NVE Corporation Reports Third Quarter Results and Announces Quarterly Dividend

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--NVE Corporation (Nasdaq: NVEC) announced financial results today for the quarter ended December 31, 2025.

Total revenue for the third quarter of fiscal 2026 increased 23% to $6.22 million from $5.06 million for the prior-year quarter. The increase was due to a 16% increase in product sales and a 335% increase in contract research and development revenue. Net income for the third quarter of fiscal 2026 increased 11% to $3.38 million, or $0.70 per diluted share, compared to $3.05 million, or $0.63 per share, for the prior-year quarter.

For the first nine months of fiscal 2026, total revenue increased 0.4% to $18.7 million from $18.6 million for the nine months of the prior year. The increase was due to a 0.8% increase in product sales, partially offset by an 8% decrease in contract research and development revenue. Net income decreased 8% to $10.3 million, or $2.12 per diluted share, from $11.2 million, or $2.31 per share, for the first nine months of fiscal 2025.

The company also announced a quarterly cash dividend to shareholders of $1.00 per share of common stock, payable February 27, 2026 to shareholders of record as of February 2, 2026.

“We’re pleased to report strong increases in revenue and earnings for the quarter, driven by broad-based growth across our revenue lines,” said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D.

NVE is a leader in the practical commercialization of spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store, and transmit information. The company manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.

Statements used in this press release that relate to future plans, events, financial results, or performance are forward-looking statements that are subject to certain risks and uncertainties including, among others, such factors as our reliance on several large customers for a significant percentage of revenue, uncertainties related to the economic environments in the industries we serve, uncertainties related to future sales and revenues, risks and uncertainties related to tariffs, customs, duties, and other trade barriers, as well as the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, as updated in our Quarterly Report on Form 10-Q for the quarter ended December 31, 2025.

NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND NINE MONTHS ENDED DECEMBER 31, 2025 AND 2024 (Unaudited)
	Quarter Ended December 31,
	2025		2024
Revenue
Product sales	$	5,778,674	$	4,960,488
Contract research and development		446,102		102,557
Total revenue, net		6,224,776		5,063,045
Cost of sales		1,332,679		797,622
Gross profit		4,892,097		4,265,423
Expenses
Research and development		795,585		869,677
Selling, general, and administrative		352,136		434,783
Total expenses		1,147,721		1,304,460
Income from operations		3,744,376		2,960,963
Interest income		461,954		474,180
Other income		-		135,057
Income before taxes		4,206,330		3,570,200
Provision for income taxes		821,688		521,790
Net income	$	3,384,642	$	3,048,410
Net income per share – basic	$	0.70	$	0.63
Net income per share – diluted	$	0.70	$	0.63
Weighted average shares outstanding
Basic		4,837,166		4,835,262
Diluted		4,839,257		4,839,124
	Nine Months Ended Dec. 31,
	2025		2024
Revenue
Product sales	$	17,826,016	$	17,680,780
Contract research and development		850,396		924,199
Total revenue, net		18,676,412		18,604,979
Cost of sales		3,893,696		2,720,370
Gross profit		14,782,716		15,884,609
Expenses
Research and development		2,389,286		2,595,808
Selling, general, and administrative		1,207,695		1,543,428
Total expenses		3,596,981		4,139,236
Income from operations		11,185,735		11,745,373
Interest income		1,444,492		1,432,568
Other income		3,905		135,057
Income before taxes		12,634,132		13,312,998
Provision for income taxes		2,362,834		2,140,856
Net income	$	10,271,298	$	11,172,142
Net income per share – basic	$	2.12	$	2.31
Net income per share – diluted	$	2.12	$	2.31
Weighted average shares outstanding
Basic		4,837,166		4,834,382
Diluted		4,839,120		4,839,247

NVE CORPORATION BALANCE SHEETS DECEMBER 31 AND MARCH 31, 2025
	(Unaudited) December 31, 2025		March 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	3,408,531	$	8,036,564
Marketable securities, short-term (amortized cost of $17,137,942 as of December 31, 2025, and $13,730,266 as of March 31, 2025)		17,156,488		13,691,593
Accounts receivable, net of allowance for credit losses of $15,000		2,483,045		3,589,268
Inventories, net		7,271,798		7,449,083
Prepaid expenses and other assets		756,715		433,414
Total current assets		31,076,577		33,199,922
Fixed assets
Machinery and equipment		13,834,355		11,758,205
Leasehold improvements		2,059,853		1,956,309
		15,894,208		13,714,514
Less accumulated depreciation and amortization		11,996,423		11,727,615
Fixed assets, net		3,897,785		1,986,899
Deferred tax assets		722,602		1,867,069
Marketable securities, long-term (amortized cost of $23,310,800 as of December 31, 2025, and $26,353,692 as of March 31, 2025)		23,441,471		26,304,623
Right-of-use asset – operating lease		824,631		917,349
Total assets	$	59,963,066	$	64,275,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	226,856	$	214,691
Accrued payroll and other		504,710		871,169
Operating lease		160,413		83,010
Total current liabilities		891,979		1,168,870
Long-term operating lease liability		773,996		838,221
Total liabilities		1,665,975		2,007,091
Shareholders’ equity
Common stock		48,372		48,372
Additional paid-in capital		19,904,513		19,821,106
Accumulated other comprehensive income (loss)		116,569		(68,544	)
Retained earnings		38,227,637		42,467,837
Total shareholders’ equity		58,297,091		62,268,771
Total liabilities and shareholders’ equity	$	59,963,066	$	64,275,862