Astera Labs, Inc. Q2 FY2025 earnings call

• Q2 results: Revenue of $191.9 million, up 20% QoQ and 150% YoY. Scorpio P-Series switched to volume production, Aries 6 ramped, Taurus grew. • Rack-scale connectivity vision: Transition to AI Infrastructure 2.0, supporting interconnect protocols like UALink, PCIe, Ethernet, CXL. Utilizes COSMOS software for fleet monitoring. • Partnerships: Collaborated with NVIDIA, Alchip, AMD; announced partnerships to advance AI rack-scale infrastructure. • Growth profile: Expansion of addressable dollar content in AI servers; Scorpio X-Series set to ramp in 2025-2026; UALink as long-term growth vector.

Astera Labs delivered quarterly revenue of $191.9 million in Q2 2025, up 20% from the prior quarter and 150% versus Q2 of last year. Growth was driven by signal conditioning and switch fabric product lines. Scorpio P-Series switches supporting PCIe 6 scale-out applications ramped to volume production, exceeding 10% of total revenue in Q2 and on track to exceed 10% in 2025, becoming the largest product line. Aries product family grew, with Aries 6 solution for PCIe 6 beginning volume ramp. Taurus product family demonstrated strong growth driven by AEC demand. Leo continued to ship in preproduction quantities as customers qualify new systems.

• Q3 2025 revenue expected to be $203 million to $210 million, up 6%-9% QoQ. • Non-GAAP gross margin expected ~75%, non-GAAP operating expenses ~$76 million to $80 million, non-GAAP diluted EPS ~$0.38 to $0.39.

Forward-looking statements subject to risks and uncertainties discussed in SEC filings, including risks affecting actual results differing from forward-looking statements.

Q: Congratulations on the very strong results. Within your Scorpio family of switching products, good to see the strong ramp of Scorpio P this past quarter. Within the same portfolio, it looks like the team is qualified and set to ramp the Scorpio X-Series for XPU to XPU ASIC connectivity. What's been the biggest differentiator?

A: Jitendra Mohan responded that success is rooted in closeness to customers, execution track record, and the use of COSMOS software suite which allows customization and rich diagnostics.

Q: Over the past 90 days, you've put a lot of focus on announcements on scale-up networking connectivity. On UALink, as you mentioned, the team did the Wall Street [teaching] back in May, obviously, the team is a key member of the UALink consortium. Beyond this, like what's been the reception and interest level on UALink?

A: Sanjay Gajendra stated there's tremendous interest with UALink due to technical advantages like low latency and familiarity with transport layer, and it's an open ecosystem with broad availability of components.

Q: Your next question comes from the line of Ross Seymore with Deutsche Bank. A couple of questions and congrats on the strong results and guidance. Maybe to no surprise, I wanted to stay on the Scorpio family. The diversity of engagements is also interesting to me. And as far as you're talking about it as an anchor tenant, I just wondered if you could go into a little bit of the profile of the types of customers, how it's changed from your initial customer. And then perhaps how much incremental business and interest those customers are showing in other products as they realize as well, it's an anchor tenant? Sort of how are you leveraging that Scorpio relationship to bring in more business?

A: Sanjay Gajendra explained that Scorpio P-Series has a broad base of customers for scale-out connectivity, while Scorpio X-Series is an anchor socket with 10-plus customers for scale-up networking, pulling in other products due to COSMOS software unifying products and the need for surrounding components in connectivity platforms.