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Why Ambarella (AMBA) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-10-14 14:51
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...
半导体行业-8 月每周报告:SIA 与 SEMICON West 展会预期-Semiconductors-Weekly Aug SIA & SEMICON West expectations
2025-10-09 02:00
Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focused on the North American semiconductor industry, particularly the upcoming SEMICON West event and August Semiconductor Industry Association (SIA) data [1][2][3]. Key Insights - **SEMICON West Expectations**: The event is not expected to be a significant catalyst for the semiconductor sector. It is primarily a technology showcase rather than a financial event, limiting discussions on customer equipment orders and 2026 expectations [2][3]. - **Memory Market Outlook**: - The company is bullish on memory wafer fabrication equipment (WFE) with a projected growth of 22% year-over-year into 2026. This is supported by strong memory pricing, which is anticipated to lead to increased capital expenditures in memory [2][14]. - DRAM and NAND markets are expected to see a reacceleration in capital expenditures in the second half of the year, with significant equipment shipments anticipated in 2026 [2][13]. SIA Data Highlights - **August Performance**: - SIA data showed semiconductor sales increased by 11.3% month-over-month, surpassing the estimate of 4.5% and the 10-year average of 7.9%. Year-over-year growth accelerated from 20.6% to 21.7% [8][10]. - Memory sales were particularly strong, with DRAM sales up 45.4% month-over-month, exceeding the estimate of 30.3% [16]. - NAND sales also performed well, increasing by 39.0% month-over-month, compared to an estimate of 36.1% [16]. Geographic Trends - **Sales by Region**: - Asia Pacific saw the highest growth at 53.5%, followed by The Americas at 15.7%, China at 15.1%, and Europe at 2.5%. Japan experienced a decline of 9.1% [8]. Pricing Dynamics - **Memory Pricing**: - DRAM prices per gigabit increased by 1.2% to $0.4610, reflecting a year-over-year increase of 14.4%. NAND prices per gigabit decreased by 5.3% to $0.0085, with a year-over-year decline of 22.9% [21][24]. Future Projections - **Forecast Adjustments**: - The forecast for 2025 revenue growth was raised from 17.7% to 22.2%, and the 2026 forecast was adjusted to 15.1% ($887 billion) from 10.6% ($821 billion), primarily due to memory pricing trends [14]. - A new cycle for memory is anticipated to begin in 2026, driven by current market dynamics [13][14]. Risks and Considerations - **Geopolitical Factors**: Recent policy disruptions, including anti-dumping investigations and new regulations affecting equipment suppliers, may pose risks to the semiconductor sector. However, the near-term outlook remains optimistic for memory companies and AI beneficiaries [18]. Conclusion - The semiconductor industry is experiencing robust growth, particularly in the memory segment, with positive trends expected to continue into 2026. However, external factors such as geopolitical tensions and market dynamics will need to be monitored closely.
Jim Cramer on Ambarella: “I Think it Reflects All the Good News Already”
Yahoo Finance· 2025-09-25 17:12
Ambarella, Inc. (NASDAQ:AMBA) is one of the stocks Jim Cramer shared his opinions on. Responding to a caller’s question about the stock, Cramer commented: “You know, it’s been around for a long time. It’s finally make, getting there, but I think it reflects all the good news already. I’m going to have to say no to that one.” Photo by Austin Distel on Unsplash Ambarella, Inc. (NASDAQ:AMBA) designs semiconductor solutions integrating AI processing, advanced imaging, and ultra-HD video compression into l ...
Ambarella (AMBA) Gets Bullish Ratings from Analysts
Yahoo Finance· 2025-09-24 05:05
Ambarella, Inc. (NASDAQ:AMBA) is one of the 14 Small Publicly Traded Semiconductor Companies to Invest in Now. On August 29, Needham increased its price target for Ambarella, Inc. (NASDAQ:AMBA) from $90 to $100 and maintained a Buy rating. This decision came after Ambarella, Inc. (NASDAQ:AMBA) reported strong results for the second quarter of fiscal year 2026. The company also provided Q3 guidance that surpassed market expectations. Ambarella (AMBA) Gets Bullish Ratings from Analysts Needham’s analysis ...
