Astera Labs Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Astera Labs (Nasdaq: ALAB) reported record Q4 revenue of $270.6M (up 17% QoQ) and record full-year 2025 revenue of $852.5M (up 115% YoY). GAAP gross margin was ~75.6% and GAAP diluted EPS was $0.25 in Q4; full-year GAAP net income was $219.1M with diluted EPS of $1.22. The company announced a CFO transition effective March 2, 2026, began production ramp for Scorpio X-Series, expanded a design center in Israel, and disclosed Q1 2026 guidance of $286M–$297M.
Positive
- Q4 revenue record of $270.6M, up 17% sequentially
- Full-year 2025 revenue of $852.5M, up 115% year-over-year
- High GAAP gross margin of ~75.6%–75.7% for Q4 and FY2025
- Started production ramp of Scorpio X-Series for lead platform
- Opened Israel Design Center to accelerate scale-up AI fabric R&D
- Announced Leo CXL Smart Memory Controllers supporting CXL 2.0
Negative
- CFO transition: Mike Tate to Strategic Advisor and Desmond Lynch joining as CFO on March 2, 2026, introducing leadership transition risk
Market Reaction
Following this news, ALAB has declined 13.10%, reflecting a significant negative market reaction. Our momentum scanner has triggered 21 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $158.90. This price movement has removed approximately $4.66B from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
ALAB gained 10.49% with strong Q4/FY2025 results, while peers showed mixed action: CRDO up 8.81%, NXPI up 3.39%, MRVL up 3.45%, but MPWR slightly down and MCHP nearly flat. This points to a company-specific earnings reaction rather than a broad sector spike.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 12 | Conference participation | Neutral | +6.1% | Announced participation in two Q1 2026 investor conferences with webcasts. |
| Nov 13 | Conference participation | Neutral | -8.4% | Outlined attendance at three Q4 2025 investor conferences with public webcasts. |
| Nov 04 | Q3 2025 results | Positive | -6.4% | Reported record Q3 FY2025 revenue with strong growth and solid margins plus guidance. |
| Aug 20 | Conference participation | Neutral | +3.0% | Announced presentations at Deutsche Bank and Citi technology conferences with webcasts. |
| Aug 05 | Q2 2025 results | Positive | +28.7% | Reported record Q2 FY2025 revenue and strong margins with upbeat Q3 guidance. |
Earnings-related and conference announcements have often driven sizable moves for ALAB, with several positive reactions but at least one instance where strong quarterly results coincided with a negative next-day move.
Over the past six months, ALAB’s earnings-tagged news has mixed core financial updates with active conference participation. Q2 FY2025 results on Aug 05, 2025 featured record revenue and saw a 28.66% move, while strong Q3 FY2025 numbers on Nov 04, 2025 coincided with a -6.39% reaction. Other items, such as conference participation announcements in Nov 2025 and Jan 2026, produced mid‑single‑digit moves. Today’s Q4/FY2025 report extends this pattern of earnings events acting as key trading catalysts.
Historical Comparison
In the past year, ALAB’s earnings-tagged releases averaged a 4.58% move. Today’s 10.49% reaction to Q4/FY2025 results is notably larger than typical earnings-related volatility.
Earnings-tagged history shows a progression from record Q2 and Q3 FY2025 financials toward today’s Q4/FY2025 report, with recurring conference participation signaling sustained investor outreach around the company’s growth story.
Market Pulse Summary
The stock is dropping -13.1% following this news. A negative reaction despite positive Q4/FY2025 headline numbers would have echoed prior divergence, such as the Q3 FY2025 report where strong growth coincided with a -6.39% move. Investors have previously reassessed rich expectations, guidance details, or capital allocation signals after earnings. Against this backdrop, any sharp decline would have fit a pattern where strong operational results did not always translate into favorable short-term price action.
Key Terms
non-gaap financial
gross margin financial
operating margin financial
compute express link (cxl) technical
virtual machines technical
AI-generated analysis. Not financial advice.
