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.
We’re pleased to report strong increases in revenue and earnings for the quarter, driven by broad-based growth across our revenue lines.
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