Tue, Jun 3, 6:31 PM (9 days ago)
**Ambarella, Inc. (AMBA) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** $85.9M, up 57.6% YoY, driven by higher product shipments, increased AI inference processor sales, and higher NRE project service revenue. - **Operating Loss:** $25.9M, improved from $39.4M YoY, due to higher revenue and gross profit, partially offset by increased operating expenses. - **Net Loss:** $24.3M, improved from $37.9M YoY. - **Cash Flow from Operations:** $14.8M, improved from -$15.0M YoY, due to reduced net loss, higher accounts receivable collections, and increased liabilities. **Profit Margins:** - **Gross Margin:** 60.0%, slightly down from 60.9% YoY, due to higher manufacturing costs and lower sales of previously reserved inventory. - **Operating Margin:** -30.0%, improved from -72.0% YoY. **Cash Flow:** - **Operating Cash Flow:** $14.8M, improved from -$15.0M YoY. - **Investing Cash Flow:** -$16.2M, increased from $2.1M YoY, due to higher debt security investments and capital asset purchases. - **Financing Cash Flow:** -$1.6M, increased from -$0.3M YoY, due to share repurchases. **Earnings Changes:** - **EPS:** -$0.58, improved from -$0.93 YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher product unit shipments, increased AI inference processor sales, and higher NRE project service revenue. - **Operating Expenses:** Increased due to higher personnel and engineering-related costs. - **Cash Flow:** Improved due to reduced net loss, higher accounts receivable collections, and increased liabilities. **Trends & Uncertainties:** - **AI & Computer Vision:** Ambarella's future success depends on its ability to develop advanced AI and computer vision technologies and gain customer acceptance. - **New Markets:** Expansion into new markets like automotive OEM and ADAS is crucial for revenue growth. - **Supply Chain:** Global supply chain challenges may impact business, financial condition, and results of operations. - **Competition:** Increased competition could result in price pressure, reduced profitability, and loss of market share. **Future Operations Impact:** - **Research & Development:** Ambarella expects to increase R&D expenditures to develop innovative video and image processing solutions with increased functionality. - **Share Repurchase:** Ambarella's Board of Directors approved an extension of the existing share repurchase program for an additional twelve months through June 30, 2026.