Ambarella, Inc. Announces First Quarter Fiscal Year 2026 Financial Results
- Revenue increased significantly by 57.6% YoY to $85.9 million
- Achieved fourth consecutive quarter of record AI revenue
- Turned non-GAAP profitable with $3.0 million net profit vs. $10.5 million loss last year
- Strong cash position of $259.4 million, up from $203.3 million YoY
- Increased FY2026 revenue growth guidance to 19-25%
- GAAP net loss of $24.3 million, though improved from $37.9 million loss last year
- Slight decline in gross margins both GAAP (60.0% vs 60.9%) and non-GAAP (62.0% vs 63.4%)
- Uncertain geopolitical environment noted as a risk factor
Insights
Ambarella reports impressive 57.6% revenue growth, turns non-GAAP profitable, and raises annual guidance despite uncertain geopolitical environment.
Ambarella's Q1 fiscal 2026 results demonstrate a significant turnaround with revenue reaching
The company's edge AI focus is clearly paying dividends, with management noting their "fourth consecutive quarter of record AI revenue." This sustained momentum in high-margin AI applications has enabled them to maintain a robust non-GAAP gross margin of
Notably, Ambarella has strengthened its balance sheet, with cash and marketable securities increasing to
Management's increased full-year revenue growth guidance to
The extension of their share repurchase program, with
SANTA CLARA, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced first quarter fiscal 2026 financial results for the period ended April 30, 2025.
- Revenue for the first quarter of fiscal 2026 was
$85.9 million , up57.6% from$54.5 million in the same period in fiscal 2025. - Gross margin under U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2026 was
60.0% , compared with60.9% for the same period in fiscal 2025. - GAAP net loss for the first quarter of fiscal 2026 was
$24.3 million , or loss per diluted ordinary share of$0.58 , compared with a GAAP net loss of$37.9 million , or loss per diluted ordinary share of$0.93 , for the same period in fiscal 2025.
Financial results on a non-GAAP basis for the first quarter of fiscal 2026 are as follows:
- Gross margin on a non-GAAP basis for the first quarter of fiscal 2026 was
62.0% , compared with63.4% for the same period in fiscal 2025. - Non-GAAP net profit for the first quarter of fiscal 2026 was
$3.0 million , or earnings per diluted ordinary share of$0.07 . This compares with non-GAAP net loss of$10.5 million , or loss per diluted ordinary share of$0.26 , for the same period in fiscal 2025.
Based on information available as of today, Ambarella is offering the following guidance for the second quarter of fiscal year 2026, ending July 31, 2025:
- Revenue is expected to be between
$86.0 million and$94.0 million . - Gross margin on a non-GAAP basis is expected to be between
60.5% and62.0% . - Non-GAAP operating expenses are expected to be between
$52.5 million and$55.5 million .
Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.
Total cash, cash equivalents and marketable debt securities on hand at the end of the first quarter of fiscal 2026 was
“As the established edge AI market leader, we achieved our fourth consecutive quarter of record AI revenue with results in the upper half of our Q1 revenue guidance range. We are increasing our fiscal 2026 revenue growth guidance to a range of
Stock Repurchase
During the second quarter of fiscal year 2026, Ambarella’s Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2026. In the first quarter of fiscal year 2026, the company repurchased a total of 24,152 shares for total consideration of approximately
Quarterly Conference Call
Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and John Young, Chief Financial Officer, to discuss the first quarter of fiscal year 2026 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.
About Ambarella
Ambarella’s products are used in a wide variety of edge AI and human vision applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and robotics applications. Ambarella’s low-power systems-on-chip (SoCs) provide powerful deep neural network processing to enable intelligent perception, fusion and planning, and offer high-resolution video compression, advanced image and radar processing. For more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” “should,” or similar expressions, including the guidance for the second quarter of fiscal year 2026 ending July 31, 2025, and the comments of our CEO relating to our expectation of future revenue growth, the growth potential for our edge AI inference products, our ability to continue to innovate, and our ability to expand into edge infrastructure. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.
The risks and uncertainties referred to above include, but are not limited to, global economic and political conditions; changes in government policies, including possible trade tariffs and restrictions; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our customers’ ability to manage their inventory requirements; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for AI inference applications; our ability to introduce, and to generate revenue from, new and enhanced solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision, AI functionality and advanced networks, including vision-language models and GenAI; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets and applications, such as edge infrastructure; anticipated trends and challenges, including competition, in the markets in which we operate; risks associated with global health conditions and associated risk mitigation measures; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2025 fiscal year, which is on file with the Securities and Exchange Commission. Additional information will also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at www.ambarella.com or the SEC's web site at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Quarterly Report on Form 10-Q for the first fiscal quarter ended April 30, 2025 could differ from the preliminary results announced in this press release.
Ambarella assumes no obligation and does not intend to update the forward-looking statements made in this press release, except as required by law.
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial information, including non-GAAP gross margin, net income (loss), and earnings (losses) per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company’s financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.
