Revenue surged 104.5% year-over-year to $392.4M in Q2 2026, with gross margin at 73.3% and operating margin expanding to 22.7%, reflecting strong operating leverage despite R&D spending at 34.6% of revenue.
Astera Labs, Inc. Common Stock (ALAB) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 1.2B | 852.52M | 396.29M | 115.79M | 79.87M |
| Revenue Growth % | 98.48% | 115.13% | 242.24% | 44.97% | - |
| Cost of Goods Sold | 298.92M | 207.26M | 93.59M | 35.97M | 21.19M |
| COGS % of Revenue | - | 24.31% | 23.62% | 31.06% | 26.53% |
| Gross Profit | 903M | 645.26M | 302.7M | 79.83M | 58.68M |
| Gross Margin % | 75.13% | 75.69% | 76.38% | 68.94% | 73.47% |
| Gross Profit Growth % | - | 113.17% | 279.19% | 36.04% | - |
| Operating Expenses | 629.55M | 471.84M | 418.76M | 109.32M | 118.88M |
| OpEx % of Revenue | - | 55.35% | 105.67% | 94.41% | 148.83% |
| Selling, General & Admin | 195.3M | 167.84M | 217.94M | 35.92M | 45.16M |
| SG&A % of Revenue | - | 19.69% | 54.99% | 31.02% | 56.55% |
| Research & Development | 434.25M | 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 | 273.44M | 173.42M | -116.07M | -29.5M | -60.19M |
| Operating Margin % | 22.75% | 20.34% | -29.29% | -25.47% | -75.36% |
| Operating Income Growth % | - | 249.42% | -293.48% | 51% | - |
| EBITDA | 285.43M | 180.25M | -112.91M | -27.72M | -59.39M |
| EBITDA Margin % | 23.75% | 21.14% | -28.49% | -23.94% | -74.35% |
| EBITDA Growth % | 511.89% | 259.64% | -307.39% | 53.33% | - |
| D&A (Non-Cash Add-back) | 11.98M | 6.83M | 3.15M | 1.78M | 807K |
| EBIT | 322.02M | 218.15M | -81.78M | -22.95M | -57.58M |
| Net Interest Income | 48.57M | 44.73M | 34.29M | 6.55M | 2.61M |
| Interest Income | 48.57M | 44.73M | 34.29M | 6.55M | 2.61M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 48.57M | 44.73M | 34.29M | 6.55M | 2.61M |
| Pretax Income | 322.02M | 218.15M | -81.78M | -22.95M | -57.58M |
| Pretax Margin % | 26.79% | 25.59% | -20.64% | -19.82% | -72.09% |
| Income Tax | -47.48M | -981K | 1.64M | 3.31M | 764K |
| Effective Tax Rate % | -14.74% | -0.45% | -2.01% | -14.42% | -1.33% |
| Net Income | 369.49M | 219.13M | -83.42M | -26.26M | -58.34M |
| Net Margin % | 30.74% | 25.7% | -21.05% | -22.68% | -73.05% |
| Net Income Growth % | 268.91% | 362.68% | -217.71% | 55% | - |
| Net Income (Continuing) | 369.49M | 219.13M | -83.42M | -26.26M | -58.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.03 | 1.22 | -0.64 | -0.17 | -0.45 |
| EPS Growth % | 261.47% | 290.63% | -276.47% | 62.22% | - |
| EPS (Basic) | - | 1.32 | -0.64 | -0.17 | -0.45 |
| Diluted Shares Outstanding | 182.25M | 179.55M | 131.26M | 152.5M | 130.45M |
| Basic Shares Outstanding | 171.56M | 166.41M | 131.26M | 152.5M | 130.45M |
| Dividend Payout Ratio | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Extreme valuation and insider selling
Metrics are mathematically derived from official filings.
AI-Driven Revenue Acceleration
Astera Labs' revenue surged 104.5% year-over-year to $392.4M in Q2 2026, according to recent SEC filings, marking the fourth consecutive quarter of triple-digit growth, driven by record Aries retimer sales.
The sequential growth of 27% from Q1 2026 indicates accelerating demand, not just a low base effect. Revenue has grown from $65.3M in Q1 2024 to $392.4M in Q2 2026, a six-fold increase in ten quarters, suggesting the AI infrastructure build-out is directly translating into orders. However, the raised guidance of $540M-$560M for the next quarter implies a sequential growth of roughly 38-43%, which, while strong, would represent a deceleration from the 27% sequential pace, hinting that the peak growth rate may be approaching.
