Financial Data and Key Metrics Changes - The company reported revenue of $172.2 million for Q2, exceeding expectations, with a 43% year-over-year growth driven by strong performance in DDR5 products [14][5] - Non-GAAP net income for the quarter was $67.1 million, reflecting robust operational efficiency [15] - Record cash from operations was $94 million, showcasing the strength of the business model [6][12] Business Line Data and Key Metrics Changes - The memory interface chip business experienced a 43% year-over-year growth, marking the fifth consecutive quarter of product revenue growth [5][7] - Product revenue reached $81.3 million, a 7% sequential increase [14] - Silicon IP revenue showed solid results, driven by demand for high-speed memory and interconnect IP, particularly in AI and data center applications [10][51] Market Data and Key Metrics Changes - The company expects continued momentum in the DDR5 market, with anticipated double-digit sequential product revenue growth in Q3 [8][12] - The introduction of new products is expected to contribute to revenue growth, particularly in high-performance computing platforms [9][11] - The MRDIMM chipset is on track for market entry in 2026, with significant growth potential anticipated [57] Company Strategy and Development Direction - The company is focused on advancing system memory bandwidth and capacity through innovative memory, connectivity, and power management solutions [11] - Strategic investments are being made to capitalize on growth trends in AI and high-performance computing [12] - The company aims to maintain leadership in DDR5 and expand its product offerings to meet evolving market demands [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic economic environment while continuing to invest in growth initiatives [16] - The outlook for Q3 includes expected revenue between $172 million and $178 million, with continued strong performance anticipated [17] - Management highlighted the importance of long-term relationships with supply chain partners to support growth plans [33] Other Important Information - The company is actively monitoring the economic environment and adjusting its strategies accordingly [16] - The stock repurchase program continues, reflecting the company's commitment to delivering value to shareholders [15] Q&A Session Summary Question: What is the contribution from RCDs and the ramp of PMIC opportunity? - Management indicated strong growth in product business with RCDs gaining market share, slightly above 40% in 2024, and modest contributions from new chips expected to grow [22][23][25] Question: Visibility into PMIC sales into the PC market? - Management noted that while initial traction is modest, they expect contributions from client markets to become visible in 2026 [30] Question: Inventory levels and lead times? - Inventory levels decreased to about 120 days, with sufficient inventory to meet customer demand through the end of the year [33] Question: Impact of the AI ASIC market on silicon IP demand? - The explosion of the AI market is increasing demand for high-speed connectivity and memory interfaces, driving engagement in leading-edge technologies [38] Question: Changes due to DDR4 end of life? - Management stated that DDR5 sales remain limited, and they do not expect significant changes in demand dynamics [40] Question: Mix of product revenue and contribution from new products? - New products contributed low single digits in Q2, expected to rise to mid to upper single digits in Q3, primarily from companion chips [45][46] Question: Opportunities in the client market versus CXL? - Management sees the client market as an extension of the companionship market, with high expectations for MRDIMM deployment in data centers [74]

