Ambarella (AMBA) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 revenue grew 37.2% to $390.7 million, driven by strong IoT and automotive segments, with Q4 revenue at $100.9 million, up 20.1% year-over-year.

• Edge AI SoC portfolio expanded, with 42 million units shipped, over 370 unique customers, and 80% of revenue from edge AI SoCs.

• Major customer wins in video conferencing, security, automotive, and robotics markets.

• Fourth quarter GAAP net loss narrowed to $16.4 million from $20.2 million year-over-year; full-year GAAP net loss was $75.9 million, improved from $117.1 million.

• Non-GAAP net profit for the quarter was $5.5 million, up from $4.8 million; full-year non-GAAP net profit was $26.9 million, reversing a prior year non-GAAP net loss.

Financial highlights

• Fiscal 2026 non-GAAP gross margin was 60.7%, down from 62.7% in fiscal 2025; Q4 non-GAAP gross margin was 59.8%.

• Full-year GAAP gross margin was 59.2% (down from 60.5%); Q4 GAAP gross margin was 58.4%, down from 60.0%.

• Non-GAAP OpEx rose 12.9% year-over-year, mainly due to higher employee and SoC development costs; R&D expenses for the year were $238.5 million.

• Free cash flow for the year was $58 million (14.8% of revenue); Q4 free cash flow was $15 million.

• Cash and marketable securities ended at $312.6 million, up $62.3 million year-over-year.

Outlook and guidance

• Q1 fiscal 2027 revenue expected between $97 million and $103 million, with auto revenue up and IoT seasonally down.

• Q1 non-GAAP gross margin forecasted at 59%-60.5%; OpEx expected at $55 million-$58 million.

• Fiscal 2027 growth guidance of 10%-15%, driven by both unit and ASP growth in IoT and automotive.