- Record quarterly revenue of
$270.6 million , up17% QoQ, and record full-year revenue of$852.5 million , up115% year-over-year - Broadening Scorpio X-Series smart fabric roadmap to address expanding scale-up market opportunities supporting multiple customers, starting production ramp for lead platform
- Appointed Desmond Lynch as Chief Financial Officer with Mike Tate transitioning to the role of Strategic Advisor to the CEO
SAN JOSE, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year of 2025, ended December 31, 2025.
“Astera Labs delivered strong financial results in Q4 with revenue growing by
Fourth Quarter of Fiscal 2025 Financial Highlights
GAAP Financial Results:
- Revenue of
$270.6 million , up17% sequentially and up92% year-over-year - GAAP gross margin of
75.6% - GAAP operating income of
$67.0 million - GAAP operating margin of
24.7% - GAAP net income of
$45.0 million - GAAP diluted net earnings per share of
$0.25
Non-GAAP Financial Results (excluding the impact of stock-based compensation expense, acquisition-related costs, and the income tax effects of non-GAAP adjustments):
- Non-GAAP gross margin of
75.7% - Non-GAAP operating income of
$108.9 million - Non-GAAP operating margin of
40.2% - Non-GAAP net income of
$104.8 million - Non-GAAP pro forma diluted earnings per share of
$0.58
Full Year Fiscal 2025 Financial Highlights
GAAP Financial Results:
- Revenue of
$852.5 million , up115% year-over-year - GAAP gross margin of
75.7% - GAAP operating income of
$173.4 million - GAAP operating margin of
20.3% - GAAP net income of
$219.1 million - GAAP diluted net earnings per share of
$1.22
Non-GAAP Financial Results (excluding the impact of stock-based compensation expense, acquisition-related costs, and the income tax effects of non-GAAP adjustments):
- Non-GAAP gross margin of
75.8% - Non-GAAP operating income of
$334.4 million - Non-GAAP operating margin of
39.2% - Non-GAAP net income of
$331.0 million - Non-GAAP pro forma diluted earnings per share of
$1.84
Chief Financial Officer Transition
Astera Labs announced that Mike Tate will transition from his CFO role to become a full-time Strategic Advisor to the CEO. During this time, he will also support a smooth leadership handoff to his successor.
“Mike has been a foundational leader since the earliest days of the Company, and I am grateful for his exceptional leadership and continued partnership,” said Jitendra Mohan, Chief Executive Officer. “We are excited to welcome Desmond, an accomplished CFO whose experience across several global semiconductor organizations will be invaluable as we enter our next phase of growth.”
“I’m grateful for my time at Astera Labs and proud of what we have built and accomplished,” said Mike Tate. “The future of the company is extremely bright, and I look forward to continue working closely with the company as well as supporting a smooth transition to Desmond.”
Desmond Lynch will join Astera Labs as CFO effective March 2, 2026. Desmond brings more than 25 years of financial leadership experience in the semiconductor industry and was most recently CFO of Rambus, following senior finance roles at Knowles, IDT, Atmel and National Semiconductor.
“Astera Labs is an established leader within AI connectivity and has an impressive track record of execution and partnership with a broad set of AI and cloud infrastructure providers,” said Desmond Lynch. “I am excited to join the company at such an important time in its growth journey, and I look forward to working with the leadership team to build on the company’s strong momentum.”
Q4 2025 and Recent Business Highlights
- Started production ramp of Scorpio X-Series solutions for lead platform and expanded the Scorpio X-Series Smart Fabric Switch roadmap in collaboration with hyperscaler customers to support next-generation scale-up networking applications. Scorpio X-Series roadmap now includes new features that will support increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity. Initial customer momentum and early platform deployments support an acceleration of investment to target the large and growing merchant scale-up switching marketplace, estimated to reach
$20 billion annually by 2030. - Expanded global footprint with new Israel Design Center to support growing demand for AI connectivity solutions. Led by industry veteran Guy Azrad, Astera Labs Israel will focus on accelerating the development of next-generation scale-up AI fabrics for high-bandwidth connectivity protocols. This team will also look to drive technical research and development to address memory bottlenecks in AI training and inference applications. The design center will also serve as a critical hub to tightly collaborate with leading Israeli institutions and the local venture ecosystem to advance technologies to support leading-edge AI and cloud infrastructure worldwide.
