NVE CORP /NEW/ SEC 10-Q Report

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2025.10.22 20:13
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NVE Corp has released its Form 10-Q report for the quarter ended September 30, 2025, reporting total revenue of $6.35 million, a 6% decrease year-over-year. Gross profit fell to $4.97 million, and net income decreased to $3.31 million. Product sales comprised 96.7% of revenue, with a notable drop in defense industry sales. The company plans to invest $1-1.5 million in production expansion and anticipates a tax rate of 16-17% for fiscal 2026. Future dividends will depend on operational performance and Board approval.

NVE Corp, a leader in the development and production of spintronics and nanotechnology-based products, has released its Form 10-Q report for the quarter ended September 30, 2025. The report highlights the company's financial performance and operational activities, providing insights into its revenue streams, profitability, and future outlook.

Financial Highlights

  • Total Revenue: $6.35 million, a decrease of 6% compared to the prior-year quarter, primarily due to a 68% decrease in contract research and development revenue.
  • Gross Profit: $4.97 million, representing 78% of revenue, down from 86% in the prior-year quarter due to a less profitable product mix and increased distributor sales.
  • Income from Operations: $3.66 million, a decrease of 16.8% compared to the prior-year quarter, driven by decreased revenue and gross margin.
  • Net Income: $3.31 million, a decrease of 16.3% compared to the prior-year quarter, primarily due to decreased revenue, decreased gross margin, and an increase in the effective tax rate.
  • Net Income Per Share – Basic: $0.68, down from $0.83 in the prior-year quarter.
  • Net Income Per Share – Diluted: $0.68, down from $0.83 in the prior-year quarter.

Business Highlights

  • Revenue Segments: Product sales accounted for 96.7% of total revenue in the quarter ended September 30, 2025, with a significant increase in nondefense product sales, partially offset by a decrease in sales to the defense industry. Contract research and development revenue decreased by 68.2% compared to the previous year, reflecting fewer contracts and timing of revenue recognition.
  • Geographical Performance: The report highlights variability in defense industry sales due to procurement cycles, which can be influenced by regional demand and government contracts.
  • New Production Launches: The company expects to complete a production expansion with an additional $1,000,000 to $1,500,000 in fixed asset purchases in the last six months of the fiscal year, indicating a focus on increasing production capacity.
  • Future Outlook: The company anticipates a full-year tax rate of 16% to 17% in fiscal 2026 due to expected advanced manufacturing investment tax credits. Additionally, the company plans to fund dividends through cash provided by operating activities and proceeds from maturities of marketable securities, with future dividends subject to Board approval and operational performance.

SEC Filing: NVE CORP /NEW/ [ NVEC ] - 10-Q - Oct. 22, 2025

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