Key Highlights

  • Ambarella reported first-quarter fiscal 2027 Revenue of $100.4 million, up 16.9% from $85.9 million a year earlier.
  • The net loss narrowed to $18.1 million, or $0.41 per share, from $24.3 million, or $0.58 per share.
  • Net cash used in Operating Activities was $25.6 million, compared with $14.8 million provided a year earlier.

The latest filing

Ambarella (NASDAQ:AMBA) is a semiconductor company. Its fiscal year ends on 31 January, and the most recent official figures are in its Quarterly Report for the first quarter of fiscal 2027, which ended 30 April 2026 and was filed on 2 June. No later results release, including for the quarter to 31 July, has been identified, so this article does not describe it.

Revenue and margins

Revenue was $100.4 million, up 16.9% from $85.9 million in the same quarter a year earlier. Gross Profit was $58.6 million, a Margin of about 58.4%, compared with about 60.0% a year earlier, so margin slipped by roughly 1.6 percentage points even as sales grew. SEC data show revenue of $95.5 million for the quarter to 31 July 2025 and $108.5 million for the quarter to 31 October 2025.

Research and development expenses were $58.1 million, slightly lower than $58.8 million. Selling, general and administrative expenses rose to $19.9 million from $18.6 million. Total operating expenses were $78.0 million, almost unchanged from $77.4 million.

Smaller losses, negative cash flow

Because revenue grew while costs were stable, the loss from operations narrowed to $19.4 million from $25.9 million. The net loss was $18.1 million, or $0.41 per share, against $24.3 million, or $0.58 per share, a year earlier. Weighted average shares were about 43.6 million.

Cash flow moved the other way. Net cash used in operating activities was $25.6 million, compared with $14.8 million provided a year earlier. Cash and cash equivalents were $114.4 million at 30 April 2026, and current marketable Debt securities were $163.4 million. Cash and equivalents were lower than the $141.3 million at 30 April 2025. About $5.3 million of software licences were purchased in the quarter, per the filing. The filing also reports $21.9 million of share-based compensation, down from $26.1 million, with about $169.6 million of unrecognised compensation cost expected to be recognised over a weighted average of 2.45 years.

Customers, a terminated project and buybacks

The filing says a substantial portion of revenue flows through WT Microelectronics Co., Ltd., formerly Wintech, which is a customer concentration. It also reports a subsequent event: on 12 May 2026 the company terminated a development project with a customer and agreed to refund $4.5 million of a $13.5 million development deposit.

During the quarter Ambarella repurchased 47,798 shares for about $2.4 million, with about $45.6 million remaining under the programme through 30 June 2026.

Reading the numbers and what to watch

The picture is one of improving Operating Leverage alongside softer gross margin and negative operating cash flow. A 16.9% rise in revenue produced a loss that was roughly a quarter smaller at the operating line, since operating expenses were almost flat. The filing does not explain the cash outflow in the sections reviewed.

Points to watch include revenue growth against the 16.9% rate, whether gross margin recovers toward 60%, whether operating expenses stay near $78 million, and whether Operating Cash Flow turns positive. Later filings may also describe the terminated project and customer concentration.