- Expanded product portfolio with custom solutions including connectivity products for NVLink Fusion to address the increasing complexity and diversity of next-generation AI infrastructure featuring a heterogeneous set of computing resources. In collaboration with hyperscaler partners, these custom connectivity solutions will be purpose-built to optimize system performance and drive additional energy efficiency, while lowering cost for a wide range of AI workloads.
- Announced Leo CXL Smart Memory Controllers to enable customers to evaluate Compute Express Link (CXL) memory expansion capabilities for their specific workloads within Microsoft Azure M-series virtual machines, the industry’s first announced deployment of CXL-attached memory. Leo CXL Smart Memory Controllers support CXL 2.0 with up to 2TB of memory capacity per controller, enabling cloud service providers to scale server memory capacity by more than 1.5x to unlock performance and scalability benefits for AI and in-memory databases while significantly reducing total cost of ownership.
First Quarter of Fiscal 2026 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:
GAAP Financial Outlook:
- Revenue within a range of
$286 million to$297 million - GAAP gross margin of approximately
74% - GAAP operating expenses within a range of approximately
$155 million to$161 million - GAAP tax rate of approximately
1% - GAAP diluted earnings per share of approximately
$0.36 t o$0.38 weighted-average diluted shares outstanding of approximately 184 million
Non-GAAP Financial Outlook (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):
- Non-GAAP gross margin of approximately
74% - Non-GAAP operating expenses within a range of approximately
$112 million to$118 million - Non-GAAP tax rate of approximately
12% - Non-GAAP diluted earnings per share of approximately
$0.53 t o$0.54 on non-GAAP weighted-average diluted shares outstanding of approximately 184 million
Earnings Webcast and Conference Call
Astera Labs will host a conference call to review its financial results for the fourth quarter and full fiscal year of 2025 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.
Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures, including those concerning our financial outlook, to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. The timing and impact of any adjustments to arrive at the corresponding GAAP financial measures concerning our financial outlook are inherently dependent on future events that are typically uncertain or that may be outside of our control. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, non-GAAP pro forma diluted earnings per share, and non-GAAP pro forma weighted-average share count. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, non-GAAP pro forma diluted earnings per share, and non-GAAP pro forma weighted-average share count provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.
We adjust the following items from one or more of our non-GAAP financial measures:
Stock-based compensation expense
We exclude non-cash stock-based compensation expense from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.
Acquisition-related costs
We exclude acquisition-related costs incurred in connection with our acquisitions, which we generally would have not otherwise incurred in the periods presented as part of our continuing operations. Acquisition-related costs include certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees. We believe that providing the non-GAAP measures excluding these costs assists our investors because such costs are not reflective of our ongoing operating results.
Employer payroll taxes related to stock-based compensation resulting from our IPO
We exclude employer payroll taxes related to the time-based vesting and net settlement of restricted stock units in connection with our initial public offering (the “IPO”), because this does not correlate to the operation of our business. We believe that excluding this item provides meaningful supplemental information regarding operational performance given the amount of employer payroll tax-related items on employee stock transactions was immaterial prior to our IPO.
Income tax effect
This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income and non-GAAP net income per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.
