Ambarella (AMBA) AMBA Q2 Financial Results Summary
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Ambarella, Inc. (AMBA) Q2 2027: Revenue Growth and Reduced Losses — Positive Outlook
Ambarella, Inc. (NASDAQ: AMBA) reported its financial results for the second quarter of fiscal year 2027, revealing a notable improvement compared to the prior year. Revenue for the quarter reached $108.1 million, an increase of $12.6 million or +13.2% from $95.5 million in the same period of fiscal 2026. This growth reflects the company's strong performance in the edge AI semiconductor market, particularly in the Auto and IoT sectors.
Analyst View
This quarter is a positive development for shareholders, as the revenue growth indicates a successful execution of Ambarella's strategic initiatives. The reduction in net losses also signals improved operational efficiency and a potential path toward profitability.
Key Financial Metrics
- Revenue:
- Q2 FY 2027: $108.1 million
- Q2 FY 2026: $95.5 million
- Year-over-Year Growth: $12.6 million or +13.2%
- Gross Margin (GAAP):
- Q2 FY 2027: 57.7%
- Q2 FY 2026: 58.9%
- Net Loss (GAAP):
- Q2 FY 2027: $6.7 million (loss per diluted share of $0.15)
- Q2 FY 2026: $20.0 million (loss per diluted share of $0.47)
- Non-GAAP Net Income:
- Q2 FY 2027: $8.2 million (earnings per diluted share of $0.18)
- Q2 FY 2026: $6.4 million (earnings per diluted share of $0.15)
- Total Cash, Cash Equivalents, and Marketable Securities:
- End of Q2 FY 2027: $272.3 million
- End of Q1 FY 2027: $277.8 million
- End of Q2 FY 2026: $261.2 million
Operational Highlights
Ambarella's CEO, Fermi Wang, emphasized the record levels of edge AI revenue achieved in Q2, driven by balanced growth in both the Auto and IoT markets. The company is making strides in expanding its market reach with new products, including the introduction of the X7 AI Accelerator and strategic partnerships with Macnica and CapGemini. These initiatives are expected to enhance Ambarella's serviceable market forecast for edge AI and Physical AI.
Guidance and Future Outlook
Looking ahead, Ambarella has provided guidance for the third quarter of fiscal year 2027, projecting revenue between $115.0 million and $124.0 million. The company expects non-GAAP gross margin to be between 59.0% and 60.0%, with non-GAAP operating expenses anticipated to range from $56.5 million to $59.5 million.
Conclusion
Investors should closely monitor Ambarella's progress in the upcoming quarter, particularly in relation to its revenue guidance and the performance of its new product offerings. The company's ability to maintain its growth trajectory while managing expenses will be crucial in determining its path to profitability. Overall, this quarter's results reflect a positive trend for Ambarella, positioning it well for future growth in the competitive edge AI market.
Here are the extracted tables from the press release:
Note: All amounts in the following tables are in thousands.
AMBARELLA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited)
| Three Months Ended | July 31, 2026 | 2025 | Six Months Ended | July 31, 2026 | 2025 |
|---|---|---|---|---|---|
| Revenue | $108,127 | $95,509 | $208,816 | $181,468 | |
| Cost of revenue | 45,746 | 39,232 | 87,460 | 73,640 | |
| Gross profit | 62,381 | 56,277 | 121,356 | 107,828 | |
| Operating expenses | 70,434 | 78,123 | 148,360 | 155,464 | |
| Loss from operations | (8,053) | (21,657) | (26,504) | (47,636) | |
| Other income | 1,806 | 2,247 | 3,819 | 4,422 | |
| Net Loss before income taxes | (6,247) | (19,410) | (22,685) | (43,214) | |
| Provision for income taxes | 352 | 253 | 1,104 | 898 | |
| Net loss | $(6,599) | $(19,163) | $(24,886) | $(44,112) | |
| Net loss per share | $(0.15) | $(0.47) | $(0.57) | $(1.05) | |
| Weighted-average shares used to compute net loss per share | 44,063 | 42,504 | 43,502 | 42,308 |
AMBARELLA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)
| ASSETS | July 31, 2026 | January 31, 2026 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $101,850 | $191,019 |
| Marketable debt securities | 170,482 | 121,552 |
| Accounts receivable, net | 37,440 | 39,180 |
| Inventories | 76,923 | 52,246 |
| Restricted cash | 442 | 442 |
| Prepaid expenses and other current assets | 6,885 | 5,836 |
| Total current assets | 394,022 | 410,275 |
| Property and equipment, net | 12,061 | 11,553 |
| Intangible assets, net | 56,672 | 58,046 |
| Operating lease right-of-use assets, net | 10,923 | 12,118 |
| Goodwill | 303,625 | 303,625 |
| Other non-current assets | 2,902 | 2,983 |
| Total assets | $780,205 | $798,600 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | 26,478 | 54,029 |
| Accrued and other current liabilities | 86,490 | 97,964 |
| Operating lease liabilities, current | 2,229 | 2,027 |
| Income taxes payable | 2,309 | 1,531 |
| Deferred revenue, current | 20,865 | 22,393 |
| Total current liabilities | 138,371 | 177,944 |
| Operating lease liabilities, non-current | 10,413 | 11,408 |
| Other long-term liabilities | 11,105 | 14,459 |
| Total liabilities | 159,889 | 203,811 |
| Shareholders’ equity: | ||
| Preference shares | — | — |
| Ordinary shares | 20 | 19 |
| Additional paid-in capital | 973,864 | 922,119 |
| Accumulated other comprehensive income (loss) | (864) | 573 |
| Accumulated deficit | (352,704) | (327,922) |
| Total shareholders’ equity | 620,316 | 594,789 |
| Total liabilities and shareholders’ equity | $780,205 | $798,600 |
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