Financial Data and Key Metrics Changes - The company reported revenue of $172.2 million for Q2, exceeding expectations, with a 43% year-over-year growth driven by strong DDR5 product performance [14][5] - Non-GAAP net income for the quarter was $67.1 million, reflecting robust operational efficiency [16] - Record cash from operations was $94 million, showcasing the company's strong cash generation capabilities [6][13] Business Line Data and Key Metrics Changes - The memory interface chip business experienced a 43% year-over-year growth, marking the fifth consecutive quarter of product revenue growth [5][6] - Product revenue reached $81.3 million, a 7% sequential increase [14] - Silicon IP revenue showed solid results, driven by demand for high-speed memory and interconnect IP, particularly in AI and data center applications [10][47] Market Data and Key Metrics Changes - The company anticipates continued growth in the data center market, driven by the increasing complexity of high-speed performance computing and AI workloads [10][11] - The MRDIMM chipset is expected to enter the market in 2026, with significant growth potential projected for that segment [54] - The client memory module chipset for AIPCs has been launched, expanding the company's reach into high-performance PCs [9] Company Strategy and Development Direction - The company is focused on advancing system memory bandwidth and capacity through innovative memory, connectivity, and power management solutions [11] - Continued investment in product development is aimed at capitalizing on secular growth trends in AI and high-performance computing [12] - The company is strategically positioned to benefit from the transition to DDR5 and the introduction of new products [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit sequential product revenue growth in Q3, supported by ongoing market share leadership [7][12] - The company remains vigilant regarding the dynamic economic environment and is prepared to adapt its strategies accordingly [17] - Management highlighted the importance of maintaining strong relationships with supply chain partners to support growth plans [33] Other Important Information - The company continues its stock repurchase program, reflecting its commitment to delivering value to shareholders [16][19] - The anticipated revenue for Q3 is projected to be between $172 million and $178 million, with non-GAAP earnings per share expected to range from $0.58 to $0.66 [18] Q&A Session Summary Question: What is the contribution from RCDs and the ramp of PMIC opportunity? - Management indicated strong growth in product revenue, with RCDs contributing positively and expectations for continued market share gains in DDR5 [21][22] Question: Visibility into PMIC sales into the PC market? - Management noted modest traction in PMIC products for high-end PCs, with expectations for contributions to become visible in 2026 [27][29] Question: Inventory levels and lead times? - Inventory levels decreased to about 120 days, with management confident in meeting customer demand through the end of the year [31][33] Question: Impact of the AI ASIC market on silicon IP demand? - The explosion of the AI market is increasing demand for high-speed connectivity and memory interfaces, positively impacting silicon IP sales [36][37] Question: Update on MRDIMM market opportunity? - MRDIMM is expected to enter the market in 2026, with significant growth potential projected, particularly in the data center segment [54][52] Question: Trade-off between ARM CPUs and x86? - Management remains agnostic to CPU types, viewing competition between ARM and x86 as beneficial for the rollout of higher-speed solutions [55][56]

Financial Highlights - Rambus achieved record quarterly product revenue of $81 million[7], driven by a 43% year-over-year increase in Memory Interface Chips[8] - The company generated record cash from operations, reaching $94 million[7] - Total revenue for Q2 2025 was $172.2 million[10] Financial Performance & Outlook - Rambus' Q3 2025 non-GAAP outlook projects product revenue between $87 million and $93 million[15] - The company anticipates total operating costs between $94 million and $98 million for Q3 2025[15] - Licensing billings for Q3 2025 are expected to be between $58 million and $64 million[15] Balance Sheet Strength - Rambus' total cash and marketable securities reached $594.8 million in Q2 2025[12] - Total assets amounted to $1,467.8 million in Q2 2025[12] - Stockholders' equity stood at $1,228.0 million in Q2 2025[12]

