Operating margins remain severely constrained at -82.4% in 2026Q4, as aggressive R&D spending of $5.6M continues to overwhelm the company's 52.4% gross margin.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 |
|---|
| Sales/Revenue | 25.12M | 20.52M | 21.77M | 29.69M | 33.38M | 27.73M | 43.34M | 51.49M | 42.64M | 48.18M | 52.74M | 53.5M | 58.58M | 66.01M | 82.54M | 97.76M | 67.56M | 62.11M | 53.17M | 58.16M | 43.14M | 45.74M | 35.42M | 20.98M |
| Revenue Growth % | 22.44% | -5.73% | -26.7% | -11.06% | 20.39% | -36.02% | -15.82% | 20.74% | -11.49% | -8.64% | -1.42% | -8.67% | -11.26% | -20.02% | -15.57% | 44.71% | 8.77% | 16.81% | -8.58% | 34.81% | -5.67% | 29.13% | 68.81% | - |
| Cost of Goods Sold | 11.43M | 10.38M | 9.94M | 12.01M | 14.85M | 14.51M | 18M | 19.86M | 20.22M | 21.76M | 26M | 28.38M | 32.47M | 37.43M | 45.89M | 53.01M | 38.34M | 35.55M | 31.85M | 36.04M | 29.23M | 30.71M | 26.62M | 18.48M |
| COGS % of Revenue | 45.49% | 50.58% | 45.68% | 40.45% | 44.47% | 52.34% | 41.53% | 38.57% | 47.41% | 45.17% | 49.3% | 53.04% | 55.43% | 56.69% | 55.6% | 54.22% | 56.75% | 57.24% | 59.9% | 61.97% | 67.75% | 67.16% | 75.15% | 88.07% |
| Gross Profit | 13.7M | 10.14M | 11.82M | 17.68M | 18.54M | 13.22M | 25.34M | 31.63M | 22.43M | 26.42M | 26.74M | 25.12M | 26.11M | 28.59M | 36.65M | 44.75M | 29.22M | 26.56M | 21.32M | 22.12M | 13.91M | 15.02M | 8.8M | 2.5M |
| Gross Margin % | 54.51% | 49.42% | 54.32% | 59.55% | 55.53% | 47.66% | 58.47% | 61.43% | 52.59% | 54.83% | 50.7% | 46.96% | 44.57% | 43.31% | 44.4% | 45.78% | 43.25% | 42.76% | 40.1% | 38.03% | 32.25% | 32.84% | 24.85% | 11.93% |
| Gross Profit Growth % | 35.06% | -14.24% | -33.13% | -4.62% | 40.25% | -47.85% | -19.87% | 41.03% | -15.1% | -1.2% | 6.42% | -3.78% | -8.67% | -22% | -18.11% | 53.18% | 10.02% | 24.54% | -3.59% | 58.98% | -7.38% | 70.69% | 251.44% | - |
| Operating Expenses | 31.17M | 20.98M | 32.25M | 33.49M | 34.89M | 34.48M | 36.15M | 31.81M | 26.9M | 26.94M | 29.76M | 31.16M | 31.92M | 25.17M | 29.99M | 21.35M | 18.6M | 15.03M | 13.83M | 11.16M | 10.17M | 10.56M | 9.65M | 10.71M |
| OpEx % of Revenue | 124.08% | 102.23% | 148.19% | 112.79% | 104.51% | 124.35% | 83.39% | 61.78% | 63.07% | 55.92% | 56.43% | 58.25% | 54.5% | 38.13% | 36.34% | 21.84% | 27.54% | 24.2% | 26.01% | 19.19% | 23.58% | 23.09% | 27.25% | 51.03% |
| Selling, General & Admin | 11.22M | 10.76M | 10.56M | 9.94M | 10.22M | 11.14M | 10.92M | 10.46M | 9.9M | 11.14M | 17.66M | 19.25M | 18.81M | 13.7M | 19.36M | 10.72M | 9.53M | 9.29M | 9.46M | 6.21M | 4.8M | 5.76M | 4.15M | 4.5M |
| SG&A % of Revenue | 44.68% | 52.46% | 48.54% | 33.47% | 30.61% | 40.16% | 25.2% | 20.31% | 23.21% | 23.12% | 33.49% | 35.98% | 32.12% | 20.75% | 23.45% | 10.97% | 14.11% | 14.97% | 17.8% | 10.68% | 11.12% | 12.59% | 11.72% | 21.45% |
| Research & Development | 19.95M | 16M | 21.69M | 23.55M | 24.67M | 23.34M | 25.22M | 21.36M | 17M | 15.8M | 12.1M | 11.92M | 13.11M | 11.47M | 10.64M | 10.63M | 9.07M | 5.74M | 4.37M | 4.95M | 5.38M | 4.8M | 5.5M | 6.21M |