Non-GAAP pro forma weighted-average shares to compute non-GAAP pro forma net income per share
We present non-GAAP pro forma weighted-average shares, assuming our redeemable convertible preferred stock is converted from the beginning of each respective periods presented, to provide meaningful supplemental information regarding EPS trend on a consistent basis. All of our outstanding redeemable preferred stock converted into the equivalent number of shares of common stock in connection with our IPO.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on Astera Labs' current expectations. The words “accelerating,” “advance,” “aims,” “anticipate,” “beginning,” “believe," “confidence,” “committed,” “continue,” “could,” “deliver,” “designed,” “drive,” “enable,” “estimate," “expand,” “expect," “forecasting,” “forthcoming,” “forward,” “future,” “goal,” “growth,” “guidance,” “intend," “look,” “may,” “momentum,” “on track,” “opportunities,” “outlook,” “paths,” “plan,” “poised,” “positioning,” “progress,” “proliferate,” “proposed,” “prospects,” “provide,” “represents,” “roadmaps,” “should,” “strategies,” “target,” “trends,” “upside,” “ultimately,” “vision,” “will,” and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs as of February 10, 2026, and are subject to various assumptions, beliefs, risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include, but are not limited to, statements regarding our and our ultimate customers’ future business, operating results, cash flow, financial position and guidance (and any underlying drivers), including for the first quarter of fiscal 2026; our business strategy, plans and market or revenue opportunities, our growth profile and our timing and ability to further build upon our revenue base, expand our product offerings and features or performance, increase and service our market opportunity, remain at the forefront of an AI infrastructure transformation, and scale our connectivity platform; our objectives for future operations, organizational investments and changes, and the drivers associated therewith; our production, development, shipping and delivery of, activity, applications and demand for, availability of, as well as absolute and relative revenue, growth (including the drivers), ramp from and roadmap for, existing, new, growing or enhanced (whether technologically or otherwise) products, including the initial production of Scorpio X-Series solutions in collaboration with hyperscaler customers, the introduction of a product portfolio expansion to include custom connectivity to address next-generation AI infrastructure, the deployment of Leo CXL Smart Memory Controllers to enable customers to evaluate CXL memory expansion capabilities, solutions to address KV-cache inference related workloads, and the performance and results of those products for our customers; the benefits, timing, impact, proliferation and customer adoption of different connectivity standards and demands; the design wins at and diversification, activity, engagements and expectations of our customers; the plans and potential success of our announced and ongoing collaborations, partnerships and strategic relationships, including our warrant agreement with Amazon and our collaboration with hyperscale partners to develop custom solutions to support NVLink; our competitive positioning and the impacts thereof; our R&D, technology and strategic IP plans; our expanded global footprint with our new Israel Design Center, and the anticipated effects and benefits associated with the design center; the strategies associated with, investments in and size of our team, as well as the associated impacts; and maximize and future industry and macroeconomic conditions, events and trends such as in cloud and AI infrastructure as well as our preparedness and solutions for them. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic and/or geopolitical environment, including economic uncertainty and volatility in the capital markets; risks that demand for our products and the supply chain may be adversely affected, including by the imposition of tariffs by the United States or any other jurisdiction and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and Israel/Hamas), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); our ability to successfully complete acquisitions and to integrate newly acquired businesses and offerings; absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs' products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K, that will be filed with the Securities and Exchange Commission (the “SEC”), and in subsequent Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not unduly rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
About Astera Labs
