Astera Labs Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Astera Labs reported strong financial performance for Q4 2025, with revenue reaching $270.6 million, a 17% increase sequentially and a 115% increase year-over-year, totaling $852.5 million for the full fiscal year [2][4][5]. Financial Highlights - Q4 2025 revenue was $270.6 million, up 17% from Q3 2025 and up 92% year-over-year [5]. - Full-year revenue for 2025 was $852.5 million, reflecting a 115% increase compared to 2024 [5]. - GAAP gross margin for Q4 was 75.6%, with GAAP operating income of $67.0 million and a net income of $45.0 million [5]. - Non-GAAP operating income for Q4 was $108.9 million, with a non-GAAP net income of $104.8 million [5]. - For the full year, GAAP net income was $219.1 million, with a diluted earnings per share of $1.22 [5]. Strategic Developments - The company is expanding its Intelligent Connectivity Platform and has opened a new design center in Israel to enhance R&D efforts [2][4]. - Astera Labs is broadening its Scorpio X-Series smart fabric roadmap to capture growing market opportunities [4]. - Desmond Lynch has been appointed as the new Chief Financial Officer, succeeding Mike Tate, who will transition to a Strategic Advisor role [6][7]. Market Outlook - Astera Labs anticipates revenue for Q1 2026 to be between $286 million and $297 million, with a GAAP gross margin of approximately 74% [9]. - The company is targeting the merchant scale-up switching marketplace, projected to reach $20 billion annually by 2030 [9]. - The new Israel Design Center will focus on developing next-generation AI fabrics and addressing memory bottlenecks in AI applications [9].