QuickLogic's Revenue Plunges 28%, Net Loss Widens Amid SensiML Sale

TL;DR

**QUIK is bleeding cash with revenue down 28% and net losses up 150%, making it a risky bet despite the SensiML divestiture.**

AI Summary

QUICKLOGIC Corp (QUIK) reported a significant decline in revenue and net income for the nine months ended September 28, 2025, compared to the same period in 2024. Revenue decreased by 28.1% from $13.974 million in 2024 to $10.041 million in 2025. The company's net loss widened substantially, from $3.536 million in the first nine months of 2024 to $8.868 million in 2025, representing a 150.8% increase in net loss. Gross profit also saw a sharp decline, falling from $8.534 million in 2024 to $2.359 million in 2025. Key business changes include the discontinuation of operations at its wholly-owned subsidiary, SensiML Corporation, in Q1 2025, with active exploration for its sale. The company faced liquidity challenges, including non-compliance with its Remaining Months Liquidity Financial Covenant with Heritage Bank, though a waiver was obtained for Q3 2025. Strategic outlook involves funding working capital, accelerating next-generation product development, and relying on new product offerings and potential capital raises to sustain operations beyond the next twelve months.

Why It Matters

QuickLogic's substantial revenue decline and widening net loss signal significant operational challenges, impacting investor confidence and potentially future stock performance. The discontinuation of SensiML operations, while aimed at streamlining, introduces uncertainty regarding asset realization and future strategic direction. For employees, this could mean further restructuring or job insecurity. Customers might face concerns about the company's long-term stability and product roadmap, especially given the cyclical nature of the semiconductor industry and intense competition in eFPGA IP and SoC markets. The non-compliance with a key financial covenant, despite a waiver, highlights underlying liquidity pressures that could affect the company's ability to invest in R&D and maintain its competitive edge.

Risk Assessment

Risk Level: high — The company's net loss from continuing operations increased significantly from $(2,984) thousand in the nine months ended September 29, 2024, to $(8,755) thousand in the nine months ended September 28, 2025. Furthermore, QUICKLOGIC was not in compliance with its Remaining Months Liquidity Financial Covenant with Heritage Bank as of September 28, 2025, indicating a precarious financial position despite receiving a waiver.

Analyst Insight

Investors should exercise extreme caution and consider divesting or avoiding QUIK stock given the substantial decline in revenue, widening net losses, and ongoing liquidity concerns. Monitor the progress of the SensiML sale and any further capital raising efforts, as these are critical for the company's short-term survival and long-term viability.

Financial Highlights

debt To Equity

0.87

revenue

$10,041,000

operating Margin

-84.0%

total Assets

$46,118,000

total Debt

$21,388,000

net Income

$(8,868,000)

eps

N/A

gross Margin

23.5%

cash Position

$17,343,000

revenue Growth

-28.1%

Revenue Breakdown

Key Numbers

• $10.041M — Revenue (Decreased from $13.974M in 2024 to $10.041M in 2025, a 28.1% decline.)
• $(8.868M) — Net Loss (Widened from $(3.536M) in 2024 to $(8.868M) in 2025, a 150.8% increase in loss.)
• $(472K) — Gross Profit (Loss) for Q3 2025 (Turned into a loss from a profit of $2.488M in Q3 2024.)
• $17.343M — Cash, Cash Equivalents and Restricted Cash (Decreased from $21.859M as of December 29, 2024.)
• $15.0M — Revolving Line of Credit (Outstanding balance as of September 28, 2025, with an interest rate of 7.75%.)
• 16,768 — Shares Outstanding (As of September 28, 2025, up from 15,336 shares as of December 29, 2024.)
• $1.5M — Net Cash Proceeds from Direct Offering (From the sale of 256 thousand shares on March 6, 2025.)
• $4.4M — Net Cash Proceeds from ATM Offering (From the sale of 713 thousand shares between February 25, 2025, and September 28, 2025.)
• 7.75% — Interest Rate (On the Revolving Facility with Heritage Bank.)
• 28.1% — Revenue Decrease (Year-over-year decline for the nine months ended September 28, 2025.)

