QuickLogic Corporation (QUIK) | The Buildout — AI Infrastructure
The Verdict
QuickLogic is a fabless semiconductor company that designs programmable logic technologies: eFPGA IP embedded into other companies' ASICs and SoCs, specialized FPGAs such as RadPro, and an emerging storefront chiplet model. It connects to the AI-infrastructure buildout mostly through advanced-node foundry and chiplet-interoperability work; the source material records no disclosed AI revenue or AI-specific end-markets.
| Market Cap | — |
| Revenue (TTM) | $14M |
| Revenue Growth | −21.2% |
| EBITDA Margin (TTM) | -38.6% |
| Net Cash | $3M |
| Earnings Beats | 2 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Management claims QuickLogic is the first and only company to offer eFPGA Hard IP for Intel 18A; four Intel 18A contracts total nearly $2 million with a fifth mid-six-figure contract expected during 2026.
- The 10-Q discloses $9.5 million of remaining unsatisfied performance obligations expected to be recognized by Q4 2026.
- Q1 FY2026 new product revenue was $4.3 million, up 14.2% y/y and 50.7% q/q, driven by IP contracts, RadPro dev kits, and a new DIB award.
- Two of three 2026 MPW tape-outs are fully covered by customer contracts already booked; the third is at least partially covered.
- Full-year guidance calls for 50–100% revenue growth, ~57% non-GAAP gross margin, and first full-year non-GAAP profitability with positive cash flow.
What We’re Watching
- Large commercial Intel 18A eFPGA IP award has slipped from late Q2 to Q3 FY2026; value is described as several million dollars.
- FY2026 gross margin target of ~57% compares with Q2 guide of ~42% ±5%; CFO said if it comes at 55, "nobody should shoot at me with arrows."
- Company raised ~$6.4M via ATM in Q2 after prior language suggested no further sales; it now says no further ATM sales for the balance of FY2026.
- Customer "A" remained 70% of Q1 FY2026 revenue; diversification from new DIB/commercial programs has not yet shown in the mix.
Thesis is intact but execution is tightening. Management reaffirmed the full-year growth and profit framework and the delayed Q1 contract was finalized the week before the call and announced the next day as a $2.7 million deal, but the commercial Intel 18A award slipped to Q3, gross-margin recovery is back-loaded, and the ATM raise pattern needs monitoring. The key open question is whether the second-half contract and mix assumptions actually land.
Earnings
QuickLogic reported Q1 FY2026 revenue of $5.1 million, up 16.5% y/y and 35.3% sequentially, with non-GAAP gross margin of 39.6% — below the 45% ±5% outlook — and a non-GAAP net loss of $1.3 million, or $0.08 per share. New product revenue was $4.3 million; only $86,000 of that was hardware, with the balance eFPGA IP and professional services. Revenue came in $450,000 below guidance midpoint because a seven-figure contract slipped past quarter-end and was finalized the week before the call.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $5M | $4M | $4M | +18.6% |
| Gross margin | 36.5% | 18.1% | 43.4% | -690bps |
| EBITDA | −$0M | −$2M | −$1M | −50.0% |
| EPS | $-0.13 | $-0.37 | $-0.14 | −12.6% |
| New product revenue | $4.3M | n/a | $3.7M | +14.2% |
Revenue was $450 thousand below the midpoint of our guidance. Due to a delay in the award of a certain contract that we finalized last week.— Elias N. Nader, SVP and Chief Financial Officer, May 12, 2026
Management tone: Management framed the revenue miss as a timing issue rather than a demand issue, directly acknowledged the delayed contract and gross-margin shortfall, and gave specific contract milestones. It declined to share details on the sensitive U.S. government rad-hard program, saying it was comfortable with execution.
Management Guidance
For Q2 FY2026, management guided revenue to $6 million ±10%, new product revenue to $5.2 million, mature product revenue to $800,000, non-GAAP gross margin to ~42% ±5%, non-GAAP opex to $3.3 million ±5%, and net loss to ~$800,000, or ~$0.04 per share. For full-year FY2026, management reaffirmed 50–100% revenue growth, ~57% non-GAAP gross margin, ~$13.5 million non-GAAP opex, ~$4 million mature product revenue, non-GAAP profitability, and positive cash flow; the CFO added that 55% gross margin would still be acceptable.
Trajectory
Revenue is recovering off a low base: Q3 FY2025 printed $2.0 million, Q4 FY2025 rose to $3.7 million, and Q1 FY2026 reached $5.1 million, up 37.8% sequentially. Gross margin expanded from 18.1% in Q4 FY2025 to 36.5% in Q1 FY2026, though the quarter was still pressured by inventory reserves. The forward path is second-half-weighted, anchored by $9.5 million of off-balance-sheet performance obligations expected recognized by Q4 2026 and by the timing of the Intel 18A and DIB awards.
The Model
The model projects FY+1 revenue of $24.0 million and EBITDA of $2 million (10.3% EBITDA margin), rising to FY+2 revenue of $33.0 million and EBITDA of $7 million (21.5% EBITDA margin). The near-term path rests on the $9.5 million of performance obligations expected recognized by Q4 2026 and on Intel 18A contract awards; FY+2 assumes RadPro and storefront convert from evaluation into production.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $14M | $24M | $33M |
| YoY Growth | — | +75.2% | +37.5% |
| EBITDA | −$6M | $2M | $7M |
| EBITDA Margin | -44.5% | 10.3% | 21.5% |
Projections are the median of 5 independent model runs. The model’s revenue sits 17.4% above analyst consensus.
