Core Insights - Astera Labs (ALAB) reported second-quarter 2025 non-GAAP earnings of 44 cents per share, exceeding the Zacks Consensus Estimate by 33.33% [1][6] - Net revenues increased by 149.7% year over year to $192 million, surpassing the Zacks Consensus Estimate by 11.1% [1][6] - ALAB shares rose 17% in pre-market trading, while year-to-date performance shows a 2.4% increase, underperforming the broader Zacks Computer and Technology sector's 11.8% [1] Revenue and Product Details - Astera Labs is increasing production of its PCIe 6 product portfolio aimed at customized rack-scale AI systems [2] - The company achieved multiple design wins for its Scorpio Fabric switches during the reported quarter [2] - Strong demand was noted for its signal conditioning portfolio, driven by PCIe scale-up and Ethernet scale-out connectivity applications in custom ASIC platforms [2] Operating Performance - The non-GAAP gross margin was reported at 76%, a decrease of 200 basis points year over year [3] - Research and development expenses rose by 66.4% year over year to $66.7 million [3] - Sales and marketing expenses decreased by 15.7% year over year to $18.6 million, while general and administrative expenses decreased by 7.2% year over year to $20.5 million [3] - The non-GAAP operating margin improved to 39.2% compared to 24.4% in the same quarter last year [3] Balance Sheet Overview - As of June 30, 2025, cash and cash equivalents stood at $1.07 billion, up from $924.7 million as of March 31 [4] Future Guidance - For the third quarter of 2025, Astera Labs expects revenues between $203 million and $210 million, indicating a 60.1% growth from the year-ago quarter [5] - The Zacks Consensus Estimate for revenues is currently at $181 million [5] - Non-GAAP gross margin is anticipated to be around 75%, with operating expenses projected between $76 million and $80 million [5] - Earnings per share are expected to be between 38 cents and 39 cents for the third quarter, compared to a consensus mark of 34 cents per share, suggesting a 47.8% growth from the year-ago quarter [5][7]

Core Viewpoint - Astera Labs reported significantly better-than-expected Q2 earnings, leading to a stock price increase of over 30% [1] Financial Performance - For Q2, Astera Labs achieved a non-GAAP diluted earnings per share of $0.44, up from $0.13 in the same period last year, exceeding the analyst expectation of $0.32 [1] - The company's revenue for the quarter was $191.9 million, representing a nearly 150% year-over-year increase from $76.9 million, and also surpassing the analyst forecast of $172.5 million [1] Guidance - For Q3, Astera Labs expects non-GAAP diluted earnings per share to be between $0.38 and $0.39, with revenue projected to be between $203 million and $210 million [1] - This guidance is notably higher than the market expectations of $0.34 per share and revenue of $189.5 million [1]

Core Viewpoint - Astera Labs reported significantly better-than-expected Q2 earnings, leading to a stock price increase of over 30% [1] Financial Performance - For Q2, Astera Labs achieved a non-GAAP diluted earnings per share of $0.44, up from $0.13 in the same period last year, exceeding the analyst consensus estimate of $0.32 [1] - The company reported revenue of $191.9 million for the quarter, a nearly 150% increase compared to $76.9 million year-over-year, and also above the analyst forecast of $172.5 million [1] Future Guidance - For Q3, Astera Labs expects non-GAAP diluted earnings per share to be between $0.38 and $0.39, with revenue projected to be between $203 million and $210 million [1] - This guidance is notably higher than the market expectations of $0.34 earnings per share and $189.5 million in revenue [1]

Astera Labs ALAB reported record quarterly revenue after market close on Tuesday. Astera Labs reported second-quarter revenue of $191.9 million, up 150% year-over-year and up 20% quarter-over-quarter. The revenue total beat a Street consensus estimate of $172.54 million according to data from Benzinga Pro. The company's revenue was a quarterly record, as was operating cash flow generation of $135.4 million. Astera Labs reported adjusted earnings per share of 44 cents, beating a Street consensus of 32 cents ...

Core Insights - Astera Labs (NASDAQ: ALAB) stock surged 20.18% in premarket trading, reaching $162.89 after reporting strong Q2 earnings that exceeded market expectations [1][3]. Financial Performance - The company reported record quarterly revenue of $191.9 million for Q2 2025, reflecting a 150% year-over-year increase and a 20% quarter-over-quarter rise [3]. - Non-GAAP diluted earnings per share were $0.44, significantly above the forecasted $0.11, with net income of $51.2 million compared to a net loss of $7.5 million in the same period last year [3][4]. Growth Drivers - CEO Jitendra Mohan attributed the strong performance to the ramping of the PCIe 6 product portfolio for customized AI systems, new design wins for Scorpio Fabric Switches, and robust demand for the signal conditioning portfolio [4]. - Evercore ISI highlighted three key growth drivers: the Scorpio P Series ramp exceeding expectations, the potential increase in content per accelerator with the X Series addition, and strong customer interest across various production stages [5][6]. Market Outlook - Evercore ISI raised its price target for Astera Labs to $215 from $104, indicating confidence in the company's performance within the AI product cycle [5]. - The firm projects a 72% growth in cloud capital expenditure in 2025, positioning Astera Labs to exceed expectations over the next one to two years [7]. - Analyst data from TipRanks shows Astera Labs as a Strong Buy with 12 Buy ratings, 2 Hold ratings, and no Sell ratings [7]. Price Targets - The average 12-month price target for Astera Labs is $116.58, indicating a -28.44% downside from the current price, with targets ranging from $75.00 to $200.00 [8].

