GSI Technology, Inc. Announces Third Quarter Fiscal 2026 Results

Rhea-AI Summary

GSI Technology (Nasdaq: GSIT) reported Q3 FY2026 results for the quarter ended December 31, 2025: revenue $6.1M (+12% YoY), gross margin 52.7%, net loss $(3.0)M (EPS $(0.09)), and quarter-end cash $70.7M after a $46.9M net Registered Direct Offering.

Company highlighted third-party Gemini-II benchmark (~3s TTFT at ~30W), a POC with G2 Tech and expected ~$1M government funding, and ongoing Plato hardware development.

Positive

• Revenue increased 12% year-over-year to $6.1 million
• Quarter-end cash balance rose to $70.7 million after $46.9 million net offering
• Published third-party benchmark: Gemini-II ~3s TTFT at ~30W system power
• Confirmed POC with G2 Tech and two government agencies, ~$1M expected funding

Negative

• Operating loss widened to $(6.9) million in Q3 FY2026
• R&D spend grew to $7.5 million, raising operating expenses materially
• Gross margin declined to 52.7% due primarily to product mix

Market Reaction

-4.38% $7.21

15m delay 27 alerts

-4.38% Since News

$7.21 Last Price

$6.96 $7.99 Day Range

-$12M Valuation Impact

$266M Market Cap

1.1x Rel. Volume

Following this news, GSIT has declined 4.38%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 27 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $7.21. This price movement has removed approximately $12M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q3 FY26 Revenue: $6.1 million Q3 FY26 Gross Margin: 52.7% Q3 FY26 Net Loss: $(3.0) million +5 more

8 metrics

Q3 FY26 Revenue $6.1 million Quarter ended December 31, 2025; up 12% year-over-year

Q3 FY26 Gross Margin 52.7% Compared to 54.0% in Q3 FY25 and 54.8% in Q2 FY26

Q3 FY26 Net Loss $(3.0) million Net loss for the quarter ended December 31, 2025

Q3 FY26 EPS $(0.09) per diluted share Net loss per diluted share in Q3 FY26

Cash & Equivalents $70.7 million Balance as of December 31, 2025; up from $13.4 million at March 31, 2025

R&D Expense $7.5 million Q3 FY26 research and development spending

Operating Loss $(6.9) million Q3 FY26 operating loss vs $(4.1) million a year ago

Q4 FY26 Revenue Outlook $5.7–$6.5 million Management net revenue guidance range for upcoming fiscal Q4

Market Reality Check

Price: $7.54 Vol: Volume 992,105 vs 20-day ...

low vol

$7.54 Last Close

Volume Volume 992,105 vs 20-day average 1,760,410 (relative volume 0.56), indicating subdued trading activity ahead of results. low

Technical Shares at $7.85, trading above the 200-day MA of $5.05, reflecting a pre-existing uptrend into the print.

Peers on Argus

GSIT was up 4.25% while key peers MX (-1.96%), QUIK (-3.57%), ICG (-2.51%) and G...

GSIT was up 4.25% while key peers MX (-1.96%), QUIK (-3.57%), ICG (-2.51%) and GCTS (-1.87%) mostly declined, pointing to stock-specific dynamics around the earnings release.

Historical Context

5 past events · Latest: Jan 15 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Earnings date notice	Neutral	+4.0%	Announcement of timing and access details for upcoming Q3 2026 earnings call.
Jan 14	AI POC announcement	Positive	-3.5%	Government-funded Gemini-II POC with G2 Tech for autonomous perimeter security.
Dec 18	Conference participation	Positive	+6.4%	Plan to present and hold meetings at the Needham Growth Conference.
Nov 06	Strategy update	Positive	-6.6%	Expanded edge-first strategy for Gemini-II targeting drone and defense markets.
Nov 06	Strategy detail	Positive	-6.6%	Further details on Gemini-II performance claims and targeted edge AI markets.

Pattern Detected

Recent strategic and AI-related announcements have sometimes seen negative price reactions despite constructive content, while event/communication updates skew more positive.

Recent Company History

Over the past several months, GSIT news has focused on AI edge strategy and capital raising. On Nov 6, 2025, the company outlined its Gemini-II edge roadmap and referenced a $50 million equity raise, but the stock fell after those updates. A government-funded Gemini-II POC with G2 Tech on Jan 14, 2026 also saw a negative reaction. In contrast, communications-oriented items such as the Needham conference participation on Dec 18, 2025 and the Q3 earnings-date announcement on Jan 15, 2026 were followed by positive moves. Today’s detailed Q3 results and outlook fit into this pattern of balancing growth initiatives with ongoing losses.

Market Pulse Summary

This announcement detailed Q3 FY26 results with revenue of $6.1 million, up 12% year-over-year, alon...

