Rambus (RMBS) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $707.6 million for 2025, with product revenue up 41% year-over-year to $347.8 million and strong cash from operations.

• Maintained leadership in DDR5 RCDs, expanded new product contributions, and aligned with data center and AI trends.

• Set new highs for quarterly product revenue at $96.8 million and quarterly cash from operations at $99.8 million.

• Diversified portfolio and strategic investments position the company for continued long-term growth, especially in AI and data center markets.

Financial highlights

• Q4 2025 revenue reached $190.2 million, with product revenue at $96.8 million, up 32% year-over-year.

• Full year product revenue hit a record $347.8 million, up 41% year-over-year.

• Annual cash from operations reached $360 million, a 56% increase from 2024.

• Ended Q4 with $761.8 million in cash, cash equivalents, and marketable securities.

• Non-GAAP net income for Q4 was $74.7 million; gross margins for 2025 were 61.5%.

Outlook and guidance

• Q1 2026 product revenue expected between $84 million and $90 million; licensing billings projected at $66–$72 million.

• Q1 product revenue impacted by a one-time supply chain issue, with strong growth expected to resume in Q2.

• Full year 2026 product revenue expected to grow faster than the market, with continued market share gains.

• Pro forma tax rate for 2026 expected at 16% due to recent tax legislation changes.

• Operating costs and expenses projected at $121–$117 million GAAP, $104–$100 million non-GAAP.