Ambiq Micro (AMBQ) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached $25.1 million, up 59.3% year-over-year and 20.8% sequentially, driven by strong edge AI demand, new product launches, and expanded customer adoption.

• Over 80% of shipped units in Q1 2026 ran AI algorithms, reflecting leadership in ultra-low-power edge AI.

• Diversification efforts are succeeding, with non-wearables/non-personal device revenue now about 25% of the pipeline and expected to double in 2026.

• Strategic investments and new hardware/software developments position the company for durable revenue growth and margin expansion.

• Completed a follow-on equity offering in January 2026, raising $75.3–$76.8 million in net proceeds.

Financial highlights

• Q1 2026 net sales reached $25.1 million, up 59.3% year-over-year, exceeding guidance.

• Non-GAAP gross profit was $11.6 million (up 56.2% YoY); non-GAAP gross margin was 46.2%, while GAAP gross margin was 43.5%.

• Non-GAAP operating expenses were $18.1 million (up 38% YoY); GAAP operating expenses were $22.6 million.

• Non-GAAP net loss was $5.0 million ($0.25 per share); GAAP net loss was $10.2 million ($0.50 per share).

• Cash and cash equivalents were $204.5 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 net sales expected at $31–32 million, up 73–79% year-over-year.

• Non-GAAP gross margin guided at 45–46%; operating expense at $21–22 million, including $1.7 million for IP purchases.

• Non-GAAP loss per share expected between $0.29–$0.23.

• Full-year operating expense expected at ~$85 million, with $7–10 million in IP purchases.

• Second half 2026 net sales growth expected to be similar to first half (~65–68% YoY), with seasonality in Q4.

• Profitability expected at ~$47 million quarterly revenue, potentially achievable in late 2027 or early 2028.

• Management anticipates ongoing losses until significant sales from new products are realized.