📊 AMBA Key Takeaways
Is Ambarella Inc. (AMBA) a Good Investment?
Ambarella demonstrates strong revenue growth of 25.8% YoY and maintains excellent gross margins of 59.5%, indicating solid core business demand and pricing power. However, the company is currently unprofitable with significant operating losses (-22.1% margin) and negative net income, suggesting operational challenges that offset the positive revenue momentum. The strong balance sheet with $174.1M cash, healthy liquidity ratios, and positive free cash flow of $43.0M provide a financial buffer, but sustained operating losses require operational improvements before a more constructive stance is warranted.
Ambarella shows solid top-line momentum, with revenue up 25.8% YoY and a strong 59.5% gross margin, indicating its products retain pricing power and underlying demand. Its balance sheet is strong, with substantial cash, no long-term debt, and positive free cash flow, but the business still carries meaningful operating and net losses, which keeps the fundamental picture mixed until expense leverage improves.
Why Buy Ambarella Inc. Stock? AMBA Key Strengths
- Strong revenue growth of 25.8% YoY indicates healthy market demand for semiconductor solutions
- Excellent gross margin of 59.5% demonstrates pricing power and efficient manufacturing
- Strong balance sheet with $174.1M cash, 2.66x current ratio, and zero long-term debt provides financial flexibility
- Positive free cash flow of $43.0M despite net losses shows underlying business cash generation ability
- Revenue growth is strong at 25.8% YoY, suggesting improving demand and business momentum
- Gross margin of 59.5% and free cash flow margin of 14.8% indicate solid underlying unit economics
- Balance sheet is healthy with $174.06M in cash, no long-term debt, and strong liquidity ratios
AMBA Stock Risks: Ambarella Inc. Investment Risks
- Significant operating losses of -$64.1M and negative net margin of -20.5% indicate major profitability challenges
- Negative ROE and ROA suggest inefficient capital deployment despite revenue growth
- Unprofitable operations cannot be sustained long-term; company must demonstrate path to positive operating income
- High insider trading activity (13 Form 4 filings in 90 days) warrants monitoring for potential distress signals
- Operating margin of -22.1% and net margin of -20.5% show the company is still not sustainably profitable
- Negative ROE and ROA indicate capital is not yet generating positive earnings returns
- Growth quality depends on management converting revenue growth into operating leverage rather than continued losses
Key Metrics to Watch
- Path to operating profitability and operating margin expansion
- Sustainability of 25.8% revenue growth and potential gross margin compression
- Operating cash flow trend relative to capital expenditures and free cash flow generation
- Operating expense reduction initiatives and efficiency improvements
- Cash burn rate and runway given current cash position and losses
- Operating margin trend
- Free cash flow consistency
Ambarella Inc. (AMBA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.66x current ratio provides a solid financial cushion.
AMBA Profit Margin, ROE & Profitability Analysis
AMBA vs Technology Sector: How Ambarella Inc. Compares
How Ambarella Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ambarella Inc. Stock Overvalued? AMBA Valuation Analysis 2026
Based on fundamental analysis, Ambarella Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ambarella Inc. Balance Sheet: AMBA Debt, Cash & Liquidity
AMBA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ambarella Inc.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.25 indicates the company is currently unprofitable.
AMBA Revenue Growth, EPS Growth & YoY Performance
AMBA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $82.7M | -$15.1M | $-0.35 |
| Q2 2026 | $63.7M | -$20.0M | $-0.47 |
| Q3 2025 | $50.6M | -$24.1M | $-0.58 |
| Q2 2025 | $62.1M | -$31.2M | $-0.79 |
| Q1 2025 | $54.5M | -$24.3M | $-0.58 |
| Q3 2024 | $50.6M | -$10.8M | $-0.51 |
| Q2 2024 | $62.1M | -$10.8M | $-0.62 |
| Q1 2024 | $62.1M | -$10.8M | $-0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ambarella Inc. Dividends, Buybacks & Capital Allocation
AMBA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ambarella Inc. (CIK: 0001280263)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AMBA
What is the AI rating for AMBA?
Ambarella Inc. (AMBA) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMBA's key strengths?
Claude: Strong revenue growth of 25.8% YoY indicates healthy market demand for semiconductor solutions. Excellent gross margin of 59.5% demonstrates pricing power and efficient manufacturing. ChatGPT: Revenue growth is strong at 25.8% YoY, suggesting improving demand and business momentum. Gross margin of 59.5% and free cash flow margin of 14.8% indicate solid underlying unit economics.
What are the risks of investing in AMBA?
Claude: Significant operating losses of -$64.1M and negative net margin of -20.5% indicate major profitability challenges. Negative ROE and ROA suggest inefficient capital deployment despite revenue growth. ChatGPT: Operating margin of -22.1% and net margin of -20.5% show the company is still not sustainably profitable. Negative ROE and ROA indicate capital is not yet generating positive earnings returns.
What is AMBA's revenue and growth?
Ambarella Inc. reported revenue of $289.8M.
Does AMBA pay dividends?
Ambarella Inc. does not currently pay dividends.
Where can I find AMBA SEC filings?
Official SEC filings for Ambarella Inc. (CIK: 0001280263) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMBA's EPS?
Ambarella Inc. has a diluted EPS of $-1.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AMBA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ambarella Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AMBA stock overvalued or undervalued?
Valuation metrics for AMBA: ROE of -10.1% (sector avg: 22%), net margin of -20.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy AMBA stock in 2026?
Our dual AI analysis gives Ambarella Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AMBA's free cash flow?
Ambarella Inc.'s operating cash flow is $54.6M, with capital expenditures of $11.6M. FCF margin is 14.8%.
How does AMBA compare to other Technology stocks?
Vs Technology sector averages: Net margin -20.5% (avg: 18%), ROE -10.1% (avg: 22%), current ratio 2.66 (avg: 2.5).