Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting with competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for investment actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research and understand the risks involved before investing in any financial instruments [1].

Core Viewpoint - RISC-V is emerging as a key solution across various sectors due to its extensive instruction set, modularity, cost control, and flexible architecture, with significant breakthroughs expected in AI computing, automotive electronics, and high-performance general processing by 2025 [1] Group 1: Industry Trends - The global shipment of RISC-V based SoC chips is projected to reach 20 billion units by 2031, capturing 25% of the global market share [1] - RISC-V architecture has achieved multiple breakthroughs in the CPU field influenced by various technical and commercial factors [1] Group 2: Event Details - Andes Technology will host an annual technical seminar titled "RePioneering the Future" on August 27, 2025, in Beijing, focusing on advancements in AI, automotive electronics, application processors, and information security [2][5] - The seminar will feature multiple industry experts and partners discussing forward-looking technology trends and innovative applications [2] Group 3: Technical Insights - RISC-V is penetrating high-growth areas from AI acceleration to automotive chips, with a focus on hardware-level security solutions to address trust challenges within the RISC-V ecosystem [4] - The development of mature debugging, verification, and development environments is facilitating the transition of RISC-V from design to mass production [4] Group 4: Key Presentations - Presentations will cover topics such as RISC-V's role in driving application acceleration, new pathways for automotive chips, and innovations in AI and application processors [5][6] - A roundtable forum will discuss the advantages and challenges of RISC-V in AI computing acceleration [6]

