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- **Record Q3 Revenue**: $108.5M (+31% YoY), raising FY26 guidance to 36-38% growth.
- **AI-Driven Expansion**: 80% of revenue from Edge AI, with 45% from 5nm chips. ASP up 20% YoY, targeting $12.9B SAM by 2031.
- **Drones & Robotics**: 2026 drone shipments expected, with N1655 chip wins in edge infrastructure.
- **Financial Health**: $295M cash, free cash flow $31.4M. Q4 gross margin 59-60.5%, OpEx $55-58M.
- **Automotive Momentum**: Level 2+ ADAS wins at Geely and Xpeng, with FY26 automotive growth.

**【Management Opening Remarks】**
- Louis Gerhardy welcomed participants and outlined the call's purpose, emphasizing forward-looking statements and risk disclosures. He highlighted upcoming investor events, including UBS Global Tech & AI Conference and CES 2026.

**【CEO Commentary】**
- **Revenue Growth**: Q3 revenue reached $108.5M, up 31.2% YoY, driven by Edge AI (80% of revenue). FY26 guidance raised to 36-38% growth ($390M midpoint). 
- **AI Strategy**: ASP increased 20% YoY, with 45% of Q3 revenue from 5nm products. Key wins in drones, portable video, and enterprise security (e.g., Arashi's 8K action camera, Verkada's facial recognition access control).
- **Market Expansion**: Penetrating aerial drones, wearable cameras, and edge infrastructure. FY26 SAM estimate $12.9B by 2031.

**【CFO Financial Commentary】**
- **Q3 Results**: Non-GAAP EPS $0.27 (vs $1.08 in prior quarters), gross margin 60.9%, operating expenses $55.3M. Free cash flow $31.4M, cash reserves $295.3M.
- **Q4 Outlook**: Revenue $97-103M (midpoint $100M), gross margin 59-60.5%, OpEx $55-58M due to CES expenses.

**【Q&A Highlights】**
- **Growth Drivers**: 50-50 split between unit volume and ASP growth. Portable video (drones, action cams) contributed 10%+ revenue, with ASP up 20% YoY.
- **Drones & Robotics**: 2026 drone shipments expected to commence, targeting Level 3+ autonomy. N1655 chip wins in edge infrastructure, with non-video-centric designs.
- **Gross Margin**: Long-term target 59-62%, Q4 near lower end due to high-volume customer mix. No plans to sacrifice margin for growth in consumer markets.
- **Automotive**: Active in Level 2+ ADAS, with design wins at Geely and Xpeng. FY26 automotive revenue growth expected, but no funnel disclosure for FY27+.

Ambarella, Inc. (AMBA) Q3 2026 Earnings Call Transcript

- **Revenue Supercharge**: Q2 revenue $95.5M (+49.9% YoY), full-year guidance raised to 31-35% growth ($379M midpoint).
- **New Market Breakthroughs**: Portable video (Insta360 8K drone), robotic drones (Antigravity A1), and edge infrastructure (N1-655) driving ASP growth.
- **IoT Dominance**: IoT now 75% of revenue, with mid-teens Q3 growth vs. automotive mid-single digits.
- **Cash Flow Strength**: $261M cash, $1.4M free cash flow, and no inventory buildup detected.
- **Strategic Shift**: IoT to lead until automotive ADAS wins materialize in 2027-2028.

**【CEO Summary Section】**
- Q2 revenue reached $95.5 million, up 11% sequentially and 49.9% YoY, exceeding the high end of prior guidance.
- Full-year 2026 revenue guidance raised to 31-35% growth (midpoint $379 million), up 9% from prior estimate.
- New edge AI applications driving growth: portable video (e.g., Arashi Vision's 8K drone), robotic aerial drones (Insta360 Antigravity A1), and edge infrastructure (N1-655 SoC wins).
- Automotive ADAS progress: CV22FS in Audi E5 mirrors, BAIC Stelato S9 rearview mirrors, and 8MP ADAS in China.
- IoT revenue now 75% of total, with ASP growth from 5nm SoCs.

**【CFO Financial Commentary】**
- Q2 non-GAAP net profit: $6.4 million ($0.15 EPS), up 142% YoY.
- Gross margin: 60.5% (low end of guidance due to product mix).
- OpEx: $53.4 million (below midpoint of $52.5-55.5M), driven by delayed engineering costs.
- Q3 guidance: $100-108 million (midpoint +14% YoY), with IoT up mid-teens and automotive mid-single digits.
- FY2026 cash flow: $261.2 million (up $41.4M YoY), with free cash flow $1.4M.

