Alphawave IP Group (AWE) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 saw strong trading performance, with growing success in hyperscaler and AI accelerator markets due to a robust IP and chiplet portfolio.

• Secured a major custom silicon design award from an emerging hyperscaler for an advanced AI accelerator, with commercial details expected in Q2 2025.

• Five new IP design wins in Q1, including a strategic 3nm 224G I/O chiplet, highlight adoption in advanced process nodes and high-performance computing.

• Expanded partnerships and showcased technology leadership at major industry events, reinforcing position in high-speed connectivity and chiplet markets.

Financial highlights

• Total new bookings for Q1 2025 were $95.0 million, down 19% year-over-year from $117.9 million.

• Licence and NRE bookings declined 33% year-over-year to $73.1 million, while royalties and silicon orders rose 143% to $21.9 million.

• Royalties and silicon purchase orders for the quarter reached $21.9 million, reflecting solid commercial execution.

Outlook and guidance

• Business integration expected to complete in 2025, with initial silicon deliveries for AI and data centers planned.

• No full-year 2025 guidance provided due to global economic uncertainty and new tariff regimes.

• Optimism remains for future growth opportunities, with careful investment management during uncertain customer program timing.