Atomera Incorporated

What they do

Atomera does not design or manufacture wafers or integrated circuits. It develops and licenses proprietary process technologies, principally MST, which it says enables transistors to be made smaller with increased speed, reliability and power efficiency. It also licenses its MSTcad simulation software, which works with Synopsys TCAD tools, and offers fee-based integration engineering services through paid evaluations, joint development agreements (JDAs) or integration license agreements. Customers and partners include foundries, integrated device manufacturers, fabless semiconductor manufacturers, wafer manufacturers, epi equipment OEMs, and electronic design automation companies.

Revenue drivers

• Commercial license fees (R&D and HVM) — The preferred model is upfront license fees: an R&D license fee due on tool installation in a customer fab, with a larger high-volume manufacturing (HVM) license fee due on qualification and before customer product sales. To date, only minimal licensing revenue has been recognized.
• Royalties on MST-enabled products — Once an HVM license is granted, licensees are required to pay royalties based on the number and/or sales price of MST-enabled products sold. No royalty-bearing product shipments are described in the excerpts.
• MSTcad software licensing — Licensing of MSTcad simulation software, used with Synopsys TCAD, lets customers simulate MST effects on their products and is positioned as a lead-in to commercial license agreements.
• Fee-based integration engineering services — Paid evaluations, JDAs and integration license agreements generate service revenue as customers assess MST in their manufacturing flow; these arrangements are intended to convert into commercial licenses.

Recent performance

For the second quarter ended June 30, 2026, Atomera reported a net loss of $6.3 million, or $0.17 per basic and diluted share, versus a $5.0 million net loss, or $0.17 per share, in Q2 2025. Adjusted EBITDA was a loss of $5.0 million in Q2 2026 compared to a loss of $4.0 million a year earlier. Revenue for the June 2026 quarter was $158,000, up from $11,000 in the March 2026 quarter and $50,000 in the December 2025 quarter. The company ended June 30, 2026 with $38.4 million in cash, cash equivalents and short-term investments, up from $19.2 million of cash and cash equivalents at December 31, 2025, and 39.0 million shares outstanding. Annual revenue fell from $135,000 in 2024 to $65,000 in 2025 while annual net loss widened to $20.2 million.

Strategy

Management's stated objective is to convert evaluations, JDAs and MSTcad engagements into commercial licenses, then into high-volume manufacturing licenses that generate royalties. The preferred commercial structure is upfront license fees plus royalties on MST-enabled product sales. Recent technical emphasis includes a new approach to GaN-on-Silicon aimed at RF applications, continued work with gate-all-around (GAA) customers, and growing interest from DRAM and flash memory providers. The company funds this through its license and service arrangements and, per its risk disclosures, may need to raise additional capital.

Risks

• Minimal revenue to date — The company has only recognized minimal engineering services and licensing revenues, making the commercial value of MST and the viability of its licensing model difficult to evaluate.
• Licensees may not advance to royalties — The company states a risk that licensees or JDA customers do not advance to royalty-based manufacturing and distribution licenses.
• ST Microelectronics qualification on hold — The risk factors identify the need to advance the ST Microelectronics license agreement through the qualification phase, where it is currently on hold.
• Capital requirements — The company cites risk related to its ability to raise sufficient capital, as and when needed, to pursue further development, licensing and commercialization of MST.

Outlook

Management points to customer engagement progress across key target markets, particularly advanced logic and memory, where it says AI is creating demand for further performance improvements. It highlights a GaN-on-silicon breakthrough that it says could enable a new class of RF devices using low-cost silicon substrates instead of silicon carbide. The company also cites continued progress with GAA customers and growing interest from DRAM and flash memory providers.