Cramer Says 'No' To Ambarella, But Gilat Satellite Is Still A 'Buy' - Ambarella (NASDAQ:AMBA), AST SpaceMobile (NASDAQ:ASTS)
Benzinga· 2025-09-23 11:52
Group 1: Rivian Automotive, Inc. - Rivian announced the expansion of its U.S. manufacturing footprint with a new facility in Georgia, marking a significant step towards building its next generation of electric vehicles [1] - Rivian shares surged 6% to settle at $15.24 on Monday [5] Group 2: Energy Fuels Inc. - Energy Fuels is at its "52-week high," and Jim Cramer maintains a positive outlook on the stock [2] - HC Wainwright & Co. analyst raised the price target for Energy Fuels from $12 to $16.25, maintaining a Buy rating [2] - Energy Fuels shares gained 4.8% to close at $15.57 [5] Group 3: Gilat Satellite Networks Ltd. - Gilat announced a private placement of $66 million to institutional and accredited investors [2] - Gilat Satellite shares rose 1.8% to settle at $11.84 on Monday [5] Group 4: Ambarella, Inc. - Ambarella reported better-than-expected second-quarter EPS and sales, guiding third-quarter sales above estimates [3] - Ambarella shares gained 7.1% to $88.81 during the session [5] Group 5: AST SpaceMobile, Inc. - UBS analyst downgraded AST SpaceMobile from Buy to Neutral and lowered the price target from $62 to $43 [3] - AST SpaceMobile shares gained 8.3% to settle at $48.85 [5]
Jim Cramer Says 'No' To Ambarella, But Gilat Satellite Is Still A 'Buy'
Benzinga· 2025-09-23 11:52
Group 1: Rivian Automotive, Inc. - Rivian is expanding its U.S. manufacturing footprint with a new facility in Georgia, marking a significant step towards building its next generation of electric vehicles [1] - Rivian shares surged 6% to settle at $15.24 on Monday [5] Group 2: Energy Fuels Inc. - Energy Fuels is at its "52-week high," and the stock is recommended to hold, with a price target raised from $12 to $16.25 by HC Wainwright & Co. analyst Heiko F. Ihle [2] - Energy Fuels shares gained 4.8% to close at $15.57 [5] Group 3: Gilat Satellite Networks Ltd. - Gilat announced a private placement of $66 million to institutional and accredited investors [2] - Gilat Satellite shares rose 1.8% to settle at $11.84 on Monday [5] Group 4: Ambarella, Inc. - Ambarella reported better-than-expected second-quarter EPS and sales, guiding third-quarter sales above estimates [3] - Ambarella shares gained 7.1% to $88.81 during the session [5] Group 5: AST SpaceMobile, Inc. - AST SpaceMobile is considered a speculative investment, with UBS analyst Christopher Schoell downgrading the stock from Buy to Neutral and lowering the price target from $62 to $43 [3] - AST SpaceMobile shares gained 8.3% to settle at $48.85 [5]
1 Top AI Stock That’s on Wall Street’s Radar
Yahoo Finance· 2025-09-18 11:30
Core Insights - Ambarella (AMBA) is recognized as a leading opportunity in the AI sector, particularly in edge AI, with five consecutive quarters of record sales [1][5] - The company reported a revenue of $95.5 million for Q2 of fiscal 2026, marking an 11% sequential increase and a 49.9% year-over-year growth [5] - Ambarella's stock is valued at $3.4 billion, with a year-to-date gain of 9.4%, indicating potential for further growth [2] Financial Performance - Revenue for Q2 fiscal 2026 was $95.5 million, exceeding the guidance range of $86 million to $94 million [5] - The company achieved an adjusted net profit of $0.15 per diluted share, a significant improvement from a net loss of $0.13 in the same quarter last year [5] - Ambarella ended the quarter with $261.2 million in cash and equivalents, alongside a free cash flow of $1.4 million [5] Market Position and Strategy - Ambarella specializes in low-power, high-performance semiconductors, particularly system-on-chips (SoCs) for AI and computer vision tasks [4] - The company has delivered over 36 million processors since entering the edge AI market over five years ago, expanding its reach into various sectors [6] - Ambarella's edge AI revenue has diversified from enterprise security cameras to include smart home devices, automotive safety, and telematics [7] Growth Opportunities - The company is targeting three new markets to enhance growth: - Portable Video, driven by demand for advanced AI functions in cameras [7] - Robotics, with expectations of high-volume shipments by the end of fiscal year 2026 [7] - Edge Infrastructure, with the introduction of the N1-655 SoC [7]
Roth Capital Raises Ambarella (AMBA) PT to $85 on Strong Q2 Performance, Edge AI Growth
Yahoo Finance· 2025-09-16 18:58
Financial Performance - Ambarella reported revenue of $95.5 million for FQ2 2026, representing a 49.9% year-over-year increase and an 11.2% sequential increase [2] - The company's cash and marketable securities increased by $1.8 million from the prior quarter, totaling $261.2 million [2] Analyst Sentiment - Roth Capital raised Ambarella's price target to $85 from $65 while maintaining a Neutral rating on the shares [1] - The positive sentiment is attributed to strong financial growth and demand for non-auto Edge AI applications [1][3] Market Trends - Ambarella is experiencing strong demand for its 5-nanometer AI System-on-Chips/SoCs, which are contributing to higher average selling prices [3] - The company's edge AI applications are expanding into new markets, including portable video and robotic aerial drones [3] - Although the automotive market's adoption rate is slower, Ambarella continues to invest in both automotive and IoT sectors due to their similar hardware architecture [3]
Meet the Skyrocketing Artificial Intelligence (AI) Stock That's Leaving Nvidia in the Dust
The Motley Fool· 2025-09-04 23:14
Core Insights - The demand for edge AI processors is significantly boosting Ambarella's growth, positioning it as a strong competitor in the semiconductor industry [1][6] - Ambarella's revenue growth and profitability are driven by its focus on edge AI applications, which are expected to dominate its revenue stream [7][8] Financial Performance - Ambarella's revenue for the second quarter of fiscal 2026 increased by 50% year over year, reaching $95.5 million, with a non-GAAP profit of $0.15 per share compared to a loss of $0.13 per share in the previous year [7] - The company has raised its full-year revenue growth forecast from 22% to 33%, now expecting total revenue of $379 million for fiscal 2026 [9] Market Position and Growth Potential - Edge AI processors are projected to account for 80% of Ambarella's overall revenue this year, reflecting strong demand across various applications [8] - The serviceable addressable market for edge AI chips is expected to grow at an annual rate of 18% over the next five years, potentially reaching $12.9 billion [11] - The edge AI processor market's revenue could increase by 20 times over the next decade, driven by advancements in processing capabilities [12] Valuation and Investment Outlook - Ambarella's stock price surged nearly 17% following the release of its quarterly results, yet it trades at just under 10 times sales, which is competitive compared to the U.S. technology sector's average price-to-sales ratio of 8.5 [13] - The company's ability to capture a larger share of the edge AI market presents a significant investment opportunity, suggesting that its growth trajectory may continue to exceed market expectations [15]