Core Insights - Astera Labs reported record GAAP revenue of $191.9 million for Q2 FY2025, exceeding analyst expectations of $172.49 million, with non-GAAP EPS at $0.44, surpassing estimates of $0.32, indicating strong sales and profitability growth driven by demand for its PCIe 6 portfolio and Scorpio fabric switches [1][2][5] Financial Performance - Non-GAAP EPS reached $0.44, a 238.5% increase from $0.13 in Q2 2024 [2] - GAAP revenue of $191.9 million represented a 149.6% year-over-year increase from $76.9 million [2] - Operating income improved to $39.8 million from a loss of $24.3 million in the previous year [2] - Non-GAAP operating margin increased by 14.8 percentage points to 39.2% compared to 24.4% in Q2 2024 [2] - Operating cash flow was reported at $135 million, the highest ever for the company [2][8] Company Overview and Strategic Focus - Astera Labs specializes in high-speed connectivity semiconductors and system solutions for data centers and cloud infrastructure, centered around its Intelligent Connectivity Platform [3] - The company emphasizes technological innovation, strategic partnerships, and expanding its product offerings across leading AI platforms [4] Growth Drivers and Key Developments - The surge in demand for the PCIe 6 connectivity portfolio and the Scorpio fabric switch family were key growth drivers, with new design wins and production ramping up [5][6] - Collaborations with major industry players like NVIDIA and AMD enhance product interoperability and position the company as a contributor to next-generation open standards [7] Product Portfolio and Segment Performance - The Aries product family includes PCIe/CXL retimers and gearbox products, ensuring signal integrity and compatibility across different generations of technology [10] - The Taurus product line features Ethernet smart cable modules, with momentum expected to grow as the market shifts towards 100G-capable AI infrastructure [11] - The Scorpio product line focuses on smart fabric switches for AI accelerators, with the P-Series and X-Series designed for modular rack applications [11][12] Outlook - Management projects GAAP revenue between $203 million and $210 million for Q3 FY2025, with gross margins expected to remain near 75% [13] - Non-GAAP diluted EPS is guided between $0.38 and $0.39, with operating expenses anticipated to rise as the company invests in product development [13]

Core Viewpoint - Astera Labs, Inc. reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing significant growth from $0.13 per share a year ago, indicating a strong performance in the recent quarter [1][2]. Financial Performance - The company achieved revenues of $191.93 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.12%, and showing a substantial increase from $76.85 million in the same quarter last year [2]. - Over the last four quarters, Astera Labs has consistently exceeded consensus EPS estimates [2]. Stock Performance - Since the beginning of the year, Astera Labs shares have increased by approximately 4.1%, while the S&P 500 has gained 7.6%, indicating underperformance relative to the broader market [3]. - The current Zacks Rank for Astera Labs is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]. Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $181.02 million, and for the current fiscal year, it is $1.35 on revenues of $702.43 million [7]. - The outlook for the Internet - Software industry, where Astera Labs operates, is currently in the top 32% of over 250 Zacks industries, which may positively influence the stock's performance [8].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission file number 001-41979 Astera Labs, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

