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Jan 31
Ambarella Q4 2025 Earnings Report
Ambarella reported strong fourth quarter and full fiscal year 2025 financial results, with significant revenue growth and improved non-GAAP net profit.
Key Takeaways
Ambarella, an edge AI semiconductor company, announced robust financial results for the fourth quarter and full fiscal year 2025. Revenue for Q4 2025 increased by 62.8% year-over-year to $84.0 million, and the company achieved a non-GAAP net profit of $4.8 million, a significant improvement from a net loss in the prior year. The company also reported that over 70% of its total revenue came from edge AI, marking a quarterly and annual record.
Fourth quarter fiscal 2025 revenue was $84.0 million, a 62.8% increase from the same period in fiscal 2024.
Non-GAAP net profit for Q4 2025 was $4.8 million, or $0.11 per diluted ordinary share, compared to a net loss in the prior year.
GAAP net loss for Q4 2025 was $20.2 million, or $0.48 per diluted ordinary share.
Over 70% of total revenue in fiscal 2025 was derived from edge AI, setting a new record.
Ambarella
Ambarella
Forward Guidance
Ambarella anticipates continued positive momentum into the first quarter of fiscal year 2026, projecting revenue between $81.0 million and $87.0 million, with non-GAAP gross margin expected to be between 61.0% and 62.5%.
Positive Outlook
- Revenue is expected to be between $81.0 million and $87.0 million for Q1 FY26.
- Non-GAAP gross margin is expected to be between 61.0% and 62.5% for Q1 FY26.
- Anticipated mid to high teens revenue growth in fiscal 2026.
- Growth led by 5nm products, including ongoing ramp in CV5 and CV7 families.
- Continued focus on efficient operations to drive positive operating leverage.
Challenges Ahead
- Non-GAAP operating expenses are expected to be between $50.0 million and $53.0 million for Q1 FY26.
- Reconciliation of non-GAAP gross margin and operating expenses guidance to GAAP is not available without unreasonable efforts due to high variability and low visibility of excluded charges.
- The variability of excluded charges is expected to have a significant and potentially unpredictable impact on future GAAP financial results.
- The company's forward-looking statements are subject to risks and uncertainties, including global economic and political conditions.
- Future performance could differ materially from predictions due to various factors, including market demands and competition.