Astera Labs: Fiscal 3Q25 Financial Results

Summary:

• Record quarterly revenue of $230.6 million, up 20% QoQ and 104% YoY
• Strong Q3 revenue growth driven by new AI platform ramps featuring multiple product families
• Scorpio fabric switch design wins expand to several platforms at multiple hyperscaler customers

Astera Labs, Inc., an active player in semiconductor-based connectivity solutions for rack-scale AI infrastructure, announced preliminary financial results for the third quarter of fiscal year 2025, ended September 30, 2025.“Astera Labs delivered strong financial results in Q3 with revenue growing by 20% sequentially to a new record level of $230.6 million,” said Jitendra Mohan, CEO, Astera Labs. “During the quarter, we saw robust demand and upside across our signal conditioning, smart cable module (SCM), and switch fabric portfolios as new AI platforms ramped up production. Looking into Q4, we anticipate continued PCIe 6 momentum alongside robust growth from our Taurus Ethernet SCMs. We remain focused on our rack-scale vision, which is further strengthened by the proposed acquisition of aiXscale Photonics, which we believe will support our customers’ technology roadmaps and increase our market reach beyond copper interconnects.”

Third Quarter 2025 Financial Highlights
GAAP Financial Results:

• Revenue of $230.6 million, up 20% sequentially and up 104% YoY
• GAAP gross margin of 76.2%
• GAAP operating income of $55.4 million
• GAAP operating margin of 24.0%
• GAAP net income of $91.1 million
• GAAP diluted earnings per share of $0.50

Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

• Non-GAAP gross margin of 76.4%
• Non-GAAP operating income of $96.1 million
• Non-GAAP operating margin of 41.7%
• Non-GAAP net income of $88.2 million
• Non-GAAP diluted earnings per share of $0.49

Q3 2025 and Recent Business Highlights

• Entered into a definitive agreement to acquire aiXscale Photonics GmbH, a provider of fiber-chip coupling technologies. The evolution to AI Infrastructure 2.0 demands scale-up connectivity solutions that meet aggressive speed, power, reach, and reliability requirements while facilitating high-volume, rack-scale integration. Optical connectivity will be critical to supporting the massive bandwidth needs of scale-up systems with hundreds of accelerators. The acquisition will help enable Astera Labs to develop photonic scale-up solutions by combining aiXscale’s fiber-chip coupling capabilities with Astera Labs’ connectivity and signal processing expertise
• Showcased our AI rack-scale vision with a full portfolio of purpose-built connectivity solutions at the 2025 Open Compute Project (OCP) Global Summit built across a multitude of open standards including PCIe, UALink, Ethernet, CXL, and OpenBMC. Live demos highlighted state-of-the-art silicon, hardware, and software solutions enabling an open and collaborative ecosystem for optimizing rack-scale performance and flexibility. Our experts also delivered six technical sessions on topics including UALink deployment strategies and PCIe security
• Announced new comprehensive collaborations spanning GPU, CPU, cables, connectors, ODMs, IP design and verification, and software management providers to accelerate AI Infrastructure 2.0 deployment through open standards. Collaborations with AMD, Amphenol, Arm, ASPEED, Cadence Design Systems, Eoptolink, Ingrasys, Insyde Software, Molex, Quanta Computer, Synopsys, TE Connectivity, Wistron, and Wiwynn are driving rack-scale innovation with an open ecosystem
• Joined Arm Total Design to accelerate and simplify custom SoC development based on Arm Neoverse Compute Subsystems (CSS). As a key design services partner, Astera Labs will provide multi-protocol chiplet solutions via its proven Intelligent Connectivity Platform. The collaboration enables customers to build platform-specific AI infrastructure with validated, interoperable connectivity solutions

Fourth Quarter of Fiscal 2025 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

• Revenue within a range of $245 million to $253 million
• GAAP gross margin of approximately 75%
• GAAP operating expenses within a range of approximately $129 million to $134 million
• GAAP tax rate of approximately 45%
• GAAP diluted earnings per share of approximately $0.20 weighted-average diluted shares outstanding of approximately 183 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 75%
• Non-GAAP operating expenses within a range of approximately $85 million to $90 million
• Non-GAAP tax rate of approximately 15%
• Non-GAAP diluted earnings per share of approximately $0.51 on non-GAAP weighted-average diluted shares outstanding of approximately 183 million

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