Ambarella(AMBA) - 2026 Q2 - Quarterly Report
2025-09-03 18:30
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Ambarella's unaudited condensed consolidated financial statements for Q2 and H1 FY2026, including core financial statements and detailed accounting notes [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$706.43 million** by July 31, 2025, with corresponding changes in liabilities and shareholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Total current assets | $343,872 | $320,551 | | Total assets | $706,431 | $688,968 | | Total current liabilities | $125,942 | $120,994 | | Total liabilities | $129,911 | $127,556 | | Total shareholders' equity | $576,520 | $561,412 | - Cash and cash equivalents decreased slightly from **$144.62 million** to **$142.74 million**[9](index=9&type=chunk) - Accounts receivable, net, increased from **$29.77 million** to **$42.90 million**, indicating higher sales or slower collections[9](index=9&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenue significantly increased for Q2 and H1 FY2026, leading to substantial reductions in operating and net losses despite higher operating expenses Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $95,511 | $63,724 | $181,383 | $118,197 | | Gross profit | $56,231 | $38,741 | $107,767 | $71,901 | | Total operating expenses | $78,220 | $75,028 | $155,614 | $147,633 | | Loss from operations | $(21,989) | $(36,287) | $(47,847) | $(75,732) | | Net loss | $(19,995) | $(34,889) | $(44,323) | $(72,821) | | Basic net loss per share | $(0.47) | $(0.85) | $(1.05) | $(1.78) | - Revenue increased by **49.9%** for the three months and **53.5%** for the six months ended July 31, 2025, compared to the same periods in the prior fiscal year[11](index=11&type=chunk) - Net loss per share improved from **$(0.85)** to **$(0.47)** for the three-month period and from **$(1.78)** to **$(1.05)** for the six-month period[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss decreased for Q2 and H1 FY2026, reflecting reduced net loss partially offset by changes in unrealized gains/losses on investments Condensed Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(19,995) | $(34,889) | $(44,323) | $(72,821) | | Other comprehensive income (loss), net of tax | $(267) | $407 | $292 | $18 | | Comprehensive loss | $(20,262) | $(34,482) | $(44,031) | $(72,803) | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to **$576.52 million** by July 31, 2025, primarily from equity plans and stock compensation, partially offset by net loss and repurchases Changes in Shareholders' Equity (in thousands) | Item | 6 Months Ended July 31, 2025 | | :------------------------------------------ | :--------------------------- | | Balance—January 31, 2025 | $561,412 | | Issuance of shares through employee equity plans | $6,713 | | Issuance of shares through employee stock purchase plan | $4,479 | | Stock repurchase | $(1,000) | | Stock-based compensation expense | $24,881 | | Other comprehensive income (loss) - net of tax | $559 | | Net loss | $(24,328) | | Balance—April 30, 2025 | $572,716 | | Issuance of shares through employee equity plans | $170 | | Stock-based compensation expense | $23,896 | | Other comprehensive income (loss) - net of tax | $(267) | | Net loss | $(19,995) | | Balance—July 31, 2025 | $576,520 | - Ordinary shares outstanding increased from **41,963,959** at January 31, 2025, to **42,674,711** at July 31, 2025[15](index=15&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased for H1 FY2026, while investing and financing activities used more cash due to investments and repurchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :---------------------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $20,307 | $1,787 | | Net cash provided by (used in) investing activities | $(21,099) | $5,757 | | Net cash provided by (used in) financing activities | $(656) | $1,467 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(1,448) | $9,011 | | Cash, cash equivalents and restricted cash at end of period | $143,181 | $153,932 | - The increase in operating cash flow was primarily due to a net profit adjusted for non-cash items in 2025, compared to a net loss in 2024[18](index=18&type=chunk) - Investing activities shifted from providing **$5.76 million** in 2024 to using **$21.10 million** in 2025, mainly due to increased investment purchases[18](index=18&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on Ambarella's accounting policies, financial instruments, inventory, and other crucial financial components [1. Organization and Summary of Significant Accounting Policies](index=9&type=section&id=1.%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) Ambarella develops low-power semiconductor solutions with AI processing, advanced image signal processing, and HD/Ultra HD compression for various markets - Ambarella is a leading developer of low-power system-on-a-chip (SoC) semiconductors offering AI processing, advanced image signal processing, and high-definition (HD) and Ultra HD compression[20](index=20&type=chunk) - The company's system-on-a-chip (SoC) products integrate high-definition video processing, image processing, AI algorithms, audio processing, and system functions onto a single chip, targeting applications like video security, ADAS, and autonomous driving[20](index=20&type=chunk) - New accounting guidance (ASU 2023-09, ASU 2024-03, ASU 2025-05) is being evaluated, with ASU 2023-09 expected to impact financial disclosures for fiscal year ending January 31, 2026[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [2. Financial Instruments and Fair Value](index=13&type=section&id=2.%20Financial%20Instruments%20and%20Fair%20Value) The marketable debt securities portfolio increased to **$126.31 million**, primarily in corporate bonds and U.S. government securities, with most maturing within 1-5 years Marketable Debt Securities Portfolio (in thousands) | Category | July 31, 2025 Fair Value | January 31, 2025 Fair Value | | :------------------------ | :----------------------- | :-------------------------- | | Money market funds | $861 | $849 | | Fixed deposits | $7,001 | $3,000 | | Corporate bonds | $61,728 | $55,126 | | Asset-backed securities | $20,362 | $20,365 | | U.S. government securities | $36,354 | $30,152 | | Total | $126,306 | $109,492 | Contractual Maturities of Investments (in thousands) | Maturity Period | July 31, 2025 | January 31, 2025 | | :---------------- | :------------ | :--------------- | | Due within one year | $31,781 | $35,405 | | Due in 1 - 5 years | $94,068 | $74,087 | | Due in 5 - 15 years | $457 | — | | Total | $126,306 | $109,492 | - The fair value of money market funds and fixed deposits are classified within Level 1, while other debt securities are classified within Level 2[37](index=37&type=chunk) [3. Inventories](index=16&type=section&id=3.