Exceeded guidance for Q1 revenue and earnings Delivered record quarterly product revenue of $76.3 million, up 52% year over year Generated outstanding quarterly cash from operations of $77.4 million

SAN JOSE, Calif., April 28, 2025--(BUSINESS WIRE)--Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the first quarter ended March 31, 2025. GAAP revenue for the first quarter was $166.7 million, licensing billings were $73.3 million, product revenue was $76.3 million, and contract and other revenue was $16.4 million. The Company also generated $77.4 million in cash provided by operating activities in the first quarter.

"We had an excellent start to 2025, beating revenue and earnings expectations for Q1 with very strong cash from operations and record product revenue from memory interface chips," said Luc Seraphin, chief executive officer of Rambus. "Through our ongoing strategic execution and robust business model, we continued our market leadership in core DDR5 chip products and progress in new products, positioning us well to deliver long-term growth and continued value to stockholders."

Quarterly Financial Review - GAAP Three Months Ended

March 31, (In millions, except for percentages and per share amounts)  2025    2024  Revenue  Product revenue $ 76.3   $ 50.4  Royalties  74.0    47.5  Contract and other revenue  16.4    20.0  Total revenue  166.7    117.9  Cost of product revenue  30.6    20.0  Cost of contract and other revenue  0.6    0.6  Amortization of acquired intangible assets (included in total cost of revenue)  1.7    3.1  Total operating expenses (1)  70.7    64.1  Operating income $ 63.1   $ 30.1  Operating margin  38 %   26 % Net income $ 60.3   $ 32.9  Diluted net income per share $ 0.56   $ 0.30  Net cash provided by operating activities $ 77.4   $ 39.1  _________________________________________
(1) Includes amortization of acquired intangible assets of approximately $0.2 million for the three months ended March 31, 2024.

Quarterly Financial Review - Supplemental Information(1) Three Months Ended

March 31,  (In millions)  2025   2024  Licensing billings (operational metric) (2) $ 73.3  $ 63.2  Product revenue (GAAP) $ 76.3  $ 50.4  Contract and other revenue (GAAP) $ 16.4  $ 20.0  Non-GAAP cost of product revenue $ 30.4  $ 19.9  Cost of contract and other revenue (GAAP) $ 0.6  $ 0.6  Non-GAAP total operating expenses $ 59.4  $ 53.7  Interest and other income (expense), net (GAAP) $ 4.5  $ 4.2  Diluted share count (GAAP)  109   110  _________________________________________

(1)  See "Supplemental Reconciliation of GAAP to Non-GAAP Results" table included below. (2)  Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.

GAAP revenue for the quarter was $166.7 million. The Company also had licensing billings of $73.3 million, product revenue of $76.3 million, and contract and other revenue of $16.4 million. The Company had total GAAP cost of revenue of $32.9 million and operating expenses of $70.7 million. The Company also had total non-GAAP operating expenses of $90.4 million (including non-GAAP cost of revenue of $31.0 million). The Company had GAAP diluted net income per share of $0.56. The Company’s basic share count was 107 million shares and its diluted share count was 109 million shares.

Story Continues

Cash, cash equivalents, and marketable securities as of March 31, 2025 were $514.4 million, an increase of $32.6 million as compared to December 31, 2024, mainly due to $77.4 million in cash provided by operating activities, offset by $30.8 million in payments of taxes on restricted stock units and $7.9 million paid to acquire property and equipment.

2025 Second Quarter Outlook

The Company will discuss its full revenue guidance for the second quarter of 2025 during its upcoming conference call. The following table sets forth the second quarter outlook for other measures.

(In millions) GAAP  Non-GAAP (1) Licensing billings (operational metric) (2) $64 - $70  $64 - $70 Product revenue (GAAP) $77 - $83  $77 - $83 Contract and other revenue (GAAP) $17 - $23  $17 - $23 Total operating costs and expenses $110 - $106  $94 - $90 Interest and other income (expense), net $4  $4 Diluted share count 109  109 _________________________________________

(1)  See "Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates" table included below. (2)  Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements.

For the second quarter of 2025, the Company expects licensing billings to be between $64 million and $70 million. The Company also expects royalty revenue to be between $67 million and $73 million, product revenue to be between $77 million and $83 million, and contract and other revenue to be between $17 million and $23 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters.

The Company also expects operating costs and expenses to be between $110 million and $106 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $94 million and $90 million. These expectations also assume a tax rate of 20% and a diluted share count of 109 million, and exclude stock-based compensation expense of $14 million and amortization of acquired intangible assets of $2 million.

Conference Call

The Company’s management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be audio and slides will be available online at investor.rambus.com and a replay will be available for the next week at the following numbers: (866) 813-9403 (domestic) or (+1) 929-458-6194 (international) with ID# 214203.

Non-GAAP Financial Information

In the commentary set forth above and in the financial statements included in this earnings release, the Company presents the cost of product revenue and operating expenses as non-GAAP financial measures. In computing each of these non-GAAP financial measures, the following items were considered as discussed below: stock-based compensation expense, acquisition-related costs and retention bonus expense, amortization of acquired intangible assets, and certain other one-time adjustments. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non-GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company’s performance compares to other periods. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release.

The Company’s non-GAAP financial measures reflect adjustments based on the following items:

Stock-based compensation expense. These expenses primarily relate to employee stock purchase plans, and employee non-vested equity stock and non-vested stock units. The Company excludes stock-based compensation expense from its non-GAAP measures primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results. Additionally, given the fact that other companies may grant different amounts and types of equity awards and may use different option valuation assumptions, excluding stock-based compensation expense permits more accurate comparisons of the Company’s results with peer companies.

