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…
Earnings analysis · 10-Q
AMBA earnings analysis
Filed September 4, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
- Gross margin
- 57.7%
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.