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Oct 31, 2024

Ambarella Q3 2025 Earnings Report

Reported revenue increase of 63% year-over-year, driven by new products incorporating AI inference processors.

Key Takeaways

Ambarella reported strong Q3 fiscal year 2025 results, with revenue significantly up compared to the previous year. The company's growth was fueled by customer adoption of new products, particularly those utilizing Ambarella's AI inference processors. Edge AI revenue hit a new record, representing approximately 70% of the total revenue.

Revenue for Q3 fiscal year 2025 reached $82.7 million, a 63% increase from the same period last year.

GAAP net loss for the quarter was $24.1 million, or $0.58 loss per diluted share, improved from the previous year's $41.7 million loss.

Non-GAAP net income for the quarter was $4.5 million, or $0.11 earnings per diluted share, compared to a non-GAAP net loss last year.

Edge AI revenue accounted for about 70% of total revenue, setting a new record.

Total Revenue
$82.7M
Previous year: $50.6M
+63.4%
EPS
$0.11
Previous year: -$0.28
-139.3%
Gross Margin
60.6%
Non-GAAP Gross Margin
62.6%
Gross Profit
$50M
Previous year: $30M
+66.9%
Cash and Equivalents
$127M
Previous year: $144M
-11.6%
Free Cash Flow
$4.12M
Total Assets
$671M
Previous year: $685M
-2.0%

Ambarella

Ambarella

Forward Guidance

For the fourth quarter of fiscal year 2025, Ambarella expects revenue to be between $76.0 million and $80.0 million, and non-GAAP gross margin to be between 61.5% and 63.0%. Non-GAAP operating expenses are projected to be between $49.0 million and $52.0 million.

Positive Outlook

  • Revenue is expected to be between $76.0 million and $80.0 million.
  • Non-GAAP gross margin is expected to be between 61.5% and 63.0%.

Challenges Ahead

  • Non-GAAP operating expenses are expected to be between $49.0 million and $52.0 million.