Rambus(RMBS) - 2025 Q3 - Quarterly Results

Revenue Performance - GAAP revenue for Q3 2025 was $178.5 million, a 22.7% increase from $145.5 million in Q3 2024[2] - Total revenue for Q3 2025 reached $178.5 million, a 22.7% increase from $145.5 million in Q3 2024[24] - Product revenue reached a record $93.3 million, up 40.5% from $66.4 million in the same quarter last year[3] - Product revenue increased to $93.3 million in Q3 2025, up 40.5% from $66.4 million in Q3 2024[24] - Licensing billings for the quarter were $66.1 million, slightly above $65.4 million in Q3 2024[5] - The company reported royalties of $65.1 million in Q3 2025, a slight increase from $64.1 million in Q3 2024[24] Profitability - Operating income was $63.3 million, with an operating margin of 35%, compared to 38% in Q3 2024[3] - Net income for the quarter was $48.4 million, resulting in a diluted net income per share of $0.44[3] - Gross profit for Q3 2025 was $141.9 million, representing a gross margin of 79.5% compared to 80.7% in Q3 2024[24] - Operating income for the nine months ended September 30, 2025, was $189.4 million, a 51.3% increase from $125.1 million in the same period of 2024[24] - Net income for Q3 2025 was $48.4 million, slightly down from $48.7 million in Q3 2024, resulting in diluted earnings per share of $0.44[24] Operating Expenses - Cash generated from operating activities was $88.4 million, an increase from $62.1 million in Q3 2024[4] - Research and development expenses for Q3 2025 totaled $49.5 million, an increase of 19.5% from $41.3 million in Q3 2024[24] - Total operating expenses for Q3 2025 were $78.7 million, up 25.4% from $62.7 million in Q3 2024[24] - The cost of product revenue for Q3 2025 was $34.3 million, an increase of 39.7% from $24.6 million in Q3 2024[26] - The company expects forward-looking non-GAAP operating costs and expenses for Q4 2025 to be between $99 million and $103 million[27] - Total operating costs and expenses for Q4 2025 are projected to be between $120 million and $116 million[9] Cash and Financial Position - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $673.3 million, up $78.5 million from June 30, 2025[6] Future Outlook - The company expects Q4 2025 product revenue to be between $94 million and $100 million[8] - The company is well positioned to leverage trends in data center and AI for long-term growth[3]