Ambarella Reports Increased Revenue but Ongoing Net Loss for Q2 FY2026
Santa Clara, Friday, 29 August 2025.
Ambarella’s Q2 FY2026 saw revenue grow by 49.9% year-over-year to $95.5 million, yet incurred a net loss of $20 million. Investor reaction was positive, driving shares up 21%.
Q2 FY2026 Financial Performance
Ambarella, Inc. (NASDAQ: AMBA) announced its second quarter fiscal year 2026 financial results, ending on July 31, 2025. The company’s revenue increased by 49.9% year-over-year, reaching $95.5 million compared to $63.7 million in the same period last fiscal year [1][2][6]. Despite this revenue growth, Ambarella reported a GAAP net loss of $20 million, or $0.47 per share, which was a reduction from the $34.9 million loss, or $0.85 per share, in the prior year period [2][3][6].
Non-GAAP Metrics and Investor Response
On a non-GAAP basis, Ambarella reported a net profit of $6.4 million, equivalent to $0.15 earnings per diluted share. This result is a significant improvement over a $5.5 million net loss in the same quarter of the previous year [3][5][7]. Investor sentiment was positive following the earnings release, as the company’s financial performance surpassed market expectations, leading to a 21% increase in the after-hours trading of Ambarella shares [7].
Strategic Developments and Market Position
Ambarella continues to focus on edge AI semiconductor technology, and the strong revenue growth in the IoT sector underscores its strategic emphasis. During the earnings call, CEO Fermi Wang highlighted the absence of a significant inventory buildup, which reflects effective supply chain management amidst growing demand [4][5][8]. Furthermore, the company reported achieving five consecutive quarters of record revenue in the high-performance AI (HAI) segments, driven largely by portable video applications and robotic systems [9].
Future Guidance and Market Expectations
Looking forward, Ambarella projected its third quarter fiscal 2026 revenue to be between $100 million and $108 million, with a midpoint of $104 million. The company also raised its full-year fiscal 2026 revenue growth estimate to a range of 31% to 35%, amounting to approximately $379 million at the midpoint [3][5][8]. Despite competitive pressures, evidenced by slightly decreased gross margin figures, the company remains optimistic about its prospects in the evolving edge AI market [6][8].