NVE Corporation Reports Decline in Quarterly Revenue

NVE Corporation ( (NVEC) ) has released its Q2 earnings. Here is a breakdown of the information NVE Corporation presented to its investors.

NVE Corporation is a Minnesota-based company specializing in spintronics, a nanotechnology that uses electron spin to acquire, store, and transmit information, primarily serving the electronics industry with high-performance sensors and couplers. In its latest earnings report for the quarter ended September 30, 2025, NVE Corporation reported a decline in total revenue by 6% compared to the same quarter in the previous year, primarily due to a significant drop in contract research and development revenue. Despite a slight increase in product sales, the company’s net income also decreased by 18% year-over-year, reflecting lower gross margins and increased tax rates. Key financial metrics showed a gross profit margin of 78% and a net income of $3.31 million for the quarter. The company experienced a decrease in operating expenses by 7%, with research and development expenses rising slightly and selling, general, and administrative expenses falling significantly. Looking ahead, NVE Corporation remains focused on managing its financial resources effectively, with expectations of continued investment in production expansion and maintaining dividend payments, while navigating the challenges posed by fluctuating defense industry sales and evolving tax legislation.