GSI Technology reported net revenues of $6.1 million for the quarter ended December 31, 2025, marking a 12% year-over-year increase from $5.4 million in Q3 FY2025. Gross margin in the quarter was 52.7%, down from 54.0% a year earlier and 54.8% in Q2 FY2026, primarily due to product mix shifts. The company’s largest single customer, KYEC, accounted for $1.1 million or 17.9% of net revenue, while Nokia contributed $675,000 (11.1%) and Cadence Design Systems $233,000 (3.8%). Operating expenses rose to $10.1 million, driven by R&D investment of $7.5 million to support new product development, resulting in an operating loss of $6.9 million. Net loss was $3.0 million, or $0.09 per diluted share, compared with a $4.0 million loss, or $0.16 per share, in the year-ago quarter.

At quarter-end, GSI held $70.7 million in cash and cash equivalents, up from $25.3 million at the start of the period and $13.4 million at the end of Q4 FY2025. The increase reflects $46.9 million in net proceeds from an October 2025 Registered Direct Offering. Operating activities used $7.9 million, while investing activities consumed $0.3 million. With working capital of $71.7 million and stockholders’ equity of $83.6 million, management highlighted the strengthened balance sheet as a foundation for scaling commercialization of its Gemini-II and next-generation Plato APU products.

In third-party tests of a multimodal edge inference workload, GSI’s Gemini-II processor achieved a 3-second time-to-first-token (TTFT) at approximately 30 watts system power when running a 12-billion-parameter vision-language model. Comparable embedded platforms recorded 12 seconds TTFT at 30 watts and 3 seconds at over 100 watts, underscoring Gemini-II’s favorable power-efficiency profile. GSI anticipates roughly $1 million in government funding from a proof-of-concept engagement with G2 Tech and two agencies for an autonomous perimeter security drone system, and is pursuing initial design wins in defense and commercial edge markets based on these validation milestones.