%20Inventories) Total inventories slightly decreased to **$33.81 million** by July 31, 2025, with a shift from finished goods to work-in-progress Inventories (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :-------------- | :------------ | :--------------- | | Work-in-progress | $22,234 | $20,546 | | Finished goods | $11,574 | $13,882 | | Total | $33,808 | $34,428 | [4. Property and Equipment, Net](index=16&type=section&id=4.%20Property%20and%20Equipment,%20Net) Net property and equipment increased to **$10.09 million** by July 31, 2025, primarily due to additions in computer hardware and construction in progress Property and Equipment, Net (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :--------------------------- | :------------ | :--------------- | | Computer hardware and software | $27,488 | $25,730 | | Tools and equipment | $9,226 | $8,625 | | Construction in progress | $861 | $307 | | Total property and equipment, net | $10,092 | $9,084 | - Depreciation expense was approximately **$1.2 million** for both three-month periods and **$2.3 million** and **$2.4 million** for the six-month periods ended July 31, 2025 and 2024, respectively[39](index=39&type=chunk) [5. Goodwill and Intangible Assets, Net](index=16&type=section&id=5.%20Goodwill%20and%20Intangible%20Assets,%20Net) Goodwill remained constant at **$303.63 million**, while net intangible assets decreased to **$41.88 million** due to amortization, with **$7.0 million** in unamortized software licenses Intangible Assets, Net (in thousands) | Category | July 31, 2025 Net Carrying Amount | January 31, 2025 Net Carrying Amount | | :-------------------- | :-------------------------------- | :----------------------------------- | | Software licenses | $23,322 | $26,296 | | Developed technology | $9,696 | $11,211 | | Customer relationships | $7,700 | $8,433 | | Trade name | $1,161 | $1,339 | | Total | $41,879 | $47,279 | - Goodwill remained unchanged at **$303.63 million**[9](index=9&type=chunk) - Approximately **$7.0 million** of software licenses with alternative uses are not yet amortized, pending product release[43](index=43&type=chunk) [6. Accrued and Other Current Liabilities](index=17&type=section&id=6.%20Accrued%20and%20Other%20Current%20Liabilities) Accrued and other current liabilities decreased to **$76.19 million** by July 31, 2025, mainly due to lower employee compensation and software license liabilities Accrued and Other Current Liabilities (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :----------------------------- | :------------ | :--------------- | | Accrued employee compensation | $20,732 | $22,941 | | Accrued product development costs | $32,159 | $32,929 | | Software license liabilities, current | $4,759 | $7,021 | | Development deposit liability | $13,500 | $13,500 | | Other accrued liabilities | $5,040 | $4,390 | | Total | $76,190 | $80,781 | - Approximately **$9.8 million** of annual bonus was paid in Q1 FY2026, with **$3.7 million** in cash and **$6.1 million** in fully vested restricted stock units[44](index=44&type=chunk) [7. Leases](index=17&type=section&id=7.%20Leases) Operating lease expense remained stable at approximately **$0.9 million** for Q2 and **$1.8 million** for H1 FY2026, with a weighted-average remaining lease term of 2.16 years Operating Lease Expenses and Cash Flows (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Operating lease expense | $900 | $1,000 | $1,800 | $2,000 | | Cash paid for operating leases | $974 | $1,004 | $1,945 | $1,987 | | Operating lease assets obtained | $66 | $3,335 | $66 | $3,335 | - The weighted average remaining lease term is **2.16 years**, and the weighted average discount rate is **3.25 percent** as of July 31, 2025[47](index=47&type=chunk) [8. Deferred Revenue](index=18&type=section&id=8.%20Deferred%20Revenue) Deferred revenue primarily stems from NRE charges and tiered-pricing product shipments, with **$7.7 million** recognized and **$39.2 million** remaining in unsatisfied performance obligations - Deferred revenue is mainly from nonrecurring engineering (NRE) charges and product shipments with material rights under tiered-pricing contracts[48](index=48&type=chunk) - Approximately **$7.7 million** of deferred revenue from the prior fiscal year was recognized as revenue during the six months ended July 31, 2025[48](index=48&type=chunk) - Remaining unsatisfied performance obligations were approximately **$39.2 million** as of July 31, 2025, with about **81%** expected to be recognized within the next 12 months[49](index=49&type=chunk) [9. Other Long-Term Liabilities](index=18&type=section&id=9.%20Other%20Long-Term%20Liabilities) Other long-term liabilities decreased to **$2.30 million** by July 31, 2025, mainly due to a significant reduction in non-current software license liabilities Other Long-Term Liabilities (in thousands) | Category | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Unrecognized tax benefits, including interest | $1,104 | $1,008 | | Deferred tax liabilities | $694 | $695 | | Software license liabilities, non-current | $448 | $2,420 | | Other long-term liabilities | $55 | $3 | | Total | $2,301 | $4,126 | [10. Capital Stock](index=18&type=section&id=10.%20Capital%20Stock) Ambarella increased shares reserved for ESPP by **524,549** in Q1 FY2026 and extended its share repurchase program through June 30, 2026, with **$48.0 million** remaining after **$1.0 million** in repurchases - **524,549** shares were added to ordinary shares reserved for issuance under the Amended and Restated 2012 Employee Stock Purchase Plan (ESPP) in Q1 FY2026[52](index=52&type=chunk) - The share repurchase program was extended through June 30, 2026, with approximately **$48.0 million** available for repurchases as of July 31, 2025[54](index=54&type=chunk) - During the six months ended July 31, 2025, the company repurchased **24,152** shares for approximately **$1.0 million** in cash[54](index=54&type=chunk) [11. Stock-based Compensation](index=19&type=section&id=11.%20Stock-based%20Compensation) Total stock-based compensation expense slightly decreased for Q2 and H1 FY2026, with **$137.5 million** in unrecognized cost for unvested restricted stock units Stock-based Compensation Expense (in thousands) | Category | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cost of revenue | $780 | $833 | $1,731 | $1,440 | | Research and development | $16,972 | $18,395 | $34,557 | $36,016 | | Selling, general and administrative | $7,436 | $8,384 | $15,030 | $16,192 | | Total | $25,188 | $27,612 | $51,318 | $53,648 | - Total unrecognized compensation cost related to unvested restricted stock units was approximately **$137.5 million** as of July 31, 2025, with a weighted-average recognition period of **2.23 years**[55](index=55&type=chunk) - The weighted-average exercise price for outstanding stock options at July 31, 2025, was **$51.89**, with an aggregate intrinsic value of **$3.42 million**[57](index=57&type=chunk) [12. Net Loss Per Ordinary Share](index=21&type=section&id=12.