"We're pleased to report strong earnings and cash flow despite a challenging industry environment..." - Daniel Baker, CEO
— Daniel Baker
03Detailed Report
NVEC
NVE Corporation
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
NVE Corporation reported its Q1 2025 results with total revenue of $6.78 million, down 23% year-over-year, reflecting the ongoing challenges in the semiconductor market. Despite the revenue decline, the company achieved a gross profit margin of 86% and net income of approximately $4.10 million, demonstrating strong operational efficiency. Management highlighted a favorable shift in product mix and direct sales strategy, which contributed to improved profitability metrics. The outlook remains cautiously optimistic, with indications of a recovery in the semiconductor sector and continued investment in research and development, suggesting potential future growth.
Key Performance Indicators
Revenue
Decreasing
6.78M
QoQ: -4.24% | YoY: -23.19%
Gross Profit
Decreasing
5.81M
85.62% margin
QoQ: 8.65% | YoY: -13.98%
Operating Income
Decreasing
4.39M
QoQ: 8.09% | YoY: -18.24%
Net Income
Decreasing
4.10M
QoQ: 7.46% | YoY: -6.95%
EPS
Decreasing
0.85
QoQ: 7.59% | YoY: -6.59%
Revenue Trend
Margin Analysis
Financial Highlights
In Q1 2025, NVE reported a revenue of $6.78 million, down 23% YoY. The gross profit margin improved to 86%, up from 77% in Q1 2024, driven by a more profitable product mix. Operating income was $4.39 million, yielding an operating margin of 65%. Net income saw a minor decrease of 7% YoY to approximately $4.10 million, but the net income margin improved slightly to 60%. The effective tax rate decreased to 16% from 24%, further supporting net income performance. Year-over-year comparisons reveal a significant shift in revenue sources, with R&D contract revenue rising by 28% amid a 24% decrease in product sales due to high inventory levels in distribution channels. This indicates a broadening of revenue streams amidst challenging market conditions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.78M
-23.19%
-4.24%
Gross Profit
5.81M
-13.98%
8.65%
Operating Income
4.39M
-18.24%
8.09%
Net Income
4.10M
-6.95%
7.46%
EPS
0.85
-6.59%
7.59%
Key Financial Ratios
Gross Profit Margin
Excellent
85.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
64.70%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
60.40%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
6.14%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
6.32%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
18.58
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
21.32x
P/E ratio in line with market averages
Price to Book
Premium
5.39x
Trading at premium to book value, reflects strong intangibles or growth
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