Rambus (RMBS) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $180.2 million, up 8.1% year-over-year, with product revenue rising 15% to $88.0 million, driven by strong demand for memory interface chips and AI/data center solutions.

• Expanded product and IP offerings for next-generation AI platforms, including LPDDR5X SOCAMM2 server module chipset and HBM4E memory controller IP.

• Generated $83.2 million in cash from operations, supporting a $24 million increase in cash, cash equivalents, and marketable securities from the prior quarter.

• Continued profitable growth with strategic R&D investments and strong cash generation supporting roadmap initiatives.

• Focused on semiconductor innovation for data center and AI infrastructure markets.

Financial highlights

• Q1 2026 GAAP revenue: $180.2 million (vs. $166.7 million Q1 2025); product revenue: $88.0 million (vs. $76.3 million); royalties: $69.6 million (vs. $74.0 million); contract and other revenue: $22.6 million (vs. $16.4 million).

• Q1 2026 GAAP net income: $59.9 million; non-GAAP net income: $69.3 million; GAAP diluted EPS: $0.55; non-GAAP diluted EPS: $0.63.

• Gross margin was 79.8%, slightly down from 80.3% year-over-year.

• Cash, cash equivalents, and marketable securities totaled $786.1 million as of March 31, 2026.

• Operating cash flow was $83.2 million; capital expenditures were $17.0 million in Q1 2026.

Outlook and guidance

• Q2 2026 product revenue expected between $95 million and $101 million; licensing billings $76–$82 million; royalty revenue $72–$78 million.

• Q2 2026 total operating costs projected at $110–$114 million (non-GAAP), $127–$131 million (GAAP).

• Q2 2026 non-GAAP EPS expected between $0.65 and $0.73.

• Continued sequential product revenue growth anticipated, with stronger second half seasonality.

• Management expects continued volatility in royalties and contract revenue due to macroeconomic and industry factors.