Ambarella reported Q1 2026 revenue of USD 85.872 million, up 57.64% year over year and 2.21% quarter over quarter, reflecting ongoing demand for its AI-accelerated video processing solutions. Despite top-line growth, the company remains unprofitable on a GAAP basis, posting EBITDA of USD -19.11 million and net income of USD -24.33 million as R&D and SG&A investments continue to weigh on margins. Gross margin stood at approximately 60.01%, underscoring a favorable product profitability layer even as operating expenses remain elevated. Free cash flow was USD 10.24 million, and cash and cash equivalents plus short-term investments totaled USD 259.39 million, with net cash meaningfully positive at USD -136.89 million (net cash position). The balance sheet shows substantial goodwill and intangible assets, supporting a strong asset base, while liquidity remains robust to fund ongoing product development and potential line extensions. Going forward, execution hinges on AI-vision ramp, automotive camera adoption, and the ability to scale gross margins through operating leverage as product cycles mature.