Revenue growth has normalized to 16.9% in 2027Q1 from a 63.4% peak in 2025Q3, while operating margins remain deeply negative at -18.1% due to sustained high R&D spending.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 |
|---|
| Sales/Revenue | 405.19M | 390.7M | 284.87M | 226.47M | 337.61M | 331.86M | 222.99M | 228.73M | 227.77M | 295.4M | 310.3M | 316.37M | 218.28M | 157.61M | 121.07M | 97.26M | 94.74M | 71.53M |
| Revenue Growth % | 28.12% | 37.15% | 25.78% | -32.92% | 1.73% | 48.82% | -2.51% | 0.42% | -22.9% | -4.8% | -1.92% | 44.94% | 38.49% | 30.18% | 24.48% | 2.66% | 32.46% | - |
| Cost of Goods Sold | 169.05M | 164.24M | 117.23M | 89.66M | 128.67M | 123.72M | 87.42M | 96.02M | 89.62M | 107.67M | 105.28M | 111.03M | 79.14M | 57.76M | 40.41M | 32.46M | 34.5M | 24.05M |
| COGS % of Revenue | - | 42.04% | 41.15% | 39.59% | 38.11% | 37.28% | 39.2% | 41.98% | 39.35% | 36.45% | 33.93% | 35.09% | 36.26% | 36.65% | 33.37% | 33.37% | 36.42% | 33.62% |
| Gross Profit | 236.13M | 226.47M | 167.63M | 136.82M | 208.93M | 208.13M | 135.57M | 132.71M | 138.14M | 187.73M | 205.01M | 205.34M | 139.14M | 99.85M | 80.66M | 64.8M | 60.24M | 47.48M |
| Gross Margin % | 58.28% | 57.96% | 58.85% | 60.41% | 61.89% | 62.72% | 60.8% | 58.02% | 60.65% | 63.55% | 66.07% | 64.91% | 63.74% | 63.35% | 66.63% | 66.63% | 63.58% | 66.38% |
| Gross Profit Growth % | - | 35.1% | 22.52% | -34.52% | 0.39% | 53.52% | 2.16% | -3.93% | -26.41% | -8.43% | -0.16% | 47.59% | 39.35% | 23.79% | 24.48% | 7.57% | 26.87% | - |
| Operating Expenses | 309.79M | 308.99M | 294.23M | 291.38M | 283.19M | 237.78M | 196.74M | 182.36M | 178.56M | 163.3M | 144.65M | 120.67M | 87.28M | 71.93M | 60.76M | 53.54M | 44.76M | 34.53M |
| OpEx % of Revenue | - | 79.09% | 103.29% | 128.66% | 83.88% | 71.65% | 88.23% | 79.73% | 78.4% | 55.28% | 46.62% | 38.14% | 39.98% | 45.64% | 50.18% | 55.05% | 47.25% | 48.28% |
| Selling, General & Admin | 71.95M | 70.47M | 68.12M | 76.33M | 78.24M | 70.44M | 55.98M | 52.63M | 50.48M | 47.79M | 43.45M | 37.74M | 29.3M | 23.15M | 17.93M | 15.93M | 10.31M | 6.89M |
| SG&A % of Revenue | - | 18.04% | 23.91% | 33.7% | 23.18% | 21.23% | 25.1% | 23.01% | 22.16% | 16.18% | 14% | 11.93% | 13.42% | 14.69% | 14.81% | 16.38% | 10.89% | 9.64% |
| Research & Development | 237.84M | 238.52M | 226.11M | 215.05M | 204.95M | 167.34M | 140.76M | 129.72M | 128.08M | 115.51M | 101.2M | 82.93M | 57.98M | 48.78M | 42.83M | 37.62M | 34.45M | 27.64M |
| R&D % of Revenue | - | 61.05% | 79.37% | 94.96% | 60.71% | 50.42% | 63.12% | 56.71% | 56.23% | 39.1% | 32.62% | 26.21% | 26.56% | 30.95% | 35.38% | 38.68% | 36.36% | 38.64% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -73.66M | -82.53M | -126.59M | -154.56M | -74.26M | -29.64M | -61.17M | -49.65M | -40.42M | 24.43M | 60.36M | 84.68M | 51.86M | 27.92M | 19.91M | 11.26M | 15.48M | 12.95M |
| Operating Margin % | -18.18% | -21.12% | -44.44% | -68.25% | -21.99% | -8.93% | -27.43% | -21.71% | -17.75% | 8.27% | 19.45% | 26.77% | 23.76% | 17.71% | 16.44% | 11.57% | 16.34% | 18.1% |
| Operating Income Growth % | - | 34.81% | 18.09% | -108.14% | -150.5% | 51.54% | -23.2% | -22.83% | -265.45% | -59.53% | -28.72% | 63.28% | 85.77% | 40.24% | 76.86% | -27.28% | 19.53% | - |
| EBITDA | -54.81M | -56.94M | -100.53M | -129.75M | -54.32M | -15.64M | -49.2M | -38.02M | -33.2M | 29.2M | 61.95M | 86.28M | 53.2M | 29.01M | 20.91M | 12.39M | 17.08M | 14.25M |
| EBITDA Margin % | -13.53% | -14.57% | -35.29% | -57.29% | -16.09% | -4.71% | -22.06% | -16.62% | -14.58% | 9.89% | 19.96% | 27.27% | 24.37% | 18.41% | 17.27% | 12.74% | 18.03% | 19.92% |
