"We’re pleased to report strong earnings despite continued challenges in the semiconductor industry."
— Dan Baker
03Detailed Report
NVEC
NVE Corporation
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
Swipe to view all report sections
Executive Summary
NVE Corporation (NVEC) reported a revenue decrease of 25% year-over-year (YoY) for Q3 2025, primarily driven by substantial reductions in product and contract research revenue amidst ongoing inventory glut challenges across the semiconductor industry. Despite this decline, NVE sustained an impressive gross margin of 84%, a reflection of a more profitable product mix and reduced distributor sales. Management emphasizes significant investments in research and development (R&D), allocating 17% of revenue to new product innovations, indicating a strong commitment to future growth.
Net income also fell by 27%, totaling $3.05 million for the quarter, but the focus on profitable direct sales has maintained robust operating and net margins of 58% and 60%, respectively. This performance underscores NVE's operational durability even in a contracting sector, setting a foundation for potential recovery as market conditions improve.
Key Performance Indicators
Revenue
Decreasing
5.06M
QoQ: -25.09% | YoY: -25.06%
Gross Profit
Decreasing
4.27M
84.25% margin
QoQ: -26.60% | YoY: -21.03%
Operating Income
Decreasing
2.96M
QoQ: -32.64% | YoY: -33.77%
Net Income
Decreasing
3.05M
QoQ: -24.28% | YoY: -27.15%
EPS
Decreasing
0.63
QoQ: -24.10% | YoY: -27.59%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics
- Revenue: $5.06 million (down 25% YoY, down 25% QoQ)
- Gross Profit: $4.27 million, Gross Margin: 84% (compared to 80% YoY)
- Operating Income: $2.96 million, Operating Margin: 58%
- Net Income: $3.05 million, Net Margin: 60% (down 27% YoY)
- Earnings Per Share (EPS): $0.63 (down 27.59% YoY)
The decline in revenue is attributed mainly to a 22% drop in product sales and a staggering 74% decrease in contract R&D revenue, as noted by CFO Daniel Nelson during the earnings call. This trend reflects deeper issues across the semiconductor market with decreased chip demand impacting sales significantly.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.06M
-25.06%
-25.09%
Gross Profit
4.27M
-21.03%
-26.60%
Operating Income
2.96M
-33.77%
-32.64%
Net Income
3.05M
-27.15%
-24.28%
EPS
0.63
-27.59%
-24.10%
Key Financial Ratios
Gross Profit Margin
Excellent
84.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
58.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
60.20%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
4.72%
Return on assets is acceptable but below top-tier companies
Return on Equity
Weak
4.84%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
40.30
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.02
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
32.29x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
6.25x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.