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    AMBQ
    Earnings call· Jun 2026(Q2 FY26)

    Ambiq Micro Q2 FY26 earnings call AMBQ

    Aug 11, 2026 Source

    Executive summary

    Ambiq Micro Q2 FY26 — Edge AI Demand Drives Strong Growth Amidst Supply Constraints

    Ambiq Micro delivered robust Q2 FY26 results, driven by accelerating demand for edge AI solutions across diverse end markets, leading to strong revenue growth and gross margin expansion. The company is actively expanding its product portfolio and investing in next-generation technologies like Atomic, but faces significant industry-wide supply constraints that are limiting its ability to fully capitalize on surging demand. Management remains focused on securing additional capacity and advancing its product roadmap to convert deferred demand into future revenue, while maintaining a growth-oriented investment strategy.

    Highlights

    5

    • Net sales grew approximately 90% year-over-year to $33.9 million, exceeding guidance.

    • Non-GAAP gross profit increased 109.3% year-over-year to $16 million, with gross margin expanding 450 basis points to 47.2%.

    • Successfully raised approximately $168 million in net proceeds from a follow-on offering, strengthening the balance sheet to $366.8 million in cash and cash equivalents.

    • Apollo 5 sales more than doubled year-over-year, with Apollo 3 and Apollo 4 showing double-digit growth.

    • Revenue from medical, industrial, and smart home/building markets is expected to more than double in FY26.

    Concerns

    4

    • Second half FY26 outlook is constrained by available supply across wafers, packaging, substrates, and testing, despite significant demand.

    • Rising cost pressures are being navigated alongside the broader industry, muting some gross margin improvements.

    • Non-GAAP net loss was $1.8 million, and non-GAAP loss per share was $0.07 for the quarter.

    • Operating expenses are expected to jump in Q3 FY26 to $24 million-$25 million, reflecting investments in product development and IP purchases.

    Guidance & targets

    10
    CategoryTargetConfidence
    Q3 FY26 Net Sales
    $36 million to $37 million
    high materiality
    High
    Q3 FY26 Non-GAAP Gross Margin
    46.5% and 47.5%
    medium materiality
    High
    Q3 FY26 Non-GAAP Operating Expense
    $24 million to $25 million
    medium materiality
    High
    Q3 FY26 Non-GAAP Loss Per Share
    20 cents to 12 cents
    high materiality
    High
    Full-year FY26 Net Sales
    approximately $135 million
    high materiality
    High
    Full-year FY26 Net Sales Growth
    double year-over-year
    high materiality
    High
    Full-year FY26 Gross Margin
    modest year-over-year improvement
    medium materiality
    High
    Full-year FY26 Operating Expense
    approximately $85 million
    medium materiality
    High
    Atomic 110 and Apollo 340 Customer Sampling
    early 2027
    high materiality
    High
    Atomic Products Revenue Ramp
    meaningful ramp for Atomic 110 in 2028
    high materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    China
    Sales to end customers in China increased to approximately 14% of total net sales in Q2 FY26, up from 12% in the prior year. The strategy is to engage in customer programs where technology enables higher value edge AI functionality.
    Sales as % of total net sales: 14% (Q2 FY26)Sales as % of total net sales: 12% (Prior year period)
    		————
    Non-largest customers
    Revenue outside of the three largest customers grew 143% year-over-year, indicating broad-based demand.
    		—143%——
    Apollo 3
    Experienced strong performance with double-digit growth.
    		—double digit growth——
    Apollo 4
    Experienced strong performance with double-digit growth.
    		—double digit growth——
    Apollo 5
    Sales more than doubled year-over-year.
    		—more than doubled——
    Medical, Industrial, Smart Home and Building
    Expected to more than double revenue in 2026, becoming a more meaningful contributor to growth and diversification.
    		—expected to more than double——

    Operational metrics

    15
    Non-GAAP Gross Profit
    $16 millionup 109.3% YoY
    Q2 FY26

    Reflects strength of differentiated technology and accelerating edge AI demand.

    Non-GAAP Gross Margin
    47.2%up 450 bps YoY
    Q2 FY26

    Achieved due to favorable product mix and manufacturing improvements, despite cost pressures.

    Non-GAAP R&D Expense
    $11.2 millionup 55.5% YoY
    Q2 FY26

    Increased investments in product development and technology.

    Non-GAAP SG&A Expense
    $8.2 millionup 23.7% YoY
    Q2 FY26

    Driven by higher revenues and public company operational costs.

    Non-GAAP Net Loss
    $1.8 million$4.1 million improvement YoY
    Q2 FY26

    Reflects progress in reducing operating losses.

    Non-GAAP Net Loss Per Share
    $0.07
    Q2 FY26

    Based on weighted average shares outstanding.

    Cash and investments balance
    $366.8 million
    Q2 FY26

    Strong cash position providing financial flexibility.

    Net proceeds from offerings
    $243 million
    YTD FY26

    Total net proceeds from two offerings this year, funding working capital, sales, marketing, and product development.

    Weighted Average Share Count
    24.17 million
    Q3 FY26

    New share count reflecting the follow-on offering in June.

    Net Sales Growth
    89.7%YoY
    Q2 FY26

    Net sales reached $33.9 million, marking the fifth consecutive quarter of sequential growth.

    Customer Programs Growth
    —
    Q2 FY26

    Grew on healthy end-user demand, positive response to customer launches, and continued ramping of newest large customer.

    Wearables Demand
    —
    Q2 FY26

    Seeing demand across all types of wearables, with displayless trackers being a hot new area driven by AI agents in the cloud.

    Product Development Progress
    —
    Q2 FY26

    Good progress, with sales team building a list of customers for the product.