Acquisition-related costs and retention bonus expense. These expenses include all direct costs of certain acquisitions and the current periods’ portion of any retention bonus expense associated with the acquisitions. The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s operations.

Amortization of acquired intangible assets. The Company incurs expenses for the amortization of intangible assets acquired in acquisitions. The Company excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company’s prior acquisitions and have no direct correlation to the operation of the Company’s core business.

Change in fair value of earn-out liability. This change is due to adjustments to acquisition purchase consideration. The Company excludes these adjustments because such adjustments are not directly related to ongoing business results and do not reflect expected future operating expenses.

Income tax adjustments. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 20 percent and 22 percent for 2025 and 2024, respectively, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company’s planning.

On occasion in the future, there may be other items, such as significant gains or losses from contingencies, that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management.

About Rambus Inc.

Rambus is a global semiconductor company dedicated to enabling the future of the data center and artificial intelligence ("AI") by delivering innovative memory and security solutions that address the evolving needs of the industry. As a pioneer with 35 years of advanced semiconductor design experience, Rambus is at the forefront of enabling the next era of AI-driven computing, addressing the critical challenges of accelerating and securing data movement in the data center, edge, and client markets. Rambus is a leader in high-performance memory subsystems, offering a balanced and diverse portfolio of products encompassing chips and silicon intellectual property (IP). Focusing primarily on the data center, our innovative solutions maximize performance and security in computationally intensive systems. For more information, visit rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus’ expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, product and investment strategies, and the Company’s outlook and financial guidance for the second quarter of 2025 and related drivers, and the Company’s ability to effectively manage market challenges. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by the Company’s management. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Rambus Inc.  Condensed Consolidated Balance Sheets  (Unaudited)   (In thousands) March 31, 
2025  December 31, 
2024  ASSETS  Current assets:  Cash and cash equivalents $ 132,185  $ 99,775  Marketable securities  382,204   382,023  Accounts receivable  119,142   122,813  Unbilled receivables  23,624   25,070  Inventories  44,701   44,634  Prepaids and other current assets  17,600   15,942  Total current assets  719,456   690,257  Intangible assets, net  15,347   17,059  Goodwill  286,812   286,812  Property and equipment, net  81,988   75,509  Operating lease right-of-use assets  20,369   21,454  Deferred tax assets  134,230   136,466  Income taxes receivable  115,898   109,947  Other assets  5,265   5,632  Total assets $ 1,379,365  $ 1,343,136   LIABILITIES & STOCKHOLDERS’ EQUITY  Current liabilities:  Accounts payable $ 16,356  $ 18,522  Accrued salaries and benefits  14,157   19,193  Deferred revenue  20,336   19,903  EDA tools software licenses liability  8,086   8,438  Operating lease liabilities  5,727   5,617  Other current liabilities  6,200   10,139  Total current liabilities  70,862   81,812  Long-term operating lease liabilities  23,467   24,534  Long-term income taxes payable  115,124   109,383  Other long-term liabilities  10,075   6,715  Total long-term liabilities  148,666   140,632  Total stockholders’ equity  1,159,837   1,120,692  Total liabilities and stockholders’ equity $ 1,379,365  $ 1,343,136

Rambus Inc. Condensed Consolidated Statements of Income (Unaudited)  Three Months Ended

March 31, (In thousands, except per share amounts)  2025    2024  Revenue:  Product revenue $ 76,309   $ 50,360  Royalties  73,975    47,476  Contract and other revenue  16,380    20,035  Total revenue  166,664    117,871  Cost of revenue:  Cost of product revenue  30,583    20,048  Cost of contract and other revenue  546    555  Amortization of acquired intangible assets  1,713    3,056  Total cost of revenue  32,842    23,659  Gross profit  133,822    94,212  Operating expenses:  Research and development  42,620    37,359  Sales, general and administrative  28,058    25,827  Amortization of acquired intangible assets  —    195  Change in fair value of earn-out liability  —    700  Total operating expenses  70,678    64,081  Operating income  63,144    30,131  Interest income and other income (expense), net  4,856    4,587  Interest expense  (377 )   (366 ) Interest and other income (expense), net  4,479    4,221  Income before income taxes  67,623    34,352  Provision for income taxes  7,320    1,454  Net income $ 60,303   $ 32,898  Net income per share:  Basic $ 0.56   $ 0.30  Diluted $ 0.56   $ 0.30  Weighted average shares used in per share calculation  Basic  107,236    108,090  Diluted  108,628    110,037

Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (Unaudited)  Three Months Ended

March 31, (In thousands)  2025    2024  Cost of product revenue $ 30,583   $ 20,048  Adjustment:  Stock-based compensation expense  (162 )   (124 ) Non-GAAP cost of product revenue $ 30,421   $ 19,924   Total operating expenses $ 70,678   $ 64,081  Adjustments:  Stock-based compensation expense  (11,221 )   (9,372 ) Acquisition-related costs and retention bonus expense  (21 )   (111 ) Amortization of acquired intangible assets  —    (195 ) Change in fair value of earn-out liability  —    (700 ) Non-GAAP total operating expenses $ 59,436   $ 53,703

Rambus Inc. Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates (Unaudited)  2025 Second Quarter Outlook  Three Months Ended

June 30, 2025 (In millions)  Low  High Forward-looking operating costs and expenses  $ 110   $ 106  Adjustments:  Stock-based compensation expense   (14 )   (14 ) Amortization of acquired intangible assets   (2 )   (2 ) Forward-looking Non-GAAP operating costs and expenses  $ 94   $ 90

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Contacts

Desmond Lynch
Senior Vice President, Finance and Chief Financial Officer
(408) 462-8000
[email protected]

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