On Tuesday, Ambiq Micro (NYSE:AMBQ) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Access the full call at https://events.q4inc.com/attendee/507165301
Summary
Ambiq Micro Inc reported strong first-quarter 2026 financial results, with net sales of $25.1 million, a 59.3% year-over-year increase driven by demand for Edge AI solutions.
Strategic expansion into non-wearable markets such as medical, industrial, and smart home sectors is gaining traction, expected to contribute significantly to revenue growth.
The company anticipates a 75% year-over-year sales increase in the second quarter of 2026, supported by rising demand for Apollo 5 and diversification across new product lines.
Ambiq Micro Inc’s gross margin was 46.2%, with ongoing investments in R&D and SG&A to support product development and market expansion.
Management highlighted strong momentum in Edge AI markets, with plans to accelerate growth through product innovations such as Apollo 340 and Atomic series, projecting meaningful revenue growth for 2026.
Full Transcript
OPERATOR
Good morning and welcome to Ambic micro first quarter 2026 earnings conference call. As a reminder, this conference call is being recorded. After today’s prepared remarks, we will host a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. To withdraw your question, please press Star one again. I’d now like to turn the call over to Ms. Charlene Wan, Ambic’s Vice President of Corporate Marketing and Investor Relations. Charlene, please go ahead.
Charlene Wan (Vice President of Corporate Marketing and Investor Relations)
On today’s call, Ambic CEO Humi Asaka will provide an overview of the Company’s performance and strategy. CFO Jeff Winsler will then discuss the quarter’s financial results and second quarter outlook. Following their remarks, Scott Hansen, Ambiq Micro Inc’s Founder and cto, and Aaron Gracchian, EVP of Global Sales and Marketing, will join Humi and Jeff for Q and A. Our earnings release is available on the Investor Relations page of our website at www.ambig.com. we have also posted our earnings presentation on the Investor Relations section of our website. Before I turn the call over to Humi, I’d like to remind our listeners that during the course of this conference call management will discuss non GAAP financial measures. Reconciliations of these non GAAP measures to their most directly comparable GAAP measures are included in our earnings release available on the Company’s investor Relations website. In addition, today’s call will contain forward looking statements representing management’s beliefs and assumptions only as of the date made. Our most recent annual report on Form 10K and other filings with the SEC provide more information on specific risks that may cause the actual results to differ materially from current expectations and presentations and now it’s my pleasure to turn the call over to Ambiq Micro Inc CEO Humi Asaka.
Humi Asaka (Chief Executive Officer)
Good morning everyone and thank you for joining us. We have started 2026 with exceptional momentum. The market for Edge AI is growing rapidly and is outpacing our expectations from the start of the year. Against this backdrop, our ultra low power Spot platform is driving market expansion, gaining share and reinforcing Ambiq Micro Inc as a partner of choice in a fast growing category. We expect this momentum to continue throughout the rest of the year. At the same time our pipeline continue to grow and diversify and we are investing strategically to further scale the business and extend our technology advantage. Turning to the first quarter performance, Net sales exceeded guidance with strong year over year and sequential growth from the fourth quarter of 2025. This performance was driven by broad based demand for Edge AI across our customer base. With more than 80% of units running AI algorithms order ramps for the upcoming customer, product launches and a new customer entering production. Inventory level remains lean and we are seeing an increasing number of expedited requests which reinforces our view that demand is healthy across our end markets. For the second quarter, we expect net sales to grow approximately 75% year over year with momentum continuing in the second half of the year. This outlook is supported by four key factors. First, strong and growing end user demand for Edge AI solutions. Wearables continue to evolve from basic consumer products to more sophisticated health and wellness platforms and we are seeing continued diversification across form factors including watches, display, less bands, rings and eyewear. Second, strong growth in Apollo 5 as our customer upgrade to enable next generation edge AI capabilities while maintaining ultra low power performance. Third, broader deployment of our solutions across customer portfolios with upcoming product launches and expansion into new form factors and fourth, we expect a new scaled global customer to enter mass production this year. While wearables remains a key growth driver adoption is expanding into healthcare, industrial and smart home and buildings markets as customers deploy AI directly onto devices. Increasingly, end customers expect real time insights and faster response time, driving the need to process more data directly at the edge. This rise of LLM driven agents is accelerating this shift, increasing demand for contextual real time intelligence at the edge and tighter integration between device data and the cloud. Our solutions are purpose built to support this evolution, positioning AMBIC as a partner of choice for leading players in the edge AI ecosystem. We’re building on this foundation with focused action to expand into additional high value markets and develop new products that will further extend our power and performance advantage. Starting with diversification, our personal device business continue to grow and diversify. We have added multiple new customers and secured new design wins across emerging form factors including display, less bands, smart eyewear and rings. At the same time, customers are deploying more sophisticated AI capabilities on our platform including a recently secured design WIN with one of our largest customers for a next generation product line expected to enter production in 2027. Beyond personal devices, our expansion into medical, industrial and smart homes and buildings markets is gaining meaningful traction and we expect revenue from these segments to more than double in 2026. With our broad SOC platform, we offer a scalable and diverse portfolio that supports applications from entry level designs to more advanced feature rich use cases. As a result, AMBIC serves as a critical enabler of Edge AI, allowing customers to select and deploy the right solutions across a wide range of applications including real time health monitoring, intelligent audio, predictable maintenance and smart sensing and automation. We’re complementing this with a steady cadence of software tools that enhance edge AI capabilities with a focus on how customers capture, process and derive value from a data at the edge. For example, by combining our ultra low power hardware with our compression kit software, customers will be able to maintain multi day battery life while storing large volumes of raw physical data and enabling real time anomaly detection at the edge. Expanding what is possible in Next generation Medical devices we are encouraged by the early traction we are seeing and believe AMBIC is well positioned to deliver growth and the diversification across customers and end market and high value use cases. Looking ahead, we expect our expanding product roadmap to further accelerate this momentum. We continue to make progress on Apollo 340, Atomic 110 and Atomic 120 which are being developed in parallel to support strong customer demand. Atomic 110 remains on track for tape out towards the end of this year with initial customer ramp in late 2027. For Atomic120 we are actively engaged with several potential alpha customers and are encouraged by the strong interest we are receiving, especially in smart glasses where customers are seeking the combination of performance and auto low power that Atomic is designed to deliver. Apollo 340 is also generating meaningful traction with multiple customers expressing interest driven by its compelling price to value positioning. We see 340 as an …
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