Key Players & Entities

• QUICKLOGIC Corporation (company) — registrant
• SensiML Corporation (company) — wholly-owned subsidiary, discontinued operations
• Heritage Bank (company) — lender for revolving line of credit
• Needham & Company, LLC (company) — sales agent for ATM Offering
• SEC (regulator) — Securities and Exchange Commission
• $10.041 million (dollar_amount) — revenue for nine months ended September 28, 2025
• $8.868 million (dollar_amount) — net loss for nine months ended September 28, 2025
• $17.3 million (dollar_amount) — cash and cash equivalents as of September 28, 2025
• $15.0 million (dollar_amount) — outstanding on Revolving Facility as of September 28, 2025
• $5.93 (dollar_amount) — purchase price per share in March 6, 2025 direct offering

FAQ

Risk Factors

• Liquidity and Going Concern [high — financial]: The company faces substantial liquidity challenges, evidenced by a widened net loss of $8.868 million for the nine months ended September 28, 2025, and a decrease in cash to $17.343 million. Non-compliance with financial covenants, though waived for Q3 2025, highlights ongoing financial strain and reliance on future capital raises.
• Discontinuation of SensiML Operations [high — operational]: The discontinuation of SensiML Corporation's operations in Q1 2025 and active exploration for its sale has directly impacted revenue, contributing to the 28.1% year-over-year decline. This strategic shift introduces uncertainty regarding asset realization and future business focus.
• Declining Gross Profit [high — financial]: Gross profit for the nine months ended September 28, 2025, fell to $2.359 million from $8.534 million in the prior year, a significant decrease. The third quarter of 2025 saw a gross loss of $472K, a sharp reversal from a $2.488M profit in Q3 2024, indicating severe pressure on product margins or increased cost of revenue.
• Increased Debt and Financing Costs [medium — financial]: The company has an outstanding revolving line of credit of $15.0 million with an interest rate of 7.75%. While the revolving credit balance decreased from $18.0 million in December 2024, the overall financial structure suggests a reliance on debt financing, which could become more burdensome with declining revenues.
• Market Demand and Competition [medium — market]: The substantial revenue decline of 28.1% suggests potential weakness in market demand for QUIK's products or increased competitive pressures. The company's ability to accelerate next-generation product development and rely on new offerings is critical for future revenue generation.
• Reliance on Future Capital Raises [high — operational]: The company explicitly states reliance on potential capital raises to sustain operations beyond the next twelve months. This introduces significant execution risk, as market conditions or investor sentiment could prevent successful fundraising.

Industry Context

QuickLogic operates in the semiconductor industry, specifically focusing on embedded solutions. This sector is characterized by rapid technological advancements, intense competition, and cyclical demand. Companies often rely on innovation and strategic partnerships to maintain market share. The current economic climate may be impacting demand for specialized semiconductor solutions, as indicated by QUIK's revenue decline.

Regulatory Implications

The company's financial condition, including its liquidity challenges and covenant non-compliance, could attract scrutiny from regulators and investors. Maintaining compliance with financial reporting standards and timely disclosure of material events is crucial. The potential sale of a subsidiary also requires adherence to relevant corporate and securities laws.

What Investors Should Do

1. Monitor cash burn rate closely: Given the widening net loss and declining cash position, investors should track the company's ability to manage expenses and conserve cash.
2. Evaluate the success of new product development: The company's strategic outlook hinges on new product offerings; investors should assess the progress and market reception of these initiatives.
3. Assess the feasibility of future capital raises: The reliance on external funding introduces significant risk; investors should consider the company's ability to secure necessary capital in the current market.
4. Analyze the impact of SensiML divestiture: The outcome of the sale of SensiML will be critical in understanding the company's future operational structure and financial health.
5. Scrutinize gross margin trends: The sharp decline in gross profit and the Q3 loss highlight potential issues with pricing power or cost of goods sold that need close monitoring.

Key Dates

• 2025-03-06: Direct Offering — Raised $1.5 million in net cash proceeds from the sale of 256 thousand shares, providing a short-term liquidity boost.
• 2025-02-25 to 2025-09-28: ATM Offering — Raised $4.4 million in net cash proceeds from the sale of 713 thousand shares, contributing to cash reserves.
• 2025-Q1: Discontinuation of SensiML Operations — Marked a significant strategic shift, impacting revenue and leading to active exploration for the subsidiary's sale.
• 2025-Q3: Waiver Obtained for Financial Covenant — Addressed non-compliance with the Remaining Months Liquidity Financial Covenant with Heritage Bank, temporarily alleviating immediate liquidity concerns.

Glossary

Contract assets

Represents the company's unconditional right to receive consideration for goods or services that have been transferred to a customer. It arises when revenue is recognized before the customer has an unconditional obligation to pay. (A decrease from $2.682M to $1.396M suggests fewer long-term contracts recognized or changes in revenue recognition timing.)

Assets of business held for sale, net

Assets that management has committed to sell, which are classified as held for sale when they meet specific criteria, including being available for immediate sale and the sale being probable. (The minimal value ($10K in 2025 vs $31K in 2024) and associated liabilities of business held for sale indicate the company is actively trying to divest a non-core or underperforming asset, likely SensiML.)