%20Net%20Loss%20Per%20Ordinary%20Share) Basic and diluted net loss per ordinary share improved for Q2 and H1 FY2026, with potentially dilutive securities excluded due to their antidilutive effect Net Loss Per Ordinary Share (in thousands, except share and per share data) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(19,995) | $(34,889) | $(44,323) | $(72,821) | | Weighted-average ordinary shares - basic | 42,546,979 | 41,129,754 | 42,383,475 | 40,952,373 | | Basic net loss per share | $(0.47) | $(0.85) | $(1.05) | $(1.78) | | Diluted net loss per share | $(0.47) | $(0.85) | $(1.05) | $(1.78) | - Potentially dilutive securities, including options, restricted stock units, and ESPP awards, were excluded from diluted EPS computation due to their antidilutive effect[60](index=60&type=chunk) [13. Income Taxes](index=22&type=section&id=13.%20Income%20Taxes) Income tax expense decreased for Q2 and H1 FY2026, primarily due to reduced U.S. profits and tax reductions from the One Big Beautiful Bill Act (OBBBA) Income Taxes (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Loss before income taxes | $(19,742) | $(34,142) | $(43,425) | $(71,316) | | Provision for income taxes | $253 | $747 | $898 | $1,505 | | Effective tax rate | (1.3)% | (2.2)% | (2.1)% | (2.1)% | - The decrease in income tax expense was primarily due to a decrease in the proportion of profits generated in the U.S. and reduction in U.S. tax expenses because of the One Big Beautiful Bill Act (OBBBA)[61](index=61&type=chunk) - The company's fiscal years 2022-2025 are generally open for U.S. federal tax examination, and 2021-2025 for state tax authorities[63](index=63&type=chunk) [14. Commitments and Contingencies](index=22&type=section&id=14.%20Commitments%20and%20Contingencies) Total manufacturing purchase commitments increased to **$69.3 million** by July 31, 2025, with no material loss liabilities from adverse commitments or accruals for legal matters - Total manufacturing purchase commitments were approximately **$69.3 million** as of July 31, 2025, up from **$56.4 million** at January 31, 2025[66](index=66&type=chunk) - The company indemnifies certain vendors and customers against third-party claims related to intellectual property and product liability, but no liabilities have been recorded for these obligations[68](index=68&type=chunk) - No accruals for contingent liabilities related to commercial disputes, employment issues, or intellectual property claims were recorded as of July 31, 2025[69](index=69&type=chunk) [15. Segment Reporting](index=23&type=section&id=15.%20Segment%20Reporting) Ambarella operates as a single segment, with revenue geographically concentrated in Taiwan and WT Microelectronics Co., Ltd. as a major customer - The company operates as a single operating and reportable segment, deriving revenue from AI-based processing and video/image processing SoC solutions[70](index=70&type=chunk) Geographic Revenue (in thousands) | Region | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Taiwan | $68,137 | $39,830 | $122,036 | $73,515 | | Asia Pacific other than Taiwan | $17,789 | $13,620 | $34,348 | $26,370 | | Europe | $4,690 | $5,744 | $13,429 | $9,943 | | North America other than United States | $4,197 | $3,507 | $9,342 | $6,277 | | United States | $698 | $1,023 | $2,228 | $2,092 | | Total revenue | $95,511 | $63,724 | $181,383 | $118,197 | - WT Microelectronics Co., Ltd. accounted for approximately **71.3%** and **67.4%** of total revenue for the three and six months ended July 31, 2025, respectively[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Ambarella's significant revenue growth, reduced operating losses, and increased cash flow from operations, driven by AI inference processors and NRE services [Overview](index=25&type=section&id=Overview) Ambarella develops low-power AI-enabled SoCs with CVflow™ technology for edge inference AI, targeting video security, ADAS, and industrial robotics markets - Ambarella is a leading developer of low-power system-on-a-chip (SoC) semiconductors providing powerful artificial intelligence (AI) processing, advanced image signal processing, and high-resolution video compression[77](index=77&type=chunk) - The company's CVflow™ technology supports various AI algorithms, including object detection, classification, tracking, and semantic segmentation, and can process other sensor modalities like lidar and radar[77](index=77&type=chunk) - Future revenue growth is expected to depend significantly on expanding within camera markets with AI technology, particularly in IoT, AI-enabled security cameras, AI-based driving applications, and industrial and robotics markets[79](index=79&type=chunk) [Financial Highlights](index=27&type=section&id=Financial%20Highlights) Ambarella reported significant revenue growth for Q2 and H1 FY2026, with reduced operating losses and substantially increased cash flow from operating activities - Revenue increased by **49.9%** to **$95.5 million** for the three months and **53.5%** to **$181.4 million** for the six months ended July 31, 2025, compared to the prior fiscal year[85](index=85&type=chunk) - Operating losses decreased to **$22.0 million** and **$47.8 million** for the three and six months ended July 31, 2025, respectively, from **$36.3 million** and **$75.7 million** in the prior year[85](index=85&type=chunk) - Cash flows from operating activities increased to **$20.3 million** for the six months ended July 31, 2025, from **$1.8 million** in the prior year[85](index=85&type=chunk) [Factors Affecting Our Performance](index=27&type=section&id=Factors%20Affecting%20Our%20Performance) Ambarella's performance hinges on capitalizing on AI and computer vision trends, developing new solutions, managing costs, and navigating market concentration and supply chain risks - Future success is critical on the ability to develop advanced AI and computer vision technologies and gain customer acceptance in emerging applications like ADAS and industrial robotics[86](index=86&type=chunk) - The company must continuously invest in R&D to introduce new or enhanced solutions that meet market requirements, especially in AI and computer vision technologies[87](index=87&type=chunk) - Revenue remains significantly concentrated in IoT and automotive markets, with a limited number of ODMs and OEMs accounting for a substantial portion of sales[90](index=90&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Ambarella experienced