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Rambus reported a strong second quarter for 2025, exceeding revenue and earnings expectations with record product revenue and cash from operations - CEO Luc Seraphin highlighted the chip business as a key growth engine, driven by leadership in DDR5 memory interface chips and growing demand from high-performance computing and AI infrastructure[2](index=2&type=chunk) - The company exceeded expectations for **Q2 revenue and earnings**[3](index=3&type=chunk) Q2 2025 Key Performance Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Product Revenue | $81.3 million | +43% | | Cash from Operations | $94.4 million | Record high | [Q2 2025 Financial Review (GAAP)](index=1&type=section&id=Q2%202025%20Financial%20Review%20%28GAAP%29) Rambus reported significant increases in **GAAP total revenue**, operating income, and net income for Q2 2025 compared to the prior year Q2 2025 vs Q2 2024 GAAP Financials (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$172.2** | **$132.1** | | Product Revenue | $81.3 | $56.7 | | Royalties | $68.6 | $56.4 | | Contract and other revenue | $22.3 | $19.0 | | **Operating Income** | **$63.0** | **$40.3** | | Operating Margin | 37% | 31% | | **Net Income** | **$57.9** | **$36.1** | | **Diluted Net Income per Share** | **$0.53** | **$0.33** | | Net cash provided by operating activities | $94.4 | $70.4 | [Balance Sheet and Cash Flow Summary](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) As of June 30, 2025, Rambus's cash, cash equivalents, and marketable securities increased to **$594.8 million**, primarily driven by strong cash generation from operations - Cash, cash equivalents, and marketable securities increased by **$80.4 million** during Q2 2025 to a total of **$594.8 million**[5](index=5&type=chunk) - The increase in cash was mainly due to **$94.4 million** generated from operating activities, partially offset by **$10.4 million** used for capital expenditures[5](index=5&type=chunk) [2025 Third Quarter Outlook](index=2&type=section&id=2025%20Third%20Quarter%20Outlook) [Q3 2025 Financial Guidance](index=2&type=section&id=Q3%202025%20Financial%20Guidance) Rambus projects Q3 2025 licensing billings between **$58 million** and **$64 million**, with product revenue expected to range from **$87 million** to **$93 million** Q3 2025 Outlook (in millions) | Metric | Low | High | | :--- | :--- | :--- | | Licensing billings | $58 | $64 | | Product revenue (GAAP) | $87 | $93 | | Contract and other revenue (GAAP) | $22 | $28 | | Total operating costs and expenses (GAAP) | $111 | $115 | | Total operating costs and expenses (Non-GAAP) | $94 | $98 | - The Q3 outlook assumes a tax rate of **20%** and a diluted share count of **108.5 million**[8](index=8&type=chunk) - The guidance excludes estimated stock-based compensation of **$15 million** and amortization of acquired intangible assets of **$2 million**[8](index=8&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Rambus reported total assets of **$1.468 billion**, an increase from year-end 2024, with total stockholders' equity reaching **$1.228 billion** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $783,757 | $690,257 | | **Total assets** | **$1,467,811** | **$1,343,136** | | Total current liabilities | $72,228 | $81,812 | | Total long-term liabilities | $167,603 | $140,632 | | **Total stockholders' equity** | **$1,227,980** | **$1,120,692** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended June 30, 2025, Rambus reported total revenue of **$172.2 million**, resulting in an operating income of **$63.0 million** and net income of **$57.9 million** Income Statement Summary - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | $172,209 | $132,138 | | Gross profit | $137,439 | $105,307 | | Operating income | $62,993 | $40,322 | | Net income | $57,935 | $36,056 | Income Statement Summary - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total revenue | $338,873 | $250,009 | | Gross profit | $271,261 | $199,519 | | Operating income | $126,137 | $70,453 | | Net income | $118,238 | $68,954 | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Rambus utilizes non-GAAP financial measures to provide comparable performance insights by excluding specific items such as stock-based compensation and acquisition-related costs - The company presents non-GAAP measures to provide investors with a view of performance comparable to other periods, excluding certain items[10](index=10&type=chunk) - Key items excluded from GAAP results to arrive at non-GAAP measures include: - Stock-based compensation expense - Acquisition-related costs and retention bonuses - Amortization of acquired intangible assets - Impairment of assets - Change in fair value of earn-out liability[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - For non-GAAP tax calculations, the company uses a fixed, long-term projected tax rate, which is approximately **20%** for 2025[15](index=15&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Q2 2025 GAAP total operating expenses of **$74.4 million** were reconciled to non-GAAP total operating expenses of **$60.4 million**, primarily by excluding stock-based compensation Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Cost of product revenue | $32,418 | $(227) | $32,191 | | Total operating expenses | $74,446 | $(14,090) | $60,356 | [Reconciliation of Forward-Looking Estimates](index=8&type=section&id=Reconciliation%20of%20Forward-Looking%20Estimates) The Q3 2025 outlook reconciles forward-looking GAAP operating costs and expenses to a non-GAAP range by adjusting for stock-based compensation and amortization of intangible assets Q3 2025 Outlook Reconciliation (in millions) | Metric | Low | High | | :--- | :--- | :--- | | Forward-looking GAAP operating costs and expenses | $115 | $111 | | Stock-based compensation expense adjustment | (15) | (15) | | Amortization of acquired intangible assets adjustment | (2) | (2) | | **Forward-looking Non-GAAP operating costs and expenses** | **$98** | **$94** | [Company Information and Disclosures](index=3&type=section&id=Company%20Information%20and%20Disclosures) [About Rambus Inc.](index=4&type=section&id=About%20Rambus%20Inc.) Rambus is a global semiconductor company specializing in innovative memory and security solutions for data center and AI markets, offering chips and silicon IP - Rambus is a semiconductor company focused on memory and security solutions for the data center and AI industries[17](index=17&type=chunk) - The company's portfolio includes chips and silicon IP designed to enhance performance and security in computationally intensive systems[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This report includes forward-looking statements concerning business outlook and financial guidance, which are subject to inherent risks and uncertainties - The release includes forward-looking statements concerning business outlook, growth, and financial guidance for Q3 2025[18](index=18&type=chunk) - These statements are subject to risks and uncertainties, and actual results may differ materially. Readers are referred to SEC filings for a full description of risks[18](index=18&type=chunk)

