Atomera Incorporated (ATOM) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call revealed a mixed outlook. While there are promising advancements in technology and partnerships, the financial performance showed increased losses, and there were delays in key projects. The Q&A session highlighted uncertainties, especially with STMicro's decision and lack of clear timelines for transformative projects. The financial health appears strained with rising expenses, and cash reserves are decreasing. These factors, combined with the lack of immediate revenue catalysts and unclear guidance, suggest a negative sentiment towards the stock in the short term.
Key Financial Performance
GAAP net loss for Q3 2025 $5.6 million or $0.17 per share, compared to a net loss of $4.6 million or $0.17 per share in Q3 2024. The increase in net loss was due to higher operating expenses, particularly in R&D and G&A.
GAAP operating expenses for Q3 2025 $5.7 million, an increase of $857,000 from $4.8 million in Q3 2024. This was driven by a $544,000 increase in R&D expenses and a $353,000 increase in G&A expenses, primarily due to higher stock compensation expense.
Non-GAAP net loss for Q3 2025 $4.4 million, compared to $3.9 million in Q3 2024. The increase was primarily due to a $423,000 rise in non-GAAP operating expenses, reflecting higher R&D expenses.
Stock compensation expense for Q3 2025 $1.3 million, compared to $907,000 in Q3 2024. The increase reflects the adoption of performance-based RSUs (PSUs) for executive equity-based compensation, which vest over 3 years and are tied to shareholder returns relative to the Russell 2000 Index.
Cash and cash equivalents as of September 30, 2025 $20.3 million, compared to $22 million as of June 30, 2025. The decrease was due to $3.4 million of cash used in operating activities during Q3, partially offset by $2 million raised under the ATM facility.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
MST implementation: Atomera discovered a new MST implementation validated through TCAD simulations that doubled performance improvement without reducing device lifetime.
Gallium Nitride (GaN) initiative: Collaboration with Sandia National Labs is progressing, with device fabrication highlighting improved electrical performance. Prior results confirmed MST's ability to enhance GaN growth on silicon substrates.
STMicroelectronics partnership: STMicroelectronics decided to discontinue development on 200-millimeter wafers and focus on 300-millimeter BCD110 platform. They will not incorporate MST in the BCD110 launch but continue to explore MST in other areas.
Customer engagements: Atomera is working with multiple large customers across power devices, Gate-All-Around logic, DRAM, and RF-SOI areas. A record number of wafers were processed this quarter.
Revenue prioritization: Atomera is focusing on MST starting wafer products for faster market entry and revenue generation. They are also pursuing high-revenue potential applications like Gate-All-Around logic and DRAM.
Financial performance: GAAP net loss for Q3 2025 was $5.6 million, with a cash balance of $20.3 million as of September 30, 2025. Non-GAAP net loss was $4.4 million.
Strategic OEM partnership: Partnership with a leading capital equipment company is advancing MST's validation for advanced nodes, including reducing contact resistance and improving channel reliability.
New VP of Sales: Wei Na was hired as the new VP of Sales to grow sales and convert opportunities into licenses.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
STMicroelectronics Collaboration: The collaboration with STMicroelectronics faced challenges as the MST technology failed to meet reliability specifications for their 200-millimeter platform. Despite finding a new implementation that improved performance without reducing device lifetime, ST decided not to incorporate it due to their aggressive BCD110 launch schedule. This resulted in the loss of a potential royalty revenue stream from ST for this program.
Revenue Generation Challenges: The company faces delays in revenue generation as MST technology integration into production processes is complex and time-consuming. This includes challenges in qualifying MST starting wafers and integrating MST into the middle of production lines, which requires significant validation cycles.
Financial Performance: The company reported a GAAP net loss of $5.6 million for Q3 2025, an increase from the previous year. Operating expenses, particularly in R&D and G&A, have risen, reflecting higher costs in device fabrication and stock compensation.
Customer Adoption and Market Penetration: While Atomera is engaged with multiple large customers across various segments, the adoption of MST technology is not guaranteed. The company faces competitive pressures and the need to demonstrate clear value to potential customers to secure licenses and revenue.
Supply Chain and Manufacturing: The company relies on external partnerships and collaborations for R&D and manufacturing, which could pose risks related to supply chain disruptions or delays in achieving milestones.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Future MST Implementation and Market Opportunities: Atomera has developed a high-performance MST implementation that eliminates the performance-reliability trade-off, which is being actively discussed with other market players. The company is engaging with customers in the power device market, including a large existing customer and a new engagement initiated this past quarter. Customers are evaluating MST for power devices between 5 volts and 48 volts.
Customer Engagements and Market Segments: Atomera is working with or in discussions with all major players in the Gate-All-Around space, two out of three large DRAM manufacturers, and multiple fabs and a fabless player in the RF-SOI area. The company processed a record number of wafers for customers in the last three months.
Revenue Prioritization and MST Starting Wafers: Atomera is prioritizing applications that use MST deposited on starting wafers to accelerate revenue. These applications include RF-SOI, GaN, and potentially next-generation DRAM. MST starting wafers allow for easier integration and shorter paths to revenue.
Strategic OEM Partnership: The partnership with a leading capital equipment company is advancing engagements in Gate-All-Around logic, memory, and power. Joint customer visits are planned to showcase MST's ability to solve manufacturing issues.
GaN Technology Development: Atomera is completing device fabrication in collaboration with Sandia National Labs to highlight improved electrical performance. The company plans to release a complete data set later this year as a precursor to a full-scale rollout.
New Material Innovations: Atomera is developing new materials enabled by MST for applications in quantum computing, AI server power, high-bandwidth memory architectures, and other areas. Several initiatives are in early investigation stages, with potential near-term disruptive technology announcements.