substantial revenue growth for Q2 and H1 FY2026, leading to reduced net losses despite a slight gross margin decrease and increased operating expenses [Revenue](index=30&type=section&id=Revenue) Revenue increased significantly for Q2 and H1 FY2026, driven by higher product unit shipments, increased AI inference processor sales, and NRE project service revenue Revenue (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $95,511 | $63,724 | $181,383 | $118,197 | - Revenue growth was **49.9%** for the three months and **53.5%** for the six months ended July 31, 2025, compared to the same periods in the prior fiscal year[105](index=105&type=chunk) - Increases were primarily due to higher product unit shipments, an increased percentage of sales from higher average selling price AI inference processors, and higher NRE project service revenue[105](index=105&type=chunk) [Cost of Revenue and Gross Margin](index=31&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Margin) Gross margin slightly decreased for Q2 and H1 FY2026 due to higher manufacturing costs for advanced process technologies, partially offset by increased NRE project service revenue Gross Margin Percentage | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :---------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Gross margin | 58.9% | 60.8% | 59.4% | 60.8% | - Gross margin decreased by **1.9 percentage points** for the three months and **1.4 percentage points** for the six months ended July 31, 2025[106](index=106&type=chunk) - The decrease was primarily due to higher manufacturing costs for advanced process technologies and lower sales of previously reserved inventory, partially offset by higher NRE project service revenue[106](index=106&type=chunk) [Research and Development](index=31&type=section&id=Research%20and%20Development) Research and development expense increased for Q2 and H1 FY2026, primarily due to additional engineering-related expenses for chip development and higher personnel costs from increased headcount Research and Development Expense (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Research and development | $59,734 | $56,760 | $118,553 | $110,897 | - R&D expense increased by approximately **$2.1 million** and **$4.4 million** for engineering-related expenses for the three and six months, respectively[107](index=107&type=chunk) - Personnel costs, including stock-based compensation, employee benefits, and incentive bonus, increased by approximately **$1.0 million** and **$3.4 million** for the three and six months, respectively[107](index=107&type=chunk) [Selling, General and Administrative](index=31&type=section&id=Selling,%20General%20and%20Administrative) Selling, general and administrative expense marginally increased for Q2 and H1 FY2026, mainly due to higher outside professional service expenses, partially offset by lower personnel and facility-related costs Selling, General and Administrative Expense (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Selling, general and administrative | $18,486 | $18,268 | $37,061 | $36,736 | - The increase was primarily due to approximately **$0.9 million** and **$0.8 million**, respectively, of higher outside professional service expense[108](index=108&type=chunk) - This was partially offset by approximately **$0.7 million** and **$0.5 million**, respectively, of lower personnel costs and facility-related expenses[108](index=108&type=chunk) [Other Income, Net](index=31&type=section&id=Other%20Income,%20Net) Other income, net, marginally increased for Q2 and H1 FY2026, driven by higher yields from debt security investments, partially offset by lower interest income and higher foreign currency losses Other Income, Net (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :-------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Other income, net | $2,247 | $2,145 | $4,422 | $4,416 | - The marginal increase was primarily due to higher yields from debt security investments[109](index=109&type=chunk) - This was partially offset by lower interest income from cash deposits and higher net losses from foreign currency transactions and remeasurements[109](index=109&type=chunk) [Provision (Benefit) for Income Taxes](index=33&type=section&id=Provision%20(Benefit)%20for%20Income%20Taxes) Income tax expense decreased for Q2 and H1 FY2026, primarily due to reduced U.S. profits and tax reductions from the One Big Beautiful Bill Act (OBBBA) Provision for Income Taxes (in thousands) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision for income taxes | $253 | $747 | $898 | $1,505 | | Effective tax rate | (1.3)% | (2.2)% | (2.1)% | (2.1)% | - The decrease in income tax expense was primarily due to a decrease in the proportion of profits generated in the U.S. and reduction in U.S. tax expenses because of the One Big Beautiful Bill Act (OBBBA)[111](index=111&type=chunk) - The company does not expect the OBBBA to have a material impact on its consolidated financial statements[112](index=112&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Ambarella had **$261.2 million** in cash and marketable securities by July 31, 2025, with increased operating cash flow but higher cash usage in investing and financing activities [Cash Flows](index=35&type=section&id=Cash%20Flows) Net cash from operating activities significantly increased for H1 FY2026, while investing and financing activities used more cash due to investments and stock repurchases Summary of Cash Flows (in thousands) | Metric | 6 Months Ended July 31, 2025 | 6 Months Ended July 31, 2024 | | :---------------------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $20,307 | $1,787 | | Net cash provided by (used in) investing activities | $(21,099) | $5,757 | | Net cash provided by (used in) financing activities | $(656) | $1,467 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(1,448) | $9,011 | - Net cash provided by operating activities increased primarily due to a net profit adjusted for certain non-cash items for the six months ended July 31, 2025, compared to a net loss in the prior year[115](index=115&type=chunk) - Net cash used in investing activities increased due to approximately **$21.9 million** of additional net cash outflow for debt security investments and **$5.0 million** higher payments for capital assets and software licenses[116](index=116&type=chunk) [Share Repurchase Program](index=35&type=section&id=Share%20Repurchase%20Program) The share repurchase program was extended through June 30, 2026, with **$48.0 million** remaining after **$1.0 million** in repurchases during H1 FY2026 - The share repurchase program was extended through June 30, 2026[118](index=118&type=chunk) - During the six months ended July 31, 2025, **24,152** ordinary shares were repurchased for approximately **$1.0 million**[118](index=118&type=chunk) - As of July 31, 2025, approximately **$48.0 million** remained available for repurchases