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Rambus (RMBS) Q1 2025 earnings results (first quarter 2025)

10-Q filed Apr 29, 2025

Rambus (RMBS) reported revenue of $167M for the first quarter 2025 (Q1 2025), +41% from a year earlier and +3% from the quarter before. Operating margin was 37.9%, net earnings $60.3M (36.2% of revenue).

Revenue$167M
Year over year+41%
Quarter over quarter+3%
Operating margin37.9%
Net earnings$60.3M

Rambus, Q1 2025: revenue $167M (+41% year over year), operating margin 37.9%, net earnings $60.3M, operating cash flow $77.4M. The chart follows the revenue to costs, profit and cash.

Q1 2025AmountQ/QY/Y
Revenue$167M+3%+41%
Gross profit$134M+3%+42%
Operating profit$63.1M+9%+110%
Net earnings$60.3M-3%+83%
Operating cash flow$77.4M+31%+98%
Free cash flow$69.5M+32%+93%

What changed

Revenue was $166.7M in Q1 2025, up 41% year over year and up 3% from the previous quarter. Product revenue was the largest line at 46% of revenue. Royalties added $26.5M year over year (up 56%), 54% of the total change. Contract and other revenue declined 18%.

Gross margin was 80.3%, up 0.4 points from a year earlier. Operating profit was $63.1M, a 37.9% margin (up 12.3 points year over year). Of the extra revenue versus a year earlier, 68% reached operating profit, above the 26% margin then. Operating expenses grew 10% against revenue growth of 41%. The fastest-growing cost line was Research & development (+14%). Net earnings were $60.3M, up 83% year over year. The effective tax rate was 10.8%.

Operating cash flow was $77.4M (up 98% year over year), 128% of net earnings. Non-cash charges added back $2.8M of depreciation and amortization and $11.4M of share-based compensation. Capital expenditures of $7.9M left free cash flow of $69.5M.

Questions

What was Rambus' revenue in the first quarter 2025?

Rambus (RMBS) reported revenue of $167M for the first quarter 2025 (Q1 2025), +41% from a year earlier and +3% from the quarter before.

Was Rambus profitable in the first quarter 2025?

Operating profit was $63.1M (37.9% of revenue) and net earnings $60.3M.

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Source: Rambus 10-Q on SEC EDGAR.