Executive Summary
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.
Key Performance Indicators
QoQ: -20.23% | YoY:35.86%
QoQ: -20.83% | YoY:37.63%
Key Insights
Revenue: USD 85.872m; YoY +57.64%; QoQ +2.21% | Gross Profit: USD 51.536m; Gross Margin 60.01%; YoY Gross Profit +51.95%; QoQ +0.78% | Operating Income: USD -25.858m; Operating Margin -30.11%; YoY +32.25%; QoQ -1.99% | Net Income: USD -24.328m; Net Margin -28.33%; YoY +35.86%; QoQ -20.23% | EPS: USD -0.58; YoY +37.63%; QoQ -20.83%...
Financial Highlights
Revenue: USD 85.872m; YoY +57.64%; QoQ +2.21% | Gross Profit: USD 51.536m; Gross Margin 60.01%; YoY Gross Profit +51.95%; QoQ +0.78% | Operating Income: USD -25.858m; Operating Margin -30.11%; YoY +32.25%; QoQ -1.99% | Net Income: USD -24.328m; Net Margin -28.33%; YoY +35.86%; QoQ -20.23% | EPS: USD -0.58; YoY +37.63%; QoQ -20.83%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
85.87M |
57.64% |
2.21% |
| Gross Profit |
51.54M |
51.95% |
0.78% |
| Operating Income |
-25.86M |
32.25% |
-1.99% |
| Net Income |
-24.33M |
35.86% |
-20.23% |
| EPS |
-0.58 |
37.63% |
-20.83% |
Management Commentary
No earnings call transcript data provided in the submitted materials. Transcript-derived quotes or themes cannot be cited. Investors should consult the official earnings call materials for management color and strategic guidance.
Forward Guidance
No formal forward guidance was provided in the supplied materials. The outlook will depend on ramp and monetization of Ambarella’s AI vision/supercomputer chips across automotive ADAS, security cameras, and robotics. Key factors to monitor include: (1) adoption/volume of next-generation chips, (2) product mix and ASP evolution, (3) R&D delivery against milestones that enable higher-margin solutions, and (4) expense discipline to yield operating leverage as revenue scales.