Astera Labs has demonstrated elite operational scaling, transitioning from early 2024 losses to a 20.1% operating margin in 2026Q1 while maintaining gross margins consistently above 75%.
| Sales/Revenue | 1B | 852.52M | 396.29M | 115.79M | 79.87M |
| Revenue Growth % | 104.18% | 115.13% | 242.24% | 44.97% | - |
| Cost of Goods Sold | 240.45M | 207.26M | 93.59M | 35.97M | 21.19M |
| COGS % of Revenue | - | 24.31% | 23.62% | 31.06% | 26.53% |
| Gross Profit | 760.99M | 645.26M | 302.7M | 79.83M | 58.68M |
| Gross Margin % | 75.99% | 75.69% | 76.38% | 68.94% | 73.47% |
| Gross Profit Growth % | - | 113.17% | 279.19% | 36.04% | - |
| Operating Expenses | 537.02M | 471.84M | 418.76M | 109.32M | 118.88M |
| OpEx % of Revenue | - | 55.35% | 105.67% | 94.41% | 148.83% |
| Selling, General & Admin | 171.94M | 167.84M | 217.94M | 35.92M | 45.16M |
| SG&A % of Revenue | - | 19.69% | 54.99% | 31.02% | 56.55% |
| Research & Development | 365.08M | 304M | 200.83M | 73.41M | 73.71M |
| R&D % of Revenue | - | 35.66% | 50.68% | 63.39% | 92.29% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 223.97M | 173.42M | -116.07M | -29.5M | -60.19M |
| Operating Margin % | 22.36% | 20.34% | -29.29% | -25.47% | -75.36% |
| Operating Income Growth % | - | 249.42% | -293.48% | 51% | - |
| EBITDA | 233.42M | 180.25M | -112.91M | -27.72M | -59.39M |
| EBITDA Margin % | 23.31% | 21.14% | -28.49% | -23.94% | -74.35% |
| EBITDA Growth % | 1386.13% | 259.64% | -307.39% | 53.33% | - |
| D&A (Non-Cash Add-back) | 9.45M | 6.83M | 3.15M | 1.78M | 807K |
| EBIT | 247.38M | 218.15M | -116.07M | -29.5M | -60.19M |
| Net Interest Income | 45.88M | 44.73M | 34.29M | 6.55M | 2.61M |
| Interest Income | 45.88M | 44.73M | 34.29M | 6.55M | 2.61M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 45.88M | 44.73M | 34.29M | 6.55M | 2.61M |
| Pretax Income | 269.85M | 218.15M | -81.78M | -22.95M | -57.58M |
| Pretax Margin % | 26.95% | 25.59% | -20.64% | -19.82% | -72.09% |
| Income Tax | 2.23M | -981K | 1.64M | 3.31M | 764K |
| Effective Tax Rate % | 0.82% | -0.45% | -2.01% | -14.42% | -1.33% |
| Net Income | 267.63M | 219.13M | -83.42M | -26.26M | -58.34M |
| Net Margin % | 26.72% | 25.7% | -21.05% | -22.68% | -73.05% |
| Net Income Growth % | 546.55% | 362.68% | -217.71% | 55% | - |
| Net Income (Continuing) | 267.63M | 219.13M | -83.42M | -26.26M | -58.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.48 | 1.22 | -0.64 | -0.17 | -0.45 |
| EPS Growth % | 563.68% | 290.63% | -276.47% | 62.22% | - |
| EPS (Basic) | - | 1.32 | -0.64 | -0.17 | -0.45 |
| Diluted Shares Outstanding | 181.16M | 179.55M | 131.26M | 152.5M | 130.45M |
| Basic Shares Outstanding | 170.73M | 166.41M | 131.26M | 152.5M | 130.45M |
| Dividend Payout Ratio | - | - | - | - | - |
Hyperscaler vertical integration risk
According to recent financial disclosures, ALAB has maintained a robust growth trajectory, with quarterly revenue reaching $308.4 million in 2026Q1, representing a 93.4% year-over-year increase that underscores the company's critical role in the ongoing build-out of high-performance AI infrastructure and data center connectivity.
The rapid revenue scaling appears to be driven by the aggressive deployment of PCIe and CXL retimers within massive GPU clusters. Investors should monitor whether this growth rate remains sustainable as the company moves beyond the initial infrastructure surge and faces potential saturation in its primary hyperscaler customer base.
As reported in quarterly filings, Astera Labs consistently sustains gross margins above 75%, with the 2026Q1 figure of 76.3% highlighting significant pricing power and a specialized product portfolio that currently faces limited direct competition in the high-speed signal integrity market.
This margin profile is notably superior to broader semiconductor peers, suggesting that the market views their connectivity solutions as essential bottlenecks rather than commoditized components. However, any future shift in product mix toward the Taurus Ethernet line may pressure these margins if competitive intensity increases in that segment.
Based on the provided income statement data, ALAB has successfully transitioned from operating losses in early 2024 to a 20.1% operating margin in 2026Q1, demonstrating that the company is effectively scaling its revenue base faster than its fixed operating expenses.
The stabilization of SG&A costs relative to revenue growth suggests that the company is achieving meaningful operating leverage as it matures. Continued discipline in managing these overheads will be critical to maintaining profitability as the company scales its R&D efforts to meet the next generation of PCIe standards.
Analysis of the company's financial statements reveals that stock-based compensation remains a significant factor, with $48.9 million recorded in 2026Q1, which warrants careful scrutiny when evaluating the quality of reported net income and the true underlying cash-generating capability of the business.
While the company has achieved consistent net profitability, the reliance on equity-based incentives to retain specialized engineering talent creates a divergence between GAAP earnings and cash flow. Investors should adjust for these non-cash charges to better understand the company's core operational performance and long-term earnings durability.
Despite current growth, the company's heavy reliance on a small number of North American hyperscalers, as noted in industry intelligence, presents a significant risk that could lead to severe revenue volatility if these customers shift toward internal silicon development for their connectivity needs.
The current valuation appears to assume a long-term, high-growth trajectory that may not fully account for the threat of vertical integration by major cloud service providers. If hyperscalers successfully internalize retimer functionality, the company's primary addressable market could face a structural contraction that is not currently reflected in the income statement.
Quick answers to the most common questions about buying ALAB stock.
For fiscal year 2025, Astera Labs, Inc. Common Stock (ALAB) reported total revenue of $852.5M. This represents a 967.4% increase compared to $79.9M in 2022.
Astera Labs, Inc. Common Stock (ALAB) is profitable, generating $219.1M in net income for the fiscal year ending 2025 with a net profit margin of 25.7%.
Astera Labs, Inc. Common Stock (ALAB) reported an operating income of $173.4M, resulting in an operating profit margin of 20.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Astera Labs, Inc. Common Stock (ALAB) generated $645.3M in gross profit for the year, representing a gross profit margin of 75.7%. This demonstrates the company's core pricing power and production efficiency.