Accumulated deficit

The total net losses of a company since its inception, less any net gains. It represents the cumulative loss that has not been offset by profits. (The accumulated deficit increased from $(309,396K) to $(318,264K), reflecting the widening net loss in the current period.)

Remaining Months Liquidity Financial Covenant

A debt covenant that requires a borrower to maintain a certain level of liquidity (e.g., cash) to cover a specified number of future months of operations or debt obligations. (Non-compliance with this covenant indicates potential short-term financial distress and a heightened risk of default if not addressed.)

ATM Offering

At-the-Market offering, a type of equity offering where a company sells shares directly into the open market over a period of time, typically through an underwriter. (The company utilized this to raise $4.4 million, indicating a need for ongoing capital infusion to support operations.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, QUICKLOGIC Corp has experienced a significant downturn. Revenue has fallen by 28.1% from $13.974 million to $10.041 million. The company's financial performance has deteriorated substantially, with net losses widening by 150.8% from $3.536 million to $8.868 million. Gross profit has also seen a dramatic decrease, turning into a loss in Q3 2025 from a profit in Q3 2024, indicating severe margin compression or increased cost of revenue. New risks related to liquidity and covenant compliance have emerged, while the discontinuation of SensiML operations presents a significant operational shift.

Key Financial Figures

• $0.001 — of registrant's common stock, par value $0.001 per share, outstanding . Table of Con

Filing Documents

• quicklo20250912_10q.htm (10-Q) — 1730KB
• ex_861244.htm (EX-31.1) — 15KB
• ex_861245.htm (EX-31.2) — 15KB
• ex_861246.htm (EX-32.1) — 6KB
• ex_861247.htm (EX-32.2) — 6KB
• 0001437749-25-034456.txt ( ) — 8525KB
• quik-20250928.xsd (EX-101.SCH) — 72KB
• quik-20250928_cal.xml (EX-101.CAL) — 69KB
• quik-20250928_def.xml (EX-101.DEF) — 479KB
• quik-20250928_lab.xml (EX-101.LAB) — 417KB
• quik-20250928_pre.xml (EX-101.PRE) — 518KB
• quicklo20250912_10q_htm.xml (XML) — 1585KB

- Financial Information

Part I - Financial Information 3 Item 1. Unaudited Condensed Consolidated Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets 3 Unaudited Condensed Consolidated Statements of Operations 4 Unaudited Condensed Consolidated Statements of Cash Flows 5 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity 6 Notes to Unaudited Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

- Other Information

Part II - Other Information 30 Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 3. Defaults Upon Senior Securities 30 Item 5. Other Information 30 Item 6. Exhibits 30

Signatures

Signatures 30 Table of Contents

Financial Information

PART I. Financial Information

Unaudited Condensed Consolidated Financial Statements

Item 1. Unaudited Condensed Consolidated Financial Statements QUICKLOGIC CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value amount) September 28, December 29, 2025 2024 ASSETS Current assets: Cash, cash equivalents and restricted cash $ 17,343 $ 21,859 Accounts receivable, net of allowance for credit losses of $ 0 as of September 28, 2025 and December 29, 2024 2,034 2,426 Contract assets 1,396 2,682 Note receivable, current 1,388 — Inventories, net 869 940 Prepaid expenses and other current assets 1,261 1,666 Assets of business held for sale, net 10 31 Total current assets 24,301 29,604 Property and equipment, net 16,647 15,699 Capitalized internal-use software, net 1,081 711 Right of use assets, net 540 758 Intangible assets, net 349 378 Non-marketable equity investment — 300 Inventories, non-current, net 618 718 Note receivable, non-current — 1,292 Other assets 227 117 Assets of business held for sale, net 2,355 2,356 TOTAL ASSETS $ 46,118 $ 51,933 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Revolving line of credit $ 15,000 $ 18,000 Trade payables 2,763 3,097 Accrued liabilities 952 1,587 Deferred revenue 382 444 Note payable, current 1,234 1,928 Lease liabilities, current 311 284 Liabilities of business held for sale ( 1 ) 57 Total current liabilities 20,641 25,397 Long-term liabilities: Lease liabilities, non-current 218 447 Notes payable, non-current 529 1,202 Total liabilities 21,388 27,046 Commitments and contingencies (see Note 14) Stockholders' equity: Preferred stock, $ 0.001 par value; 10,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.001 par value; 200,000 authorized; 16,768 and 15,336 shares issued and outstanding as of September 28, 2025 and December 29, 2024, respectively 17 15 Additional paid-in capital 342,977 334,268 Accumulated deficit ( 318

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