Astera Labs Q2 2025 Earnings Call: Strong Revenue Growth, $191.9M, Up 20% QoQ and 150% YoY.

Astera Labs reported Q2 2025 revenue of $191.9 million, a 20% increase from the prior quarter and a 150% increase YoY. CEO Jitendra Mohan attributed the strong results to the company's AI Infrastructure 2.0 strategy, led by Scorpio and rack-scale connectivity projects. The company projects Q3 revenue of $203M-$210M.

Astera Labs, Inc. (Nasdaq: ALAB) has announced its preliminary financial results for the second quarter of fiscal year 2025, ended June 30, 2025. The company reported record quarterly revenue of $191.9 million, representing a 20% increase from the previous quarter and a 150% year-over-year (YoY) increase. The company's CEO, Jitendra Mohan, attributed the strong performance to the company's AI Infrastructure 2.0 strategy, which is led by Scorpio and rack-scale connectivity projects [1].

Key financial highlights include:
- Revenue: $191.9 million, up 20% sequentially and 150% year-over-year.
- Gross Margin: 75.8% under GAAP, and 76.0% non-GAAP.
- Operating Income: $39.8 million under GAAP, and $75.2 million non-GAAP.
- Operating Margin: 20.7% under GAAP, and 39.2% non-GAAP.
- Net Income: $51.2 million under GAAP, and $78.0 million non-GAAP.
- Diluted Earnings per Share (EPS): $0.29 under GAAP, and $0.44 non-GAAP.

The company also reported record operating cash flow generation of $135.4 million. Astera Labs' industry-leading PCIe 6 connectivity portfolio is ramping in volume on customized rack-scale AI systems, with Scorpio Fabric Switch design wins expanding across multiple new customers and applications [1].

Astera Labs is also expanding its collaboration with NVIDIA to advance the NVLink Fusion ecosystem and is working closely with AMD and Alchip Technologies to further its AI rack-scale infrastructure projects. The company hosted a public webinar on Ultra Accelerator Link (UALink) technology and joined AMD on stage for its Advancing AI 2025 keynote presentation [1].

Looking ahead, Astera Labs projects GAAP revenue of $203 million to $210 million for the third quarter of fiscal 2025, with a gross margin of approximately 75% and diluted EPS of $0.23 to $0.24. Non-GAAP revenue is projected to be $208 million to $216 million, with a gross margin of approximately 75% and diluted EPS of $0.38 to $0.39 [1].

Astera Labs will host a conference call and webcast on July 2, 2025, at 1:30 p.m. Pacific Time, to review its Q2 financial results and discuss its financial outlook. The call can be accessed by dialing 1-800-715-9871 and using conference ID 5908687. The webcast will be recorded and available for replay on the company's website [1].

References:
[1] https://ir.asteralabs.com/news-releases/news-release-details/astera-labs-announces-financial-results-second-quarter-fiscal-0