**【Q&A Highlights】**
- **IoT vs. Automotive Focus**: CEO confirms IoT will outpace automotive in near term (2026-2027), citing shorter design cycles and higher ASP growth. Automotive ADAS wins expected in 2027-2028.
- **Drone Market Expansion**: CV5-powered Insta360 Antigravity A1 set to launch Q1 2026, with 70% of Arashi shipments exported.
- **Customer Support**: Field engineers leveraging unified Cooper platform across 7 portable video product lines (action cameras, drones, body cams).
- **Tariff Impact**: No evidence of inventory buildup in supply chain; customers focused on current demand.
- **Edge Infrastructure Growth**: N1-655 wins in network AI appliances, with 5-year SAM estimate $500 million.
- **Process Tech Update**: 2nm SoC development on track for 2027 production.


Ambarella, Inc. (AMBA) Q2 2026 Earnings Call Transcript

- **Revenue Growth**: Q1 up 57.6% YoY to $85.9M, AI products 75% of revenue
- **Guidance Expansion**: FY2026 growth raised to 19-25% ($348M midpoint)
- **SAM Expansion**: $13B edge AI market by 2031 (19% CAGR)
- **New Markets**: Edge infrastructure chips with 3-digit ASPs, 1.2B camera upgrades
- **Cash Flow**: $259M cash, +22% YoY
- **Robotics Play**: Early-stage with CV3/CV5 co-processing


**【CEO Business Update】**
- Q1 2026 revenue: $85.9 million (YoY +57.6%), driven by edge AI products (75% of revenue). 
- Increased FY2026 revenue guidance to 19-25% growth ($348M midpoint) due to strong AI momentum.
- SAM expansion into edge infrastructure: $13B by FY2031 (CAGR 19%).
- Key wins: enterprise security cameras, cyclist cameras, ADAS systems in China/Japan/Korea.
- 32M+ edge AI processors shipped cumulatively.

**【CFO Financial Highlights】**
- Q1 non-GAAP net income: $3M ($0.07 EPS)
- Gross margin: 62% (above guidance)
- Opex: $51.8M (up 2% QoQ due to R&D)
- Cash: $259.4M (up 22% YoY)
- Q2 guidance: $86-94M revenue (midpoint +5% QoQ)

**【Key Q&A Takeaways】**
- Edge infrastructure chips: 3-digit ASPs, targeting 1.2B installed camera upgrades
- Auto revenue: 25% of total, +20% YoY despite geopolitical risks
- Supply chain: Customers not building inventory; no direct tariff impact
- AI server market: 3x performance/watt advantage vs GPUs/FPGAs
- Robotics: Early-stage opportunity with CV3/CV5 co-processing


Ambarella, Inc. (AMBA) Q1 2026 Earnings Call Transcript

- **Revenue Growth**: FY2025 up 25.8% to $284.9M, Q4 beat by 5% to $84M
- **Edge AI Dominance**: 70% of revenue, CV5/CV7 driving >50% of FY2026 growth
- **Profitability**: 16th straight year of positive free cash flow ($23.5M FY2025)
- **Auto Market**: Sequential decline in Q4/Q1 but YoY growth expected
- **Tech Breakthroughs**: 2nm chips targeting 2026, CV7 running 1.5B-parameter models on 1.5W
- **Risks**: Tariff uncertainty baked into second-half guidance

**【CEO Summary Section】**
- Fiscal 2025 revenue reached $284.9 million, up 25.8% YoY, driven by IoT growth (+30%) and Edge AI accounting for 70% of total revenue.
- Q4 revenue of $84 million exceeded guidance, with CV5 and CV7 families generating new product revenue and CV7 entering production.
- Fiscal 2026 revenue growth expected at mid- to high teens, with CV5 and CV7 contributing >50% of incremental revenue.
- Gross margin for FY2025 was 62.7%, with Q4 at 62% due to product mix.
- Strong free cash flow of $23.5 million for FY2025, marking 16th consecutive year of positive cash flow.

**【CFO Financial Highlights】**
- Q4 non-GAAP net profit: $4.8 million (EPS $0.11)
- FY2025 non-GAAP net loss: $6.8 million (EPS -$0.16)
- Operating cash flow: $33.8 million for FY2025
- Q1 2026 guidance: Revenue $81-87 million, gross margin 61-62.5%, OpEx $50-53 million

**【Key Q&A Insights】**
- Auto market: Sequential decline in Q4 and Q1 due to customer conservatism, but YoY growth expected
- CV5/CV7: >50% of FY26 growth, with CV2 family maintaining healthy growth
- Geopolitical risks: Tariff uncertainty leading to second-half conservatism, but no direct impact to Ambarella
- 2nm technology: Tape-out expected late 2025, targeting 2026 production
- Open-source models: CV7 successfully running DeepSeek R1, enabling edge AI applications at 1.5W power

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