Rambus Inc. released its financial results for the first quarter ending March 31, 2025, showcasing impressive growth and performance metrics. The company reported a total GAAP revenue of $166.7 million, with product revenue reaching a record $76.3 million—an increase of 52% compared to the previous year. Additionally, licensing billings amounted to $73.3 million, and contract and other revenue was $16.4 million. Cash from operating activities was notably strong at $77.4 million.
Key Financial Highlights
- GAAP Revenue: $166.7 million
- Licensing Billings: $73.3 million
- Product Revenue: $76.3 million
- Contract and Other Revenue: $16.4 million
- Cash from Operations: $77.4 million
CEO Luc Seraphin attributed the company’s performance to strategic execution and a solid business model, stating, “We had an excellent start to 2025, exceeding revenue and earnings expectations for Q1 with robust cash from operations and record product revenue from memory interface chips. Our leadership in core DDR5 chip products and advancements in new products position us favorably for long-term growth.”
Financial Overview
The total GAAP cost of revenue was $32.9 million, while operating expenses reached $70.7 million. Non-GAAP operating expenses totaled $90.4 million, which included non-GAAP cost of revenue of $31.0 million. The diluted net income per share stood at $0.56, based on a diluted share count of 109 million shares and a basic share count of 107 million shares.
As of March 31, 2025, Rambus reported $514.4 million in cash, cash equivalents, and marketable securities, reflecting a $32.6 million increase since December 31, 2024. This growth was mainly attributed to the cash generated from operations, despite significant payments for taxes on restricted stock units and property acquisitions.
Outlook for the Second Quarter of 2025
For Q2 2025, Rambus anticipates licensing billings between $64 million and $70 million. The company expects product revenue to fall between $77 million and $83 million, with contract and additional revenue expected to range from $17 million to $23 million. Anticipated operating costs and expenses are projected to be between $110 million and $106 million, while non-GAAP operating costs are expected between $94 million and $90 million.
Non-GAAP Financial Metrics
Rambus utilizes non-GAAP financial measures to assess performance, which exclude stock-based compensation expenses, acquisition-related costs, retention bonuses, and amortization of acquired intangible assets. These metrics aim to provide a clearer view of ongoing operations and assist in comparisons with peers. Management emphasizes that these non-GAAP measures should not replace GAAP figures but are helpful for internal assessments.
Forward-Looking Statements
The release includes forward-looking statements regarding Rambus’ future business opportunities and growth strategies. These statements are based on current expectations and assumptions, and actual results may vary due to various risks outlined in Rambus’ SEC filings. The company is not obligated to update these forward-looking statements following the release.