Ambiq Micro, Inc. Q4 FY2025 earnings call

2025 was a year of strong performance and focused execution for Ambiq. Edge AI adoption was a key growth driver, with over 80% of units shipped in 2025 running AI algorithms. The company expanded its customer base across multiple end markets, launched new products like Apollo 510 Lite, Apollo 510B, and Apollo 330, and introduced Helia AOT and Helia RT AI runtime. In 2026, customers are expected to launch new models with more advanced features across diverse form factors, and the company is accelerating the development of Atomic and Apollo product families. It is also making progress in market expansion across medical, industrial, and smart home markets through partnerships and its integrated hardware and software platform.

2025 was a strong year for Ambiq. In 2025, net sales decreased by 4.7% but non - GAAP gross profit increased by 32.1%, achieving the highest - ever annual gross profit. For the fourth quarter of 2025, net sales were $20.7 million, up 2% year over year. Non - GAAP gross profit was $9.4 million, up 75.5%, and non - GAAP gross margin expanded to 45.5%. For the first quarter of 2026, net sales are expected to be in the range of $21 million to $22 million. Non - GAAP gross margin is between 44% and 45%. Non - GAAP operating expense is 18 million to 18.5 million, and non - GAAP loss per share is 39 cents to 33 cents based on a weighted average share count of 20.38 million shares outstanding.

For the first quarter of 2026, net sales are expected to be in the range of $21 million to $22 million. Non - GAAP gross margin is between 44% and 45%. Non - GAAP operating expense is 18 million to 18.5 million. We see a clear path to strong net sales growth in 2026 driven by new model launches, ramp of a scale global customer, higher volumes from recent customer introductions, and continued adoption of Apollo 5. We expect non - GAAP operating expense will be approximately $30 million higher than 2025, with spending not being linear as it includes headcount increase, contract engineering, and IP purchases which are project - driven.

Q: Congratulations on the nice finish to 2025 and the strong outlook for 2026. Wondering if there's any sort of guidance you can provide around that.

A: Q4 was an inflection point, customer forecast is extremely strong, Q1, Q2, Q3 expected to be extremely strong, and at this point, seeing a path to more than $100 million.

Q: You announced the 12 nanometer spot technology gets down to operating voltage as low as 300 millivolts. How much lower at 300 millivolts would the spot process be than the sort of standard foundry offering at TSMC?

A: Standard operating voltage at 12 nanometers is on the order of 700 millivolts, so spot process is at a fraction of that, giving a significant energy advantage.

Q: Talk a little bit more about some of the applications or end markets that's going to be driving the strong growth in calendar 26.

A: All Apollo family products seeing strong demand for Edge AI, major increase still from wearable customers, but 25% of funnel now includes industrial and medical, etc.

Q: Any more feel for is that going to be first half weighted, second half weighted for OPEX in 2026?

A: OPEX increase of roughly $30 million year over year includes ambic headcount (somewhat linear), contract engineering (project - based, likely more in Q2, Q3), and IP acquisition (majority in Q2, Q3).

Q: In terms of elevated component pricing, are you seeing any impact on demand due to that, and how should we kind of think about the gross margin trajectory through the year?

A: Monitoring industry cost dynamics and supply chain pressures which may temper margin growth.

Q: Any idea in terms of the timing of that new customer ramp in 2026 and size?

A: New customer starting ramp in Q1 and very strong growth quarter after quarter, expected to be even bigger.