QuickLogic Fiscal Q2 2026 Earnings: Revenue Climbs 49% as Gross Margin Expands

QuickLogic (NASDAQ: QUIK) reported fiscal Q2 2026 revenue from continuing operations of $5.482 million, up 48.7% from $3.687 million a year earlier, while GAAP diluted EPS improved to a loss of $0.05 from a loss of $0.17. New-product revenue and an 18-percentage-point expansion in GAAP gross margin narrowed the operating loss, although a $950,000 nonrecurring gain also materially supported the GAAP bottom line.

Core earnings results

Revenue also increased 8.5% from fiscal Q1 2026. Gross profit more than doubled year over year as revenue grew considerably faster than cost of revenue, while operating expenses rose at a slower rate than sales.

The resulting operating improvement was meaningful, but QuickLogic remained unprofitable on both a GAAP and non-GAAP basis. The following figures are for the quarter ended June 28, 2026.

Revenue, gross margin and operating expenses are reported on a continuing-operations basis. The net-loss figures cover the total company, including a $5,000 loss from discontinued operations in the current quarter.

Business and revenue mix

New products generated approximately $4.7 million, up $1.7 million or 59.7% year over year, and represented 85% of total revenue. This category includes products manufactured on processes of 180 nanometers or smaller, as well as eFPGA intellectual property and related professional services.

Mature-product revenue remained approximately $0.8 million and accounted for the other 15%. The mix therefore shows that nearly all of the company’s incremental revenue came from newer products rather than its mature portfolio.

Geographically, North America supplied 88% of revenue and grew 64% year over year. Asia-Pacific revenue declined 30% and represented 8% of the total, while Europe grew 95% but remained only 4% of revenue. The regional figures indicate that the overall increase was heavily concentrated in North America.

QuickLogic also disclosed several business-development milestones, including an eFPGA feasibility-study contract, a contract to develop and qualify new packaging for its OTP discrete FPGAs, and shipments of multiple RadPro FPGA development kits. The company did not quantify the future revenue associated with these activities.

Profitability and balance sheet

Research and development spending increased to $1.556 million from $1.193 million, while selling, general and administrative expenses rose to $2.552 million from $1.962 million. GAAP operating expenses increased even though the prior-year quarter included a $300,000 impairment charge that did not recur. On a non-GAAP basis, operating expenses rose to $3.5 million from $2.5 million.

QuickLogic ended the quarter with $18.475 million in cash and cash equivalents, compared with $18.840 million at the end of fiscal 2025. Its revolving credit balance fell to $5 million from $15 million, and total current liabilities declined to $10.796 million from $21.285 million. Current and long-term notes payable totaled $2.568 million at quarter-end.

The diluted weighted-average share count increased to 18.110 million from 15.884 million a year earlier, an increase of approximately 14%. This higher share count is relevant when assessing the year-over-year improvement in per-share losses.

Margin expansion narrowed the operating loss, but a one-time gain amplified GAAP improvement

QuickLogic’s gross profit increased by $1.453 million year over year, while operating expenses rose by $648,000. That difference allowed the GAAP operating loss to narrow by $805,000, showing that the improvement was not limited to below-the-line accounting items.

However, the company also recorded a $950,000 gain from extinguishing a vendor payable. This gain reduced the GAAP net loss but was excluded from non-GAAP results as a significant nonrecurring item. After also adjusting for stock-based compensation and restructuring costs, QuickLogic’s $1.067 million non-GAAP net loss was larger than its $887,000 GAAP net loss. Investors therefore need to separate the operating improvement from the additional benefit supplied by the vendor-payable gain.

Earnings guidance

QuickLogic narrowed its full-year growth outlook to 70%-80%, although the release did not state the previous range. Management linked the outlook to its expectation of reaching non-GAAP profitability and cash-flow-positive operations during the second half of fiscal 2026.

These second-half objectives have not yet been demonstrated in reported results, as the company recorded both GAAP and non-GAAP operating losses in fiscal Q2.

Recent insider transactions

The supplied six-month insider summary reports 46,153 shares purchased through two transactions and 71,969 shares sold through 10 transactions. That represents net selling of 25,816 shares, equal to 1.6% of reported insider holdings.

The latest 10 reported records consist of nine sales and one derivative-security conversion. The values below are reported transaction values rather than share quantities, and all were identified as direct transactions.

The supplied records do not disclose the reasons for these transactions, so they do not by themselves establish insiders’ views about QuickLogic’s outlook.

Risks investors should monitor

• Losses remain despite better margins: QuickLogic continued to report GAAP and non-GAAP operating losses, leaving the second-half profitability objective dependent on further revenue growth or cost leverage.
• Part of the GAAP improvement was nonrecurring: The $950,000 vendor-payable gain materially reduced the reported net loss and should not be treated as recurring operating income.
• Revenue is concentrated: New products accounted for 85% of revenue, while North America represented 88%. Weakness in a key product program or region could therefore have an outsized effect.
• Operating costs are rising: R&D and SG&A expenses each increased by approximately 30%, which could limit bottom-line improvement if revenue or gross-margin growth slows.
• Business milestones still require conversion: The feasibility study, packaging program and development-kit shipments may support future opportunities, but QuickLogic did not quantify their revenue timing or value.

Summary

QuickLogic’s fiscal Q2 2026 results showed higher new-product revenue, substantial gross-margin expansion and a narrower operating loss. The balance sheet retained $18.5 million of cash while the revolving credit balance declined, but the company remained unprofitable and its GAAP net-loss improvement included a material nonrecurring gain. The main issues to monitor are whether new-product growth can continue, expenses can be leveraged, and management can deliver its second-half profitability and positive-cash-flow objectives.