Ambiq Micro reported a sharp acceleration in third-quarter sales, driven by demand across its customer base and product lineup, which it attributed to growing interest in edge AI. Gross profit grew faster than revenue and margins improved, but operating expenses also rose substantially; the company remained loss-making.
The chipmaker forecast fourth-quarter sales of $43.5 million to $44.5 million, above the $38.1 million it recorded in the third quarter. Management said it expects another year of strong growth in 2027.
Key details
-
Sales more than doubled year over year. Third-quarter net sales were $38.1 million, up 110% from $18.2 million a year earlier and 12.5% from the second quarter. It was Ambiq’s sixth consecutive quarter of sequential sales growth.
-
Gross profit and margins improved. GAAP gross profit rose 132% year over year to $17.8 million. GAAP gross margin increased to 46.7%, from 42.3% a year earlier and 45.0% in the prior quarter. On a non-GAAP basis, gross profit was $18.6 million, up 128%, and gross margin was 48.7%, up 3.9 percentage points year over year.
-
The customer base broadened. Ambiq said its active customer base grew about 50% year over year. Seven customers each generated more than $1 million in quarterly sales, compared with three in the same quarter last year.
-
Expenses increased as the business expanded. GAAP operating expenses climbed 57% year over year to $27.9 million. Non-GAAP operating expenses rose 73% to $22.8 million. Ambiq reported a GAAP net loss of $7.1 million, compared with a $9.0 million loss a year earlier; its non-GAAP net loss was $1.2 million, versus $4.0 million.
-
Fourth-quarter sales are expected to rise further. Ambiq forecast revenue of $43.5 million to $44.5 million for the quarter ending Dec. 31, 2026.
-
Margin guidance is roughly steady, with cost pressures in view. The company expects fourth-quarter non-GAAP gross margin to be approximately flat with the third quarter. Manufacturing efficiencies and product mix are expected to offset increased supply-chain costs.
-
Product-development spending is set to increase. Ambiq forecast non-GAAP operating expenses of $25.5 million to $26.5 million in the fourth quarter, citing tape-out costs for its Atomiq110 and Apollo340 products and other investments in its development roadmap. It expects a non-GAAP loss per share of 3 cents to 9 cents, based on a weighted average share count of 24.6 million.
-
Software releases expanded its edge-AI development offerings. Ambiq introduced heliaPROFILER and heliaAOT 1.0, marking its seventh AI software launch or major release in 2026.
Plain-English implications
Ambiq’s revenue growth is translating into stronger gross profit and improving gross margins, while the company is still spending heavily and remains unprofitable. Its fourth-quarter outlook points to continued sales growth, with planned product-development costs and supply-chain pressures affecting expenses and margins.