PART I [Item 1. Financial Statements (Unaudited):](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited):) Rambus Inc.'s unaudited financial statements detail its financial position, operations, and cash flows, reflecting significant growth in assets, revenue, and net income [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets increased to **$1.47 billion** as of June 30, 2025, primarily due to marketable securities, alongside growth in stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $87,759 | $99,775 | | Marketable securities | $507,066 | $382,023 | | Total current assets | $783,757 | $690,257 | | Total assets | $1,467,811 | $1,343,136 | | **Liabilities & Equity** | | | | Total current liabilities | $72,228 | $81,812 | | Total liabilities | $239,831 | $222,444 | | Total stockholders' equity | $1,227,980 | $1,120,692 | | Total liabilities and stockholders' equity | $1,467,811 | $1,343,136 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Rambus reported strong Q2 2025 and six-month financial results, with total revenue reaching **$338.9 million** and net income **$118.2 million**, driven by product and royalty growth Statement of Income Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $81,325 | $56,692 | $157,634 | $107,052 | | Royalties | $68,607 | $56,380 | $142,582 | $103,856 | | **Total revenue** | **$172,209** | **$132,138** | **$338,873** | **$250,009** | | Gross profit | $137,439 | $105,307 | $271,261 | $199,519 | | Operating income | $62,993 | $40,322 | $126,137 | $70,453 | | **Net income** | **$57,935** | **$36,056** | **$118,238** | **$68,954** | | Diluted EPS | $0.53 | $0.33 | $1.09 | $0.63 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$171.8 million** for the six months ended June 30, 2025, while cash was used for investments and financing activities Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $171,773 | $109,541 | | Net cash provided by (used in) investing activities | ($139,587) | $30,772 | | Net cash used in financing activities | ($44,750) | ($110,052) | | Net (decrease) increase in cash and cash equivalents | ($12,016) | $29,811 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's single operating segment, significant customer concentration, revenue recognition, share repurchases, and a material South Korean tax refund claim - The company operates as a single reportable segment in the semiconductor space, with the CEO acting as the Chief Operating Decision Maker (CODM)[40](index=40&type=chunk) - Revenue is highly concentrated, with the top five customers accounting for **68%** and **69%** of total revenue for the three and six months ended June 30, 2025, respectively[110](index=110&type=chunk) - The company has filed refund claims for **$82.7 million** in South Korean withholding taxes and intends to file for an additional **$32.2 million**[80](index=80&type=chunk)[82](index=82&type=chunk) - A long-term tax receivable of **$114.9 million** and a corresponding long-term tax payable have been recorded as of June 30, 2025[80](index=80&type=chunk)[82](index=82&type=chunk) - During the six months ended June 30, 2025, the company repurchased **0.1 million** shares for approximately **$5.8 million** under its 2020 Repurchase Program[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2025 results to increasing demand for memory interface chips, driving record product revenue and overall revenue growth, while maintaining a strong liquidity position [Business Overview and Strategy](index=24&type=section&id=Business%20Overview%20and%20Strategy) Rambus is a global semiconductor company focused on memory and security solutions for data center and AI, aiming to address the 'memory wall' bottleneck through strategic product focus and operational optimization - Rambus is a global semiconductor company focused on memory and security solutions for the data center and artificial intelligence (AI) markets[91](index=91&type=chunk) - The company aims to solve the "memory wall" performance bottleneck created by the explosion of data-intensive workloads from generative AI, LLMs, and HPC[93](index=93&type=chunk)[94](index=94&type=chunk) - Strategic objectives include focusing the product portfolio on semiconductors, optimizing operational efficiency, and reinvesting strong cash generation for growth[95](index=95&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenue for the six months ended June 30, 2025, increased **35.6%** to **$338.9 million**, driven by strong product revenue and royalties, while operating expenses also rose due to headcount growth Revenue Comparison (in millions) | Revenue Type | Six Months 2025 | Six Months 2024 | % Change | | :--- | :--- | :--- | :--- | | Product revenue | $157.6 | $107.1 | 47.2% | | Royalties | $142.6 | $103.9 | 37.2% | | Contract and other revenue | $38.7 | $39.0 | (0.8)% | | **Total revenue** | **$338.9** | **$250.0** | **35.6%** | - The increase in product revenue was primarily due to higher sales of memory interface chips[115](index=115&type=chunk) - The increase in royalties was primarily due to the timing and structure of license agreements and renewals[117](index=117&type=chunk) - Increases in R&D and SG&A expenses were primarily driven by higher payroll-related costs and stock-based compensation due to headcount growth[128](index=128&type=chunk)[133](index=133&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained a strong liquidity position with **$594.8 million** in cash and marketable securities, generating **$171.8 million** in operating cash flow Key Liquidity Metrics (in millions) | Metric | As of June 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $87.7 | $99.8 | | Marketable securities | $507.1 | $382.0 | | **Total cash, cash equivalents and marketable securities** | **$594.8** | **$481.8** | - Net cash provided by operating activities for the six months ended June 30, 2025, was **$171.8 million**, compared to **$109.5 million** for the same period in 2024[154](index=154&type=chunk)[155](index=155&type=chunk) - During the six months ended June 30, 2025, the company repurchased **0.1 million** shares for approximately **$5.8 million**[163](index=163&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuation on its **$535.8 million** investment portfolio, with foreign currency exposure deemed immaterial for hedging - The primary market risk is interest rate fluctuation on the investment portfolio of **$535.8 million** in fixed income marketable securities[170](index=170&type=chunk) - A **1.0%** increase in interest rates would lead to an estimated **$2.9 million** decline in the fair value of the investment portfolio[170](index=170&type=chunk) - Foreign currency exposure is monitored but considered not material enough to warrant hedging as of June 30, 2025[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[174](index=174&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[175](index=175&type=chunk) PART II [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Rambus is not currently a party to any material pending legal proceedings, anticipating no material adverse effects from ordinary course matters - The company is not currently a party to any material pending legal proceedings[177](index=177&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks, including industry cyclicality, customer concentration, supply chain reliance, product failures, cybersecurity threats, and international operational challenges - The business is subject to risks from operating in the highly cyclical and competitive electronics industry[180](index=180&type=chunk) - A high degree of revenue concentration exists, with the top five customers representing approximately **69%** of consolidated revenue for the first six months of 2025[186](index=186&type=chunk) - The company relies on third parties for manufacturing and is exposed to supply chain risks, including delays, capacity constraints, and geopolitical uncertainty[225](index=225&type=chunk) - Cybersecurity breaches and incidents pose a significant threat to the company's information technology systems and intellectual property[233](index=233&type=chunk) - A substantial portion of revenue (**82%** for H1 2025) is from international customers, exposing the company to risks related to trade restrictions, tariffs, and geopolitical instability[215](index=215&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Rambus repurchased common stock under its 2020 Share Repurchase Program during Q2 2025, with **5.6 million** shares remaining authorized for repurchase Share Repurchases for Q2 2025 | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 1 - May 31, 2025 | 37,090 | $52.62 | | June 1 - June 30, 2025 | 29,443 | $57.79 | - As of June 30, 2025, there was an outstanding authorization to repurchase approximately **5.6 million** shares under the 2020 Repurchase Program[297](index=297&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) Director Meera Rao and CFO Desmond M. Lynch adopted Rule 10b5-1 trading plans during Q2 2025 for the sale of company shares - Director Meera Rao and CFO Desmond M. Lynch adopted Rule 10b5-1 trading plans during Q2 2025[301](index=301&type=chunk)[302](index=302&type=chunk) [Item 6. Exhibits](index=63&type=section&id=Item%206.%20Exhibits) The report includes required exhibits, such as CEO and CFO certifications and Inline XBRL data files - Key exhibits filed include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (Exhibits 101, 104)[303](index=303&type=chunk)

