Rambus Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 2 February 2026: press release. Guidance figures: 11 new. The quarter’s numbers.

Key takeaways

Record quarterly and annual product revenue: Product revenue was $96.8 million, up from $73.4 million a year earlier. Full-year product revenue was $347.8 million, up 41% from 2024. Source
Revenue rose to $190.2 million: GAAP revenue was $190.2 million against $161.1 million a year earlier. Management said it was above the company's expectations. Licensing billings were $71.5 million. Source
DDR5 leadership and new products: Management attributed the year-over-year product growth to sustained DDR5 RCD leadership and to growing contributions from new products. Source
Record operating cash flow: Cash from operations was $99.8 million in the quarter and $360.0 million for the year, both described as records. Source
Cash and securities grew to $761.8 million: Cash, cash equivalents and marketable securities were $761.8 million, up $88.5 million from September 30, mainly from operating cash flow. Source
Billings guided at $66 to $72 million: Management expects first-quarter 2026 licensing billings between $66 million and $72 million, against $71.5 million in the fourth quarter. Source
Operating cost ranges on GAAP and non-GAAP: GAAP operating costs and expenses are expected between $121 million and $117 million, and non-GAAP between $104 million and $100 million. Source
Other first-quarter assumptions stated: Management assumed a 16% tax rate, a 110 million diluted share count, and exclusions of $15 million stock-based compensation and $2 million amortization. Source

“2025 was a record-breaking year for Rambus, delivering strong growth in revenue and earnings, and new quarterly and annual highs for product revenue and cash from operations,”
Luc Seraphin, president and chief executive officer of Rambus

Guidance

Area	Period	Figure	Against last quarter
Licensing billings (operational metric) Source	first quarter 2026	$66 - $72 million	New
Royalty revenue Source	first quarter 2026	$61 - $67 million	New
Product revenue (GAAP) Source	first quarter 2026	$84 - $90 million	New
Contract and other revenue (GAAP) Source	first quarter 2026	$21 - $27 million	New
Total operating costs and expenses (GAAP) Source	first quarter 2026	$121 - $117 million	New
Total operating costs and expenses (non-GAAP) Source	first quarter 2026	$104 - $100 million	New
Interest and other income (expense), net Source	first quarter 2026	$6 million	New
Diluted share count Source	first quarter 2026	110 million	New
Tax rate assumption Source	first quarter 2026	16%	New
Stock-based compensation excluded from non-GAAP Source	first quarter 2026	$15 million	New
Amortization of acquired intangible assets excluded from non-GAAP Source	first quarter 2026	$2 million	New

What changed from last quarter

New guidance: First-quarter 2026 expectations given for billings, revenue lines, costs, interest income and share count. Source
New: Tax rate assumption for the new expectations is 16%, against 20% in the prior quarter's expectations. Source
Ended: Fourth-quarter 2025 expectations from the prior release are replaced by first-quarter 2026 expectations.

Record year and fourth quarter

Record quarterly and annual product revenue: Product revenue was $96.8 million, up from $73.4 million a year earlier. Full-year product revenue was $347.8 million, up 41% from 2024. Source
Revenue rose to $190.2 million: GAAP revenue was $190.2 million against $161.1 million a year earlier. Management said it was above the company's expectations. Licensing billings were $71.5 million. Source
Full-year earnings reached record levels: Full-year GAAP net income was $230.5 million and diluted EPS $2.11, against $179.8 million and $1.65 in 2024. Source
Non-GAAP earnings per share rose: Non-GAAP diluted EPS was $0.68 against $0.55. GAAP diluted EPS was $0.58, the same as a year earlier. Source
Operating income rose with revenue: GAAP operating income was $70.8 million, a 37% margin, against $57.9 million. Non-GAAP operating income was $87.0 million, a 46% margin. Source

Products, royalties and contract revenue

DDR5 leadership and new products: Management attributed the year-over-year product growth to sustained DDR5 RCD leadership and to growing contributions from new products. Source
Royalties rose to $71.6 million: Royalty revenue was $71.6 million against $58.2 million a year earlier. Full-year royalties were $279.4 million against $226.2 million. Source
Contract and other revenue declined: Contract and other revenue was $21.8 million against $29.5 million a year earlier. Full-year contract and other revenue was $80.5 million against $83.6 million. Source

“Our sustained leadership in DDR5 RCDs and growing contributions from new products drove substantial year-over-year product growth.”
Luc Seraphin, president and chief executive officer of Rambus