With respect to its financial results for the first quarter of fiscal year 2026, the company has provided below reconciliations of its non-GAAP financial measures to its most directly comparable GAAP financial measures. With respect to the company’s expectations for the second quarter of fiscal year 2026, a reconciliation of non-GAAP gross margin and non-GAAP operating expenses guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability and low visibility with respect to the charges excluded from these non-GAAP measures. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.
| AMBARELLA, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except share and per share data) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended April 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 85,872 | $ | 54,473 | ||||
| Cost of revenue | 34,336 | 21,313 | ||||||
| Gross profit | 51,536 | 33,160 | ||||||
| Operating expenses: | ||||||||
| Research and development | 58,819 | 54,137 | ||||||
| Selling, general and administrative | 18,575 | 18,468 | ||||||
| Total operating expenses | 77,394 | 72,605 | ||||||
| Loss from operations | (25,858 | ) | (39,445 | ) | ||||
| Other income, net | 2,175 | 2,271 | ||||||
| Loss before income taxes | (23,683 | ) | (37,174 | ) | ||||
| Provision for income taxes | 645 | 758 | ||||||
| Net loss | $ | (24,328 | ) | $ | (37,932 | ) | ||
| Net loss per share attributable to ordinary shareholders: | ||||||||
| Basic | $ | (0.58 | ) | $ | (0.93 | ) | ||
| Diluted | $ | (0.58 | ) | $ | (0.93 | ) | ||
| Weighted-average shares used to compute net loss per share | ||||||||
| attributable to ordinary shareholders: | ||||||||
| Basic | 42,219,972 | 40,774,991 | ||||||
| Diluted | 42,219,972 | 40,774,991 | ||||||
The following tables present details of stock-based compensation and acquisition-related costs included in each functional line item in the condensed consolidated statements of operations above:
| Three Months Ended April 30, | |||||
| 2025 | 2024 | ||||
| (unaudited, in thousands) | |||||
| Stock-based compensation: | |||||
| Cost of revenue | $ | 951 | $ | 607 | |
| Research and development | 17,585 | 17,621 | |||
| Selling, general and administrative | 7,594 | 7,808 | |||
| Total stock-based compensation | $ | 26,130 | $ | 26,036 | |
| Three Months Ended April 30, | |||||
| 2025 | 2024 | ||||
| (unaudited, in thousands) | |||||
| Acquisition-related costs: | |||||
| Cost of revenue | $ | 757 | $ | 757 | |
| Research and development | — | — | |||
| Selling, general and administrative | 456 | 520 | |||
| Total acquisition-related costs | $ | 1,213 | $ | 1,277 | |
The difference between GAAP and non-GAAP gross margin was
| AMBARELLA, INC. | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE | |||||||
| (in thousands, except share and per share data) | |||||||
| Three Months Ended April 30, | |||||||
| 2025 | 2024 | ||||||
| (unaudited) | |||||||
| GAAP net loss | $ | (24,328 | ) | $ | (37,932 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 26,130 | 26,036 | |||||
| Acquisition-related costs | 1,213 | 1,277 | |||||
| Income tax effect | 14 | 152 | |||||
| Non-GAAP net income (loss) | $ | 3,029 | $ | (10,467 | ) | ||
| GAAP - diluted weighted average shares | 42,219,972 | 40,774,991 | |||||
| Non-GAAP - diluted weighted average shares | 42,451,235 | 40,774,991 | |||||
| GAAP - diluted net loss per share | $ | (0.58 | ) | $ | (0.93 | ) | |
| Non-GAAP adjustments: | |||||||
| Stock-based compensation expense | 0.62 | 0.64 | |||||
| Acquisition-related costs | 0.03 | 0.03 | |||||
| Income tax effect | — | — | |||||
| Effect of Non-GAAP - diluted weighted average shares | — | — | |||||
| Non-GAAP - diluted net income (loss) per share | $ | 0.07 | $ | (0.26 | ) | ||
| AMBARELLA, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (unaudited, in thousands) | |||||||
| April 30, | January 31, | ||||||
| 2025 | 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 141,285 | $ | 144,622 | |||
| Marketable debt securities | 118,102 | 105,643 | |||||
| Accounts receivable, net | 30,235 | 29,767 | |||||
| Inventories | 39,289 | 34,428 | |||||
| Restricted cash | 441 | 7 | |||||
| Prepaid expenses and other current assets | 6,197 | 6,084 | |||||
| Total current assets | 335,549 | 320,551 | |||||
| Property and equipment, net | 10,248 | 9,084 | |||||
| Intangible assets, net | 44,895 | 47,279 | |||||
| Operating lease right-of-use assets, net | 4,377 | 5,188 | |||||
| Goodwill | 303,625 | 303,625 | |||||
| Other non-current assets | 3,224 | 3,241 | |||||
| Total assets | $ | 701,918 | $ | 688,968 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 35,290 | 21,775 | |||||
| Accrued and other current liabilities | 73,479 | 80,781 | |||||
| Operating lease liabilities, current | 2,335 | 2,829 | |||||
| Income taxes payable | 1,633 | 1,383 | |||||
| Deferred revenue, current | 12,114 | 14,226 | |||||
| Total current liabilities | 124,851 | 120,994 | |||||
| Operating lease liabilities, non-current | 2,056 | 2,436 | |||||
| Other long-term liabilities | 2,295 | 4,126 | |||||
| Total liabilities | 129,202 | 127,556 | |||||
| Shareholders' equity: | |||||||
| Preference shares | — | — | |||||
| Ordinary shares | 19 | 19 | |||||
| Additional paid-in capital | 848,756 | 813,683 | |||||
| Accumulated other comprehensive income (loss) | 326 | (233 | ) | ||||
| Accumulated deficit | (276,385 | ) | (252,057 | ) | |||
| Total shareholders’ equity | 572,716 | 561,412 | |||||
| Total liabilities and shareholders' equity | $ | 701,918 | $ | 688,968 | |||
Contact:
Louis Gerhardy
408.636.2310
lgerhardy@ambarella.com
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