QuickLogic Expects 55% Quarterly Growth and $8 Million in Fourth-Quarter Revenue
Key Facts
QuickLogic expects revenue of about $8 million in the fourth quarter of 2026, up 55% from the third quarter, with an estimated margin of ±10%, the company said on its earnings call. The guidance implies a quarterly rebound after revenue fell 6.3% from the previous quarter to $5.1 million in the third quarter. The company expects $7.3 million of fourth-quarter revenue to come from new products, compared with $0.7 million from mature products. It also targets a non-GAAP gross margin of 55%, with a margin of ±5%. Chief Executive Brian Faith said the company expects a "strong finish to the year," and attributed the third-quarter revenue shortfall to timing rather than weak demand.
QuickLogic expects non-GAAP net income of about $1.3 million, or $0.07 per share, in the fourth quarter. The targets follow third-quarter revenue of $5.1 million, up 153.2% year over year, despite falling from the second quarter. Non-GAAP gross margin was 41% in the third quarter, compared with negative 11.9% a year earlier and 46.8% in the second quarter of 2026. Management attributed the margin shortfall against its forecast to unfavorable fixed-cost absorption and a larger-than-expected allocation of research and development expenses to cost of revenue. The third-quarter picture therefore combines strong year-over-year sales growth and a substantial margin improvement from a year earlier with quarterly declines in revenue and margin.
Faith said fourth-quarter revenue depends on closing about five contracts so they can contribute to the period's results. He said one customer expanded negotiations to include a line item for a direct-sales initiative, delaying the contract signing but potentially expanding the long-term opportunity. The company is betting that a revenue mix dominated by new products will support a rise in gross margin to about 55%, after it came in at 41% in the third quarter. It also said the timing of the next tranche of its U.S. government contract and payments related to prototype chip production could affect fourth-quarter cash flow. The financial targets disclosed are therefore tied to closing contracts and the timing of funding and payments expected during the period.
For the year, QuickLogic expects revenue growth of 72% in 2026 and non-GAAP profitability in the second half of the year. The company also expects positive full-year cash flow and a net cash balance of about $14.2 million at the end of 2026. But management said the timing of the next government tranche and payments for prototype chip production could affect fourth-quarter cash flow. The cash outlook sits alongside the target of returning to profitability, with timing remaining a factor in the period's results. The company had linked its annual outlook to revenue growth and improved performance in the second half of the year.
On products, the company announced on November 10 a six-figure design win for an eFPGA Hard IP unit within a chip for automotive and industrial use, designed on 16-nanometer technology. The design targets battery management, precision motor control and robotics applications. For its U.S. government contract, the company expects the next tranche to fund two prototype chip production runs in early 2027. It said the resulting devices could support initial production volumes through a direct-sales initiative starting in late 2027. These milestones extend beyond the fourth-quarter outlook, while the timing of funding and contracts remains part of the revenue and cash-flow path outlined by management.
In the market, QuickLogic shares closed at $8.22 in regular trading on November 10, down 2.95%, then fell a further 4.55% after the close to $7.846, according to Investing.com data. The move came on the day the company announced its results and fourth-quarter outlook. Third-quarter results, meanwhile, showed year-over-year revenue growth of 153.2%, but also revealed quarterly declines in revenue and gross margin. The company is waiting to close about five contracts so their revenue can contribute in the fourth quarter, alongside the expected tranche from its government contract. Its next announced milestones extend into early 2027, when it expects funding for two prototype production runs, and then late in the year, when initial volumes could begin through the direct-sales initiative.