Ambarella 2026 Q3 Earnings 37.2% Net Loss Reduction Amid 31.2% Revenue Growth

Ambarella (AMBA) reported its fiscal 2026 Q3 earnings on Dec 4, 2025, with the stock experiencing mixed short-term price action. The company demonstrated notable progress in narrowing losses while achieving robust revenue growth, marking a key inflection point for the semiconductor firm.

Revenue

The total revenue of Ambarella increased by 31.2% to $108.45 million in 2026 Q3, up from $82.65 million in 2025 Q3.

Earnings/Net Income

Ambarella narrowed losses to $0.35 per share in 2026 Q3 from a loss of $0.58 per share in 2025 Q3 (39.7% improvement). Meanwhile, the company successfully narrowed its net loss to $-15.11 million in 2026 Q3, reducing losses by 37.2% compared to the $-24.07 million net loss reported in 2025 Q3. The narrowing of the net loss indicates progress in cost management and operational efficiency.

Price Action

The stock price of Ambarella has edged up 1.51% during the latest trading day, has dropped 3.83% during the most recent full trading week, and has plummeted 16.67% month-to-date.

Post-Earnings Price Action Review

The strategy of buying AMBA when earnings beat and holding for 30 days resulted in a significant loss. The strategy returned -48.63%, underperforming the benchmark by 134.51%. With a maximum drawdown of 0% and a Sharpe ratio of -0.21, the strategy also indicated a high level of risk.

Additional News

A significant insider transaction emerged on Dec 2, 2025, when Leslie Kohn, an Officer and Director of Ambarella, filed a Form 144 with the SEC to sell 150,000 restricted shares through Morgan Stanley Smith Barney LLC. The filing permits the sale of these shares within 90 days of submission. Insider selling activity often raises scrutiny, as it may signal diverging priorities between executives and shareholders. While the move does not inherently reflect on the company’s operational performance, it underscores the importance of monitoring corporate governance dynamics. No major M&A activity, C-level changes, or dividend/buyback announcements were reported within the three-week window preceding the earnings release.