Ambarella, Inc.

For fiscal Q1, revenue was $100.4 million, down 0.5% sequentially and up 16.9% year over year. Non-GAAP gross margin was 59.9%, non-GAAP operating expenses were $56.4 million, and non-GAAP net profit was $5 million, or $0.11 per diluted share. Cash and marketable securities were $277.8 million, down $34.8 million sequentially; operating cash outflow was $25.6 million and free cash outflow was $29.6 million. For Q2, the company guided revenue to $105 million to $111 million, non-GAAP gross margin to 59% to 60.5%, and non-GAAP OpEx to $56 million to $59 million. Management also said full-year automotive growth remains expected at about 10% to 15%, and gross margin should stay within its long-term model of 59% to 62%.

Fermi Wang framed the quarter as evidence that Ambarella’s Edge AI platform is becoming more important as AI processing shifts from the data center to the edge. He stressed long-term customer agreements, semi-custom silicon, and a broader software/platform strategy as the company’s path to more predictable and diversified revenue. His tone was confident and strategic, with repeated emphasis that the market is still early and that Ambarella’s position is strengthening as workloads become more complex.

John Young said Q1 results were solidly within guidance, with revenue at $100.4 million, gross margin at 59.9%, and non-GAAP EPS at $0.11. He also noted cash and marketable securities of $277.8 million, a decline driven mainly by higher inventory to support new product cycles; inventory days rose from 99 to 145. For capital allocation, the company repurchased 47,798 shares for $2.4 million at an average price of $51.04, and the board authorized a new $50 million repurchase program through June 30, 2027. He reiterated Q2 guidance and said the company expects to remain in its 59% to 62% long-term gross margin model.

Analysts focused on how to translate the new LTAs into revenue, whether Hanwha’s internal SoC would still matter, and whether there would be any NRE or OpEx sharing. Management said the Hanwha deal is a long-term, multigenerational relationship where Ambarella expects to gain share, with some funding through NRE and software-side collaboration rather than a simple guaranteed-revenue contract. Questions also centered on robotics, edge infrastructure, and telematics; management said robotics wins are broad but mostly on 5nm CV products, edge infrastructure should see a first product in the second half of the year, and telematics growth is being helped by AI video adoption and rising content per vehicle.