under the program[118](index=118&type=chunk) [Operating and Capital Expenditure Requirements](index=35&type=section&id=Operating%20and%20Capital%20Expenditure%20Requirements) Ambarella expects existing cash balances to cover anticipated cash requirements for at least the next 12 months, with potential future needs met by additional financing - Existing cash balances are expected to be sufficient to meet anticipated cash requirements for at least the next 12 months[119](index=119&type=chunk) - Future working capital needs may be met by selling equity or convertible debt securities or borrowing funds commercially[119](index=119&type=chunk) [Contractual Obligations, Commitments and Contingencies](index=35&type=section&id=Contractual%20Obligations,%20Commitments%20and%20Contingencies) Manufacturing purchase obligations increased to **$69.3 million** by July 31, 2025, with no other material changes to contractual obligations reported - Manufacturing purchase obligations with independent contract manufacturers totaled **$69.3 million** as of July 31, 2025[120](index=120&type=chunk) - No other material changes in contractual obligations, commitments, and contingencies were reported since the fiscal year 2025 Annual Report on Form 10-K[121](index=121&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) As of July 31, 2025, Ambarella did not engage in any off-balance sheet arrangements, including structured finance or special purpose entities - The company did not engage in any off-balance sheet arrangements as of July 31, 2025[122](index=122&type=chunk) [Recent Authoritative Accounting Guidance](index=36&type=section&id=Recent%20Authoritative%20Accounting%20Guidance) Information regarding recently issued accounting pronouncements is detailed in Note 1 of the Notes to Condensed Consolidated Financial Statements - Refer to Note 1 of Notes to Condensed Consolidated Financial Statements for information regarding recently issued accounting pronouncements[123](index=123&type=chunk) [Critical Accounting Policies and Significant Management Estimates](index=36&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) No material changes to Ambarella's critical accounting policies and estimates were reported compared to its Annual Report on Form 10-K for the 2025 fiscal year - No material changes to critical accounting policies and estimates were reported compared to the Annual Report on Form 10-K for the 2025 fiscal year[124](index=124&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported compared to the company's Annual Report on Form 10-K for the 2025 fiscal year - No material changes to market risk disclosures were reported compared to the Annual Report on Form 10-K for the 2025 fiscal year[125](index=125&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 31, 2025, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of July 31, 2025[127](index=127&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended July 31, 2025[128](index=128&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Ambarella is not currently engaged in any material legal proceedings, with further details on commitments and contingencies provided in Note 14 of the financial statements - The company is not engaged in any material legal proceedings at this time[130](index=130&type=chunk) - Refer to Note 14, Commitments and Contingencies, for additional information[130](index=130&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) This section outlines various risks that could materially affect Ambarella's business, financial condition, and results of operations, including customer design wins, market penetration, supply chain, and AI adoption [Summary of Risk Factors](index=38&type=section&id=Summary%20of%20Risk%20Factors) Ambarella faces risks from customer design win dependency, challenges in new market penetration, global supply chain impacts, and uncertainties surrounding AI adoption - Risks include customer design win dependency and the commercial success of customer products[132](index=132&type=chunk) - Failure to penetrate new markets, especially automotive OEM and ADAS, could harm revenue and financial condition[132](index=132&type=chunk) - Impacts of global supply chain challenges could adversely affect business, financial condition, and results of operations[132](index=132&type=chunk) [Risks Related to Our Business and Our Industry](index=41&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Our%20Industry) Ambarella's business depends on design wins, timely innovation, managing supply chain disruptions, addressing AI technology risks, and navigating intense competition and geopolitical exposures - Reliance on OEMs to design solutions into their products means business would suffer without design wins, especially in new markets like OEM automotive and robotics with longer cycles and higher resource demands[134](index=134&type=chunk) - Failure to develop and introduce new or enhanced solutions that meet market requirements on a timely basis could impair customer attraction and retention, and harm competitive position[137](index=137&type=chunk) - Uncertain risks related to the adoption, use, or application of emerging AI technologies by customers could adversely impact financial results and lead to reputational harm and liability[141](index=141&type=chunk) [Risks Related to Our Financial Performance or Results](index=51&type=section&id=Risks%20Related%20to%20Our%20Financial%20Performance%20or%20Results) Ambarella's financial performance is subject to fluctuations from demand, product mix, pricing, and industry cycles, with significant dependence on a limited number of customers and exposure to exchange rate volatility - Fluctuations in operating results on a quarterly and annual basis could cause the market price of ordinary shares to decline due to factors like demand shifts, order cancellations, and competitive dynamics[175](index=175&type=chunk)[177](index=177&type=chunk) - Dependence on a limited number of customers, with WT Microelectronics accounting for approximately **67%** of total revenue for the six months ended July 31, 2025, poses a risk to revenue if these relationships are not retained or expanded[149](index=149&type=chunk) - Fluctuations in exchange rates between the U.S. dollar and currencies in Asia (e.g., New Taiwan Dollar, Chinese Yuan Renminbi) can adversely affect operating results, as a significant portion of sales and expenses are international[180](index=180&type=chunk)[181](index=181&type=chunk) [Risks Related to Our Dependence on Third Parties](index=57&type=section&id=Risks%20Related%20to%20Our%20Dependence%20on%20Third%20Parties) Ambarella heavily relies on third parties for manufacturing, including Samsung, without long-term contracts, and on a single distributor, WT Microelectronics, creating vulnerabilities to disruptions and increased costs - Reliance on third parties for substantially all manufacturing operations, including wafer fabrication, assembly, and testing, primarily Samsung, exposes the company to risks if these parties fail to produce and deliver products according to demands[188](index=188&type=chunk) - The absence of long-term supply contracts with most primary third-party manufacturing vendors means they are not obligated to supply products at specific quantities or prices, leading to potential capacity allocation issues and increased costs[191](index=191&type=chunk) - A substantial portion of revenue is processed through a single distributor, WT Microelectronics (**67%** for H1 2025), and the loss of this distributor could cause significant disruptions in shipments and adversely affect operations and financial condition[197](index=197&type=chunk) [Risks Related to Our Legal and Regulatory Environment](index=63&type=section&id=Risks%20Related%20to%20Our%20Legal%20and%20Regulatory%20Environment) Ambarella faces risks from global economic and political conditions, including U.S.