| R&D % of Revenue | 79.4% | 78% | 99.65% | 79.32% | 73.9% | 84.19% | 58.19% | 41.48% | 39.86% | 32.8% | 22.93% | 22.28% | 22.38% | 17.38% | 12.89% | 10.88% | 13.42% | 9.24% | 8.21% | 8.51% | 12.46% | 10.5% | 15.53% | 29.58% |
| Other Operating Expenses | 0 | -5.79M | 0 | 0 | 0 | 0 | 0 | -221K | -12K | 166K | -97K | 64K | -49K | 9K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -17.48M | -10.84M | -20.43M | -15.81M | -16.35M | -21.26M | -10.8M | -182K | -4.47M | -527K | -3.02M | -6.04M | -5.81M | 3.42M | 6.66M | 23.4M | 10.61M | 11.52M | 7.49M | 10.96M | 3.74M | 4.46M | -852K | -8.2M |
| Operating Margin % | -69.57% | -52.81% | -93.87% | -53.24% | -48.98% | -76.69% | -24.92% | -0.35% | -10.48% | -1.09% | -5.73% | -11.29% | -9.93% | 5.18% | 8.06% | 23.94% | 15.71% | 18.55% | 14.09% | 18.84% | 8.66% | 9.75% | -2.41% | -39.09% |
| Operating Income Growth % | -61.3% | 46.97% | -29.25% | 3.34% | 23.1% | -96.85% | -5835.16% | 95.93% | -748.39% | 82.56% | 49.99% | -3.9% | -270% | -48.62% | -71.56% | 120.48% | -7.91% | 53.78% | -31.61% | 193.12% | -16.21% | 623.59% | 89.61% | - |
| EBITDA | -16.85M | -10.17M | -19.5M | -14.79M | -14.98M | -20.05M | -9.37M | 1.27M | -3.22M | 1M | -1.56M | -4.41M | -3.83M | 5.79M | 9.27M | 26.19M | 12.81M | 12.89M | 8.68M | 11.79M | 4.63M | 5.39M | 157K | -7.12M |
| EBITDA Margin % | -67.07% | -49.57% | -89.61% | -49.82% | -44.86% | -72.31% | -21.61% | 2.47% | -7.56% | 2.09% | -2.96% | -8.24% | -6.54% | 8.78% | 11.23% | 26.79% | 18.96% | 20.75% | 16.33% | 20.28% | 10.73% | 11.78% | 0.44% | -33.95% |
| EBITDA Growth % | -65.67% | 47.86% | -31.86% | 1.23% | 25.31% | -114.03% | -836.48% | 139.45% | -420.8% | 164.34% | 64.56% | -15% | -166.14% | -37.47% | -64.62% | 104.5% | -0.6% | 48.44% | -26.39% | 154.65% | -14.03% | 3331.21% | 102.2% | - |
| D&A (Non-Cash Add-back) | 628K | 665K | 927K | 1.01M | 1.38M | 1.21M | 1.43M | 1.45M | 1.25M | 1.53M | 1.46M | 1.63M | 1.98M | 2.38M | 2.61M | 2.79M | 2.2M | 1.36M | 1.19M | 836K | 893K | 926K | 1.01M | 1.08M |
| EBIT | -17.48M | -16.63M | -20.43M | -17.71M | -16.35M | -21.26M | -10.8M | -182K | -4.47M | -527K | -3.02M | -6.04M | -5.81M | 3.42M | 6.66M | 23.4M | 10.61M | 11.52M | 7.49M | 10.96M | 3.74M | 4.46M | -852K | -8.2M |
| Net Interest Income | 926K | 445K | 541K | 308K | 71K | 295K | 783K | 671K | 421K | 312K | 307K | 324K | 387K | 455K | 541K | 673K | 894K | 1.46M | 1.7M | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 926K | 445K | 541K | 308K | 71K | 295K | 783K | 671K | 421K | 312K | 307K | 324K | 387K | 455K | 541K | 673K | 894K | 1.46M | 1.7M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 682K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 4.1M | 326K | 414K | 202K | -60K | 94K | 712K | 450K | 409K | 478K | 210K | 388K | 338K | 464K | 525K | 461K | 1.97M | 1.36M | 1.78M | 728K | 682K | 164K | 182K | 144K |
| Pretax Income | -13.38M | -10.51M | -20.02M | -15.61M | -16.41M | -21.17M | -10.09M | 268K | -4.06M | -49K | -2.81M | -5.65M | -5.48M | 3.88M | 7.18M | 23.86M | 12.58M | 12.89M | 9.28M | 11.69M | 4.42M | 4.63M | -670K | -8.06M |