| EBITDA Growth % | 35.77% | 43.37% | 22.51% | -138.85% | -247.42% | 68.22% | -29.41% | -14.52% | -213.69% | -52.86% | -28.21% | 62.2% | 83.35% | 38.73% | 68.78% | -27.45% | 19.89% | - |
| D&A (Non-Cash Add-back) | 18.84M | 25.59M | 26.06M | 24.81M | 19.93M | 14.01M | 11.97M | 11.63M | 7.22M | 4.77M | 1.58M | 1.61M | 1.33M | 1.1M | 1.01M | 1.14M | 1.6M | 1.3M |
| EBIT | -73.66M | -82.53M | -126.59M | -154.56M | -74.26M | -29.64M | -61.17M | -49.65M | -40.42M | 24.43M | 60.36M | 84.68M | 51.86M | 27.92M | 19.91M | 11.26M | 15.48M | 12.95M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.31M | 8.83M | 8.87M | 6.03M | 3.32M | 1M | 3.86M | 8.02M | 5.87M | 1.3M | 518K | 530K | 175K | -22K | 136K | -90K | -47K | -114K |
| Pretax Income | -67.35M | -73.7M | -117.73M | -148.53M | -70.94M | -28.64M | -57.3M | -41.63M | -34.55M | 25.73M | 60.88M | 85.21M | 52.04M | 27.89M | 20.04M | 11.16M | 15.43M | 12.83M |
| Pretax Margin % | -16.62% | -18.86% | -41.33% | -65.58% | -21.01% | -8.63% | -25.7% | -18.2% | -15.17% | 8.71% | 19.62% | 26.93% | 23.84% | 17.7% | 16.55% | 11.48% | 16.29% | 17.94% |
| Income Tax | 2.28M | 2.17M | -602K | 20.89M | -5.55M | -2.23M | 2.48M | 3.16M | -4.11M | 6.88M | 3.07M | 8.7M | 1.47M | 2.24M | 1.85M | 1.34M | 1.5M | -454K |
| Effective Tax Rate % | -3.39% | -2.94% | 0.51% | -14.06% | 7.83% | 7.79% | -4.33% | -7.6% | 11.88% | 26.73% | 5.04% | 10.21% | 2.82% | 8.03% | 9.25% | 12.04% | 9.73% | -3.54% |
| Net Income | -69.63M | -75.86M | -117.13M | -169.42M | -65.39M | -26.41M | -59.79M | -44.79M | -30.45M | 18.85M | 57.81M | 76.51M | 50.57M | 25.65M | 18.19M | 9.82M | 13.93M | 13.29M |
| Net Margin % | -17.18% | -19.42% | -41.12% | -74.81% | -19.37% | -7.96% | -26.81% | -19.58% | -13.37% | 6.38% | 18.63% | 24.18% | 23.17% | 16.28% | 15.02% | 10.1% | 14.7% | 18.58% |
| Net Income Growth % | 32.74% | 35.23% | 30.87% | -159.1% | -147.57% | 55.82% | -33.47% | -47.11% | -261.51% | -67.39% | -24.44% | 51.29% | 97.13% | 41.05% | 85.19% | -29.49% | 4.82% | - |
| Net Income (Continuing) | -69.63M | -75.86M | -117.13M | -169.42M | -65.39M | -26.41M | -59.79M | -44.79M | -30.45M | 18.85M | 57.81M | 76.51M | 50.57M | 25.65M | 18.19M | 9.82M | 13.93M | 13.29M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.60 | -1.78 | -2.84 | -4.25 | -1.70 | -0.72 | -1.72 | -1.35 | -0.93 | 0.55 | 1.68 | 2.27 | 1.57 | 0.85 | 0.60 | 0.12 | 0.19 | 0.59 |
| EPS Growth % | 35.34% | 37.32% | 33.18% | -150% | -136.11% | 58.14% | -27.41% | -45.16% | -269.09% | -67.26% | -25.99% | 44.59% | 84.71% | 41.67% | 400% | -36.84% | -67.8% | - |
| EPS (Basic) | - | -1.78 | -2.84 | -4.25 | -1.70 | -0.72 | -1.72 | -1.35 | -0.93 | 0.57 | 1.77 | 2.42 | 1.70 | 0.93 | 0.64 | 0.12 | 0.19 | 0.64 |
| Diluted Shares Outstanding | 43.61M | 42.7M | 41.3M | 39.88M | 38.36M | 36.58M | 34.68M | 33.08M | 32.71M | 34.58M | 34.33M | 33.76M | 32.28M | 30.17M | 15.02M | 22.41M | 22.41M | 22.41M |
| Basic Shares Outstanding | 43.61M | 42.7M | 41.3M | 39.88M | 38.36M | 36.58M | 34.68M | 33.08M | 32.71M | 33.22M | 32.67M | 31.63M | 29.74M | 27.68M | 13.51M | 20.87M | 20.87M | 20.87M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High R&D Burn Rate
According to recent financial disclosures, Ambarella's revenue growth has decelerated from a peak of 63.4% in 2025Q3 to 16.9% in 2027Q1, suggesting that the initial recovery from cyclical lows is losing momentum as the company faces a more challenging environment for its core IoT and automotive segments.
