Ambarella, Inc. Announces Second Quarter Fiscal Year 2026 Financial Results

SANTA CLARA, Calif., Aug. 28, 2025 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ:AMBA), an edge AI semiconductor company, today announced financial results for its second quarter of fiscal year 2026 ended July 31, 2025.

• Revenue for the second quarter of fiscal 2026 was $95.5 million, up 49.9% from $63.7 million in the same period in fiscal 2025. For the six months ended July 31, 2025, revenue was $181.4 million, up 53.5% from $118.2 million for the six months ended July 31, 2024.
• Gross margin under U.S. generally accepted accounting principles (GAAP) for the second quarter of fiscal 2026 was 58.9%, compared with 60.8% for the same period in fiscal 2025. For the six months ended July 31, 2025, GAAP gross margin was 59.4%, compared with 60.8% for the six months ended July 31, 2024.
• GAAP net loss for the second quarter of fiscal 2026 was $20.0 million, or loss per diluted ordinary share of $0.47, compared with GAAP net loss of $34.9 million, or loss per diluted ordinary share of $0.85, for the same period in fiscal 2025. GAAP net loss for the six months ended July 31, 2025 was 44.3 million or loss per diluted ordinary share of $1.05. This compares with GAAP net loss of $72.8 million, or loss per diluted ordinary share of $1.78, for the six months ended July 31, 2024.
  
  
  
  

Financial results on a non-GAAP basis for the second quarter of fiscal 2026 are as follows:

• Gross margin on a non-GAAP basis for the second quarter of fiscal 2026 was 60.5%, compared with 63.3% for the same period in fiscal 2025. For the six months ended July 31, 2025, non-GAAP gross margin was 61.2%, compared with 63.3% for the six months ended July 31, 2024.
• Non-GAAP net profit for the second quarter of fiscal 2026 was $6.4 million, or earnings per diluted ordinary share of $0.15. This compares with non-GAAP net loss of $5.5 million, or loss per diluted ordinary share of $0.13, for the same period in fiscal 2025. Non-GAAP net profit for the six months ended July 31, 2025 was $9.5 million, or earnings per diluted ordinary share of $0.22. This compares with non-GAAP net loss of $16.0 million, or loss per diluted ordinary share of $0.39, for the six months ended July 31, 2024.
  
  
  
  

Based on information available as of today, Ambarella is offering the following guidance for the third quarter of fiscal year 2026, ending October 31, 2025:

• Revenue is expected to be between $100.0 million and $108.0 million.
• Gross margin on a non-GAAP basis is expected to be between 60.0% and 61.5%.
• Operating expenses on a non-GAAP basis are expected to be between $54.0 million and $57.0 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 second quarter of fiscal 2026 was $261.2 million, compared with $259.4 million at the end of the prior quarter and $219.8 million at the end of the same quarter a year ago.

"We are experiencing strong secular growth in the edge AI market, with an expanding breadth of applications driving unit demand, often with our higher priced 5nm AI SoCs. For example, a variety of portable AI video applications have reached production status, and by the end of fiscal 2026 we expect to realize production shipments from our first robotic aerial drone win. Furthermore, our first edge infrastructure win is expected to enter production in fiscal 2027," said Fermi Wang, President & CEO. "We are increasing our fiscal 2026 revenue growth estimate to a range of 31% to 35%, or approximately $379 million at the midpoint. The midpoint of our new third quarter and full year fiscal 2026 revenue guidance would represent all-time record quarterly and fiscal year total revenue for Ambarella. With more than 36 million edge AI processors shipped-to-date, we are an established, market leader and we remain exclusively focused on our customers' needs in the edge AI market including automotive."

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 second 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 third quarter of fiscal year 2026 ending October 31, 2025, and the comments of our CEO relating to our expectation of future revenue growth, including for the full year of fiscal 2026, the breadth and growth potential for our edge AI inference products, and the ability of our customers to go into production with edge AI products incorporating our solutions in a timely manner. 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 be 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 second fiscal quarter ended July 31, 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 second 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 third 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 July 31,								Six Months Ended July 31,
			2025				2024				2025				2024
Revenue		$	95,511			$	63,724			$	181,383			$	118,197
Cost of revenue			39,280				24,983				73,616				46,296
Gross profit			56,231				38,741				107,767				71,901
Operating expenses:
Research and development			59,734				56,760				118,553				110,897
Selling, general and administrative			18,486				18,268				37,061				36,736
Total operating expenses			78,220				75,028				155,614				147,633
Loss from operations			(21,989	)			(36,287	)			(47,847	)			(75,732	)
Other income, net			2,247				2,145				4,422				4,416
Loss before income taxes			(19,742	)			(34,142	)			(43,425	)			(71,316	)
Provision for income taxes			253				747				898				1,505
Net loss		$	(19,995	)		$	(34,889	)		$	(44,323	)		$	(72,821	)
Net loss per share attributable to ordinary shareholders:
Basic		$	(0.47	)		$	(0.85	)		$	(1.05	)		$	(1.78	)
Diluted		$	(0.47	)		$	(0.85	)		$	(1.05	)		$	(1.78	)
Weighted-average shares used to compute net loss per share
attributable to ordinary shareholders:
Basic			42,546,979				41,129,754				42,383,475				40,952,373
Diluted			42,546,979				41,129,754				42,383,475				40,952,373