-China trade tensions, export controls, and complex data privacy and environmental regulations - Global economic and political conditions, including escalating trade tensions between the U.S. and China, may impact business and financial condition through tariffs, export restrictions, and potential retaliatory actions[205](index=205&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk) - The company is subject to governmental export and import controls, which could subject it to liability or impair its ability to compete in international markets, including restrictions on selling products to several China customers (e.g., Hikvision, Dahua)[212](index=212&type=chunk)[213](index=213&type=chunk) - Compliance with increasingly complex environmental regulations (e.g., EU's RoHS directive) and data processing, privacy, data protection, and cybersecurity laws (e.g., GDPR, CCPA, China's Data Security Law and PIPL) may delay or interrupt operations and adversely affect business[216](index=216&type=chunk)[217](index=217&type=chunk)[222](index=222&type=chunk) [Risks Related to Our Intellectual Property](index=71&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) Ambarella's success depends on protecting its intellectual property, as failure to do so or assertions of infringement by third parties could lead to significant costs and harm its business - Failure to adequately protect intellectual property rights (patents, copyrights, trademarks, trade secrets) could impair the ability to compete effectively or defend against litigation[235](index=235&type=chunk) - Third parties' assertions of infringement of their intellectual property rights could result in significant costs, substantial damages, product redesigns, or the need to obtain licenses, adversely affecting operating results[237](index=237&type=chunk) - The use of open-source software in products, processes, and technology may expose the company to additional risks and could inadvertently require public disclosure of proprietary source code[241](index=241&type=chunk)[242](index=242&type=chunk) [Risks Related to Ownership of Our Ordinary Shares](index=72&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Ordinary%20Shares) The market price of Ambarella's ordinary shares is highly volatile, and provisions in its corporate documents and Cayman Islands law may discourage acquisitions or hinder shareholder protection - The market price of ordinary shares has historically been highly volatile and is subject to wide fluctuations based on financial estimates, operating results, industry conditions, and various other factors[243](index=243&type=chunk) - Provisions in the memorandum and articles of association and Cayman Islands corporate law, such as a classified board and restrictions on shareholder actions, may delay or prevent an acquisition, adversely affecting the value of ordinary shares[245](index=245&type=chunk)[247](index=247&type=chunk) - Holders of ordinary shares may face difficulties in protecting their interests or obtaining/enforcing judgments due to Cayman Islands law offering less developed securities laws and investor protection compared to the United States[249](index=249&type=chunk)[252](index=252&type=chunk) [General Risk Factors](index=76&type=section&id=General%20Risk%20Factors) Ambarella's operations are vulnerable to interruptions from technical breakdowns, natural disasters, and geopolitical conditions, particularly in Taiwan or China, with climate change also posing long-term impacts - Operations are vulnerable to interruptions caused by technical breakdowns, natural disasters, infrastructure failures, pandemics, and geopolitical conditions, especially in seismically active areas like the San Francisco Bay Area and Taiwan[253](index=253&type=chunk) - Climate change and related policies and regulations may have a long-term impact on the business, potentially disrupting supply chains, operations, and reducing customer demand[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 FY2026, Ambarella repurchased **24,152** ordinary shares for approximately **$1.0 million** under its extended share repurchase program, with **$48.0 million** remaining available Share Repurchases (in millions, except share data) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Dollar Value of Shares that May Yet Be Purchased | | :------------------------------------ | :------------------------------- | :--------------------------- | :----------------------------------------------- | | February 1, 2025 to February 28, 2025 | — | — | $49.0 | | March 1, 2025 to March 31, 2025 | — | — | $49.0 | | April 1, 2025 to April 30, 2025 | 24,152 | $41.38 | $48.0 | | Total | 24,152 | $41.38 | $48.0 | - The share repurchase program was extended through June 30, 2026, with an initial **$50.0 million** authorization[260](index=260&type=chunk) - As of July 31, 2025, **$48.0 million** was available for repurchases under the program[260](index=260&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended July 31, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ending July 31, 2025[258](index=258&type=chunk) [Item 6. Exhibits](index=78&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or incorporated by reference as part of the Quarterly Report, including the Amended and Restated Memorandum of Association and officer certifications - The exhibit index includes the Amended and Restated Memorandum of Association, certifications of Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents[262](index=262&type=chunk) [Signatures](index=80&type=section&id=Signatures) The report was duly signed on September 3, 2025, by Feng-Ming Wang, President and Chief Executive Officer, and John A. Young, Chief Financial Officer - The report was signed by Feng-Ming Wang, President and Chief Executive Officer, and John A. Young, Chief Financial Officer, on September 3, 2025[267](index=267&type=chunk)