Key Highlights

  • QuickLogic shares are trading up 6.29% at $9.89 versus a prior close of $9.30.
  • Third quarter Revenue was $5.1 million, up 153% from a year ago.
  • Fourth quarter revenue is guided to $8 million, plus or minus 10%.
  • Full-year 2026 revenue growth is guided to 72%.
  • Management expects non-GAAP profitability in the second half.

QuickLogic (NASDAQ:QUIK) is trading up 6.29% at $9.89 after management guided to a 55% sequential revenue increase in the fourth quarter. Peers are lower, with Everspin (NASDAQ:MRAM) trading down 3.20% and Pixelworks (NASDAQ:PXLW) down 6.11%, so QuickLogic is moving against its group.

Third Quarter Falls Short of Midpoint

Revenue was $5.1 million, up 153% from a year ago but down 6% from the second quarter and below the guidance midpoint. New product revenue was $4.0 million and mature product revenue was $1 million. Non-GAAP gross Margin was 41% versus 46.8% in the second quarter, hurt by unfavorable fixed-cost absorption and a larger share of research costs in cost of revenue.

Non-GAAP operating expenses were $3.3 million, and the non-GAAP net loss was $1.3 million, or $0.07 per share. Net cash was $14.2 million excluding a $5 million line of Credit drawdown.

Fourth Quarter Guide

Fourth quarter revenue is guided to $8 million, plus or minus 10%, made up of $7.3 million of new product revenue and $0.7 million of mature product revenue. Non-GAAP gross margin is guided to about 55%, plus or minus 5%, with operating expenses of about $3.2 million and non-GAAP Net Income of about $1.3 million, or $0.07 per share.

Management said about five contracts must close to reach the guide, and more than $6 million of fourth quarter revenue is expected to come from ratable contracts.

Full-Year Outlook

Full-year 2026 revenue growth is guided to 72%, with non-GAAP gross margin of 47%, plus or minus 5%, and non-GAAP operating expenses lowered to $13.3 million to $13.4 million, about 12% growth. The company expects non-GAAP profitability in the second half and Cash Flow positive operations.

New chief financial officer Jim Sullivan presented the outlook.

Analyst View

Needham maintained a Buy rating while lowering its price target. Both analysts covering the stock are bullish, with an average target of $17 and a range of $12 to $22. The stock trades in a 52-week range of $5.28 to $24.33.

Contract Closings Decide the Next Move

The fourth quarter guide leaves little room for slippage. Investors will watch whether about five contracts close in time, whether gross margin recovers from 41% toward the 55% target and whether the quarter delivers non-GAAP net income of about $1.3 million.

A miss on timing would put second half profitability in question.