Executive Summary
Ambarella delivered a robust 63.4% YoY revenue expansion in QQ3 2025 to $82.65 million, accompanied by a 59.6% gross margin and a cash-generative quarter. Despite the top-line strength, the company remains unprofitable on reported bases, with operating income at -$26.79 million and net income at -$24.07 million, driven largely by elevated R&D spend (USD 58.39 million) and ongoing investment in product development. The balance sheet remains exceptionally healthy, underpinned by a net cash position (net debt of -$121.16 million) and no material debt, providing liquidity to fund R&D and growth initiatives. Cash flow from operations was $6.62 million, with free cash flow of $4.12 million. While current quarter results reflect ongoing investments to scale advanced video processing and AI capabilities, the company’s expanded addressable markets in automotive camera systems, surveillance, and robotics offer meaningful long-term growth potential if product mix and design wins translate to improving margins and sustainable profitability. The absence of management-provided forward guidance in the data requires investors to monitor design wins, customer mix, and cadence of R&D investments as key indicators of trajectory.
Key Performance Indicators
Key Insights
Revenue: $82.653 million, up 63.36% YoY and 29.70% QoQ; Gross Profit: $49.291 million, margin 59.64% (YoY +64.40%, QoQ +27.23%); Operating Income: -$26.787 million, YoY improvement ~36.17% (QoQ +26.18%), margin -32.41%; Net Income: -$24.071 million, YoY improvement ~42.29% (QoQ +31.01%), EPS: -$0.58, YoY +44.23%, QoQ +31.76%....
Financial Highlights
Revenue: $82.653 million, up 63.36% YoY and 29.70% QoQ; Gross Profit: $49.291 million, margin 59.64% (YoY +64.40%, QoQ +27.23%); Operating Income: -$26.787 million, YoY improvement ~36.17% (QoQ +26.18%), margin -32.41%; Net Income: -$24.071 million, YoY improvement ~42.29% (QoQ +31.01%), EPS: -$0.58, YoY +44.23%, QoQ +31.76%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
82.65M |
63.36% |
29.70% |
| Gross Profit |
49.29M |
64.40% |
27.23% |
| Operating Income |
-26.79M |
36.17% |
26.18% |
| Net Income |
-24.07M |
42.29% |
31.01% |
| EPS |
-0.58 |
44.23% |
31.76% |
Key Financial Ratios
operatingProfitMargin
-30.9%
operatingCashFlowPerShare
$0.16
freeCashFlowPerShare
$0.1
priceEarningsRatio
-24.36
Management Commentary
Note: The earnings transcript for QQ3 2025 is not provided in the dataset. Consequently, there are no management quotes or thematic highlights to extract from the call. If the transcript becomes available, we will extract themes on strategy, product roadmap, design wins, customer traction, and market conditions with contextual commentary.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the revenue strength and ongoing R&D investment, the near-term path to profitability will hinge on: 1) achieving a favorable mix of higher-margin AI/video processing solutions, 2) converting design wins into scalable production and favorable ASPs, and 3) maintaining tight operating discipline to improve margins. Monitor key factors including: progression of automotive ADAS and security camera programs, cadence of customer wins, production ramp timing, and the company’s ability to translate R&D investments into sustainable margin expansion. Industry trends toward edge AI and autonomous driving could support long-term revenue growth if Ambarella sustains product leadership and customer adoption.