📊 AMBA Key Takeaways
Is Ambarella Inc. (AMBA) a Good Investment?
Ambarella demonstrates strong top-line growth of 37.2% YoY with healthy 58.4% gross margins, indicating viable products and market demand. However, the company is burning cash operationally (-$25.6M) and posting net losses (-$18.1M) despite revenue expansion, signaling severe profitability execution challenges. While the balance sheet provides near-term runway ($114.4M cash, no debt), the inability to convert rapid growth into positive cash flows or operating profitability represents unsustainable dynamics requiring immediate operational restructuring.
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.
Ambarella Inc. Key Strengths (AMBA)
- Strong revenue growth of 37.2% YoY demonstrates market traction and demand
- Healthy gross margin of 58.4% indicates strong product unit economics and pricing power
- Fortress balance sheet with $114.4M cash, zero long-term debt, and 2.43x current ratio provides financial cushion
- 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
- Negative operating cash flow (-$25.6M) and free cash flow (-$29.6M) despite revenue growth signal unsustainable cost structure and cash burn
- Operating losses (-$19.4M) and net losses (-$18.1M) indicate the company cannot monetize revenue at scale; expansion is destroying shareholder value
- Negative ROE (-3.0%) and ROA (-2.3%) reflect capital inefficiency; the company is deploying equity capital destructively rather than productively
- 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
- Operating cash flow trend—path to positive operating cash generation is critical
- Operating margin progression—must show improvement toward break-even and profitability within 2-4 quarters
- Cash burn rate relative to cash reserves—estimate runway and risk of capital raise or restructuring
- Operating margin trend
- Free cash flow consistency
Ambarella Inc. (AMBA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.43x 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 |
|---|---|---|---|
| Q1 2027 | $85.9M | -$18.1M | $-0.41 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMBA's key strengths?
Claude: Strong revenue growth of 37.2% YoY demonstrates market traction and demand. Healthy gross margin of 58.4% indicates strong product unit economics and pricing power. 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: Negative operating cash flow (-$25.6M) and free cash flow (-$29.6M) despite revenue growth signal unsustainable cost structure and cash burn. Operating losses (-$19.4M) and net losses (-$18.1M) indicate the company cannot monetize revenue at scale; expansion is destroying shareholder value. 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 $100.4M.
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 $-0.41.
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 grade reflects both perspectives for balanced insights.
What is AMBA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ambarella Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AMBA stock overvalued or undervalued?
Valuation metrics for AMBA: ROE of -3.0% (sector avg: 22%), net margin of -18.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AMBA's AI grade for 2026?
Our dual AI analysis gives Ambarella Inc. a combined C grade 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 $-25.6M, with capital expenditures of $4.0M. FCF margin is -29.5%.
How does AMBA compare to other Technology stocks?
Vs Technology sector averages: Net margin -18.0% (avg: 18%), ROE -3.0% (avg: 22%), current ratio 2.43 (avg: 2.5).