eFPGA IP positions it for long‑term growth in defense and commercial data‑center markets. The company’s management believes that the upcoming Q4 rebound, coupled with the anticipated contract wins, will restore profitability and set the stage for a “hundreds of millions” of revenue in 2026. However, the current negative margins and reliance on new‑product sales remain significant risks that could delay the turnaround if market conditions do not improve.
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