Atomera Q4 Earnings Call Highlights

Key Points

• MST shows definitive proof for Gate-All-Around (GAA): Atomera reported successful deposition into nanosheet structures and superior diffusion-blocking at ~2nm versus silicon-arsenic, and has a strategic partnership with a large equipment OEM while targeting major foundries (TSMC, Samsung, Intel, Rapidus) with potential commercial deals in 2026.
• Broad application progress across multiple markets: Atomera is advancing wafer-based MST efforts in DRAM (promising preliminary wafer results that could lead to a JDA and production license), RF SOI, power (trench FET simulations suggesting >40% performance gains), and GaN, where its first commercial customer has begun running MST GaN-on-silicon wafers.
• Weak near-term financials and limited cash runway: 2025 revenue was only $65,000 with a GAAP net loss of $20.2M and cash down to $19.2M after ATM sales (≈$7.6M in 2025 and an additional ~$3.2M post-year-end); Q1 revenue is expected at $50k–$100k and 2026 non-GAAP operating expense is targeted at about $18.5M.

Atomera NASDAQ: ATOM used its fiscal fourth-quarter and full-year 2025 update call to outline recent technical progress across several semiconductor markets, with management repeatedly framing 2025 as a setup year for commercial execution and potential deal announcements later in 2026.

Gate-All-Around results lift confidence in adoption timeline

CEO Scott Bibaud spent much of his prepared remarks and Q&A emphasizing progress in Gate-All-Around (GAA) transistor technology, which he described as foundational for AI-related chips such as GPUs, CPUs, and advanced networking components. Atomera recently announced a strategic partnership with a “large equipment OEM,” and Bibaud said the target customers for GAA adoption include TSMC, Samsung, Intel, and Japan’s Rapidus.

Bibaud said Atomera’s MST technology is positioned as a diffusion-blocking solution for high phosphorus doping levels in GAA source and drain regions. He said a key manufacturing challenge is preventing phosphorus dopants from migrating into the channel, which can significantly impact performance, efficiency, and yield.

According to Bibaud, Atomera’s target customers wanted two proof points for manufacturability at around 2 nanometers:

• That MST can be deposited effectively into nanosheet structures.
• That MST’s diffusion-blocking characteristics outperform other industry approaches.

Bibaud said the company obtained “very exciting silicon results” in both areas in the prior month and believes these results provide “definitive proof” to drive broader adoption in the future. He added that MST can be deposited using existing tools and standard gases and described it as “far superior” to current diffusion blocking materials used by the industry.

In response to analyst Richard Shannon of Craig-Hallum, Bibaud said the company’s increased confidence is tied to having recent test data that addresses the customer concerns around both deposition into very small structures and diffusion blocking efficacy in those structures. He said Atomera has been working with one GAA customer to access the necessary wafers and structures, and he expressed a goal of expanding engagement to all four major GAA customers.

When asked about alternatives, Bibaud pointed to silicon arsenic as a prior industry approach, calling it more of a spacer than an effective diffusion blocker. He said Atomera has tested MST against silicon arsenic and found “vastly better” diffusion blocking performance. He also said the industry prefers to avoid arsenic when possible because it is “expensive to use and dangerous.”

Updates across DRAM, RF SOI, power, and GaN

Beyond GAA, management discussed multiple application areas where Atomera is pursuing what it calls “wafer-based” solutions—an approach Bibaud said can reduce integration engineering complexity by placing MST on a blank wafer before the customer begins the rest of its manufacturing process.

DRAM: Bibaud said DRAM architectures are reaching an inflection point as the industry increases use of the vertical dimension. Atomera is working on offerings aimed at next-generation DRAM architectures, alongside solutions for products currently in production. He cited two “major solution offerings” with high market potential that are wafer-based and therefore “easier to adopt and test.” Bibaud said Atomera is conducting many wafer runs, mostly processing through customer fabs. One customer has preliminary results that “look promising,” with final data expected in about a month; if results are positive, Bibaud said Atomera would push for a joint development agreement and a production license.

RF SOI: Bibaud said Atomera’s RF SOI solution can improve multiple areas, including RF switches and low noise amplifiers (LNA). He said the company is working with “many of the key players” and hopes to drive broad adoption. He also said customers could deposit MST themselves on wafers or potentially source RF SOI MST wafers from third-party suppliers, with Atomera’s license structure supporting both models.

