Rambus (RMBS) RMBS Q4 Financial Results Summary

2026-02-03 · Stocks · QuoteReporter

Rambus Inc. (RMBS) Q4 2025 Financial Results Summary

Rambus Inc. (NASDAQ: RMBS) released its financial results for the fourth quarter and fiscal year 2025 on February 2, 2026. The company reported record-breaking revenue and earnings figures for both the fourth quarter and the entire fiscal year.

Financial Highlights

GAAP Revenue:
Q4 2025: $190.2 million, an increase of 18% from Q4 2024 ($161.1 million).
Product Revenue:
Q4 2025: $96.8 million, a growth of 32% compared to Q4 2024 ($73.4 million).
Annual product revenue reached $347.8 million, up 41% from the previous year.
Licensing Billings:
Q4 2025: $71.5 million, an increase of 12% from Q4 2024 ($63.6 million).
Contract and Other Revenue:
Q4 2025: $21.8 million, a decrease of 26% from Q4 2024 ($29.5 million).
Total Operating Expenses:
Q4 2025: $79.2 million, an increase of 10% from Q4 2024 ($71.7 million).
Operating Income:
Q4 2025: $70.8 million, a growth of 22% over Q4 2024 ($57.9 million).
Operating Margin:
Q4 2025: 37%, compared to 36% in Q4 2024.
Net Income:
Q4 2025: $63.8 million, an increase of 1% from Q4 2024 ($62.2 million).
Diluted net income per share: $0.58, stable compared to Q4 2024.
Cash Flow:
Net cash generated from operating activities: $99.8 million for the quarter, contributing to record annual cash from operations of $360.0 million.

Profitability Metrics

Non-GAAP Operating Metrics:
Non-GAAP operating income for Q4 2025 was $87.0 million, compared to $72.0 million in Q4 2024, reflecting a 21% increase.
Non-GAAP diluted net income per share was $0.68, increasing from $0.55 in the previous year.

Dividend and Share Repurchase

There was no mention of a declared quarterly dividend or any share repurchase program in the report.

Quarterly Forecast for Q1 2026

Licensing Billings: Expected to be between $66 million and $72 million.
Product Revenue: Projected to be between $84 million and $90 million.
Contract and Other Revenue: Forecasted between $21 million and $27 million.
Total Operating Costs and Expenses: Estimated to be between $121 million and $117 million.
Non-GAAP Operating Costs and Expenses: Expected to be between $104 million and $100 million.
Interest and Other Income (Expenses), Net: Expected at $6 million.

Balance Sheet Highlights

Total Assets:
As of December 31, 2025, total assets stood at $1.53 billion, up 14% from $1.34 billion a year prior.
Current Assets:
Increased to $988.8 million, up from $690.3 million in 2024.
Total Liabilities:
Decrease of 68% from $140.6 million in 2024 to $44.5 million as of December 31, 2025.
Total Stockholders’ Equity:
Rose to $1.36 billion, an increase of 22% from $1.12 billion.

Overall, the report demonstrates Rambus Inc.’s solid growth trajectory, particularly in product revenue and cash flow. The company’s leadership cites a strong product roadmap and alignment with industry trends as key drivers for their future performance.

Rambus Inc. Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except per share amounts)

Revenue:	2025	2024	2025	2024
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

Rambus Inc. Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

ASSETS	December 31,	December 31,
	2025	2024
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