Analysis

This announcement detailed Q3 FY26 results with revenue of $6.1 million, up 12% year-over-year, alongside a gross margin of 52.7% and a net loss of $(3.0) million. Cash and equivalents increased to $70.7 million, largely from an October registered direct offering, supporting heavier R&D investment in Gemini-II and Plato. Historically, AI strategy and funding news has produced mixed share reactions. Investors may focus on execution of defense and edge design wins, future gross margin trends, and whether operating losses narrow as programs mature.

Key Terms

registered direct offering, pre-funded warrants

2 terms

registered direct offering financial

"including $46.9 million in net proceeds from the Registered Direct Offering in October 2025"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

pre-funded warrants financial

"reflecting a non-cash accounting adjustment of $6.2 million for the change in the fair value of the pre-funded warrants"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

AI-generated analysis. Not financial advice.

SUNNYVALE, Calif., Jan. 29, 2026 (GLOBE NEWSWIRE) -- GSI Technology, Inc. (Nasdaq: GSIT) today reported financial results for its third fiscal quarter ended December 31, 2025.

Summary Comments for Third Quarter Fiscal Year 2026

• Revenue increased 12% year-over-year, fueled by strong market momentum for leading SRAM solutions
• Quarter-end cash balance of $70.7 million, up from $13.4 million at the end of Q4 FY2025, including $46.9 million in net proceeds from the Registered Direct Offering in October 2025
• Subsequent to quarter-end, announced proof-of-concept (“POC”) with G2 Tech and two government agencies—roughly $1 million in government funding expected to be received
• Published third-party benchmark results for a multimodal edge inference workload, showing Gemini-II achieved ~3 seconds time-to-first-token (TTFT) at ~30 watts system power in the tested configuration, versus GPU-based systems at materially higher system power

Lee-Lean Shu, Chairman and Chief Executive Officer, commented, “During the quarter, we advanced our development roadmap, raised equity financing and achieved key commercialization and validation milestones for Gemini-II. The capital raise supported the kickoff of Plato hardware development and the continued buildout of the Gemini-II software stack. We also finalized an agreement with G2 Tech related to the previously announced POC for an autonomous perimeter security system using drones and real-time video analytics. As detailed in our third-party benchmark press release earlier today, Gemini-II delivered ~3 seconds TTFT at ~30 watts system power in the tested configuration, which highlights Gemini-II’s energy-efficient, low-latency profile for power-constrained edge deployments.”

Shu added, “Building on these milestones, we are moving into the next phase of our APU roadmap. Leveraging the recent third-party validation and the low–power, low-latency characteristics of our APU architecture for edge inference, we are pursuing initial design wins for Gemini-II in defense-oriented programs such as drones and unmanned systems, as well as select commercial edge deployments.”

Commenting on GSI’s third quarter of fiscal 2026 financial results and fiscal fourth quarter outlook, Mr. Shu stated, “In the fiscal third quarter, revenue was $6.1 million, up 12% year-over-year. We have sustained demand for our SRAM solutions, with an expectation for strong sales to our chip design and simulation systems customers in the first half of calendar year 2026. Current expectations for the upcoming fiscal fourth quarter are net revenues in a range of $5.7 million to $6.5 million, with gross margin of approximately 54% to 56%.”

Third Quarter Fiscal Year 2026 Summary Financials

The Company reported net revenues of $6.1 million for the third quarter of fiscal 2026, compared to $5.4 million for the third quarter of fiscal 2025 and $6.4 million for the second quarter of fiscal 2026. Gross margin was 52.7% in the third quarter of fiscal 2026 compared to 54.0% in the third quarter of fiscal 2025 and 54.8% in the preceding second quarter of fiscal 2026. The decrease in gross margin in the third quarter of 2026 was primarily due to product mix. 

In the third quarter of fiscal 2026, sales to KYEC were $1.1 million, or 17.9% of net revenues, compared to $1.2 million, or 22.7% of net revenues, in the same period a year ago and $802,000, or 12.5% of net revenues, in the prior quarter. In the third quarter of fiscal 2026, sales to Nokia were $675,000, or 11.1% of net revenues, compared to $239,000, or 4.4% of net revenues, in the same period a year ago and $200,000, or 3.1% of net revenues, in the prior quarter. In the third quarter of fiscal 2026, sales to Cadence Design Systems were $233,000, or 3.8% of net revenues, compared to $971,000, or 17.9% of net revenues, in the same period a year ago and $1.4 million, or 21.6% of net revenues, in the prior quarter. Military/defense sales were 28.5% of third quarter shipments compared to 30.0% of shipments in the comparable period a year ago and 28.9% of shipments in the prior quarter. SigmaQuad sales were 41.7% of third quarter shipments in fiscal 2026 compared to 39.1% in the third quarter of fiscal 2025 and 50.1% in the prior quarter. 