| Pretax Margin % | -53.25% | -51.22% | -91.97% | -52.56% | -49.16% | -76.35% | -23.28% | 0.52% | -9.53% | -0.1% | -5.33% | -10.57% | -9.35% | 5.88% | 8.7% | 24.41% | 18.62% | 20.75% | 17.45% | 20.09% | 10.25% | 10.11% | -1.89% | -38.41% |
| Income Tax | -132K | 130K | 70K | 372K | -45K | 335K | 247K | 105K | 453K | 66K | -641K | -675K | 713K | 38K | 425K | 4.99M | 2.19M | 3.6M | 2.5M | 4.25M | 171K | -155K | 0 | -620K |
| Effective Tax Rate % | 0.99% | -1.24% | -0.35% | -2.38% | 0.27% | -1.58% | -2.45% | 39.18% | -11.15% | -134.69% | 22.8% | 11.94% | -13.02% | 0.98% | 5.92% | 20.89% | 17.45% | 27.92% | 27% | 36.38% | 3.87% | -3.35% | 0% | 7.69% |
| Net Income | -13.25M | -10.64M | -20.09M | -15.98M | -16.37M | -21.5M | -10.34M | 163K | -4.51M | -115K | -2.17M | -4.98M | -6.19M | 3.85M | 6.76M | 18.88M | 10.38M | 9.29M | 6.77M | 7.43M | 4.25M | 4.78M | -670K | -7.44M |
| Net Margin % | -52.73% | -51.85% | -92.29% | -53.81% | -49.03% | -77.55% | -23.85% | 0.32% | -10.59% | -0.24% | -4.11% | -9.3% | -10.57% | 5.83% | 8.19% | 19.31% | 15.37% | 14.96% | 12.74% | 12.78% | 9.85% | 10.45% | -1.89% | -35.45% |
| Net Income Growth % | -24.5% | 47.04% | -25.72% | 2.39% | 23.89% | -108.04% | -6441.72% | 103.61% | -3826.09% | 94.7% | 56.41% | 19.57% | -260.92% | -43.07% | -64.21% | 81.8% | 11.78% | 37.15% | -8.89% | 74.96% | -11.11% | 813.43% | 90.99% | - |
| Net Income (Continuing) | -13.25M | -10.64M | -20.09M | -15.98M | -16.37M | -21.5M | -10.34M | 163K | -4.51M | -115K | -2.17M | -4.98M | -6.19M | 3.85M | 6.76M | 18.88M | 10.38M | 9.29M | 6.77M | 7.43M | 4.25M | 4.78M | -670K | -7.44M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.42 | -0.42 | -0.80 | -0.65 | -0.67 | -0.91 | -0.45 | 0.01 | -0.21 | -0.01 | -0.10 | -0.20 | -0.23 | 0.14 | 0.23 | 0.64 | 0.38 | 0.33 | 0.24 | 0.32 | 0.19 | 0.21 | -0.12 | -1.39 |
| EPS Growth % | 0% | 47.5% | -23.08% | 2.99% | 26.37% | -102.22% | - | 103.33% | - | 94.17% | 52% | 13.04% | -264.29% | -39.13% | -64.06% | 68.42% | 15.15% | 37.5% | -25% | 68.42% | -9.52% | 275% | 91.37% | - |
| EPS (Basic) | -0.42 | -0.42 | -0.80 | -0.65 | -0.67 | -0.91 | -0.45 | 0.01 | -0.21 | -0.01 | -0.10 | -0.20 | -0.23 | 0.14 | 0.24 | 0.67 | 0.38 | 0.33 | 0.25 | 1.04 | 0.54 | 0.63 | -0.12 | -1.39 |
| Diluted Shares Outstanding | 31.84M | 25.55M | 25.14M | 24.59M | 24.3M | 23.67M | 22.97M | 23.35M | 21.09M | 20.65M | 22.59M | 25.03M | 27.5M | 28.08M | 29.5M | 29.68M | 27.69M | 28.39M | 28.62M | 22.84M | 22.59M | 22.56M | 5.66M | 5.33M |
| Basic Shares Outstanding | 31.84M | 25.55M | 25.14M | 24.59M | 24.3M | 23.67M | 22.97M | 23.35M | 21.09M | 20.65M | 21.7M | 24.89M | 26.91M | 27.12M | 28.5M | 28.01M | 27.11M | 27.73M | 27.54M | 6.25M | 6.15M | 6.11M | 5.66M | 5.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Cash Burn
According to historical income statement data, GSI Technology experienced a notable 41.6% revenue growth spike in 2026Q2, yet the subsequent deceleration to 7.4% by 2026Q4 highlights the inherent instability of a business model heavily reliant on lumpy, project-based design wins within the defense and networking sectors.