AI and Data Center Market Trends: The demand for power efficiency and thermal management in AI infrastructure and data centers is driving interest in MST's capabilities to boost performance and reliability.
Financial Guidance: Atomera expects to recognize $75,000 to $125,000 of NRE revenue in Q4 2025 from wafer shipments. Non-GAAP operating expenses for the full year 2025 are projected to be between $17.25 million and $17.50 million.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
PSUs vesting conditions: PSUs will only vest if we deliver shareholder returns that meet minimum targets relative to the Russell 2000 Index.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What was the dynamic that led STMicro to their decision regarding the 300-millimeter design?
A:The new implementation would have worked on both 200-millimeter and 300-millimeter. However, the transition from 200 to 300-millimeter delayed STMicro's development efforts. They needed to get into production quickly and did not have time to validate the new design within their timeframe.
Q:Did STMicro confirm the improvements proposed by Atomera?
A:Yes, STMicro confirmed the improvements. Atomera's TCAD simulation showed significant improvement, and STMicro's own simulations validated these results, making Atomera confident in bringing the product to market.
Q:Can the learnings from the STMicro process be applied to other customers?
A:Yes, the technique and architecture developed with STMicro can be applied to other customers in the power space. The design is not proprietary to STMicro and can be implemented with other customers.
Q:What is the status of transformative customers and their contributions to revenue?
A:Atomera is actively working with two transformative customers mentioned earlier and additional large customers. Revenue guidance includes contributions from multiple customers, including transformative ones, but specific details on individual contributions were not disclosed.
Q:What are the applications for MST deposited on top of the wafer?
A:Applications include RF-SOI, gallium nitride, and potentially next-generation DRAM. These processes are simpler and faster to implement due to lower temperature requirements.
Q:What is the scope of Atomera's partnership with the large capital equipment partner?
A:The primary focus is on Gate-All-Around and DRAM markets. The partnership also involves broader engagements beyond these areas.
Q:What is the timeline for Gate-All-Around projects to enter production?
A:Most Gate-All-Around projects are a few years away from production. Some customers are exploring using MST to improve yield on current processes, which could lead to faster implementation.
Q:What is the status of JDA1 and JDA2?
A:Both JDA1 and JDA2 are running wafer tests. Results are expected by early next year, which could lead to licenses and production plans.
Q:Why was the STM news disclosed via a blog post instead of a press release?
A:The blog post allowed for a more nuanced explanation of the situation. While STMicro decided not to use MST for the next run, they continue to work with Atomera on other processes. The blog post was also a quicker way to communicate the news.
Q:Is there any chance of government funding for Atomera?
A:Yes, Atomera is exploring government funding opportunities through its partnership with Sandia and the CHIPS Act infrastructure.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines or details for certain projects, such as the exact timing of revenue contributions from transformative customers, the results of wafer runs for JDA1 and JDA2, and the timeline for Gate-All-Around projects to enter production. Additionally, the response about the STM news lacked clarity on the long-term implications of the decision.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Atomera technology
BCD
Gate logic
MST ability
MST value
MST wafer
RD
RF
RSUs PSUs
STMicroelectronics
Sales marketing
VP Sales
area Gate
device lifetime
expense Sales
experiment
generation
implementation
integration
license
logic memory
market opportunity
memory power
middle
millimeter
mission
platform
player
priority
reduction device
return investment
role
solution reliability
starting wafer
stock compensation
technology announcement
technology market
trade
ATOM Transcript
Atomera Incorporated (ATOM) Q1 2026 Earnings Call Transcript
Unknown5-5
The earnings call lacked detailed information on key financial metrics, strategic initiatives, and risks, leaving many aspects unclear. However, the strategic plan reveals potential growth in advanced technologies like GaN and MST, suggesting future opportunities. The absence of negative factors and the potential for positive developments balance out the lack of guidance, resulting in a neutral sentiment.
Atomera Incorporated (ATOM) Q4 2025 Earnings Call Transcript
Positive2-13
The earnings call highlights strong customer engagement, strategic partnerships, and promising technology developments like MST for power efficiency, which are positive indicators. Despite increased losses and expenses, optimistic guidance, strategic partnerships, and a focus on high-demand areas like AI and quantum computing suggest potential growth. The Q&A session supports this with positive analyst sentiment and confidence in MST's competitive advantage. However, unclear responses on quantum computing and evaluation timelines slightly temper the outlook, resulting in a positive but not strong positive rating.
Atomera Incorporated (ATOM) Q3 2025 Earnings Call Transcript
Unknown10-28
The earnings call revealed a mixed outlook. While there are promising advancements in technology and partnerships, the financial performance showed increased losses, and there were delays in key projects. The Q&A session highlighted uncertainties, especially with STMicro's decision and lack of clear timelines for transformative projects. The financial health appears strained with rising expenses, and cash reserves are decreasing. These factors, combined with the lack of immediate revenue catalysts and unclear guidance, suggest a negative sentiment towards the stock in the short term.
Atomera Incorporated (ATOM) Q2 2025 Earnings Call Transcript
Unknown8-7
The earnings call reflects mixed sentiments. The partnership with STMicro and interest from other companies are positive, but the financial performance shows increasing losses and uncertain revenue guidance. The Q&A reveals confidence in milestone payments and other companies' interest, but there's uncertainty in the timeline and execution risks. The unclear management responses and regulatory uncertainties add to the neutral sentiment. Without a clear market cap, the prediction remains neutral, indicating a potential stock price movement between -2% to 2%.
ATOM Slides
ATOM Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