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 July 31,						Six Months Ended July 31,
		2025			2024			2025			2024
	(unaudited, in thousands)
Stock-based compensation:
Cost of revenue	$	780		$	833		$	1,731		$	1,440
Research and development		16,972			18,395			34,557			36,016
Selling, general and administrative		7,436			8,384			15,030			16,192
Total stock-based compensation	$	25,188		$	27,612		$	51,318		$	53,648

	Three Months Ended July 31,						Six Months Ended July 31,
		2025			2024			2025			2024
	(unaudited, in thousands)
Acquisition-related costs:
Cost of revenue	$	757		$	757		$	1,514		$	1,514
Research and development		—			—			—			—
Selling, general and administrative		456			530			912			1,050
Total acquisition-related costs	$	1,213		$	1,287		$	2,426		$	2,564

The difference between GAAP and non-GAAP gross margin was 1.6% and 2.5%, or $1.5 million and $1.6 million, for the three months ended July 31, 2025 and July 31, 2024, respectively. The difference between GAAP and non-GAAP gross margin was 1.8% and 2.5%, or $3.2 million and $3.0 million, for the six months ended July 31, 2025 and July 31, 2024, respectively. The differences were due to the effect of stock-based compensation and the amortization of acquisition-related costs.

AMBARELLA, INC.
RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS (LOSSES) PER SHARE
(in thousands, except share and per share data)
	Three Months Ended July 31,								Six Months Ended July 31,
		2025				2024				2025				2024
	(unaudited)
GAAP net loss	$	(19,995	)		$	(34,889	)		$	(44,323	)		$	(72,821	)
Non-GAAP adjustments:
Stock-based compensation expense		25,188				27,612				51,318				53,648
Acquisition-related costs		1,213				1,287				2,426				2,564
Income tax effect		22				448				36				600
Non-GAAP net income (loss)	$	6,428			$	(5,542	)		$	9,457			$	(16,009	)
GAAP - diluted weighted average shares		42,546,979				41,129,754				42,383,475				40,952,373
Non-GAAP - diluted weighted average shares		42,946,324				41,129,754				42,698,780				40,952,373
GAAP - diluted net loss per share	$	(0.47	)		$	(0.85	)		$	(1.05	)		$	(1.78	)
Non-GAAP adjustments:
Stock-based compensation expense		0.59				0.68				1.21				1.32
Acquisition-related costs		0.03				0.03				0.06				0.06
Income tax effect		0.00				0.01				0.00				0.01
Effect of Non-GAAP - diluted weighted average shares		—				—				—				—
Non-GAAP - diluted net income (loss) per share	$	0.15			$	(0.13	)		$	0.22			$	(0.39	)

AMBARELLA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
	July 31,				January 31,
		2025				2025
ASSETS
Current assets:
Cash and cash equivalents	$	142,739			$	144,622
Marketable debt securities		118,444				105,643
Accounts receivable, net		42,896				29,767
Inventories		33,808				34,428
Restricted cash		442				7
Prepaid expenses and other current assets		5,543				6,084
Total current assets		343,872				320,551
Property and equipment, net		10,092				9,084
Intangible assets, net		41,879				47,279
Operating lease right-of-use assets, net		3,500				5,188
Goodwill		303,625				303,625
Other non-current assets		3,463				3,241
Total assets	$	706,431			$	688,968
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		26,783				21,775
Accrued and other current liabilities		76,190				80,781
Operating lease liabilities, current		1,774				2,829
Income taxes payable		1,713				1,383
Deferred revenue, current		19,482				14,226
Total current liabilities		125,942				120,994
Operating lease liabilities, non-current		1,668				2,436
Other long-term liabilities		2,301				4,126
Total liabilities		129,911				127,556
Shareholders' equity:
Preference shares		—				—
Ordinary shares		19				19
Additional paid-in capital		872,822				813,683
Accumulated other comprehensive income (loss)		59				(233	)
Accumulated deficit		(296,380	)			(252,057	)
Total shareholders' equity		576,520				561,412
Total liabilities and shareholders' equity	$	706,431			$	688,968

Contact:

Louis Gerhardy

408.636.2310

[email protected]