Ambarella (AMBA) investor relations material

Executive summary

• Q2 revenue reached $95.5M, up 49.9% year-over-year, driven by higher product shipments, increased AI processor sales, and NRE project service revenue, marking the fifth consecutive quarter of record edge AI revenue.

• Operating loss narrowed to $22.0M from $36.3M year-over-year, with non-GAAP net profit of $6.4M versus a non-GAAP net loss of $5.5M a year ago.

• Fiscal 2026 revenue growth guidance raised to 31–35% ($379M midpoint), reflecting strong order book, higher unit shipments, and ASPs.

• Over 36 million edge AI processors shipped to date, with new production wins in portable video and aerial drones expected by year-end.

• The Board extended the share repurchase program through June 2026, with $48.0M remaining available.

Financial highlights

• Q2 non-GAAP gross margin was 60.5%, GAAP gross margin was 58.9%, both down year-over-year due to product mix and higher manufacturing costs.

• Non-GAAP operating expense was $53.4M, below guidance midpoint; R&D expenses increased 5.2% year-over-year to $59.7M.

• Non-GAAP net profit was $6.4M ($0.15 per diluted share); GAAP net loss was $20.0M ($0.47/share), improved from $34.9M loss last year.

• Cash and marketable securities rose to $261.2M, up $1.8M sequentially and $41.4M year-over-year.

• Free cash flow for Q2 was $1.4M; operating cash inflow was $5.5M for the quarter and $20.3M for the six months.

Outlook and guidance

• Q3 revenue forecasted at $100M–$108M ($104M midpoint), with automotive up mid-to-high single digits and IoT up mid-teens sequentially.

• Fiscal 2026 revenue growth expected at 31–35%, or approximately $379M at midpoint.

• Q3 non-GAAP gross margin expected at 60–61.5%; non-GAAP OpEx at $54M–$57M.

• Management expects continued investment in R&D to support expansion in AI, automotive, and robotics markets.

• Existing cash balances are expected to be sufficient for at least the next 12 months.