QUIK

QuickLogic is a small fabless eFPGA/programmable-logic house that had been building a credible growth arc — revenue climbed from $8.63M (FY2021) to $19.7M (FY2024) — and then broke it hard in FY2025. Revenue fell 29.9% to $13.8M, gross profit collapsed 74.9% to $3.03M (gross margin ~22%), and the net loss ballooned to -$14.8M from -$3.84M, a swing that turned operating income to -$11.9M (-86.5% margin) and ROE to -65.9%. The MD&A pins the damage on the core engine: new-products revenue dropped $5.2M to $10.5M, of which ~$9.5M was eFPGA IP / professional-engineering services — a lumpy, project-based line that clearly de-rated year over year, while mature products slipped too. This is not a company scaling into profitability; it is one that just went backwards on both the top and bottom line.

The valuation makes that deterioration acutely dangerous for the stock. At $16.02 the market cap is $284M against $13.8M of FY revenue — a 20.6x price-to-sales multiple. That is a hyper-growth multiple bolted onto a business that shrank ~30% and lost more than its entire gross profit. Even normalizing to a still-generous mid-single-digit sales multiple appropriate for an unprofitable, shrinking micro-cap implies a price a fraction of today's — hence a ~$7 reference target. The -10.4% single-day drop hints the market is only beginning to reprice the FY2025 miss.