Core Viewpoint - Rambus Inc. (RMBS) is expected to report second-quarter 2025 results on July 28, with projected revenues of $167 million, reflecting a 21.7% year-over-year increase, and earnings per share (EPS) of 61 cents, indicating a 32.6% increase from the previous year [1][10]. Financial Performance - The Zacks Consensus Estimate for Rambus' second-quarter revenues is $167 million, suggesting a 21.7% increase from the year-ago quarter's reported figure [1][10]. - The consensus mark for earnings per share is pegged at 61 cents, indicating a 32.6% increase from the year-ago quarter's figure [1][10]. - In the trailing four quarters, RMBS' earnings beat the Zacks Consensus Estimate three times and matched once, with an average surprise of 4.63% [2]. Factors Influencing Performance - Increased demand for DDR5 memory chips is likely to have positively impacted Rambus' quarterly performance [3]. - The traction in newly introduced chips, including PMICs, MRDIMM chipsets, and Client Clock Drivers, is expected to benefit from customer qualification cycles in server and client markets [3]. - Demand from PC manufacturers and data-center operators is anticipated to have contributed to Rambus' growth [4]. - The growth of AI applications and the HBM4 market is expected to boost demand for Rambus' memory and interconnect IP, including PCIe 7 and Quantum Safe security IP [4]. Future Outlook - Rambus plans to target high-end systems requiring greater bandwidth and capacity in the second half of fiscal 2026, which is likely to reflect positively on the company's top line [5]. - Anticipated growth of Rambus' MRDIMMs in the second half of fiscal 2026 is expected to contribute positively to revenue [5]. Challenges - The weakening global economy amid ongoing macroeconomic and geopolitical issues may have negatively impacted RMBS' performance in the second quarter [6]. - Mid-single-digit price erosion due to annual contract renegotiations may also have affected Rambus' second-quarter results [6].

Core Insights - Orchid Island Capital, Inc. (ORC) estimates a net loss of 29 cents per share for Q2 2025, primarily due to losses on residential mortgage-backed securities (RMBS) and derivative instruments [1][9] - The estimated book value per share is $7.21, reflecting a 15.9% year-over-year decline, with a negative total return on equity of 4.7% as of June 30, 2025 [2][9] Financial Performance - As of June 30, 2025, Orchid's RMBS portfolio value is estimated at $6.9 million, indicating a challenging quarter due to net realized and unrealized losses [3][9] - Over the past three months, ORC shares have increased by 18.6%, outperforming the industry growth of 14% [7] Competitive Landscape - AGNC Investment focuses on leveraged investments in Agency RMBS, with a portfolio value of $70.5 billion as of March 31, 2025, and a tangible net book value of $8.25 per share [5] - Annaly Capital Management primarily invests in Agency mortgage-backed securities, holding $75 billion in Agency MBS as of March 31, 2025, with a book value per share of $19.02 [6] Valuation Metrics - Orchid trades at a forward price-to-tangible (P/TB) ratio of 1.03X, which is above the industry average of 1X [10] - The Zacks Consensus Estimate for ORC's earnings in 2025 and 2026 suggests significant year-over-year increases of 394.4% and 24.5%, respectively [13]

Core Viewpoint - Rambus, established in 1990, is a pioneer in interface IP and security IP, enhancing data transmission standards and addressing complex network security threats through innovative solutions [1] Group 1: Company Overview - Rambus has redefined data transmission standards between memory and systems with its high-speed interface technologies, including DDR memory interfaces, HBM3/4, and PCIe 5/6, significantly improving performance in data centers and edge computing [1] - The company offers a robust product portfolio with various security IP solutions, such as root of trust technology, secure protocol engines, inline cryptographic engines, and post-quantum cryptography accelerators [1] Group 2: Event Details - Rambus is hosting a technology seminar on July 9, 2025, at the Beijing Liting Huayuan Hotel, focusing on AI and automotive sectors [2][3] - The event will feature industry partners and technical experts from companies like M31, Chipone, Brightsight, ETAS, DPLSLab, CoMIRA, and Riscure, providing insights throughout the day [1] Group 3: Agenda Highlights - The morning session will cover silicon IP for AI and next-generation applications, discussing topics such as memory selection for training and inference, and the importance of PCIe and CXL in the AI era [5][6] - Afternoon discussions will focus on automotive security solutions, addressing trends and challenges faced by hardware and software designers in smart connected vehicles [6][7]

