Ambarella (AMBA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $100.4 million, up 16.9% year-over-year, driven by higher product shipments, record automotive sales, and strong edge AI demand.

• Operating loss narrowed to $18.1 million (GAAP), with non-GAAP net profit rising to $5.0 million; non-GAAP EPS was $0.11.

• Announced two major LTAs, including an $800M+ deal with Hanwha, expanding into automation, robotics, and life sciences.

• Expanded indirect sales channel, onboarding six U.S.-based ISVs and targeting growth in Japan and Europe.

• Repurchased 47,798 shares for $2.4 million; new $50 million repurchase program authorized to start July 2026.

Financial highlights

• Q1 revenue: $100.4 million, up 16.9% year-over-year, down 0.5% sequentially.

• GAAP gross margin: 58.4% (down from 60.0% YoY); non-GAAP gross margin: 59.9% (down from 62.0% YoY).

• Non-GAAP operating expense: $56.4 million; R&D expense decreased 1.2% to $58.1 million.

• Cash and marketable securities: $277.8 million at quarter end, down $34.8 million sequentially, up $18.4 million year-over-year.

• Free cash outflow: $29.6 million for the quarter; operating cash outflow: $25.6 million.

Outlook and guidance

• Q2 FY27 revenue guidance: $105 million–$111 million, midpoint $108 million.

• Both auto and IoT revenues expected to increase sequentially; non-GAAP gross margin guidance: 59%–60.5%.

• Non-GAAP OpEx for Q2: $56 million–$59 million.

• Full-year revenue growth expected at 10%–15%; long-term gross margin model maintained at 59%–62%.

• Existing cash balances expected to meet requirements for at least the next 12 months.