Cerebras Systems (CBRS) investor relations material

Executive summary

• Q3 GAAP revenue reached a record $210.8M, up 55% YoY; Core revenue was $230.9M, up 70%, led by cloud services.

• Core net income was $29.8M; GAAP operating and net losses widened amid heavy investment and IPO-related stock compensation.

• Management cited a pipeline increase of more than 10x during Q3 and expects revenue to triple in 2027.

• $26.1B of remaining performance obligations stood at September 30, 2026; the figure excludes post-quarter deals including Oracle.

Financial highlights

• Q3 GAAP revenue was $210.8M versus $135.7M YoY; cloud and other services revenue rose 265% to $141.9M, while hardware revenue fell 29% to $68.9M.

• Core revenue was $230.9M, up 70% YoY; Core cloud and other services revenue was $144.9M, up 272%, and Core hardware revenue was $86.0M.

• GAAP gross profit was $42.1M; operating loss was $224.1M and net loss was $161.2M, versus a $22.2M net loss a year earlier.

• Basic and diluted GAAP loss per share was $0.67, versus $0.41 a year earlier; nine-month net loss was $625.8M versus net income of $263.4M.

• Core net income was $29.8M versus a Core net loss of $10.9M; Q3 Core Adjusted EBITDA was a loss of $3.3M versus a loss of $6.5M.

Outlook and guidance

• Q4 2026 Core revenue guidance is $310M–$330M, Core gross margin 47%–49%, and Core operating margin (1%)–1%.

• FY 2026 Core revenue guidance is $940M–$960M, Core gross margin 42%–44%, and Core operating margin (10%)–(8%).

• Management expects revenue to triple in 2027, with Core gross and operating margins progressing toward long-term targets of 60% and 40%.

• About 33% of $26.1B RPO is expected to be recognized over the 24 months through September 2028, 44% in months 25–48, and the balance thereafter.

• Near-term gross profit is expected to rise as cloud capacity ramps; reported gross margin may fluctuate with warrant amortization, pass-through costs and startup costs.