Astera Labs (NASDAQ: ALAB) provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI. Astera Labs’ Intelligent Connectivity Platform integrates CXL®, Ethernet, NVLink Fusion, PCIe®, and UALink™ semiconductor-based technologies with the company’s COSMOS software suite to unify diverse components into cohesive, flexible systems that deliver end-to-end scale-up, and scale-out connectivity. The company’s custom connectivity solutions business complements its standards-based portfolio, enabling customers to deploy tailored architectures to meet their unique infrastructure requirements. Discover more at www.asteralabs.com.
| ASTERA LABS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) | ||||||
| December 31, 2025 | December 31, 2024 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 167,611 | $ | 79,551 | ||
| Marketable securities | 1,021,205 | 834,750 | ||||
| Accounts receivable, net | 83,202 | 38,811 | ||||
| Inventory | 58,979 | 43,215 | ||||
| Prepaid expenses and other current assets | 31,033 | 16,652 | ||||
| Total current assets | 1,362,030 | 1,012,979 | ||||
| Property and equipment, net | 92,038 | 35,651 | ||||
| Other assets | 77,755 | 5,878 | ||||
| Total assets | $ | 1,531,823 | $ | 1,054,508 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 42,362 | $ | 26,918 | ||
| Accrued expenses and other current liabilities | 90,680 | 59,624 | ||||
| Total current liabilities | 133,042 | 86,542 | ||||
| Other liabilities | 35,147 | 3,167 | ||||
| Total liabilities | 168,189 | 89,709 | ||||
| Stockholders’ equity | ||||||
| Common stock | 17 | 16 | ||||
| Additional paid-in capital | 1,348,969 | 1,173,153 | ||||
| Accumulated other comprehensive income | 4,310 | 426 | ||||
| Retained earnings (accumulated deficit) | 10,338 | (208,796 | ) | |||
| Total stockholders’ equity | 1,363,634 | 964,799 | ||||
| Total liabilities and stockholders’ equity | $ | 1,531,823 | $ | 1,054,508 | ||
| ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Revenue | $ | 270,583 | $ | 230,575 | $ | 141,096 | $ | 852,525 | $ | 396,290 | ||||||||
| Cost of revenue | 66,108 | 54,763 | 36,648 | 207,264 | 93,591 | |||||||||||||
| Gross profit | 204,475 | 175,812 | 104,448 | 645,261 | 302,699 | |||||||||||||
| Operating expenses | ||||||||||||||||||
| Research and development | 93,792 | 78,928 | 56,524 | 303,998 | 200,830 | |||||||||||||
| Sales and marketing | 20,104 | 19,359 | 22,818 | 79,774 | 123,652 | |||||||||||||
| General and administrative | 23,621 | 22,119 | 24,962 | 88,066 | 94,283 | |||||||||||||
| Total operating expenses | 137,517 | 120,406 | 104,304 | 471,838 | 418,765 | |||||||||||||
| Operating income (loss) | 66,958 | 55,406 | 144 | 173,423 | (116,066 | ) | ||||||||||||
| Interest income | 11,957 | 11,456 | 10,558 | 44,730 | 34,288 | |||||||||||||
| Income (loss) before income taxes | 78,915 | 66,862 | 10,702 | 218,153 | (81,778 | ) | ||||||||||||
| Income tax provision (benefit) | 33,933 | (24,252 | ) | (14,011 | ) | (981 | ) | 1,643 | ||||||||||
| Net income (loss) | $ | 44,982 | $ | 91,114 | $ | 24,713 | $ | 219,134 | $ | (83,421 | ) | |||||||
| Net income (loss) per share attributable to common stockholders: | ||||||||||||||||||
| Basic | $ | 0.27 | $ | 0.54 | $ | 0.15 | $ | 1.32 | $ | (0.64 | ) | |||||||
| Diluted | $ | 0.25 | $ | 0.50 | $ | 0.14 | $ | 1.22 | $ | (0.64 | ) | |||||||
| Weighted-average shares used in calculating net income (loss) per share attributable to common stockholders: | ||||||||||||||||||
| Basic | 169,505 | 167,436 | 159,895 | 166,408 | 131,262 | |||||||||||||
| Diluted | 181,181 | 180,631 | 177,559 | 179,551 | 131,262 | |||||||||||||
| ASTERA LABS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||
| Years Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities | |||||||
| Net income (loss) | $ | 219,134 | $ | (83,421 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||
| Stock-based compensation | 160,033 | 234,588 | |||||
| Depreciation and amortization | 6,829 | 3,154 | |||||
| Non-cash operating lease expense | 2,933 | 2,428 | |||||
| Warrants contra revenue | 5,514 | 1,395 | |||||
| Accretion of discounts on marketable securities | (7,932 | ) | (8,436 | ) | |||
| Other | (1,241 | ) | 263 | ||||
| Changes in operating assets and liabilities | |||||||
| Accounts receivable, net | (44,343 | ) | (30,480 | ) | |||
| Inventory | (12,950 | ) | (19,287 | ) | |||
| Prepaid expenses and other assets | (33,757 | ) | (13,031 | ) | |||
| Accounts payable | 14,194 | 20,887 | |||||
| Accrued expenses and other liabilities | 15,770 | 31,018 | |||||
| Operating lease liability | (4,878 | ) | (2,402 | ) | |||
| Net cash provided by operating activities | 319,306 | 136,676 | |||||
| Cash flows from investing activities | |||||||
