Rambus Reports First Quarter 2025 Financial Results

  • 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 – 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.

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.

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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