Executive Summary
Ambarella reported a robust top-line acceleration in Q4 FY2025, delivering revenue of $84.0 million, up 62.8% year over year and flat-to-moderately up quarter over quarter. Gross profit reached $51.14 million with a gross margin of approximately 60.9%, underscoring a healthy product cost structure despite ongoing investments in R&D. However, the company remains unprofitable on an after-tax basis, posting an operating loss of $25.35 million and a net loss of $20.23 million for the quarter. The negative earnings are driven by sustained high research and development spend relative to revenue, though operating cash flow was positive at $25.43 million and free cash flow was $21.25 million, aided by favorable working capital movements. Ambarella ended the period with a strong balance sheet: cash and cash equivalents of about $144.6 million and total liquidity (cash plus short-term investments) near $250.3 million, yielding a net cash position of roughly $139 million. The result positions Ambarella well to pursue AI-enabled edge semiconductor opportunities in automotive, security, and robotics, but execution is essential to translate revenue growth into sustained profitability.
Key Performance Indicators
Key Insights
Revenue: $84.015m; YoY +62.77%, QoQ +1.65%. Gross Profit: $51.138m; Gross Margin ~60.87% (0.6087). Operating Income: -$25.354m; Operating Margin ~-30.18%. EBITDA: -$18.527m; EBITDA Margin ~-22.05%. Net Income: -$20.234m; Net Margin ~-24.08%. EPS: -$0.48; Diluted EPS: -$0.48. Balance sheet: cash and equivalents $144.622m; short-term investments $105.643m; total cash & investments $250.265m; total assets $688.968m; total liabilities $127.556m; stockholders’ equity $561.412m; net debt positio...
Financial Highlights
Revenue: $84.015m; YoY +62.77%, QoQ +1.65%. Gross Profit: $51.138m; Gross Margin ~60.87% (0.6087). Operating Income: -$25.354m; Operating Margin ~-30.18%. EBITDA: -$18.527m; EBITDA Margin ~-22.05%. Net Income: -$20.234m; Net Margin ~-24.08%. EPS: -$0.48; Diluted EPS: -$0.48. Balance sheet: cash and equivalents $144.622m; short-term investments $105.643m; total cash & investments $250.265m; total assets $688.968m; total liabilities $127.556m; stockholders’ equity $561.412m; net debt position: -$139.357m (net cash). Liquidity: current ratio 2.65; quick ratio 2.36; cash conversion cycle ~65.4 days. Cash flow: operating cash flow $25.43m; capex $-4.185m; free cash flow $21.245m; weighted-average shares 41. tatu000 (41,829,000). Valuation indicators (per period): price-to-book ~5.91; price-to-sales ~39.49; price-to-Earnings negative (loss) situation; FCF yield positive due to cash generation.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
84.02M |
62.77% |
1.65% |
| Gross Profit |
51.14M |
68.72% |
3.75% |
| Operating Income |
-25.35M |
37.14% |
5.35% |
| Net Income |
-20.23M |
66.61% |
15.94% |
| EPS |
-0.48 |
68.00% |
17.24% |
Key Financial Ratios
operatingProfitMargin
-28.7%
operatingCashFlowPerShare
$0.61
freeCashFlowPerShare
$0.51
priceEarningsRatio
-40.99
Management Commentary
No earnings call transcript data provided in the input. As a result, thematic highlights and management quotes from the QQ4 2025 call cannot be extracted from the given material.
No transcript data available.
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No transcript data available.
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Forward Guidance
No formal forward guidance was provided in the supplied data. Based on the quarter’s fundamentals, Ambarella demonstrated strong cash generation and a solid balance sheet that could support continued investment in R&D and product development to capitalize on AI-enabled edge processing opportunities. Key factors to monitor include: (1) cadence of design wins in automotive ADAS, robotics, and security applications; (2) progression toward higher-margin product mix and cost discipline to convert revenue growth into sustainable profitability; (3) cadence of investment in AI processors and software ecosystems that differentiate Ambarella’s SOCs; (4) potential shifts in demand, supply chain dynamics, and pricing pressure in the semiconductors space. If management signals disciplined R&D spend aligned with revenue growth and material cadence in design wins, the likelihood of a path to profitability could improve as volumes scale.