"The decrease in product sales was primarily due to continued inventory clots particularly in the distributor channels driven by weak chip demand... We have an optimistic outlook. Our end markets are improving,"
— Daniel Nelson
03Detailed Report
NVEC
NVE Corporation
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
Swipe to view all report sections
Executive Summary
NVE Corporation reported its Q2 2025 results, revealing a 5% decrease in total revenue, primarily driven by a 14% drop in product sales, which was mitigated by an impressive 3,950% rise in contract R&D revenue. Management cited ongoing challenges in the semiconductor sector due to inventory excesses and weak demand but remains cautiously optimistic as certain markets, such as the Industrial Internet of Things and electrification, are experiencing growth.
While gross profit increased 5% year-over-year to $5.81 million, contributing to a robust gross margin of 86%, net income suffered a more pronounced 15% decline compared to the prior quarter, attributed to increasing research and development (R&D) and selling, general, and administrative (SG&A) expenses. These related investments are crucial for enhancing NVE's product portfolio, especially with the introduction of innovative technologies like the ALT521-10E sensor. Investors are encouraged to monitor market dynamics and NVE's positioning amid the industry recovery.
Key Performance Indicators
Revenue
Decreasing
6.76M
QoQ: -0.36% | YoY: -5.25%
Gross Profit
Increasing
5.81M
85.98% margin
QoQ: 0.06% | YoY: 5.02%
Operating Income
Decreasing
4.40M
QoQ: 0.15% | YoY: -4.84%
Net Income
Decreasing
4.03M
QoQ: -1.74% | YoY: -14.76%
EPS
Decreasing
0.83
QoQ: -2.35% | YoY: -15.31%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Metrics
- Revenue: $6.76 million (down 5% YoY, down 0.36% QoQ)
- Gross Profit: $5.81 million (up 5% YoY)
- Gross Margin: 86% (up from 78% YoY)
- Operating Income: $4.40 million (up 0.15% QoQ)
- Net Income: $4.03 million (down 15% YoY and 1.74% QoQ)
- EPS (Diluted): $0.83
Cash Flow
- Net Cash Provided by Operating Activities: $2.13 million
- CapEx: $0.21 million (focus on ongoing investments)
- Free Cash Flow: $1.92 million
Balance Sheet Strength
- Current Ratio: 36.32 (high liquidity position)
- Cash and Cash Equivalents: $3.10 million
- Total Assets: $65.88 million
- Total Liabilities: $1.02 million (very manageable compared to equity)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.76M
-5.25%
-0.36%
Gross Profit
5.81M
5.02%
0.06%
Operating Income
4.40M
-4.84%
0.15%
Net Income
4.03M
-14.76%
-1.74%
EPS
0.83
-15.31%
-2.35%
Key Financial Ratios
Gross Profit Margin
Excellent
86.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
65.00%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
59.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
6.11%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
6.21%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
36.32
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
23.97x
P/E ratio in line with market averages
Price to Book
Premium
5.95x
Trading at premium to book value, reflects strong intangibles or growth
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.