    IP Purchases
    $7 million to $10 million
    FY26

    Included in the full-year operating expense guidance.

    Revenue Growth Driver
    —
    Q2 FY26

    Demand for end customers on a unit basis is exceeding expectations, making units the primary driver of revenue growth.

    Industry KPIs

    8
    MetricValueDetails
    Backlog order bookbacklog tied to next generation product roadmaps
    Ai data center revenuestep change in demand for edge AI
    Fab capacity utilizationtight capacity
    Bookings net order intakeorders continue to exceed initial forecasts
    Design wins socket pipelinecustomer interest remains incredibly strong
    Inventory channel inventorylean inventory across channels
    Node platform ramp scheduleAtomic 110 and Apollo 340 targeted for customer sampling in early 2027
    End market segment revenue mixChina: 14% of total net sales (Q2 FY26), 12% (prior year); Non-largest customers: up 143% YoY; Apollo 3/4: double digit growth; Apollo 5: more than doubled YoY; Medical, Industrial, Smart Home and Building: expected to more than double in 2026%

    Orderbook & backlog

    2
    Backlogtied to next generation product roadmapsQ2 FY26

    for Apollo 330 Plus and Apollo 510 Lite SoC families

    Ordersexceeding initial forecastsQ2 FY26

    reflects underlying end market consumption rather than inventory replenishment

    Product announcements

    8
    ProductTypeDetails
    Apollo 330 Pluslaunch
    Apollo 510 Litelaunch
    Heliocorelaunch
    Compression Kitlaunch
    Helia Profilerlaunch
    Apollo 340roadmap
    Atomic 110roadmap
    Atomic 120roadmap

    Risks & headwinds

    2
    Supply ConstraintsH2 FY26, into 2027

    Second half outlook constrained

    Mitigation: Actively working to secure additional foundry allocations and OSAT capacity; strong partnerships with supply chain partners.

    Rising Cost PressuresQ2 FY26, ongoing

    Muting gross margin improvements

    Mitigation: Making progress on manufacturing costs through yield and test time improvements; balancing pricing.

    What to watch in Q3 FY26

    5

    Easing of Supply Constraints

    next quarter and into 2027
    CurrentSecond half outlook constrained by available supply
    TargetImproved supply flexibility and capacity availability

    Why it matters

    Supply constraints are currently limiting the company's ability to meet surging demand and convert deferred revenue, impacting growth potential.

    Even with these actions, our second half outlook is constrained by available supply, given the significant levels of demand we are seeing. As additional capacity becomes available, we believe we are well positioned to convert this deferred demand into future revenue.

    Q&A highlights

    8

    How much more revenue could Ambiq have achieved in CY26 without supply constraints, and when are these issues expected to ease?

    CEO Fumihide Esaka stated that customer demand is skyrocketing and continues to increase week after week, making it difficult to quantify the exact additional revenue. He noted that supply constraints are expected to persist into 2027, but strong partnerships with suppliers will help meet forecasted demand. He cited an example of a customer's product launch exceeding pre-order expectations by 3-5x, making immediate fulfillment impossible.

    “I cannot put the specific number, but I'm not sure. I must say that a lot of additional demand is coming in week after week. And we believe that this trend will continue not only second half of this year, but even into the 2027.”

    asked by Torres-Vonberg · answered by Fumihide Esaka

    2 min read5 chapters

    Detailed Narrative

    01

    Accelerating Edge AI Demand

    Ambiq Micro is experiencing a significant step change in demand for edge AI solutions, with end-user demand far exceeding expectations. This trend is driving strong performance across all products, including double-digit growth in Apollo 3 and Apollo 4, and Apollo 5 sales more than doubling year-over-year. The company believes this demand reflects underlying end-market consumption, not inventory replenishment, and expects it to strengthen further into the second half of 2026 and 2027.

    02

    Product Innovation and Roadmap

    The company continues to expand its product portfolio with new hardware and software innovations. Recently introduced Apollo 330 Plus and Apollo 510 Lite SoC families are generating strong customer demand and are expected to contribute revenue in Q3 FY26, with customer devices reaching the market early next year. Software enhancements like Heliocore, Compression Kit, and Helia Profiler are accelerating production deployments and improving power efficiency. The next-generation products, Apollo 340, Atomic 110, and Atomic 120, are advancing, with Atomic 110 and Apollo 340 targeted for customer sampling in early 2027, and Atomic 110 expected to see a meaningful revenue ramp in 2028.

    03

    Supply Chain Constraints and Mitigation

    Despite robust demand, Ambiq Micro is navigating increasing supply constraints across wafers, packaging, substrates, and testing, which are impacting its second-half outlook. The company is actively working with supply chain partners to secure additional foundry allocations and OSAT capacity to improve flexibility and support customer demand. Management believes it is well-positioned to convert this deferred demand into future revenue as capacity becomes available, acknowledging that supply constraints will likely persist into 2027.

    04

    Market Diversification and Penetration

    Ambiq is broadening its reach beyond personal devices into medical, industrial, and smart home/building applications. Revenue from these non-wearable markets is expected to more than double in 2026, becoming a more meaningful contributor to growth and diversification. The company sees a huge diversity of use cases in these segments, from wearable neurotechnology and leak detection systems to industrial equipment monitoring, leveraging its ultra-low power SOCs and AI software.

    05

    Financial Strength and Investment Strategy

    The company ended the quarter with a strong cash position of $366.8 million, including $168 million in net proceeds from a successful follow-on offering. This financial flexibility is being used to fund working capital, sales and marketing, and product development, particularly for next-generation products. While focused on growth, the company is making progress in reducing operating losses, driven by higher gross profit dollars and disciplined spending, though profitability is not an immediate focus.

    AI-generated summary of the company’s earnings call. Not investment advice.