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Mar 31
Rambus Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 31, 2025
Key Takeaways
Rambus exceeded guidance for Q1 2025 revenue and earnings, delivering record quarterly product revenue and generating outstanding cash from operations. The company saw significant year-over-year growth in total revenue, product revenue, and royalties.
Exceeded guidance for Q1 revenue and earnings.
Delivered record quarterly product revenue of $76.3 million, up 52% year over year.
Generated outstanding quarterly cash from operations of $77.4 million.
GAAP revenue for the first quarter was $166.7 million, a significant increase from the prior year period.
Rambus
Rambus
Rambus Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comRoyalties Revenue
CapyFin.comContract and other Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, the company expects licensing billings between $64 million and $70 million, royalty revenue between $67 million and $73 million, product revenue between $77 million and $83 million, and contract and other revenue between $17 million and $23 million. Total operating costs and expenses are expected to be between $106 million and $110 million.
Positive Outlook
- Expected product revenue growth in Q2 2025 compared to Q1 2025.
- Anticipated increase in royalty revenue in Q2 2025 compared to Q1 2025.
- Projected stable to slightly increasing contract and other revenue in Q2 2025.
- Continued focus on signing customer agreements for product sales and solutions licensing.
- Management confidence in delivering long-term growth and value to stockholders.
Challenges Ahead
- Expected decrease in licensing billings in Q2 2025 compared to Q1 2025.
- Revenue is not without risk and achieving the guidance range requires signing customer agreements.
- Operating costs and expenses are expected to remain significant.
- Guidance assumes a tax rate of 20%.
- Excludes stock-based compensation expense and amortization of acquired intangible assets from non-GAAP guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income