Gross Margin Resilience at 73%
Gross margin dipped to 73.3% in Q2 2026 from 76.3% in Q1, as reported in financial statements, yet remains exceptionally high for hardware, suggesting pricing power persists despite mix shifts toward Taurus modules.
The 300 basis point sequential decline in gross margin may reflect a richer mix of lower-margin Ethernet products or increased competition, but the absolute level still towers over peers like Marvell (51%) and Cirrus (52.8%). This suggests Astera's connectivity solutions are still viewed as critical, not commoditized. Investors should monitor whether the margin erosion continues as revenue scales, as a sustained decline toward 70% could signal competitive pressure.
Operating Leverage Kicks In
Operating income grew 44% sequentially to $89.2M in Q2 2026, with operating margin expanding to 22.7% from 20.1%, based on reported figures, as revenue growth outpaced R&D and SG&A increases.
The operating leverage is evident: while revenue grew 27% sequentially, operating income grew 44%, indicating that fixed costs are being spread over a larger base. R&D expense rose only 8% sequentially, while SG&A rose 31%, but both grew slower than revenue. This suggests the company is scaling efficiently, though the absolute R&D spend of $135.9M remains high, reflecting the need to stay ahead in PCIe technology. The operating margin trajectory from -127% in Q1 2024 to 22.7% in Q2 2026 underscores the dramatic turnaround.
SBC Distorts Reported Earnings
Net income of $153.1M in Q2 2026 includes a $64M stock-based compensation charge, as per income statement data, which when adjusted, suggests cash earnings are significantly lower than reported EPS of $0.84.
The gap between GAAP net income and cash earnings is substantial: SBC represents 42% of revenue in Q2 2026, a level that is typical for high-growth tech but warrants scrutiny. The effective tax rate appears to be near zero or negative, as net income ($153.1M) exceeds operating income ($89.2M) by $63.9M, likely due to a one-time tax benefit or interest income. This inflates reported EPS and may mislead investors about underlying profitability. Adjusting for SBC, operating income would be $153.2M, but net income would be closer to $89M, implying a more modest P/E.
R&D Dominates Cost Structure
R&D expenses of $135.9M in Q2 2026 represent 34.6% of revenue, as disclosed in financial statements, underscoring the company's heavy investment in next-generation connectivity despite already high gross margins.
The cost structure is heavily weighted toward R&D, which is the largest operating expense, exceeding SG&A by more than 2x. This reflects the strategic imperative to maintain leadership in PCIe/CXL technology, but it also means that any revenue slowdown would quickly pressure operating margins. SG&A at $62.4M is relatively lean at 15.9% of revenue, suggesting disciplined overhead control. The combined operating expenses of $198.3M grew 14% sequentially, slower than the 27% revenue growth, indicating that the company is not overspending to achieve growth.
2024Q1: The Turning Point
The inflection occurred in Q1 2024 when revenue was $65.3M and operating loss was -$83.0M, as per income statement data, marking the trough before a sustained AI-driven ramp that transformed profitability.
In Q1 2024, the company was still in heavy investment mode, with R&D and SG&A totaling $133.5M against revenue of only $65.3M, leading to a -127% operating margin. The subsequent quarters show a clear inflection: revenue began accelerating in Q4 2024 (+179% YoY) and operating income turned positive in Q3 2024. This inflection was driven by the initial wave of AI cluster deployments, which created demand for retimers. The lasting impact is that the company has now established a scale that supports profitability, but the question remains whether this growth is sustainable as the AI cycle matures.
Valuation and Mix Risks
With a P/E of 161.11 versus the market's 38.25, as reported in recent filings, the stock price appears to embed perfection, leaving little room for margin compression or growth deceleration.
Short-sellers would argue that the 73.3% gross margin is unsustainable as competition intensifies and product mix shifts toward lower-margin Taurus modules. The sequential gross margin decline of 300 bps could be the start of a trend. Additionally, the reliance on a few hyperscalers for the majority of revenue creates concentration risk; any design loss or internal silicon development by these customers could severely impact growth. The consistent insider selling, while not necessarily a red flag, may indicate that those with the most knowledge view the valuation as full. The raised guidance implies a sequential growth of ~38%, which is a deceleration from the 27% sequential growth in Q2, suggesting the peak growth rate may be behind.