Core Insights - Rambus Inc. reported second-quarter 2025 non-GAAP earnings of 60 cents per share, missing the Zacks Consensus Estimate by one cent, but showing a year-over-year increase of 30.4% [1][9] - Revenues for the second quarter reached $172.2 million, a 30.4% increase year-over-year, surpassing the Zacks Consensus Estimate by 3.1%, driven by strong demand across all segments [1][9] Revenue Breakdown - Product revenues amounted to $81.3 million, representing 47.2% of total revenues, and increased by 43.4% year-over-year, primarily due to growth in memory products, particularly DDR5 [2] - Royalties generated $68.6 million, accounting for 39.8% of total revenues, up 21.6% year-over-year, driven by increased recurring revenues from licensing Rambus patents by semiconductor companies [2] - Revenues from Contract and Other reached $22.3 million, making up 12.9% of total revenues, and increased by 16.8% year-over-year, mainly due to growth in Silicon IP [3] Profitability Metrics - Rambus reported a gross profit of $137.4 million for the second quarter, up from $105.3 million in the same quarter last year, with a gross margin of 79.8%, an improvement of 10 basis points year-over-year [3] - Non-GAAP operating expenses were $60.4 million, while non-GAAP operating income rose 43.4% year-over-year to $79 million, resulting in an operating margin of 45.9% [4] Balance Sheet and Cash Flow - As of June 30, 2025, Rambus had cash and marketable securities totaling $594.8 million, up from $514.4 million at the end of the previous quarter, with no debt on the balance sheet [5] - The company generated an operating cash flow of $94.4 million in the second quarter and reported free cash flow of $84 million [5] Guidance for Q3 - Rambus provided guidance for Q3 2025, projecting non-GAAP product revenues between $87 million and $93 million, Contract & Other revenues in the range of $22 million to $28 million, and Licensing Billings between $58 million and $64 million [6][7] - The Zacks Consensus Estimates for Rambus' top line is $172 million, indicating a year-over-year growth of 17.2% [6] - Expected non-GAAP earnings per share for Q3 are projected to be between 58 cents and 66 cents, with the consensus estimate at 61 cents per share, reflecting a year-over-year growth of 22% [7]

Core Insights - The memory interconnect chip market is expected to grow from $768 million in 2020 to $1.168 billion by 2024, with a compound annual growth rate (CAGR) of 11.1% during this period, despite a decline in 2023 due to inventory adjustments in the server and computer industries [4][8][10] - China's memory interconnect chip market is projected to reach 1.66 billion yuan in 2024, accounting for approximately 20% of the global market, with a year-on-year growth exceeding 50% [12][10] - The industry is characterized by high technical barriers, leading to a concentrated market with the top three companies—Lanqi Technology, Renesas Electronics, and Rambus—holding 93.4% of the global market share, with Lanqi Technology leading at 36.8% [10][12] Market Overview - The global memory interconnect chip market is benefiting from continuous technological iterations and increasing penetration of AI servers, with growth expected in all years except 2023 [4][8] - The main products in the memory interconnect chip market include RCD/DB and module supporting chips, which are widely used in DDR4 and DDR5 memory modules, with RCD/DB expected to account for 59.5% of the market in 2024 [6][8] Industry Dynamics - The memory interconnect chip industry has significant technical barriers due to the complexity of product development, requiring deep technical expertise and long-term accumulation of intellectual property and design experience [10][12] - The industry follows JEDEC standards, and companies must engage in technical exchanges and collaborations with mainstream CPU, memory, server, and cloud computing manufacturers to establish a competitive edge [10] China's Market Position - China is becoming a significant player in the global AI and semiconductor sectors, with its memory interconnect chip market expected to continue expanding as downstream industries develop [12] - The market size for China's memory interconnect chips is projected to be 1.66 billion yuan in 2024, reflecting a strong growth trajectory [12] Product Development Trends - The transition from DDR4 to DDR5 memory technology is driving demand for memory interconnect chips, with DDR5 expected to dominate the market by 2024, accounting for over 50% of global server memory module shipments [17][19] - New high-bandwidth memory modules like MRDIMM are being developed to meet the increasing bandwidth demands of AI and high-performance computing applications, with significant improvements in data transfer rates expected [24][19] Application Areas - Memory interconnect chips are primarily used in server applications, with DDR5 technology providing higher speeds, lower power consumption, and increased capacity compared to DDR4 [16][19] - The PC market is also experiencing a shift towards AI PCs, with DDR5 memory modules expected to see increased demand as the market evolves [21][19]

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].