Ambiq Micro — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 110% year-over-year to $38.1 million for the quarter ended September 30, 2026, compared to $18.2 million in the prior year period.
• GAAP gross profit rose 132% year-over-year to $17.8 million, while non-GAAP gross profit increased 128% to $18.6 million.
• GAAP gross margin expanded 440 basis points year-over-year to 46.7%, and non-GAAP gross margin expanded 390 basis points to 48.7%.
• Operating expenses increased 57.2% year-over-year to $27.9 million, driven by a 16.1% sequential increase.
• GAAP net loss was $7.1 million for the quarter, compared to a $9.0 million loss in the same period last year.
• Non-GAAP net loss narrowed to $1.2 million for the quarter, compared to a $4.0 million loss year-over-year.
• Cash and cash equivalents increased to $363.5 million as of September 30, 2026, from $140.3 million at December 31, 2025.
• Total stockholders' equity grew to $405.4 million from $162.5 million at the end of 2025.
• Inventories increased to $30.1 million from $16.9 million at the end of 2025.

Guidance and Future Outlook:

• Fourth quarter 2026 net sales are expected to range between $43.5 million and $44.5 million, reflecting accelerating demand for edge AI.
• Non-GAAP gross margin for Q4 2026 is projected to be approximately flat to Q3 2026 levels, as manufacturing efficiencies and product mix offset increased supply chain cost pressures.
• Non-GAAP operating expenses for Q4 2026 are forecasted between $25.5 million and $26.5 million, reflecting costs associated with Atomiq110 and Apollo340 tape-outs and other product development investments.
• Non-GAAP net loss per share for Q4 2026 is expected to range from ($0.09) to ($0.03), based on a weighted average share count of 24.6 million.
• Management anticipates another year of strong growth in 2027.

Business Segments and Product Lines:

• The active customer base expanded approximately 50% year-over-year, with seven customers generating more than $1 million in quarterly net sales, up from three in the prior year quarter.
• Net sales growth was broad-based across customers, product families, and form factors.
• Ambiq launched heliaPROFILER and heliaAOT 1.0, the seventh AI software product launch or major release in 2026, to support the HELIA AI ecosystem.
• The company has shipped more than 300 million devices worldwide.

Market and Competitive Landscape:

• Demand for edge AI is accelerating, driving the company's growth trajectory.
• Ambiq positions itself as a technology leader in ultra-low-power semiconductor solutions for edge AI, utilizing its patented Subthreshold Power Optimized Technology (SPOT) platform.
• The company serves customers globally across healthcare, wearables, industrial automation, and smart environments.

Risks and Challenges:

• Supply chain cost pressures are expected to impact margins, though partially offset by manufacturing efficiencies and product mix.
• Forward-looking statements are subject to risks, uncertainties, and assumptions, including variations in actual results compared to guidance.
• Specific risk factors are detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2025, and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

Management Commentary and Tone:

• CEO Fumihide Esaka stated the company delivered its sixth consecutive quarter of sequential net sales growth supported by healthy customer demand and strong supply chain partnerships.
• Management expressed confidence that the company is in the early stages of a significant, multi-year shift toward greater intelligence at the edge.
• The CEO noted that with differentiated technology, a growing portfolio, and an expanding customer base, Ambiq is well-positioned to capture significant opportunities ahead.

Other Key Points:

• The company raised $245.5 million from the issuance of common stock in connection with follow-on offerings during the nine months ended September 30, 2026.
• Proceeds from the exercise of stock options totaled $9.9 million, and proceeds from the exercise of warrants totaled $3.0 million for the same nine-month period.
• Stock-based compensation expense was $10.9 million for the nine months ended September 30, 2026, compared to $3.7 million in the prior year period.
• The company hosts a conference call for analysts and investors at 8:30 a.m. Eastern Time on November 10, 2026.