Executive Summary
Ambarella reported QQ2 2026 revenue of $95.51 million, up 49.9% year-over-year and 11.2% quarter-over-quarter, underscoring robust top-line momentum in its AI-enabled vision processing footprint. The gross margin was strong at 58.9%, producing gross profit of $56.23 million, but the company remained unprofitable on a cumulative basis for the quarter, producing an operating loss of $21.99 million and net loss of $19.996 million. The earnings profile was heavily weighed by R&D investment of $59.73 million and SG&A of $18.49 million, reflecting Ambarella’s continued push to scale AI-ready System-on-Chip solutions across automotive ADAS, security, drones, robotics, and other camera-centric applications.
Despite the near-term profitability gap, Ambarella ended the period with a solid liquidity position: cash and short-term investments totaling $261.18 million and a net cash position of approximately $139.30 million (net debt). Free cash flow during the quarter was $10.07 million, supported by a positive operating cash flow of $5.51 million and modest capital expenditures of $4.57 million. The balance sheet carries a meaningful level of goodwill ($303.63 million) and intangible assets ($41.88 million), indicative of prior acquisitions and M&A-driven growth in AI capabilities. Management commentary on QQ2 2026 likely emphasised continued product development, customer diversification, and the pathway to improved operating leverage as revenue scales. The current setup provides a runway to advance R&D initiatives and pursue strategic partnerships, even as near-term profitability remains a work in progress.
Key Performance Indicators
Key Insights
Revenue: $95.51 million; YoY +49.88% | QoQ +11.22%
Gross Profit: $56.23 million; Gross Margin 58.87% | YoY +45.15% | QoQ +9.11%
Operating Income: -$21.99 million; Operating Margin -23.02% | YoY -14.59pp | QoQ +8.?pp
EBITDA: -$19.74 million; EBITDA Margin -20.67%
Net Income: -$19.996 million; Net Margin -20.93% | YoY +?pp | QoQ +?pp
EPS: -$0.47; Diluted EPS -$0.47 | YoY -?% | QoQ -?%
Weighted Avg Shares (Out): 42.38 million
Cash Flow & Capital Allocation: Operating Cash Flow $5.51 million; Ca...
Financial Highlights
Revenue: $95.51 million; YoY +49.88% | QoQ +11.22%
Gross Profit: $56.23 million; Gross Margin 58.87% | YoY +45.15% | QoQ +9.11%
Operating Income: -$21.99 million; Operating Margin -23.02% | YoY -14.59pp | QoQ +8.?pp
EBITDA: -$19.74 million; EBITDA Margin -20.67%
Net Income: -$19.996 million; Net Margin -20.93% | YoY +?pp | QoQ +?pp
EPS: -$0.47; Diluted EPS -$0.47 | YoY -?% | QoQ -?%
Weighted Avg Shares (Out): 42.38 million
Cash Flow & Capital Allocation: Operating Cash Flow $5.51 million; Capex $4.57 million; Free Cash Flow $10.07 million; Net Cash from Operating Activities $5.51 million; Net Cash Used in Investing Activities -$4.95 million; Net Cash Provided by Financing Activities $0.89 million; Net Change in Cash $1.46 million; Cash at End of Period $143.18 million; Cash & Short-Term Investments $261.18 million; Net Debt (-) $139.30 million (net cash position)
Balance Sheet Highlights: Total Assets $706.43 million; Total Liabilities $129.91 million; Total Stockholders’ Equity $576.52 million; Goodwill $303.63 million; Intangible Assets $41.88 million; Total Current Liabilities $125.94 million; Total Current Assets $343.87 million; Total Debt $3.44 million; Cash and Equivalents $142.74 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
95.51M |
49.88% |
11.22% |
| Gross Profit |
56.23M |
45.15% |
9.11% |
| Operating Income |
-21.99M |
39.40% |
14.96% |
| Net Income |
-20.00M |
42.69% |
17.81% |
| EPS |
-0.47 |
44.71% |
18.97% |
Management Commentary
Note: The input does not include an earnings call transcript. As a result, management quotes and verbatim insights from QQ2 2026 are not available. Key qualitative themes that would typically be drawn from a management call include: (1) progress in AI-enabled Vision System-on-Chip (SoC) roadmap and customer engagements across automotive ADAS, surveillance, and robotics; (2) progress toward operating leverage as revenue scales, and any cost-control initiatives to improve margins; (3) comments on partnerships, material supply dynamics, and end-market demand signals; (4) discussion of capital allocation priorities (R&D vs. SG&A, potential acquisitions or divestitures, and use of cash). In the absence of the transcript, the analysis relies on the reported P&L, cash flow, and balance sheet to infer the likely topics management would address.
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given the revenue growth trajectory (YoY +49.9%), Ambarella faces a path-to-profit for QQ3 and QQ4 2026 as it continues to invest in R&D for AI-enabled SoCs and expands adoption in automotive cameras, security cameras, and robotics. The key guidance-related factors to monitor include: (a) cadence of revenue growth and mix across automotive ADAS vs. consumer security markets; (b) progress toward operating leverage and any non-recurring costs; (c) updates on gross margin trajectory as product mix shifts and scale effects take hold; (d) capital allocation decisions (additional share repurchases vs. further R&D investment). Our assessment suggests that sustained top-line momentum paired with disciplined cost management could drive margin expansion over the next 4–6 quarters, provided demand remains robust and no material supply or competitive headwinds emerge.