For Q2 FY2026, management guided revenue to $6 million ±10%, new product revenue to $5.2 million, mature product revenue to $800,000, non-GAAP gross margin to ~42% ±5%, non-GAAP opex to $3.3 million ±5%, and net loss to ~$800,000, or ~$0.04 per share. For full-year FY2026, management reaffirmed 50–100% revenue growth, ~57% non-GAAP gross margin, ~$13.5 million non-GAAP opex, ~$4 million mature product revenue, non-GAAP profitability, and positive cash flow; the CFO added that 55% gross margin would still be acceptable.
What Could Go Right — and Wrong
- The Q3 commercial Intel 18A eFPGA Hard IP contract awards at several million dollars, extending the Intel 18A franchise beyond the primary DIB customer.
- Intel 18A test chip characterization data is strong enough to accelerate production contract wins.
- All three 2026 MPW tape-outs complete and storefront device revenue ramps at mid-to-high-60s gross margin, making the business more predictable.
- RadPro dev-kit interest converts into end-of-2026 design-in feedback and 2027 programs of record.
- The U.S. government rad-hard follow-on contract lands by year-end, extending program revenue into 2027.
- The commercial Intel 18A award slips again or scopes smaller, removing the largest lever to the upper half of guidance.
- Intel 18A test chip data disappoints, delaying production wins.
- The second-half gross-margin mix shift fails to materialize; the full-year ~57% target is already softened by the CFO's 55% comment.
- Customer "A" revenue declines before replacement programs convert, exposing the 70% concentration.
- Another ATM equity sale occurs despite the stated no-further-ATM outlook, adding dilution.
Looking Ahead
The next twelve months are about converting a small number of large contracts and evaluation milestones: a Q3 commercial Intel 18A award, three 2026 MPW tape-outs, the H2 ASIC test chip tape-out, a GF 12LP evaluation kit late in 2026, and a U.S. government follow-on expected by year-end. RadPro meaningful design-in revenue appears to be a 2027 event, and the Idaho Scientific/GD tape-out is anticipated next year.
- Q2 FY2026Q2 results and 18A test chip — Tests $6M ±10% revenue and ~42% GM guide; first Intel 18A allocation.
- Q3 FY2026Commercial Intel 18A award — Several-million-dollar contract; previously expected late Q2.
- During 2026Fifth Intel 18A contract — Mid-six-figure booking from existing DIB customer.
- During 2026Three MPW tape-outs — Two fully customer-funded; third at least partially covered.
- H2 2026Fourth 18A test chip tape-out — ASIC test chip tape-out targeted for second half.
- End of 2026U.S. government follow-on — Expected rad-hard contract to extend work into 2027.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $20M | $14M | $14M | -30.8% |
| Gross Margin | 59.3% | 16.0% | 20.9% | 4,332bps |
| EBITDA | $0M | −$6M | −$77M | -6200.0% |
| EBITDA Margin | 0.5% | -44.5% | -38.6% | 4,503bps |
| Net Income | −$4M | −$15M | −$15M | -282.1% |
| Free Cash Flow | −$6M | −$7M | −$82M | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)20.9%
- EBITDA Margin (TTM)-38.6%
- Net Margin (TTM)-102.8%
- ROIC-42.4%
- SBC / Revenue22.1%
The Company
QuickLogic is a fabless semiconductor company that develops programmable logic technologies: eFPGA IP that other chipmakers embed into ASICs and SoCs, specialized FPGAs such as RadPro, and an emerging storefront chiplet model. Q1 FY2026 revenue was $5.1 million, with new products at $4.3 million — of which only $86,000 was hardware and the balance was eFPGA IP and professional services.
The company is asset-light: it operates a 24,164-square-foot principal facility in San Jose that includes administrative, R&D, and final test, plus sales offices in London and Taipei. It is fabless and depends on third-party foundries and assembly/test providers, with each hardware product generally fabricated, assembled, and programmed by a single supplier.
Business Segments
Competitive Landscape
The 10-K names Lattice Semiconductor, Microchip Technology, AMD, and Intel as competitors. Intel is both a foundry partner on Intel 18A and a larger competitor in programmable logic and ASICs; management describes QuickLogic as the first and only company to offer eFPGA Hard IP for Intel 18A.
- Lattice SemiconductorNamed in the 10-K as a competitor.
- Microchip Technology / MicrosemiNamed in the 10-K; Microchip acquired Microsemi.
- Advanced Micro Devices / XilinxNamed in the 10-K; AMD acquired Xilinx.
- Intel / AlteraNamed in the 10-K; foundry partner on Intel 18A and competitor in programmable logic.
Supply Chain
QuickLogic sits between third-party foundries/assembly test and specialized defense, government, and industrial customers. The supplied neighbor read-through does not record a supplier or competitor naming QuickLogic by name.
More on QUIK: Earnings recap