Costs, margins and tax

Product cost of revenue rose: GAAP cost of product revenue was $37.3 million against $28.5 million. Non-GAAP cost of product revenue was $37.2 million against $28.3 million. Source
Operating expenses rose year over year: GAAP operating expenses were $79.2 million against $71.7 million. Non-GAAP operating expenses were $64.9 million against $60.1 million. Source
Stock-based compensation excluded from non-GAAP: Stock-based compensation was $14.4 million in the quarter. The company excludes it from non-GAAP measures as a non-cash expense. Source
Tax provision rose on legislation: The provision for income taxes was $13.4 million, higher than a year earlier, partly due to tax legislation enacted in the third quarter of 2025. Source

Cash, capital and share count

Record operating cash flow: Cash from operations was $99.8 million in the quarter and $360.0 million for the year, both described as records. Source
Cash and securities grew to $761.8 million: Cash, cash equivalents and marketable securities were $761.8 million, up $88.5 million from September 30, mainly from operating cash flow. Source
Capital expenditures stayed at $8.6 million: Capital expenditures were $8.6 million in the quarter, paid from cash on hand alongside operating cash flow. Source
Diluted share count at 110 million: Basic shares were 108 million and diluted shares were 110 million for the quarter. Source

“With a robust roadmap and deep expertise aligned to the secular trends transforming data center and AI, we are well positioned to meet industry needs and drive long‑term profitable growth.”
Luc Seraphin, president and chief executive officer of Rambus

First quarter 2026 expectations

Billings guided at $66 to $72 million: Management expects first-quarter 2026 licensing billings between $66 million and $72 million, against $71.5 million in the fourth quarter. Source
Product, royalty and contract ranges given: Product revenue, royalty revenue and contract and other revenue expectations were given as ranges for the first quarter of 2026. Source
Operating cost ranges on GAAP and non-GAAP: GAAP operating costs and expenses are expected between $121 million and $117 million, and non-GAAP between $104 million and $100 million. Source
Other first-quarter assumptions stated: Management assumed a 16% tax rate, a 110 million diluted share count, and exclusions of $15 million stock-based compensation and $2 million amortization. Source

Strategy and product roadmap

Roadmap tied to data center and AI: Management described a robust roadmap and deep expertise aimed at data center and AI trends, with a stated aim of long-term profitable growth. Source

Risks management discussed

Demand: Management said achieving the first-quarter revenue range requires signing customer agreements for product sales and solutions licensing, among other matters. Source
Regulatory: Management tied part of the higher tax provision to tax legislation enacted in the third quarter of 2025. Source

Earlier plans management reported on

On track: The prior release said the company was on track for this. The current release reports full-year product revenue up 41%, without a market comparison.
Ahead: Management said fourth-quarter GAAP revenue was above its expectations. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

RAMBUS REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 FINANCIAL RESULTS

Achieved record 2025 revenue and earnings results

Delivered record quarterly product revenue of $96.8 million, fueling record annual product revenue of $347.8 million, up 41% from 2024

Generated record quarterly and annual cash from operations of $99.8 million and $360.0 million, respectively

SAN JOSE, Calif. - February 2, 2026 - Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the fourth quarter ended December 31, 2025. GAAP revenue for the fourth quarter was $190.2 million, licensing billings were $71.5 million, product revenue was $96.8 million, and contract and other revenue was $21.8 million. The Company also generated $99.8 million in cash from operating activities in the fourth quarter.

“2025 was a record-breaking year for Rambus, delivering strong growth in revenue and earnings, and new quarterly and annual highs for product revenue and cash from operations,” said Luc Seraphin, president and chief executive officer of Rambus. “Our sustained leadership in DDR5 RCDs and growing contributions from new products drove substantial year-over-year product growth. With a robust roadmap and deep expertise aligned to the secular trends transforming data center and AI, we are well positioned to meet industry needs and drive long‑term profitable growth.”

	GAAP		Non-GAAP
Quarterly Financial Review	Three Months Ended December 31,		Three Months Ended December 31,
(In millions, except for percentages and per share amounts)	2025	2024	2025	2024
Revenue
Product revenue	$96.8	$73.4	$96.8	$73.4
Royalties	71.6	58.2	71.6	58.2
Contract and other revenue	21.8	29.5	21.8	29.5
Total revenue	190.2	161.1	190.2	161.1
Cost of product revenue	37.3	28.5	37.1	28.3
Cost of contract and other revenue	1.2	0.7	1.2	0.7
Amortization of acquired intangible assets (included in total cost of revenue)	1.7	2.3	-	-
Total operating expenses	79.2	71.7	64.9	60.1
Operating income	$70.8	$57.9	$87.0	$72.0
Operating margin	37%	36%	46%	45%
Net income	$63.8	$62.2	$74.7	$59.6
Diluted net income per share	$0.58	$0.58	$0.68	$0.55
Licensing billings (operational metric)	$71.5	$63.6	$71.5	$63.6

See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below. Note that the applicable non-GAAP measures are presented and that revenue and cash provided by operating activities are solely presented on a GAAP basis. Additionally, licensing billings is presented as an operational metric, which is defined below.