Financial Data and Key Metrics Changes - Astera Labs reported quarterly revenue of $191.9 million, representing a 20% increase from the previous quarter and a 150% increase compared to Q2 of the previous year [7][19] - Non-GAAP gross margin for Q2 was 76%, up 110 basis points from the previous quarter [20] - Non-GAAP operating margin for Q2 was 39.2%, an increase of 550 basis points from the previous quarter [21] - Cash flow from operating activities for Q2 was $135.4 million, with cash, cash equivalents, and marketable securities totaling $1.07 billion at the end of the quarter [21] Business Line Data and Key Metrics Changes - The Scorpio product line exceeded 10% of total revenue, marking it as the fastest ramping product line in the company's history [8] - The Taurus product family showed strong growth driven by demand for AEC supporting the latest merchant GPUs and general-purpose compute platforms [9] - The ADX product family continued to diversify across GPU and custom ASIC-based systems for various applications [8] Market Data and Key Metrics Changes - Astera Labs is engaged with over 10 unique AI platform and cloud infrastructure providers for their scale-up networking requirements [15] - The transition to AI infrastructure 2.0 is expected to create a market opportunity of nearly $5 billion by 2030 for Astera Labs [12] Company Strategy and Development Direction - The company aims to deliver a purpose-built connectivity platform that includes silicon, hardware, and software solutions for rack-scale AI deployments [13] - Astera Labs is focusing on increasing its addressable dollar content in AI servers by expanding its product lines [13] - The company is strategically crafting its roadmaps to lead the transition to AI infrastructure 2.0, which emphasizes open, standard-based, AI rack-scale platforms [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of the business and the prospects for continued diversification and scale [12] - The company anticipates that the Scorpio X Series will begin shipping for customized scale-up architectures in late 2025, with high-volume production expected in 2026 [15] - Management highlighted the importance of partnerships and collaborations with major players like NVIDIA and AMD to support the evolving AI infrastructure [9][10] Other Important Information - The company is committed to supporting its customers as they choose architectures and technologies that best suit their AI performance goals [12] - Astera Labs is actively involved in the UA Link consortium, promoting an open ecosystem for scale-up networking [63] Q&A Session Summary Question: What has been the biggest differentiator for the Scorpio family of switching products? - Management highlighted three key factors: closeness to customers, execution track record, and the use of the Cosmos software suite to optimize product performance [28][30] Question: What is the reception and interest level on UA Link? - Management noted tremendous interest in UA Link due to its technical advantages and the open ecosystem it supports, with over 10 customers exploring its use [34][37] Question: Can you discuss the profile of customers using Scorpio products? - Management indicated a broad base of customers leveraging Scorpio P Series for scale-out connectivity and Scorpio X Series for scale-up networking, with significant interest in additional products [41][43] Question: What is the expected tax rate for the upcoming quarters? - The tax rate for Q3 is expected to be around 20% due to recent tax law changes, normalizing to approximately 15% in Q4 and around 13% long-term [46] Question: How does Astera Labs view the competition from Ethernet in scale-up networking? - Management emphasized that while Ethernet is effective for scale-out, it was not designed for scale-up, and Astera Labs' solutions like UA Link offer significant advantages in terms of performance and ecosystem openness [95][96]

Financial Data and Key Metrics Changes - Astera Labs reported quarterly revenue of $191.9 million, representing a 20% increase from the previous quarter and a 150% increase compared to Q2 of the previous year [6][20]. - Non-GAAP gross margin for Q2 was 76%, up 110 basis points from the previous quarter [22]. - Non-GAAP operating margin for Q2 was 39.2%, an increase of 550 basis points from the previous quarter [22]. - Cash flow from operating activities for Q2 was $135.4 million, with cash, cash equivalents, and marketable securities totaling $1.07 billion at the end of the quarter [23]. Business Line Data and Key Metrics Changes - The Scorpio product line, particularly the Scorpio PCD switches, exceeded 10% of total revenue, marking it as the fastest ramping product line in the company's history [6][7]. - The Taurus product family showed strong growth driven by AEC demand, supporting the latest merchant GPUs and general-purpose compute platforms [9]. - The ADX product family continued to diversify across GPU and custom ASIC-based systems, contributing to overall revenue growth [8]. Market Data and Key Metrics Changes - Astera Labs is engaged with over 10 unique AI platform and cloud infrastructure providers for their scale-up networking requirements [16]. - The company anticipates that the transition to AI infrastructure 2.0 will create a market opportunity of nearly $5 billion by 2030 [12]. - The company is strategically positioned to support the AI infrastructure transformation, which is still in its early stages [12]. Company Strategy and Development Direction - Astera Labs aims to deliver a comprehensive connectivity platform that includes silicon, hardware, and software solutions for rack-scale AI deployments [13]. - The company is focused on increasing its addressable dollar content in AI servers by expanding its product lines [14]. - Astera Labs is committed to developing and commercializing a broad portfolio of UA Link connectivity solutions, which is expected to be a long-term growth vector [18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of the business and the prospects for continued diversification and scale [12]. - The transition to AI infrastructure 2.0 is seen as a significant opportunity for revenue growth, with expectations for Scorpio X Series revenue to outgrow Scorpio P Series revenue [16][17]. - The company is optimistic about the adoption of UA Link, with multiple hyperscalers showing strong interest [38]. Other Important Information - Non-GAAP operating expenses for Q2 were $17.7 million, up approximately $5 million from the previous quarter, reflecting continued investment in R&D [22]. - The company expects Q3 revenues to range between $200 million and $210 million, representing a 6% to 9% increase from Q2 [24]. Q&A Session Summary Question: What has been the biggest differentiator for the Scorpio family of switching products? - Management highlighted three key factors: closeness to customers, execution track record, and the use of the Cosmos software suite to optimize product performance [29][30]. Question: What is the reception and interest level on UA Link? - Management noted tremendous interest in UA Link due to its technical advantages and the open ecosystem it supports, with over 10 customers looking to leverage these open standards [36][38]. Question: Can you discuss the profile of the types of customers using Scorpio? - Management indicated a broad base of customers leveraging Scorpio P Series for scale-out connectivity and Scorpio X Series for scale-up networking, with significant interest in surrounding products [44][45]. Question: What is the expected tax rate for the upcoming quarters? - The tax rate for Q3 is expected to be around 20% due to recent tax law changes, with a normalization to approximately 15% in Q4 and a long-term expectation of around 13% [48]. Question: How does the latency of Broadcom's Tomahawk Ultra switch compare to Astera's products? - Management stated that Astera's products achieve lower latencies than Broadcom's offerings, emphasizing the importance of end-to-end latency in AI applications [106].