Ambiq Micro (AMBQ) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales reached $18.2 million, surpassing guidance but down 10.4% year-over-year, with one of the strongest gross margins to date and a strengthened balance sheet post-IPO.

• Strategic pivot to high-value, AI-driven markets accelerated growth, with robust design funnel, increased orders from new and existing customers, and strong Apollo 5 adoption.

• Expanded product portfolio with launches of Apollo510 Lite SoC Series and Helio AI Runtime, supporting edge AI growth in wearables, industrial, and AR glasses.

• Completed IPO in July 2025, raising $102.7 million and converting all preferred stock to common stock, significantly strengthening cash position.

• SPOT platform recognized by Time Magazine as one of the best AI inventions of 2025.

Financial highlights

• Q3 2025 net sales were $18.2 million, down 10.4% year-over-year but up 1.6% sequentially; gross margin improved to 44.8% (non-GAAP) and 42.3% (GAAP), up over 10 points year-over-year.

• Non-GAAP gross profit was $8.1 million, up 16.8% year-over-year; GAAP gross profit was $7.7 million, up 16.4%.

• Non-GAAP net loss attributable to common stockholders was $4 million, improving $1.9 million sequentially and $1.8 million year-over-year; GAAP net loss was $9.0 million.

• Ended Q3 with no debt and $146.5 million in cash and equivalents, reflecting IPO proceeds.

• Operating expenses (GAAP) were $17.7 million, up from $16.7 million year-over-year; non-GAAP operating expenses were $13.2 million, nearly flat year-over-year.

Outlook and guidance

• Q4 2025 net sales expected between $18.5 and $19.5 million, above consensus estimate of $14.2 million and the highest quarterly revenue of 2025.

• Non-GAAP loss per share for Q4 expected between $0.44 and $0.34, based on 18.2 million pro forma shares.

• Guidance includes higher variable expenses and a $1–1.5 million non-cash OpEx increase due to IP cost reclassification.

• Management anticipates continued revenue growth and gross margin expansion in 2026 and 2027, with Atomic platform revenues expected to contribute meaningfully in 2028.

• Cash on hand and anticipated cash from operations are expected to be sufficient for at least the next twelve months.