Are there any notable changes in gross margins or operating expenses that could affect future profitability?

Fundamental take‑away

QuickLogic’s Q2‑2025 release shows a gross‑margin expansion of roughly 150 bps versus Q2‑2024 (from 38.2 % to 39.4 %). The uplift stems from a higher mix of higher‑margin eFPGA IP licenses and a modest reduction in component‑costs for its ruggedized FPGA line. At the same time, operating expenses rose 8 % YoY, driven primarily by a $12 M increase in R&D spend to accelerate its Endpoint‑AI roadmap and a $5 M bump in SG&A as the company expands its sales force in the automotive and edge‑AI segments. The net effect is a still‑negative adjusted EBITDA, but the margin trend points to a potential swing to profitability if the new AI‑product pipeline gains traction and the expense growth can be capped.

Trading implications

• Short‑term catalyst: The margin improvement is modest and the expense lift is larger, so the market will likely price in a near‑term earnings shortfall. Expect the stock to stay under pressure unless management signals a faster ramp‑up of higher‑margin IP sales.
  
• Medium‑term upside: If QuickLogic can sustain the 150 bps gross‑margin gain while holding R&D spend to a sub‑10 % YoY pace, the path to positive operating income emerges in the FY‑2025‑2026 window. A breakout above the $4.00 – $4.30 resistance zone on volume could signal that investors are pricing in that profitability transition.
  
• Actionable stance: Maintain a reduced‑size short position or a tight‑range trade around the current $3.80 level until the next earnings update (likely Q3‑2025). A decisive beat on the upcoming AI‑IP revenue guidance would merit a swing‑long entry, targeting the $4.30–$4.50 upside, while a miss would push the stock back toward the $3.50 support.