The sharp deceleration in top-line growth indicates that the initial post-cyclical surge has likely exhausted its immediate tailwinds. Investors should monitor whether the transition to the CV3 platform can re-accelerate growth, as current figures suggest the company is struggling to maintain the high-growth trajectory required to justify its current valuation.
As reported in quarterly filings, Ambarella has maintained a remarkably consistent gross margin profile, hovering near 58% over the last ten quarters, which implies a structural resilience in its pricing power despite significant fluctuations in the underlying revenue base and shifts in product mix between IoT and automotive.
This stability suggests that the company's proprietary CVflow architecture provides a defensible moat that prevents margin erosion even during periods of revenue contraction. However, the inability to expand these margins beyond the high-50s range indicates that the company remains a component supplier rather than a high-margin software-centric entity.
Based on the provided income statement data, Ambarella's operating expenses, dominated by R&D, continue to outpace gross profit generation, resulting in persistent operating losses that have only marginally improved from -80.8% in 2024Q4 to -18.1% in 2027Q1, indicating a lack of meaningful operating leverage.
The company's heavy reliance on R&D investment to maintain its competitive edge appears to be preventing the realization of economies of scale. Unless revenue growth significantly outpaces the current R&D spend, the path to GAAP profitability remains speculative and highly dependent on future automotive design win conversions.
Analysis of the company's financial statements reveals that stock-based compensation remains a substantial non-cash expense, consistently exceeding $20 million per quarter, which effectively obscures the true economic cost of talent acquisition and dilutes existing shareholders while the company continues to report negative net income.
The persistent use of equity-based incentives suggests that management is prioritizing talent retention over immediate bottom-line performance. Investors should be wary of this recurring expense, as it represents a significant drag on potential future EPS growth and complicates the assessment of the company's true operational efficiency.
As indicated by the historical income statement, Ambarella's strategy of sustained high R&D spending may be viewed as a structural risk, as the company has yet to demonstrate a clear inflection point where revenue scale allows for a reduction in relative R&D intensity without compromising its competitive moat.
Short-sellers might argue that the company is trapped in a perpetual investment cycle, where the need to innovate for the automotive market prevents the realization of profitability. This warrants further investigation into whether the CV3 platform will provide the necessary revenue uplift to justify the current level of R&D expenditure.
Quick answers to the most common questions about buying AMBA stock.
For fiscal year 2026, Ambarella, Inc. (AMBA) reported total revenue of $390.7M. This represents a 446.2% increase compared to $71.5M in 2010.
Ambarella, Inc. (AMBA) reported a net loss of $75.9M for the fiscal year ending 2026.
Ambarella, Inc. (AMBA) reported an operating income of $-82.5M, resulting in an operating profit margin of -21.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Ambarella, Inc. (AMBA) generated $226.5M in gross profit for the year, representing a gross profit margin of 58.0%. This demonstrates the company's core pricing power and production efficiency.