The erratic quarterly growth figures suggest that the company lacks a predictable recurring revenue base, making it difficult to forecast long-term scaling. Investors should monitor whether the recent growth fluctuations represent a genuine recovery in legacy demand or merely the timing of specific, non-repeatable aerospace contract deliveries.
As reported in financial statements, GSI Technology has maintained a relatively stable gross margin profile, averaging above 50% in most recent quarters, which indicates that its specialized radiation-hardened memory products retain significant pricing power despite the company's limited overall manufacturing scale and lack of volume-driven cost efficiencies.
The ability to sustain these margins suggests a strong competitive moat within niche defense applications where performance and reliability outweigh commodity pricing. However, the structural reliance on third-party foundries leaves these margins vulnerable to potential input cost inflation that the company may struggle to pass on to customers.
Based on the provided income statement data, GSI Technology exhibits a persistent lack of operating leverage, as evidenced by the -82.4% operating margin in 2026Q4, which demonstrates that current revenue levels are insufficient to absorb the heavy R&D expenditures required to support the company's proprietary APU architecture.
The disconnect between gross profit generation and operating expenses suggests that the company is currently prioritizing long-term technological development over near-term profitability. Without a significant and sustained increase in revenue, the current cost structure appears unsustainable, placing continued pressure on the firm's cash reserves.
Analysis of recent filings reveals that GSI Technology's cost structure is dominated by aggressive R&D spending, which reached $7.5M in 2026Q3, effectively overwhelming the company's gross profit and resulting in deep operating losses that underscore the high-risk nature of its ongoing associative processing unit development efforts.
The company's expense discipline appears secondary to its strategic objective of commercializing the APU, leading to a high fixed-cost burden that is not yet supported by commercial sales. This strategy warrants further investigation into the timeline for APU commercialization, as the current burn rate is directly tied to these discretionary development costs.
While the company maintains a healthy cash position of $67.2M, the persistent negative net income, which reached -$4.8M in 2026Q4, suggests that the market's valuation may be overly optimistic regarding the timeline for the APU to transition from a development project into a viable, profit-generating commercial product.
Short-term observers might argue that the company is trapped in a cycle of perpetual R&D spending without a clear path to profitability. Investors should consider the risk that the APU technology may face significant adoption hurdles, potentially rendering the current high-cost structure a permanent drag on shareholder value.
Quick answers to the most common questions about buying GSIT stock.
For fiscal year 2026, GSI Technology, Inc. (GSIT) reported total revenue of $25.1M. This represents a 19.7% increase compared to $21.0M in 2003.
GSI Technology, Inc. (GSIT) reported a net loss of $13.2M for the fiscal year ending 2026.
GSI Technology, Inc. (GSIT) reported an operating income of $-17.5M, resulting in an operating profit margin of -69.6%. This margin reflects the operational efficiency of the business before interest and taxes.
GSI Technology, Inc. (GSIT) generated $13.7M in gross profit for the year, representing a gross profit margin of 54.5%. This demonstrates the company's core pricing power and production efficiency.