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.

GAAP revenue for the quarter was $190.2 million, which was above the Company's expectations. The Company also had licensing billings of $71.5 million, product revenue of $96.8 million, and contract and other revenue of $21.8 million. The Company had total GAAP cost of revenue of $40.2 million and operating expenses of $79.2 million. The Company also had total non-GAAP operating expenses of $103.2 million (including non-GAAP cost of revenue of $38.3 million). The Company’s provision for income taxes for the three months ended December 31, 2025 of $13.4 million was significantly higher than in the same period in 2024 partially due to the tax legislation enacted in the third quarter of 2025. The Company had GAAP diluted net income per share of $0.58 and non-GAAP diluted net income per share of $0.68. The Company’s basic share count was 108 million shares and its diluted share count was 110 million shares.

Cash, cash equivalents, and marketable securities as of December 31, 2025 were $761.8 million, an increase of $88.5 million as compared to September 30, 2025, mainly due to $99.8 million in cash provided by operating activities, offset by $8.6 million paid for capital expenditures.

2026 First Quarter Outlook

The Company will discuss its full revenue guidance for the first quarter of 2026 during its upcoming conference call. The following table sets forth the first quarter outlook for other measures.

(In millions)	GAAP	Non-GAAP
Licensing billings (operational metric)	$66 - $72	$66 - $72
Product revenue (GAAP)	$84 - $90	$84 - $90
Contract and other revenue (GAAP)	$21 - $27	$21 - $27
Total operating costs and expenses	$121 - $117	$104 - $100
Interest and other income (expense), net	$6	$6
Diluted share count	110	110

See “Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates” table included below.

For the first quarter of 2026, the Company expects licensing billings to be between $66 million and $72 million. The Company also expects royalty revenue to be between $61 million and $67 million, product revenue to be between $84 million and $90 million, and contract and other revenue to be between $21 million and $27 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters.

The Company also expects operating costs and expenses to be between $121 million and $117 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $104 million and $100 million. These expectations also assume a tax rate of 16% and a diluted share count of 110 million, and exclude stock-based compensation expense of $15 million and amortization of acquired intangible assets of $2 million.

Conference Call

The Company’s management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be audio, slides will be available online at investor.rambus.com, and a replay will be available for the next week at the following numbers: (866) 813-9403 (domestic) or (+1) 929-458-6194 (international) with ID# 958497.

Non-GAAP Financial Information

In the commentary set forth above and in the financial statements included in this earnings release, the Company presents the following non-GAAP financial measures: cost of product revenue, operating expenses, operating income, operating margin, net income and diluted net income per share. In computing each of these non-GAAP financial measures, the following items were considered as discussed below: stock-based compensation expense, acquisition-related costs and retention bonus expense, amortization of acquired intangible assets, income tax adjustment, and certain other one-time adjustments. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company’s performance compares to other periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release.

The Company’s non-GAAP financial measures reflect adjustments based on the following items:

Stock-based compensation expense. These expenses primarily relate to employee stock purchase plans, and employee non-vested equity stock and non-vested stock units. The Company excludes stock-based compensation expense from its non-GAAP measures primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results. Additionally, given the fact that other companies may grant different amounts and types of equity awards and may use different option valuation assumptions, excluding stock-based compensation expense permits more accurate comparisons of the Company’s results with peer companies.

Acquisition-related costs and retention bonus expense. These expenses include all direct costs of certain acquisitions and the current periods’ portion of any retention bonus expense associated with the acquisitions. The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s operations.

Amortization of acquired intangible assets. The Company incurs expenses for the amortization of intangible assets acquired in acquisitions. The Company excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company’s prior acquisitions and have no direct correlation to the operation of the Company’s core business.

Income tax adjustment. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 20 percent and 22 percent for 2025 and 2024, respectively, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company’s planning.

On occasion in the future, there may be other items, such as significant gains or losses from contingencies, that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management.

About Rambus Inc.

