Rambus Q2 Earnings Miss Estimates, Revenues Increase Y/Y

Rambus Inc.'s RMBS second-quarter 2025 non-GAAP earnings came in at 60 cents per share, which missed the Zacks Consensus Estimate by a penny. RMBS’ second-quarter earnings jumped 30.4% year over year from the year-ago quarter.

Rambus’ revenues increased 30.4% year over year to $172.2 million and beat the Zacks Consensus Estimate by 3.1%. The top line was driven by robust demand for its solutions across all its segments.

Rambus’ Q2 Results in Detail

Segment-wise, Rambus’ Product revenues of $81.3 million, accounting for 47.2% of the total revenues in the second quarter, increased 43.4% year over year. The product segment was driven by traction in memory products, especially in DDR5.

Rambus, Inc. Price, Consensus and EPS Surprise

Rambus, Inc. price-consensus-eps-surprise-chart | Rambus, Inc. Quote

Revenues from Royalties came in at $68.6 million, representing 39.8% of the total revenues, up 21.6% year over year. This segment is primarily driven by a rise in recurring revenues from licensing Rambus patents by semiconductor companies.

Revenues from Contract and Other came in at $22.3 million, representing 12.9% of the total revenues, up 16.8% year over year, driven mainly by traction in Silicon IP.

For the second quarter, RMBS posted a gross profit of $137.4 million, representing a robust improvement from the year-ago quarter’s $105.3 million. Rambus’ second-quarter gross margin of 79.8% improved 10 basis points from the year-ago quarter’s 79.7%.

RMBS’ non-GAAP operating expense came in at $60.4 million. Rambus’ non-GAAP operating income increased 43.4% year over year to $79 million. RMBS’ operating margin came in at 45.9%.

RMBS’ Balance Sheet & Cash Flow

Rambus exited the reported quarter with cash and marketable securities of $594.8 million compared with $514.4 million at the end of the prior quarter, with no debt in its balance sheet as of June 30, 2025.

The company generated an operating cash flow of $94.4 million in the second quarter. It spent $10.4 million on capital expenditure in the quarter. Rambus’ free cash flow in the second quarter of 2025 is $84 million.

Rambus Releases Guidance for Q3

Rambus initiated guidance for the third quarter of 2025, where it projected its non-GAAP product revenues between $87million and $93 million, non-GAAP Contract & Other revenues in the range of $22-$28 million, and non-GAAP Licensing Billings in the band of $58-$64 million. The Zacks Consensus Estimates for RMBS’ top line is pegged at $172 million, indicating growth of 17.2% year over year.

RMBS expects its non-GAAP operating expense to be in the range of $98-$94 million. It expects its non-GAAP interest income to be $5 million with 108.5 million fully diluted shares.

For third-quarter 2025, RMBS expects its non-GAAP earnings per share to be between 58 cents and 66 cents. The Zacks Consensus Estimates for RMBS’ bottom line is pegged at 61 cents per share, indicating growth of 22% year over year.

Zacks Rank & Stocks to Consider

RMBS currently carries a Zacks Rank #3 (Hold).

ACI Worldwide ACIW, Affirm AFRM and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, AFRM and APH sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ACI Worldwide shares have lost 11.5% year to date. The Zacks Consensus Estimate for ACI Worldwide’s full-year 2025 earnings is pegged at $2.84 per share, up by a penny over the past 30 days, implying growth of 7.58% from the year-ago quarter’s reported figure.

Affirm shares have lost 7.8% year to date. The Zacks Consensus Estimate for Affirm’s full-year fiscal 2025 earnings is pegged at 3 cents per share, unchanged over the past 60 days, indicating year-over-year growth of 101.8%.

Amphenol shares have gained 45.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $2.69 per share in the past seven days, indicating year-over-year growth of 42.33%.

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