Tue, Apr 29, 8:08 PM (18 days ago)
**RAMBUS INC. (RMBS) Q1 2025 Financial Performance** **Revenue & Profit Margins:** - **Total Revenue:** $166.7 million, up 41.4% YoY. - **Product Revenue:** $76.3 million, up 51.5% YoY. - **Royalties:** $74.0 million, up 55.8% YoY. - **Contract & Other Revenue:** $16.4 million, down 18.2% YoY. - **Gross Profit Margin:** 80.3%, up from 79.9% YoY. - **Operating Income Margin:** 37.9%, up from 25.5% YoY. - **Net Income Margin:** 36.2%, up from 27.9% YoY. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $77.4 million, up from $39.1 million YoY. - **Net Cash Used in Investing Activities:** $(8.4) million, down from $71.4 million YoY. - **Net Cash Used in Financing Activities:** $(36.8) million, down from $(92.3) million YoY. **Earnings Changes:** - **EPS (Basic):** $0.56, up from $0.30 YoY. - **EPS (Diluted):** $0.56, up from $0.30 YoY. **Quarterly Performance Discussion:** - **Product Revenue Growth:** Driven by memory interface chips, strategic focus on data center and AI markets. - **Royalties Growth:** Timing and structure of license agreements and renewals. - **Operating Expenses:** Increased R&D and SG&A due to headcount growth and stock-based compensation. - **Cash Flow:** Strong operating cash flow, strategic investments, and share repurchase program. **Trends & Uncertainties:** - **Market Trends:** Growth in data-intensive workloads, AI, and high-performance computing. - **Uncertainties:** Revenue concentration, global economic conditions, supply chain disruptions. - **Future Operations Impact:** Continued focus on product innovation, operational efficiency, and strategic acquisitions. **Summary:** RAMBUS reported strong Q1 2025 results with significant revenue growth, improved profit margins, and robust cash flow. The company's strategic focus on memory interface chips and royalties, along with operational efficiency, positions it well for future growth. However, uncertainties related to revenue concentration and global economic conditions remain.