| Purchases of property and equipment | (37,544 | ) | (34,245 | ) | |||
| Purchases of marketable securities | (857,753 | ) | (930,575 | ) | |||
| Sales and maturities of marketable securities | 683,114 | 208,665 | |||||
| Payments for business combinations, net of cash acquired | (28,786 | ) | — | ||||
| Other investing activities | (500 | ) | (1,413 | ) | |||
| Net cash used in investing activities | (241,469 | ) | (757,568 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions | — | 672,198 | |||||
| Payment of deferred offering costs | — | (4,801 | ) | ||||
| Proceeds from exercises of stock options | 1,825 | 5,458 | |||||
| Proceeds from employee stock purchase plan | 7,978 | 4,160 | |||||
| Tax withholding related to net share settlements of restricted stock units | — | (20,111 | ) | ||||
| Repurchase of common stock upon termination | — | (1,066 | ) | ||||
| Net cash provided by financing activities | 9,803 | 655,838 | |||||
| Net increase in cash, cash equivalents, and restricted cash | 87,640 | 34,946 | |||||
| Cash, cash equivalents, and restricted cash | |||||||
| Beginning of the period | 80,044 | 45,098 | |||||
| End of the period | $ | 167,684 | $ | 80,044 | |||
| ASTERA LABS, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands, except percentages and per share amounts) | |||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||
| GAAP gross profit | $ | 204,475 | $ | 175,812 | $ | 104,448 | $ | 645,261 | $ | 302,699 | |||||||||
| Stock-based compensation expense upon IPO(1) | — | — | — | — | 516 | ||||||||||||||
| Stock-based compensation expense | 429 | 379 | 131 | 1,123 | 329 | ||||||||||||||
| Non-GAAP gross profit | $ | 204,904 | $ | 176,191 | $ | 104,579 | $ | 646,384 | $ | 303,544 | |||||||||
| GAAP gross margin | 75.6 | % | 76.2 | % | 74.0 | % | 75.7 | % | 76.4 | % | |||||||||
| Stock-based compensation expense upon IPO(1) | — | — | — | — | 0.1 | ||||||||||||||
| Stock-based compensation expense | 0.1 | 0.2 | 0.1 | 0.1 | 0.1 | ||||||||||||||
| Non-GAAP gross margin | 75.7 | % | 76.4 | % | 74.1 | % | 75.8 | % | 76.6 | % | |||||||||
| GAAP operating income (loss) | $ | 66,958 | $ | 55,406 | $ | 144 | $ | 173,423 | $ | (116,066 | ) | ||||||||
| Stock-based compensation expense upon IPO(1) | — | — | — | — | 88,873 | ||||||||||||||
| Stock-based compensation expense | 41,374 | 40,739 | 48,218 | 160,033 | 145,715 | ||||||||||||||
| Acquisition-related costs(2) | 575 | — | — | 950 | — | ||||||||||||||
| Employer payroll tax related to stock-based compensation from IPO(3) | — | — | — | — | 1,072 | ||||||||||||||
| Non-GAAP operating income | $ | 108,907 | $ | 96,145 | $ | 48,362 | $ | 334,406 | $ | 119,594 | |||||||||
| GAAP operating margin | 24.7 | % | 24.0 | % | 0.1 | % | 20.3 | % | (29.3)% | ||||||||||
| Stock-based compensation expense upon IPO(1) | — | — | — | — | 22.4 | ||||||||||||||
| Stock-based compensation expense | 15.3 | 17.7 | 34.2 | 18.8 | 36.8 | ||||||||||||||
| Acquisition-related costs(2) | 0.2 | — | — | 0.1 | — | ||||||||||||||
| Employer payroll tax related to stock-based compensation from IPO(3) | — | — | — | — | 0.3 | ||||||||||||||
| Non-GAAP operating margin | 40.2 | % | 41.7 | % | 34.3 | % | 39.2 | % | 30.2 | % | |||||||||
| GAAP net income (loss) | $ | 44,982 | $ | 91,114 | $ | 24,713 | $ | 219,134 | $ | (83,421 | ) | ||||||||
| Stock-based compensation expense upon IPO(1) | — | — | — | — | 88,873 | ||||||||||||||
| Stock-based compensation expense | 41,374 | 40,739 | 48,218 | 160,033 | 145,715 | ||||||||||||||
| Acquisition-related costs(2) | 575 | — | — | 950 | — | ||||||||||||||
| Employer payroll tax related to stock-based compensation from IPO(3) | — | — | — | — | 1,072 | ||||||||||||||
| Income tax effect(4) | 17,833 | (43,627 | ) | (6,439 | ) | (49,102 | ) | (8,910 | ) | ||||||||||
| Non-GAAP net income | $ | 104,764 | $ | 88,226 | $ | 66,492 | $ | 331,015 | $ | 143,329 | |||||||||
| Net income (loss) per share attributable to common stockholders: | |||||||||||||||||||
| GAAP - basic | $ | 0.27 | $ | 0.54 | $ | 0.15 | $ | 1.32 | $ | (0.64 | ) | ||||||||
| GAAP - diluted | $ | 0.25 | $ | 0.50 | $ | 0.14 | $ | 1.22 | $ | (0.64 | ) | ||||||||
| Non-GAAP pro forma - diluted | $ | 0.58 | $ | 0.49 | $ | 0.37 | $ | 1.84 | $ | 0.84 | |||||||||
| Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||||||||
| GAAP - basic | 169,505 | 167,436 | 159,895 | 166,408 | 131,262 | ||||||||||||||
| GAAP - diluted | 181,181 | 180,631 | 177,559 | 179,551 | 131,262 | ||||||||||||||
| Non-GAAP pro forma - diluted(5) | 181,181 | 180,631 | 177,559 | 179,551 | 168,913 | ||||||||||||||
____________________
(1) Stock-based compensation expense recognized in connection with the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.
