RAMBUS INC (RMBS) Reports Record Revenue and Earnings

By Chris Stiles • Monday, February 02 17:45 • Permanent Link

Rambus Inc. has reported its financial results for the fourth quarter and fiscal year 2025. The company achieved record revenue and earnings, with a significant increase in product revenue. Here are the specific metrics and changes from the previous period:

Quarterly product revenue reached $96.8 million, a substantial increase from $73.4 million in the same period in 2024, reflecting a 32% growth.
Royalties totaled $71.6 million, up from $58.2 million in the fourth quarter of 2024, representing a 23% increase.
Contract and other revenue amounted to $21.8 million, down from $29.5 million in the fourth quarter of 2024, indicating a decline of 26%.
Total revenue for the quarter was $190.2 million, compared to $161.1 million in the same period in 2024, signifying a 18% increase.
The cost of product revenue was $37.3 million, up from $28.5 million in the fourth quarter of 2024, showing a 31% increase.
Operating expenses were $79.2 million, higher than the $71.7 million reported in the same period in 2024, reflecting a 10% increase.
Operating income reached $70.8 million, compared to $57.9 million in the fourth quarter of 2024, indicating a 22% increase.
The company reported net income of $63.8 million, up from $62.2 million in the same period in 2024, representing a 3% increase.
Diluted net income per share was $0.58, the same as in the fourth quarter of 2024.

Looking ahead to the first quarter of 2026, Rambus Inc. provided the following outlook:

The company expects licensing billings to be between $66 million and $72 million, compared to $63.6 million in the first quarter of 2025.
Product revenue is projected to be between $84 million and $90 million, up from $73.4 million in the first quarter of 2025.
Contract and other revenue is anticipated to be between $21 million and $27 million, down from $29.5 million in the first quarter of 2025.
Total operating costs and expenses are expected to be between $121 million and $117 million, compared to $96.8 million in the first quarter of 2025.

Additionally, the company's cash, cash equivalents, and marketable securities as of December 31, 2025, were $761.8 million, an increase of $88.5 million from September 30, 2025, largely due to $99.8 million in cash provided by operating activities.

Rambus Inc. will discuss its full revenue guidance for the first quarter of 2026 during its upcoming conference call. Today the company's shares have moved 4.77% to a price of $107.99. For the full picture, make sure to review RAMBUS INC's 8-K report.

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