Total operating expenses in the third quarter of fiscal 2026 were $10.1 million, compared to $7.0 million in the third quarter of fiscal 2025 and $6.7 million in the prior quarter. Research and development expenses were $7.5 million, compared to $4.0 million in the prior-year period and $3.8 million in the prior quarter. The increase in research and development spending compared to the prior quarter is primarily due to the purchase of IP for the development of Plato and associated consulting expenses. Selling, general and administrative expenses were $2.6 million in the quarter ended December 31, 2025, compared to $3.0 million in the prior-year quarter and $3.0 million in the previous quarter. 

Third quarter fiscal 2026 operating loss was $(6.9) million compared to an operating loss of $(4.1) million in the prior-year period and an operating loss of $(3.2) million in the prior quarter. Third quarter fiscal 2026 net loss included interest and other income of $3.6 million, reflecting a non-cash accounting adjustment of $6.2 million for the change in the fair value of the pre-funded warrants and issuance costs of $2.8 million from the recent Registered Direct Offering, and a tax benefit of $(251,000), compared to $70,000 in interest and other income and a tax provision of $44,000 for the same period a year ago. In the preceding second quarter, net loss included interest and other income of $43,000 and a tax provision of $41,000. 

Net loss in the third quarter of fiscal 2026 was $(3.0) million, or $(0.09) per diluted share, compared to net loss of $(3.2) million, or $(0.11) per diluted share, for the second quarter of fiscal 2026. For the prior year third fiscal quarter of 2025, net loss was $(4.0) million, or $(0.16) per diluted share.

Total third quarter pre-tax stock-based compensation expense was $783,000 compared to $429,000 in the comparable quarter a year ago and $856,000 in the prior quarter. 

Beginning this quarter, GSI is expanding the cash disclosures in its quarterly earnings release process to help investors better understand the Company’s cash generation and consumption. The beginning cash balance, net cash used by operating activities, net cash used by investing activities, and net cash provided by financing activities has been provided to complement the condensed consolidated statement of cash flows included in our Forms 10-Q and 10-K.

Cash flows for the quarter ended December 31, 2025 (in thousands of dollars):

	Cash and cash equivalents as of September 30, 2025	$25,326
	Net cash used in operating activities		(7,872)
	Net cash used by investing activities		(296)
	Net cash provided by financing activities		53,514
	Cash and cash equivalents as of December 31, 2025	$70,672

The increase in cash and cash equivalents as of December 31, 2025, primarily reflects $46.9 million in net proceeds from the company’s October 2025 Registered Direct Offering, partially offset by operating cash outflows. Cash used in operating activities includes spending for the development and commercialization of Gemini-II and Plato.

At December 31, 2025, the Company had $70.7 million in cash and cash equivalents, compared to $13.4 million at March 31, 2025. Working capital was $71.7 million as of December 31, 2025 versus $16.4 million at March 31, 2025. Stockholders’ equity as of December 31, 2025 was $83.6 million, compared to $28.2 million as of the fiscal year ended March 31, 2025. 

Conference Call

GSI Technology will review its financial results for the quarter ended December 31, 2025, and discuss its current business outlook during a conference call at 1:30 p.m. Pacific (4:30 p.m. Eastern) today, January 29, 2026. To participate in the conference call, please dial 1-877-407-3982 in the U.S., or 1-201-493-6780 for international, approximately 10 minutes prior to the above start time, and provide Conference ID 13758230.  The call will also be streamed live via the internet at https://ir.gsitechnology.com.  

About GSI Technology

GSI Technology is at the forefront of the AI revolution with our groundbreaking APU technology, designed for unparalleled efficiency in billion-item database searches and high-performance computing. GSI’s innovations, Gemini-I® and Gemini-II®, offer scalable, low-power, high-capacity computing solutions that redefine edge computing capabilities.

GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

Forward-Looking Statements

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. These forward-looking statements include, among others, statements regarding our product roadmap and commercialization milestones for Gemini-II and Plato; our pursuit of initial design wins in defense and select commercial edge deployments; anticipated benefits from government proof-of-concept engagements and related funding; our expectations regarding revenue, gross margin, demand for our SRAM solutions, and customer mix; and the interpretation and applicability of third-party benchmark results and energy/performance characteristics of our products. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the risk that proof-of-concepts, pilot programs, or benchmark validations do not translate into design wins, purchase orders, or revenue; the comparability and generalizability of third-party benchmark results and energy/performance metrics across different configurations and use cases; intensive competition; the availability, timing and continuity of government funding opportunities; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology (including Gemini-II and Plato) and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, policy unpredictability, the imposition of tariffs and other trade barriers, military conflicts, particulary in relation to Taiwan, and challenges in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

Source: GSI Technology, Inc.

