Ambiq Micro, Inc.

Ambiq reported Q2 net sales of $33.9 million, up 89.7% year over year, and non-GAAP gross profit of $16 million, up 109.3% year over year. Non-GAAP gross margin was 47.2%, up 450 basis points year over year. Non-GAAP R&D was $11.2 million, up 55.5% year over year, and non-GAAP SG&A was $8.2 million, up 23.7% year over year. Non-GAAP net loss was $1.8 million, improving by $4.1 million year over year, or $0.07 per share based on 21.74 million average shares outstanding. The company ended the quarter with no debt and $366.8 million in cash and cash equivalents. For Q3, Ambiq guided to net sales of $36 million to $37 million, non-GAAP gross margin of 46.5% to 47.5%, non-GAAP operating expense of $24 million to $25 million, and non-GAAP loss per share of $0.20 to $0.12 based on 24.17 million shares. For full-year 2026, management now expects approximately $135 million in net sales, modest year-over-year gross margin improvement, and about $85 million in operating expense including $7 million to $10 million of IP purchases.

Fumihide Esaka’s message was that Edge AI demand has inflected sharply and is creating a larger and more durable growth opportunity for Ambiq. He emphasized that demand is broadening across customers, products, and end markets, with Apollo II, Apollo IV, and Apollo V all showing strong growth, and said the company is taking share with its ultra-low power portfolio. His tone was confident and optimistic, but he repeatedly noted that near-term growth is being limited by industry-wide supply constraints rather than demand.

Jeffrey Winzeler highlighted that the quarter combined strong top-line growth with meaningful gross margin expansion. He pointed to $33.9 million of net sales, 47.2% gross margin, and a $1.8 million non-GAAP net loss, while noting the company had no debt and $366.8 million in cash after the June follow-on; in total, the two 2026 offerings generated about $243 million in net proceeds. He also said Q3 OpEx will step up to $24 million to $25 million because of product development and $2 million of IP purchases, and reiterated full-year OpEx of about $85 million with $7 million to $10 million of IP spend tied to 110 and 340 development.

Analysts focused on supply constraints, gross margin drivers, wearables mix, nonwearable penetration, profitability timing, and whether the new capital raises could support inorganic growth. Management said supply is tight across the ecosystem, with customer demand described as rising week after week and some customers asking for volumes that were “physically impossible” to meet immediately; it expects the demand trend to continue into 2027. On margins, management said strength came from higher ASPs and manufacturing cost improvements such as yield and test-time gains. On profitability, Scott Hanson said it is still too early to talk about a cash flow breakeven tipping point because the company is investing heavily in 110 and 340 development, while on IP purchases Jeff said those costs are tied to the product roadmap and will continue when needed.