Rambus Inc. (RMBS) Reports Record Q3 2025 Results

Earnings Release Date: October 27, 2025

Key Points

• Revenue: $178.5 million, up 23% YoY (Q3 2024 – $145.5 million).
• GAAP EPS: $0.44 (vs $0.45 last year).
• GAAP Net Income: $48.4 million (vs $48.7 million).
• Operating Income: $63.3 million (+16% YoY).
• Operating Margin: 35% (vs 38% in Q3 2024).
• Product Revenue: $93.3 million (+41% YoY) — fourth consecutive quarterly record.
• Licensing Billings: $66.1 million (+1% YoY).
• Contract & Other Revenue: $20.1 million (+34% YoY).
• Cash from Operations: $88.4 million (+42% YoY).
• Total Cash & Marketable Securities: $673.3 million (up from $594.8M in Q2 2025).

Against Street Expectations:

• Revenue and EPS came in above the company’s guidance range, driven by strong product sales and licensing billings.

Quarter Highlights

• Record Product Revenue: Fourth straight quarterly record, led by DDR5 memory interface chips and expanding contributions from new data center products.
• Product Growth Outpacing Market: Rambus remains on track to deliver full-year product revenue growth above industry averages, supported by robust demand in AI and data center infrastructure.
• Licensing Stability: Licensing billings of $66.1 million reflect steady renewals and ongoing engagements across semiconductor IP customers.
• Operating Cash Flow: $88.4 million, reflecting strong profitability and disciplined cost control.
• GAAP Operating Expenses: $78.7 million; Non-GAAP Opex: $64.6 million.
• Gross Margin: 79% (stable YoY).
• Tax Provision: $20.9 million, higher than last year due to new tax legislation enacted in Q3 2025.

CEO Statement

“Rambus delivered a very strong third quarter, with record product revenue and excellent cash from operations, while continuing to execute on our strategic roadmap,” said Luc Seraphin, President and CEO of Rambus.

“Sustained DDR5 product leadership and ramping contributions from new products put us on track to deliver full-year product revenue growth that outpaces the market. Leveraging our expertise in signal- and power-integrity, we are well positioned amid strong secular trends in data center and AI to drive long-term profitable growth.”

Guidance & Outlook (Q4 2025)

• Licensing Billings: $60M – $66M.
• Royalty Revenue: $59M – $65M.
• Product Revenue: $94M – $100M.
• Contract & Other Revenue: $25M – $31M.
• Total Operating Costs & Expenses: $120M – $116M GAAP; $103M – $99M non-GAAP.
• Tax Rate: ~20%.
• Diluted Share Count: ~109.5M shares.

Management noted continued strength in data center demand and AI-related workloads, balanced by potential timing risks in customer licensing renewals.

Financial Summary

Balance Sheet Highlights

• Total Assets: $1.41 billion (vs $1.25B in Q3 2024).
• Stockholders’ Equity: $1.29 billion.
• No long-term debt.
• Deferred Revenue: $23.8 million.

About Rambus

Rambus Inc. (NASDAQ: RMBS) is a leading provider of chips and silicon IP that make data faster and safer. With over 35 years of semiconductor innovation, the company pioneers high-performance memory and interface solutions used across data centers, AI, and communications infrastructure worldwide. Headquartered in San Jose, California, Rambus operates globally with a strong IP licensing business and a growing product portfolio focused on advanced memory and security solutions.

Key Takeaways

• Record product momentum: Fourth consecutive quarterly record for product revenue.
• Cash generation strength: $88M in operating cash flow, up 42% YoY.
• AI-driven demand: Data center and AI applications continue to drive outperformance.
• Tax rate headwind: Higher tax provision reduced bottom-line EPS.
• Outlook solid: Q4 guidance suggests sustained growth with strong balance sheet and continued leadership in DDR5 memory interfaces.
• Overall: Rambus delivered robust growth, reaffirming its position as a critical enabler of AI and data-centric computing performance.