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Astera Labs reported Q2 2025 revenue of $191.9 million, a 20% increase from the prior quarter and a 150% increase YoY. The company outlined its AI Infrastructure 2.0 strategy and is projecting Q3 revenue of $203-210 million, led by Scorpio and rack-scale connectivity.

Title: Astera Labs Reports Strong Q2 2025 Financial Performance, Projects Q3 Growth

Astera Labs, Inc. (Nasdaq: ALAB), a leading provider of semiconductor-based connectivity solutions for rack-scale AI infrastructure, has announced its preliminary financial results for the second quarter of fiscal year 2025. The company reported a record quarterly revenue of $191.9 million, marking a 20% increase from the prior quarter and a staggering 150% year-over-year growth. This impressive performance was driven by strong demand for the company's PCIe 6 connectivity portfolio, which is being integrated into customized rack-scale AI systems. Additionally, the Scorpio Fabric Switch design won multiple new customers and applications, further contributing to the revenue growth.

Astera Labs' Chief Executive Officer, Jitendra Mohan, commented on the company's performance, stating, "Astera Labs delivered strong financial results in Q2 with sequential revenue growth of 20 percent, driving meaningful upside to earnings and cash flow from operations." He also highlighted the successful execution of the next step in the company's growth journey, including the ramping of its PCIe 6 product portfolio into volume production for customized rack-scale AI systems and the addition of multiple new design wins for its Scorpio Fabric Switches.

The company also reported a GAAP gross margin of 75.8%, GAAP operating income of $39.8 million, GAAP operating margin of 20.7%, and GAAP net income of $51.2 million. On a non-GAAP basis, Astera Labs reported a gross margin of 76.0%, operating income of $75.2 million, operating margin of 39.2%, and net income of $78.0 million.

Looking ahead, Astera Labs has projected its GAAP financial outlook for the third quarter of fiscal 2025 to be within a range of $203 million to $210 million, with a GAAP gross margin of approximately 75% and GAAP operating expenses within a range of approximately $116 million to $120 million. On a non-GAAP basis, the company expects revenue within a range of $203 million to $210 million, with a non-GAAP gross margin of approximately 75% and non-GAAP operating expenses within a range of approximately $76 million to $80 million.

Astera Labs has also outlined its AI Infrastructure 2.0 strategy, which focuses on expanding its Intelligent Connectivity Platform and leveraging partnerships with industry leaders such as NVIDIA, AMD, and Alchip Technologies to drive innovation and growth in the AI infrastructure space. The company's Scorpio and rack-scale connectivity solutions are expected to be key drivers of this growth.

Astera Labs will host a conference call to review its financial results for the second quarter of fiscal 2025 and to discuss its financial outlook on August 5, 2025, at 1:30 p.m. Pacific Time. Interested parties can join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/.

References:
[1] https://finance.yahoo.com/news/astera-labs-announces-financial-results-200500491.html