AMBA earnings analysis
What we found in AMBA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Ambarella delivered $108.125 million of revenue and non-GAAP EPS of $0.18, with EPS materially above the $0.08 estimate and GAAP net loss improving to $6.689 million from $19.995 million year over year. However, gross margin fell to 57.7% from 58.9%, cash-flow and balance-sheet details are not included in the supplied filing text, and customer, distributor, Taiwan and supply-chain concentration remain material risks. The filing does not provide explicit quantitative guidance; separate earnings-release guidance called for Q3 revenue of $115.0 million-$124.0 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue reached $108.125 million
- Revenue was $108.125 million, narrowly above the $107.816 million consensus estimate and higher than the $96 million quarterly revenue shown in the supplied financial history.
- EPS beat and GAAP loss narrowed
- Non-GAAP EPS was $0.18 versus the $0.08 estimate, a $0.10 beat. GAAP net loss narrowed to $6.689 million from $19.995 million year over year.
- AI and product investment remains high
- The company continues to invest heavily in product development: research and development expense was approximately $108.7 million for the six months ended July 31, 2026.
- No reported control deficiencies
- Disclosure controls were concluded effective as of July 31, 2026, and the company reported no material changes to internal control over financial reporting during the quarter.
- New $50 million repurchase authorization
- A new $50.0 million share-repurchase program became effective July 1, 2026 and had $50.0 million remaining available as of July 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Year-over-year margin compression
- Gross margin declined to 57.7% from 58.9% year over year. Management identifies wafer and material cost increases as a risk, noting that silicon wafers are a material portion of product cost and higher costs could reduce gross margin.
- High customer and distributor concentration
- Customer and distributor concentration is significant: WT represented approximately 61% of revenue for the six months ended July 31, 2026, while Hakuto represented approximately 10%; accounts receivable were approximately $17.2 million for WT and $4.8 million for Hakuto.
- Investment portfolio liquidity risk
- The company had approximately $170.5 million invested in marketable debt securities as of July 31, 2026. These investments are exposed to credit, liquidity, market and interest-rate risks and could become illiquid or lose value.
- Taiwan geopolitical exposure
- The company has significant Taiwan exposure, including 380 employees as of July 31, 2026, and many third-party manufacturing suppliers in Taiwan. Deterioration in Taiwan-China relations could disrupt operations and materially harm results.
- Hong Kong logistics and export risk
- The primary inventory warehouse is in Hong Kong, where political, social and economic deterioration or tighter export controls could cause delayed or lost sales, inventory loss or increased logistics expenses.
- Rising R&D burden and execution risk
- The company states that it expects research and development expenditures to increase in future periods; fiscal 2026 R&D expense was approximately $238.5 million, while the six-month fiscal 2027 amount was approximately $108.7 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.18
- Gross margin
- 57.7%
What they said about what is next.
The filing text provided does not include quantitative guidance. The earnings release separately disclosed Q3 FY2027 revenue guidance of $115.0 million-$124.0 million, non-GAAP gross margin of 59.0%-60.0%, and non-GAAP operating expenses of $56.5 million-$59.5 million; no prior Q3 outlook was disclosed for comparison.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 2, 2026
- Ambarella, Inc. reported a Q1 FY27 revenue of $100.4 million and a non-GAAP EPS of $0.11, significantly exceeding analysts' expectations. The company demonstrated a year-over-year revenue growth of 16.9% driven by…
- 10-K · March 23, 2026
- Ambarella is positioning itself as a focused edge- and physical-AI SoC company, ramping third-generation CVflow AI silicon (CV7, CV3, N1) built on advanced 4nm/5nm processes and claiming a 2nm tape-out. The filing…
- 10-Q · June 3, 2025
- Ambarella reported revenue of $85,872 (in thousands) for the three months ended April 30, 2025, up from $54,473 a year earlier and modestly above the prior quarter. Gross margin held at 60.0% while operating loss…
- 10-Q · September 4, 2024
- Ambarella reported revenue of $63.724M for the quarter ended July 31, 2024, up $1.603M versus $62.121M a year earlier, while GAAP diluted loss per share widened to $(0.85) from $(0.79). Gross profit was $38.741M (≈60.8%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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