-- Record quarterly revenue of $270.6 million, up 17% QoQ, and record
full-year revenue of $852.5 million, up 115% year-over-year
-- Broadening Scorpio X-Series smart fabric roadmap to address expanding
scale-up market opportunities supporting multiple customers, starting
production ramp for lead platform
-- Appointed Desmond Lynch as Chief Financial Officer with Mike Tate
transitioning to the role of Strategic Advisor to the CEO
SAN JOSE, Calif., Feb. 10, 2026 (GLOBE NEWSWIRE) -- Astera Labs, Inc. (Nasdaq: ALAB), a leader in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year of 2025, ended December 31, 2025.
"Astera Labs delivered strong financial results in Q4 with revenue growing by 17% sequentially to a new record level of $270.6 million, highlighting a stellar 2025 with full-year revenue growth of 115% year-over-year," said Jitendra Mohan, Astera Labs' Chief Executive Officer. "The market opportunity for our Intelligent Connectivity Platform continues to grow rapidly, encompassing multiple product lines, physical media, form factors, and protocols for standard and custom applications. Considering the strong customer momentum and revenue opportunities, Astera Labs is accelerating R&D investment, including opening a new design center in Israel to further capitalize on this high-growth market opportunity."
Fourth Quarter of Fiscal 2025 Financial Highlights
GAAP Financial Results:
-- Revenue of $270.6 million, up 17% sequentially and up 92% year-over-year -- GAAP gross margin of 75.6% -- GAAP operating income of $67.0 million -- GAAP operating margin of 24.7% -- GAAP net income of $45.0 million -- GAAP diluted net earnings per share of $0.25
Non-GAAP Financial Results (excluding the impact of stock-based compensation expense, acquisition-related costs, and the income tax effects of non-GAAP adjustments):
-- Non-GAAP gross margin of 75.7% -- Non-GAAP operating income of $108.9 million -- Non-GAAP operating margin of 40.2% -- Non-GAAP net income of $104.8 million -- Non-GAAP pro forma diluted earnings per share of $0.58
Full Year Fiscal 2025 Financial Highlights
GAAP Financial Results:
-- Revenue of $852.5 million, up 115% year-over-year -- GAAP gross margin of 75.7% -- GAAP operating income of $173.4 million -- GAAP operating margin of 20.3% -- GAAP net income of $219.1 million -- GAAP diluted net earnings per share of $1.22
Non-GAAP Financial Results (excluding the impact of stock-based compensation expense, acquisition-related costs, and the income tax effects of non-GAAP adjustments):
-- Non-GAAP gross margin of 75.8% -- Non-GAAP operating income of $334.4 million -- Non-GAAP operating margin of 39.2% -- Non-GAAP net income of $331.0 million -- Non-GAAP pro forma diluted earnings per share of $1.84
Chief Financial Officer Transition
Astera Labs announced that Mike Tate will transition from his CFO role to become a full-time Strategic Advisor to the CEO. During this time, he will also support a smooth leadership handoff to his successor.
"Mike has been a foundational leader since the earliest days of the Company, and I am grateful for his exceptional leadership and continued partnership," said Jitendra Mohan, Chief Executive Officer. "We are excited to welcome Desmond, an accomplished CFO whose experience across several global semiconductor organizations will be invaluable as we enter our next phase of growth."
"I'm grateful for my time at Astera Labs and proud of what we have built and accomplished," said Mike Tate. "The future of the company is extremely bright, and I look forward to continue working closely with the company as well as supporting a smooth transition to Desmond."
Desmond Lynch will join Astera Labs as CFO effective March 2, 2026. Desmond brings more than 25 years of financial leadership experience in the semiconductor industry and was most recently CFO of Rambus, following senior finance roles at Knowles, IDT, Atmel and National Semiconductor.
"Astera Labs is an established leader within AI connectivity and has an impressive track record of execution and partnership with a broad set of AI and cloud infrastructure providers," said Desmond Lynch. "I am excited to join the company at such an important time in its growth journey, and I look forward to working with the leadership team to build on the company's strong momentum."
Q4 2025 and Recent Business Highlights
-- Started production ramp of Scorpio X-Series solutions for lead platform
and expanded the Scorpio X-Series Smart Fabric Switch roadmap in
collaboration with hyperscaler customers to support next-generation
scale-up networking applications. Scorpio X-Series roadmap now includes
new features that will support increased radix, platform-specific
protocols, in-network computing, Hypercast technology, and optical
connectivity. Initial customer momentum and early platform deployments
support an acceleration of investment to target the large and growing
merchant scale-up switching marketplace, estimated to reach $20 billion
annually by 2030.
-- Expanded global footprint with new Israel Design Center to support
growing demand for AI connectivity solutions. Led by industry veteran Guy
Azrad, Astera Labs Israel will focus on accelerating the development of
next-generation scale-up AI fabrics for high-bandwidth connectivity
protocols. This team will also look to drive technical research and
development to address memory bottlenecks in AI training and inference
applications. The design center will also serve as a critical hub to
tightly collaborate with leading Israeli institutions and the local
venture ecosystem to advance technologies to support leading-edge AI and
cloud infrastructure worldwide.
-- Expanded product portfolio with custom solutions including connectivity
products for NVLink Fusion to address the increasing complexity and
diversity of next-generation AI infrastructure featuring a heterogeneous
set of computing resources. In collaboration with hyperscaler partners,
these custom connectivity solutions will be purpose-built to optimize
system performance and drive additional energy efficiency, while lowering
cost for a wide range of AI workloads.
-- Announced Leo CXL Smart Memory Controllers to enable customers to
evaluate Compute Express Link (CXL) memory expansion capabilities for
their specific workloads within Microsoft Azure M-series virtual machines,
the industry's first announced deployment of CXL-attached memory. Leo CXL
Smart Memory Controllers support CXL 2.0 with up to 2TB of memory
capacity per controller, enabling cloud service providers to scale server
memory capacity by more than 1.5x to unlock performance and scalability
benefits for AI and in-memory databases while significantly reducing
total cost of ownership.
First Quarter of Fiscal 2026 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:
GAAP Financial Outlook:
-- Revenue within a range of $286 million to $297 million
-- GAAP gross margin of approximately 74%
-- GAAP operating expenses within a range of approximately $155 million to
$161 million
-- GAAP tax rate of approximately 1%
-- GAAP diluted earnings per share of approximately $0.36 to $0.38
weighted-average diluted shares outstanding of approximately 184 million
Non-GAAP Financial Outlook (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):
-- Non-GAAP gross margin of approximately 74%
-- Non-GAAP operating expenses within a range of approximately $112 million
to $118 million
-- Non-GAAP tax rate of approximately 12%
-- Non-GAAP diluted earnings per share of approximately $0.53 to $0.54 on
non-GAAP weighted-average diluted shares outstanding of approximately 184
million
Earnings Webcast and Conference Call
Astera Labs will host a conference call to review its financial results for the fourth quarter and full fiscal year of 2025 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company's website for the next six months.
Discussion of Non-GAAP Financial Measures
We use certain non-GAAP financial measures, including those concerning our financial outlook, to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. The timing and impact of any adjustments to arrive at the corresponding GAAP financial measures concerning our financial outlook are inherently dependent on future events that are typically uncertain or that may be outside of our control. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income, non-GAAP pro forma diluted earnings per share, and non-GAAP pro forma weighted-average share count. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating
(MORE TO FOLLOW) Dow Jones Newswires
February 10, 2026 16:05 ET (21:05 GMT)