Power: Bibaud said Atomera continues to work with ST on MST solutions across multiple business units despite a prior-year setback. He also said there has been inbound interest for additional power applications. He highlighted internal analysis suggesting MST could improve trench FET performance by more than 40% in simulations, describing trench FETs as important for energy efficiency in AI data centers. Bibaud said a customer was already interested in beginning development based on the post-Christmas simulation result. He also discussed MSTcad simulations showing MST can improve HBT devices used in RF communication systems and said discussions were underway with a potential first customer.

In Q&A, Bibaud described power as a larger and more diverse market than RF SOI and said Atomera is expanding engagement but is not working with “the vast majority” of power players.

GaN: Bibaud said Atomera’s first commercial customer has begun running wafers for GaN-on-silicon with MST. He said this customer can both grow GaN wafers and manufacture electrical devices, which could allow it to move faster than Atomera’s internal development work with Sandia National Labs and Texas State. He added the customer is exploring GaN in both RF and power technologies.

Bibaud also noted Atomera’s GaN-on-silicon concept paper was approved to move to the proposal stage for a PowerAmerica project aimed at advancing wide bandgap materials. He said the company had received letters of support from multiple future customers and framed the effort as its first attempt to secure outside development funding, describing the initial funding sought as “modest” but potentially opening pathways for future funding opportunities.

Financial results: modest revenue, continued losses, cash decline

CFO Frank Laurencio said 2025 revenue was $65,000, consisting of NRE fees for wafer deliveries and MSTcad licensing. GAAP net loss for 2025 was $20.2 million, or $0.65 per share, compared with a GAAP net loss of $18.4 million, or $0.68 per share, in 2024. On a non-GAAP basis, 2025 net loss was $16.1 million, or $0.52 per share, versus $15.4 million, or $0.57 per share, in 2024.

GAAP operating expenses were $20.9 million in 2025, up about $1.5 million from $19.3 million in 2024, driven mainly by a $1.1 million increase in stock compensation tied to changes in executive equity-based compensation. Laurencio said Atomera implemented performance stock units (PSUs) in Q1 2025 that vest based on stock price performance versus the Russell 2000 Index.

On a non-GAAP basis, total operating expenses were $15.9 million in 2025, up $429,000 from 2024. Laurencio said R&D expenses rose to $10.2 million from $9.4 million, primarily due to increased outsourced engineering as Atomera used new device fabrication vendors, replacing TSI Semiconductors. He said GaN expenses fell to $4.8 million from $5.1 million, mainly due to lower compensation expense, partially offset by higher professional fees.

Cash usage, ATM activity, and near-term revenue outlook

Atomera ended 2025 with $19.2 million in cash, cash equivalents, and short-term investments, down from $26.7 million at the end of 2024. Laurencio said the company used $14.9 million in cash from operating activities during 2025, including $3.2 million in Q4.

During 2025, Atomera sold about 1.6 million shares through its at-the-market (ATM) facility at an average price of $5.15 per share, generating net proceeds of about $7.6 million after costs. The company ended the year with 32.4 million shares outstanding. After year-end, Laurencio said Atomera raised an additional $3.2 million in net proceeds by selling about 1.3 million shares at an average price of $2.47.

For Q1, Laurencio said Atomera expects to recognize revenue in the range of $50,000 to $100,000 from shipment of MST wafers to customers, and reiterated the company does not provide revenue guidance beyond the current quarter.

Looking to 2026, Laurencio said Atomera intends to control costs while investing in areas tied to revenue and near-term commercial progress, including adding a head of marketing following the hiring of a VP of sales in October. The company expects non-GAAP operating expense of approximately $18.5 million in 2026, though Laurencio said the year-over-year comparison is affected by the potential payout and accrual timing of executive bonuses that were withheld in 2025.

In closing comments, Bibaud said the “entire focus” of Atomera’s efforts is reaching commercial agreements and that the company believes its 2025 work has positioned it to close opportunities, with updates expected as the year progresses.

About Atomera NASDAQ: ATOM

Atomera Inc is a materials engineering company that develops and licenses advanced thin film technologies for the semiconductor industry. Its flagship offering, Mears Silicon Technology (MST), is designed to enhance transistor performance, improve power efficiency and boost device yields. Atomera's solutions are integrated into existing fabrication processes without major changes to equipment or materials flows, enabling foundries and integrated device manufacturers to adopt the technology with minimal disruption.

At the core of Atomera's business model is the licensing and patent-licensing of MST.

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