(2) Acquisition-related costs include certain incremental expenses incurred to effect a business combination such as third-party costs: advisory, legal, accounting, valuation, and other professional fees.
(3) Employer payroll taxes related to the time-based vesting and settlement of RSUs, that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.
(4) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, the non-GAAP tax expense rate was
(5) We present the non-GAAP pro forma weighted average shares to provide meaningful supplemental information of comparable shares for each periods presented. The non-GAAP pro forma weighted average shares is calculated as follows:
| Three Months Ended | Years Ended | ||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||
| Shares used to compute GAAP net income (loss) per share attributable to common stockholders - diluted | 181,181 | 180,631 | 177,559 | 179,551 | 131,262 | ||||
| Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the beginning of the periods | — | — | — | — | 19,165 | ||||
| Effect of dilutive equivalent shares | — | — | — | — | 18,486 | ||||
| Shares used to compute non-GAAP pro forma net income per share- diluted | 181,181 | 180,631 | 177,559 | 179,551 | 168,913 | ||||
| ASTERA LABS, INC., RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK (Unaudited) (In millions, except percentages and per share amounts) | |||||||
| Outlook for Three Months Ending March 31, 2026 | |||||||
| Low | High | ||||||
| GAAP gross margin | 74 | % | 74 | % | |||
| Stock-based compensation expense | — | — | |||||
| Non-GAAP gross margin | 74 | % | 74 | % | |||
| GAAP operating expense | $ | 155 | $ | 161 | |||
| Stock-based compensation expense | (43 | ) | (43 | ) | |||
| Non-GAAP operating expense | $ | 112 | $ | 118 | |||
| GAAP tax rate | 1 | % | 1 | % | |||
| Stock-based compensation expense | 11 | 11 | |||||
| Non-GAAP tax rate | 12 | % | 12 | % | |||
| GAAP EPS - diluted | $ | 0.36 | $ | 0.38 | |||
| Stock-based compensation expense | 0.17 | 0.16 | |||||
| Non-GAAP EPS - diluted | $ | 0.53 | $ | 0.54 | |||
| ASTERA LABS, INC. SUPPLEMENTAL FINANCIAL INFORMATION STOCK-BASED COMPENSATION EXPENSE (Unaudited) (In thousands) | ||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||
| Cost of revenue | $ | 429 | $ | 379 | $ | 131 | $ | 1,123 | $ | 845 | ||||
| Research and development | 23,094 | 21,711 | 18,808 | 81,843 | 76,427 | |||||||||
| Sales and marketing | 9,029 | 9,361 | 14,671 | 39,903 | 95,887 | |||||||||
| General and administrative | 8,822 | 9,288 | 14,608 | 37,164 | 61,429 | |||||||||
| Total stock-based compensation expense(1) | $ | 41,374 | $ | 40,739 | $ | 48,218 | $ | 160,033 | $ | 234,588 | ||||
____________________
(1) Stock-based compensation expense recognized during the year ended December 31, 2024 included
IR CONTACT: Leslie Green
leslie.green@asteralabs.com
FAQ
What were Astera Labs (ALAB) Q4 2025 results and how did revenue compare to prior quarter?
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