QuickLogic Corporation

What they do

QuickLogic develops embedded FPGA (eFPGA) hard IP that semiconductor companies license to integrate programmable logic into their ASICs and SoCs, along with discrete FPGA devices and associated design tools. It is fabless, relying on third-party foundries and assembly and test partners, and generates revenue from IP licensing, professional engineering services, royalties on customer production volumes, and silicon product sales. Product lines include EOS, ArcticLink III, PolarPro 3, PolarPro II, PolarPro, Eclipse II, PASIC 3, and QuickRAM, plus Australis, its automated eFPGA IP generator. Its IP is developed across process nodes from 350nm to Intel 18A.

Revenue drivers

• eFPGA IP and professional services — Roughly $9.5 million of the $10.5 million in fiscal 2025 new product revenue came from eFPGA IP, mostly professional engineering services tied to customer integration engagements, versus about $13.1 million in fiscal 2024.
• New product silicon — New product revenue from continuing operations was $10.5 million in fiscal 2025, down $5.2 million from fiscal 2024, and covers EOS, ArcticLink III, and related platforms.
• Mature products — Mature products revenue from continuing operations was $3.3 million in fiscal 2025, down $0.7 million year over year, comprising older FPGA families such as PASIC 3 and QuickRAM plus programming hardware and design software.
• Radiation-hardened and antifuse FPGA programs — The company ships RadPro FPGA dev kits and supports government-sponsored trusted microelectronics and radiation-tolerant programmable logic initiatives, with recent contract awards for OTP discrete FPGA packaging and an eFPGA architectural license feasibility study.

Recent performance

Second quarter fiscal 2026 total revenue from continuing operations was $5.5 million, up 48.7% year over year and 8.5% sequentially. New product revenue was approximately $4.7 million, up 59.7% year over year, while mature product revenue was flat at $0.8 million. GAAP gross margin from continuing operations rose to 43.9% from 25.9% a year earlier, and non-GAAP gross margin was 46.8%. GAAP net loss narrowed to $0.9 million, or $0.05 per share, from a $2.7 million loss, or $0.17 per share, in the year-ago quarter. Full fiscal 2025 revenue was $13.8 million with a net loss of $14.8 million, and operating cash flow was negative $3.3 million.

Strategy

Management's stated growth strategy centers on expanding adoption of eFPGA IP, continuing development of programmable logic semiconductor devices, and supporting customers integrating programmable logic into custom silicon and mission-critical systems. The company invests in radiation-hardened, antifuse, and ruggedized programmable logic for aerospace, defense, and industrial applications, and supports government-sponsored trusted microelectronics programs. It continues ecosystem collaboration with semiconductor IP providers, design services firms, foundries, and assembly and test partners. QuickLogic's automated Australis IP generator is positioned to make eFPGA licensing scalable with limited ongoing development involvement.

Risks

• Recurring losses and funding needs — QuickLogic has posted net losses in past years, expects losses in at least some 2026 quarters, and states it may need strategic divestitures or debt or equity sales if cash flow is insufficient.
• Revenue concentration and volatility — Fiscal 2025 eFPGA IP revenue of about $9.5 million was largely professional engineering services, which fell from roughly $13.1 million in fiscal 2024 and can fluctuate with the timing of customer engagements.
• Supply chain disruption — The company states it continues to experience increased product and logistics costs and supply constraints from the worldwide semiconductor shortage, affecting its ability to meet some customer demand.
• Fabless manufacturing dependence — QuickLogic relies on third-party foundries and assembly and test providers for fabrication and packaging, including work tied to certain U.S.-operated manufacturing environments.

Outlook

Management narrowed its full-year 2026 growth outlook to a range of 70% to 80% and said it is modeling non-GAAP profitability and cash flow positive operations for the second half of 2026. CEO Brian Faith said 2026 is shaping up to be a very successful year for QuickLogic. The company expects to continue investing in eFPGA IP, radiation-hardened and antifuse FPGA products, and customer integration engagements.