Investor Relations
Hayden IR
Kim Rogers
Managing Director
385-831-7337
Kim@HaydenIR.com

Media Relations
Finn Partners for GSI Technology
Ricca Silverio
(415) 348-2724
gsi@finnpartners.com

Company
GSI Technology, Inc.
Douglas M. Schirle
Chief Financial Officer
408-331-9802

GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
				Three Months Ended												Nine Months Ended
				Dec. 31,				Sept. 30,				Dec. 31,				Dec. 31,				Dec. 31,
				2025				2025				2024				2025				2024
Net revenues				$6,076				$6,444				$5,414				$18,803				$14,635
Cost of goods sold					2,876				2,911				2,491				8,419				7,794
Gross profit					3,200				3,533				2,923				10,384				6,841
Operating expenses:
	Research & development				7,457				3,768				4,037				14,322				13,039
	Selling, general and administrative				2,649				2,952				2,997				8,331				8,154
	Gain from sale of assets				-				-				(56	)			-				(5,793	)
			Total operating expenses		10,106				6,720				6,978				22,653				15,400
Operating loss					(6,906	)			(3,187	)			(4,055	)			(12,269	)			(8,559	)
Interest and other income, net					3,635				43				70				3,691				274
Loss before income taxes					(3,271	)			(3,144	)			(3,985	)			(8,578	)			(8,285	)
Provision for income taxes					(251	)			41				44				(156	)			124
Net loss				($3,020		)		($3,185		)		($4,029		)		($8,422		)		($8,409		)
Net loss per share, basic				($0.09		)		($0.11		)		($0.16		)		($0.28		)		($0.33		)
Net loss per share, diluted				($0.09		)		($0.11		)		($0.16		)		($0.28		)		($0.33		)
Weighted-average shares used in
computing per share amounts:
Basic					34,510				29,630				25,546				30,381				25,463
Diluted					34,510				29,630				25,546				30,381				25,463
Stock-based compensation included in the Condensed Consolidated Statements of Operations:
				Three Months Ended												Nine Months Ended
				Dec. 31,				Sept. 30,				Dec. 31,				Dec. 31,				Dec. 31,
				2025				2025				2024				2025				2024
Cost of goods sold				$61				$58				$50				$163				$157
Research & development					358				303				121				599				747
Selling, general and administrative					364				495				258				1,218				846
				$783				$856				$429				$1,980				$1,750

GSI TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
		Dec. 31, 2025			March 31, 2025
Cash and cash equivalents		$	70,672		$	13,434
Accounts receivable			2,832			3,169
Inventory			3,876			3,891
Other current assets			1,933			2,961
Net property and equipment			903			808
Operating lease right-of-use assets			8,590			9,547
Other assets			9,654			9,507
Total assets		$	98,460		$	43,317
Current liabilities		$	7,613		$	7,074
Long-term liabilities			7,227			8,017
Stockholders' equity			83,620			28,226
Total liabilities and stockholders' equity		$	98,460		$	43,317

FAQ

What were GSI Technology (GSIT) Q3 FY2026 revenue and EPS on January 29, 2026?

GSI reported $6.1 million revenue and net loss $(3.0)M (EPS $(0.09)) for Q3 FY2026. According to the company, revenue rose 12% year-over-year and net loss improved versus the prior-year quarter, reflecting financing and non-cash adjustments.

How much cash did GSI Technology (GSIT) have at quarter-end and why did it increase?

GSI had $70.7 million in cash and cash equivalents at December 31, 2025. According to the company, this increase primarily reflects $46.9 million in net proceeds from an October 2025 Registered Direct Offering, partially offset by operating cash outflows.

What did the Gemini-II benchmark announced by GSI Technology (GSIT) show on January 29, 2026?

The benchmark showed Gemini-II achieved ~3 seconds TTFT at ~30 watts system power in the tested configuration. According to the company, third-party results highlight Gemini-II's low-latency, energy-efficient profile for power-constrained edge inference deployments.

What guidance did GSI Technology (GSIT) provide for fiscal Q4 on January 29, 2026?

GSI expects Q4 net revenues of $5.7M–$6.5M with gross margin ~54%–56%. According to the company, sustained SRAM demand and anticipated sales to chip design and simulation customers support this outlook for early 2026.

What is the scope and expected funding from the G2 Tech proof-of-concept announced by GSI (GSIT)?

GSI announced a POC with G2 Tech and two government agencies for autonomous perimeter security using drones, with roughly $1 million of expected government funding. According to the company, the agreement supports validation of real-time video analytics on Gemini-II.