Rambus delivers industry-leading chips and silicon IP for the data center and AI infrastructure. With over three decades of advanced semiconductor experience, our products and technologies address the critical bottlenecks between memory and processing to accelerate data-intensive workloads. By enabling greater bandwidth, efficiency and security across next-generation computing platforms, we make data faster and safer. For more information, visit rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus’ expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, product and investment strategies, and the Company’s outlook and financial guidance for the first quarter of 2026 and related drivers, and the Company’s ability to effectively manage market challenges. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by the Company’s management. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)	December 31, 2025	December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$182,826	$99,775
Marketable securities	579,005	382,023
Accounts receivable	137,476	122,813
Unbilled receivables	25,209	25,070
Inventories	44,098	44,634
Prepaids and other current assets	20,202	15,942
Total current assets	988,816	690,257
Intangible assets, net	10,171	17,059
Goodwill	286,812	286,812
Property and equipment, net	113,051	75,509
Operating lease right-of-use assets	17,112	21,454
Deferred tax assets	105,542	136,466
Income taxes receivable	3,282	109,947
Other assets	4,759	5,632
Total assets	$1,529,545	$1,343,136
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$35,915	$18,522
Accrued salaries and benefits	22,044	19,193
Deferred revenue	29,980	19,903
EDA tools software licenses liability	14,884	8,438
Operating lease liabilities	6,310	5,617
Other current liabilities	11,441	10,139
Total current liabilities	120,574	81,812
Long-term operating lease liabilities	18,671	24,534
Long-term income taxes payable	1,393	109,383
Long-term EDA tools software licenses liability	20,908	1,588
Other long-term liabilities	3,574	5,127
Total long-term liabilities	44,546	140,632
Total stockholders’ equity	1,364,425	1,120,692
Total liabilities and stockholders’ equity	$1,529,545	$1,343,136

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended December 31,		Years Ended December 31,
(In thousands, except per share amounts)	2025	2024	2025	2024
Revenue:
Product revenue	$96,778	$73,369	$347,754	$246,815
Royalties	71,676	58,211	279,378	226,172
Contract and other revenue	21,790	29,522	80,498	83,637
Total revenue	190,244	161,102	707,630	556,624
Cost of revenue:
Cost of product revenue	37,342	28,494	134,681	95,875
Cost of contract and other revenue	1,148	721	2,856	3,028
Amortization of acquired intangible assets	1,720	2,300	6,878	11,204
Total cost of revenue	40,210	31,515	144,415	110,107
Gross profit	150,034	129,587	563,215	446,517
Operating expenses:
Research and development	49,246	43,698	187,708	162,881
Sales, general and administrative	29,961	27,998	115,289	104,094
Amortization of acquired intangible assets	-	30	-	506
Impairment of assets	-	-	-	1,071
Change in fair value of earn-out liability	-	-	-	(5,044)
Total operating expenses	79,207	71,726	302,997	263,508
Operating income	70,827	57,861	260,218	183,009
Interest income and other income (expense), net	6,700	4,796	23,111	18,450
Interest expense	(320)	(352)	(1,373)	(1,416)
Interest and other income (expense), net	6,380	4,444	21,738	17,034
Income before income taxes	77,207	62,305	281,956	200,043
Provision for income taxes	13,367	103	51,501	20,222
Net income	$63,840	$62,202	$230,455	$179,821
Net income per share:
Basic	$0.59	$0.58	$2.14	$1.67
Diluted	$0.58	$0.58	$2.11	$1.65
Weighted-average shares used in per share calculations:
Basic	107,742	106,716	107,548	107,438
Diluted	109,724	108,082	109,235	109,041

Supplemental Reconciliation of GAAP to Non-GAAP Results

(Unaudited)

	Three Months Ended December 31,
(In thousands, except for per share amounts)	2025	2024
Cost of product revenue	$37,342	$28,494
Adjustment:
Stock-based compensation expense	(176)	(172)
Non-GAAP cost of product revenue	$37,166	$28,322
Total operating expenses	$79,207	$71,726
Adjustments:
Stock-based compensation expense	(14,269)	(11,563)
Acquisition-related costs and retention bonus expense	-	(22)
Amortization of acquired intangible assets	-	(30)
Non-GAAP total operating expenses	$64,938	$60,111
Operating income	$70,827	$57,861
Adjustments:
Stock-based compensation expense	14,445	11,735
Acquisition-related costs and retention bonus expense	-	22
Amortization of acquired intangible assets	1,720	2,330
Non-GAAP total operating income	$86,992	$71,948
Net income	$63,840	$62,202
Stock-based compensation expense	14,445	11,735
Acquisition-related costs and retention bonus expense	-	22
Amortization of acquired intangible assets	1,720	2,330
Income tax adjustment	(5,307)	(16,703)
Non-GAAP net income	$74,698	$59,586
Non-GAAP diluted net income per share	$0.68	$0.55
Weighted-average shares used in non-GAAP diluted per share calculation	109,724	108,082

Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates

(Unaudited)

2026 First Quarter Outlook	Three Months Ended March 31, 2026
(In millions)	Low	High
Forward-looking operating costs and expenses	$121	$117
Adjustments:
Stock-based compensation expense	(15)	(15)
Amortization of acquired intangible assets	(2)	(2)
Forward-looking Non-GAAP operating costs and expenses	$104	$100

Contacts
Desmond Lynch
Senior Vice President, Finance and Chief Financial Officer
(408) 462-8000 dlynch@rambus.com
Source: Rambus Inc.