Ambarella reported QQ4 2025 revenue of $84.0 million, marking a 62.8% year-over-year uplift and 1.65% growth sequentially. The gross margin stood at 60.9%, contributing a gross profit of $51.14 million, underscoring the high-value mix of the company’s video processing and AI-enabled semiconductor solutions. However, the company remained unprofitable at the operating and net levels, posting an operating loss of $25.35 million and a net loss of $20.23 million, driven by ongoing investment in research and development and selling/general administration expenses, as well as stock-based compensation and amortization-related costs.
From a cash-flow perspective, Ambarella generated operating cash flow of $25.43 million and free cash flow of $21.25 million in QQ4 2025, supported by working capital movements and non-cash amortization. The balance sheet exhibits a robust liquidity position with cash and cash equivalents of about $144.62 million and short-term investments of $105.64 million, producing total near-term liquidity well in excess of current liabilities. The company carried very modest debt (~$5.27 million) and ended the period with a net cash position of roughly $-139.36 million in net debt terms, indicating substantial financial flexibility to fund R&D and product development investments while pursuing strategic opportunities.
Looking ahead, Ambarella benefits from a favorable gross margin profile and a diversified end-market exposure (autonomous driving/ADAS, driver monitoring, security cameras, robotics, and other AI-enabled video applications). The near-term profitability challenge arises from continued investment in product development, go-to-market expansion, and the cost structure required to scale design wins across multiple verticals. Management commentary (where available) emphasizes AI vision processing, edge compute capabilities, and the potential for new design wins, though explicit quarterly guidance was not disclosed in the data provided. Investors should monitor progress toward operating leverage, design-win cycle timing in automotive and security markets, and any shifts in customer concentration or supply-chain dynamics. Overall, the company’s strong liquidity position and improving cash generation support a constructive long-term view, contingent on meaningful advances toward sustained profitability and revenue diversification.