Astera Labs, Inc.(ALAB) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue reached a record $230.6 million, up 20% sequentially and 104% year-over-year[3] - GAAP gross margin for Q3 2025 was 76.2%, with a GAAP operating income of $55.4 million and an operating margin of 24.0%[4] - Non-GAAP operating income was $96.1 million, resulting in a non-GAAP operating margin of 41.7%[4] - GAAP diluted earnings per share for Q3 2025 was $0.50, while non-GAAP diluted earnings per share was $0.49[4] - The company reported a GAAP net income of $91.1 million for Q3 2025[4] - Total revenue for the three months ended September 30, 2025, was $230,575,000, representing a 20.1% increase from $191,925,000 in the previous quarter and a 104.4% increase from $113,086,000 in the same quarter last year[19] - Gross profit for the three months ended September 30, 2025, was $175,812,000, resulting in a gross margin of 76.2%, compared to 75.8% in the previous quarter and 77.7% in the same quarter last year[23] - Operating income for the three months ended September 30, 2025, was $55,406,000, compared to an operating loss of $8,896,000 in the same quarter last year[19] - Net income for the three months ended September 30, 2025, was $91,114,000, compared to a net loss of $7,593,000 in the same quarter last year[19] - Non-GAAP net income for the nine months ended September 30, 2025, was $225,876,000, compared to $76,837,000 in the same period last year[23] Future Outlook - Astera Labs anticipates Q4 2025 revenue between $245 million and $253 million, with a GAAP gross margin of approximately 75%[6] - The outlook for GAAP gross margin for the three months ending December 31, 2025, is projected to be 75%[29] - The GAAP operating expense is expected to be between $129 million and $134 million for the same period[29] - The non-GAAP operating expense is projected to be between $85 million and $90 million for the three months ending December 31, 2025[29] - The GAAP EPS - diluted is forecasted to be $0.20, while the non-GAAP EPS - diluted is expected to be $0.51 for the same period[29] - The non-GAAP tax rate is projected to be 15% for the three months ending December 31, 2025[29] Strategic Initiatives - The company entered into a definitive agreement to acquire aiXscale Photonics GmbH to enhance its connectivity solutions for AI infrastructure[6] - Astera Labs showcased its AI rack-scale vision at the 2025 Open Compute Project Global Summit, highlighting a full portfolio of connectivity solutions[6] - Collaborations with major industry players like AMD and Arm aim to accelerate AI Infrastructure 2.0 deployment through open standards[6] - Astera Labs is focused on expanding its market reach beyond copper interconnects through strategic acquisitions and partnerships[2] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $224,041,000, compared to $96,973,000 in the same period last year[21] - Total current assets increased to $1,290,159,000 as of September 30, 2025, from $1,012,979,000 as of December 31, 2024[17] - Total liabilities decreased to $129,451,000 as of September 30, 2025, from $89,709,000 as of December 31, 2024[17] - Stockholders' equity increased to $1,271,731,000 as of September 30, 2025, from $964,799,000 as of December 31, 2024[17] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $78,928,000, up from $50,659,000 in the same quarter last year[19] - Research and development expenses for the three months ended September 30, 2025, were $21.711 million, up from $14.641 million for the same period in 2024[31] Stock-Based Compensation - Total stock-based compensation expense for the three months ended September 30, 2025, was $40.739 million, compared to $35.474 million for the previous quarter[31] - The total stock-based compensation expense for the nine months ended September 30, 2025, was $118.659 million, compared to $186.370 million for the same period in 2024[31]