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.