Core Viewpoint - The semiconductor industry faces critical challenges in data transmission speed and security, driven by the explosive growth of AI, connected vehicles, 5G, and IoT, leading to increased demand for high-performance computing and low-power chips [1] Group 1: Industry Challenges and Innovations - The bottlenecks in memory bandwidth and data processing security are becoming increasingly prominent [1] - Interface IP and security IP technologies are identified as core drivers for breakthroughs in the industry, directly impacting chip performance, compatibility, and attack resistance [1] - Rambus, established in 1990, is a pioneer in this field, redefining data transmission standards between memory and systems with innovative high-speed interface technologies [1] Group 2: Rambus Solutions - Rambus offers a robust product portfolio that includes solutions like DDR memory interfaces, HBM3/4, and PCIe 5/6, significantly enhancing performance in data centers and edge computing [1] - The company also provides various security IP solutions, such as root of trust technology, security protocol engines, inline cryptographic engines, and post-quantum cryptography accelerators [1] Group 3: Upcoming Event - Rambus is hosting a technology discussion on July 9, 2025, in Beijing, focusing on AI and automotive sectors, featuring industry partners and technical experts [2][3] - The morning session will cover the latest interface and security IP solutions for AI and advanced applications, including quantum-safe encryption and various memory technologies [6] - The afternoon session will delve into automotive security solutions, addressing trends and challenges faced by hardware and software designers in smart connected vehicles [7]

Core Viewpoint - The semiconductor industry faces critical challenges in data transmission speed and security, driven by the explosive growth of AI, connected vehicles, 5G, and IoT, leading to increased demand for high-performance computing and low-power chips [1] Group 1: Industry Overview - The demand for high-performance computing and low-power chips is surging due to advancements in AI, connected vehicles, 5G, and IoT [1] - Interface IP and security IP technologies are identified as core drivers for breakthroughs in the semiconductor industry, impacting chip performance, compatibility, and attack resistance [1] Group 2: Company Profile - Rambus, established in 1990, is a pioneer in the field of interface and security IP technologies, redefining data transmission standards between memory and systems [1] - Rambus offers innovative solutions such as DDR memory interfaces, HBM3/4, and PCIe 5/6, significantly enhancing performance in data centers and edge computing [1] - The company has developed a robust product portfolio that includes various security IP solutions to address complex network security threats [1] Group 3: Event Details - Rambus hosted a technology seminar on July 9, 2025, in Beijing, focusing on AI and automotive sectors, featuring industry partners and technical experts [2][3] - The morning session will cover the latest interface and security IP solutions for AI and advanced applications, including quantum-safe encryption and various memory technologies [6] - The afternoon session will delve into automotive safety solutions, discussing trends and challenges faced by hardware and software designers in smart connected vehicles [7]

Core Viewpoint - The semiconductor industry faces critical challenges in data transmission speed and security, driven by the explosive growth of AI, connected vehicles, 5G, and IoT, leading to increased demand for high-performance computing and low-power chips [1] Group 1: Industry Challenges and Innovations - The bottlenecks in memory bandwidth and data processing security are becoming increasingly prominent [1] - Interface IP and security IP technologies are identified as core drivers for breakthroughs in the industry, directly impacting chip performance, compatibility, and attack resistance [1] Group 2: Company Overview - Rambus, established in 1990, is a pioneer in the field of high-speed interface technology, redefining data transmission standards between memory and systems [1] - Rambus offers a robust product portfolio, including DDR memory interfaces, HBM3/4, and PCIe 5/6 solutions, significantly enhancing performance in data centers and edge computing [1] - The company also provides various security IP solutions, such as root of trust technology, security protocol engines, inline cryptographic engines, and post-quantum cryptography accelerators [1] Group 3: Upcoming Event - Rambus is hosting a technology seminar on July 9, 2025, in Beijing, focusing on AI and automotive sectors, featuring industry partners and technical experts [2][3] - The morning session will cover the latest interface and security IP solutions for AI and advanced applications, including quantum-safe encryption and various memory technologies [6] - The afternoon session will delve into automotive security solutions, addressing trends and challenges faced by hardware and software designers in smart connected vehicles [7]