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Oct 31, 2025
Ambarella Q3 2026 Earnings Report
Ambarella reported its third quarter results for fiscal year 2026.
Key Takeaways
Ambarella delivered record quarterly revenue above guidance, driven by sustained demand for its edge AI solutions, despite posting a GAAP net loss.
Achieved record Q3 revenue of $108.5M, surpassing the high end of guidance.
Non-GAAP EPS rose to $0.27, reflecting improved profitability from prior year.
GAAP net loss narrowed to $15.1M compared to $24.1M last year.
Edge AI revenue achieved its sixth consecutive quarterly record.
Forward Guidance
Ambarella expects Q4 FY26 revenue between $97M–$103M with non-GAAP gross margin in the range of 59.0% to 60.5%, highlighting continued demand for edge AI products.
Positive Outlook
- Q4 revenue guidance above $100M at high end.
- Sixth consecutive record in edge AI revenue.
- Free cash flow YTD at 14.8% of revenue.
- Raised FY26 revenue growth guidance to 36%-38%.
- Sustained investment in edge AI R&D efficiency.
Challenges Ahead
- GAAP net losses continue despite revenue growth.
- Gross margin declined YoY on both GAAP and non-GAAP basis.
- Operating expenses remained high at over $80M.
- No clear segmentation of revenue or geographic diversification provided.
- Guidance reflects potential variability in margin and expenses.
Historical Earnings Impact
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