Executive Summary
Ambarella’s QQ2 2025 results show a modest top-line expansion amidst continued near-term profitability headwinds. Revenue reached $63.72 million, up 2.6% year over year and 17.0% quarter over quarter, underscored by a structurally strong gross margin of approximately 60.8%. However, the company reported a negative operating income of about $36.29 million and a net loss of roughly $34.89 million, driven by sustained R&D intensity and fixed operating costs typical of a technology growth stage in the semiconductors space. Free cash flow was positive at about $14.17 million, and the balance sheet remains robust with net cash and investments totaling roughly $219.8 million and a net debt position of about negative $147.2 million.
The near-term narrative centers on Ambarella’s ability to convert design wins and product roadmaps into sustainable profitability. Management commentary (where available) would typically address cadence of new automotive/edge AI products, expected mix improvements, and the potential for operating leverage as the company scales. In the absence of formal guidance in the provided data, investors should monitor: design-win momentum, R&D productivity, and any signs of gross-margin expansion from product mix or pricing, alongside continued strong liquidity to fund product development.
Key Performance Indicators
Key Insights
Revenue: $63.724 million (YoY +2.58%; QoQ +16.98%). Gross Profit: $38.741 million; Gross Margin: 60.8% (0.60795).
Operating Income: -$36.287 million; Operating Margin: -56.94%.
Net Income: -$34.889 million; Net Margin: -54.75%; EPS: -$0.85.
EBITDA: -$29.886 million; EBITDA Margin: -46.90%.
Cash Flow: Operating Cash Flow $16.738 million; Capex $-2.564 million; Free Cash Flow $14.174 million.
Liquidity & Balance Sheet: Cash & equivalents + short-term investments ~$219.8 million; Net Cash P...
Financial Highlights
Revenue: $63.724 million (YoY +2.58%; QoQ +16.98%). Gross Profit: $38.741 million; Gross Margin: 60.8% (0.60795).
Operating Income: -$36.287 million; Operating Margin: -56.94%.
Net Income: -$34.889 million; Net Margin: -54.75%; EPS: -$0.85.
EBITDA: -$29.886 million; EBITDA Margin: -46.90%.
Cash Flow: Operating Cash Flow $16.738 million; Capex $-2.564 million; Free Cash Flow $14.174 million.
Liquidity & Balance Sheet: Cash & equivalents + short-term investments ~$219.8 million; Net Cash Position: -$147.172 million (net debt).
Assets / Liabilities: Total Assets ~$650.334 million; Total Liabilities ~$102.783 million; Total Equity ~$547.551 million.
Key Ratios: Current Ratio 3.06; Quick Ratio 2.72; DSO 32.7 days; DIO 110.45 days; DPO 70.04 days; P/S 33.94; P/B 3.95; P/FCF 152.58; EV/EBITDA negative.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
63.72M |
2.58% |
16.98% |
| Gross Profit |
38.74M |
0.73% |
14.22% |
| Operating Income |
-36.29M |
-2.68% |
4.93% |
| Net Income |
-34.89M |
-11.83% |
8.02% |
| EPS |
-0.85 |
-7.59% |
8.60% |
Key Financial Ratios
operatingProfitMargin
-56.9%
operatingCashFlowPerShare
$0.41
freeCashFlowPerShare
$0.35
Management Commentary
Note: No earnings-call transcript was provided in the data. Consequently, there are no management-quoted highlights to synthesize by theme (strategy, operations, market conditions) within this submission.
Forward Guidance
No formal forward guidance was disclosed in the provided materials. Given the results and sector dynamics, the near-to-medium-term trajectory will hinge on (1) achieving revenue growth through automotive ADAS, security/industrial camera, and robotics applications; (2) improving operating leverage as product mix shifts toward higher-margin AI vision solutions; and (3) maintaining liquidity to fund R&D investments. Investors should monitor management commentary (when available) on expected design-win momentum, cadence of new product introductions, target gross-margin improvement, and any communicated milestones related to major customer programs or partnerships.