10-Q · April 28, 2026
Rambus reported Q1 2026 revenue of $180.2M, up 8.1% year-over-year, driven by product revenue growth. GAAP diluted EPS was $0.55 while gross margin remained high at 79.8%, but operating margin compressed to 34.3% as R&D…
Earnings analysis · 10-Q
RMBS earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Rambus delivered strong Q2 growth, with revenue of $207.4 million up 20.4% year over year and GAAP diluted EPS of $0.61 up from $0.53. Product, royalty and contract revenue all expanded, supported by…
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Rambus delivered strong Q2 growth, with revenue of $207.4 million up 20.4% year over year and GAAP diluted EPS of $0.61 up from $0.53. Product, royalty and contract revenue all expanded, supported by memory-interface-chip demand and Silicon IP activity, while gross margin held at 79.7%. The principal offsets are a 1.6-point year-over-year operating-margin decline to 35.0%, first-half operating cash flow falling to $144.5 million from $171.8 million, a new DOJ antitrust investigation disclosure, and continued concentration and international-exposure risks.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $0.61
What stood out
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Revenue and GAAP EPS accelerated
Q2 revenue was $207.4 million, up 15.2% sequentially from $180.0 million in Q1 2026 and 20.4% from $172.2 million a year earlier. GAAP diluted EPS rose to $0.61 from $0.55 sequentially and $0.53 year over year.
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Broad-based revenue-source growth
All revenue sources grew year over year: product revenue rose 21.9% to $99.2 million, royalties increased 22.8% to $84.2 million, and contract and other revenue grew 7.6% to $24.0 million.
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Gross margin held near 80%
Gross margin was stable at 79.7%, unchanged sequentially and only 0.1 percentage point below 79.8% a year ago. Operating margin improved 0.7 points sequentially to 35.0%, despite being 1.6 points below the 36.6% prior-year level.
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Cash and securities rose $63.1 million
Liquidity increased to $824.9 million in cash, cash equivalents and marketable securities at June 30, 2026, versus $761.8 million at December 31, 2025. The mix shifted toward securities, with cash declining $95.1 million to $87.7 million while marketable securities increased $158.2 million to $737.2 million.
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Strong cash conversion despite lower OCF
Operating cash flow was $144.5 million for the first six months of 2026, while property and equipment purchases were $20.7 million, implying approximately $123.8 million of pre-financing free cash flow and a 5.3% capex-to-revenue ratio on $387.6 million of first-half revenue.
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Memory interface chips drove growth
Management attributed the $17.9 million increase in product revenue to higher memory-interface-chip sales and new-product contributions; it also cited Silicon IP momentum and stable royalty revenue. Product revenue represented 48% of total revenue, versus 47% a year earlier.
What to watch
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DOJ antitrust investigation disclosed
The filing newly discloses that Rambus has been responding to a U.S. Department of Justice Antitrust Division federal grand-jury subpoena since the first quarter of 2026. Management says an adverse resolution could include monetary fines, damages, business-practice changes or injunctive relief; Q2 SG&A also rose $10.2 million year over year to $38.3 million, including a $7.0 million increase in professional fees.
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Revenue remains concentrated
Customer concentration remains material: the top five customers represented 60% of Q2 revenue and 64% of first-half revenue, although the first-half figure declined from 69% a year earlier. A lost customer, lower order volume, consolidation, or less favorable license renewal could materially affect results.
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Restructuring and expense execution risk
Rambus initiated a workforce-reduction restructuring in Q2, recording $3.3 million of charges to reduce operating expense and improve future profitability. The program was substantially completed in Q2, but execution risk remains while R&D spending increased $4.8 million and SG&A increased $10.2 million year over year.
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International and trade exposure is high
International exposure increased: customers headquartered outside the U.S. generated 82% of Q2 revenue, up from 80% a year ago. The filing highlights tariffs, export controls and geopolitical risks, particularly given the company’s international operations and semiconductor supply chain.
Management's outlook
The 10-Q does not provide quantitative forward revenue or EPS guidance in MD&A. Q3 outlook was provided separately in the July 27, 2026 earnings release/call, rather than in this filing.
Earlier filings 4
10-K · February 18, 2026
Rambus positions itself as a leader in high-performance memory subsystems and silicon IP focused on data center and AI infrastructure; in 2025 the company reported stronger product adoption (DDR5 RCD, client chipset)…
10-Q · October 28, 2025
Rambus reported strong top-line growth for Q3 2025 with total revenue of $178,513,000 (up from $145,513,000 a year ago) led by product revenue growth. Gross margin compressed modestly to 79.5% and diluted EPS was $0.44…
10-Q · July 29, 2025
Rambus reported a strong quarter with total revenue of $172,209,000 and diluted EPS of $0.53 for the three months ended June 30, 2025, driven by product and royalty growth. Gross margin was stable at 79.8% while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.