Astera Labs: Fiscal 4Q25 and FY25 Financial Results

Summary:

• Record quarterly revenue of $270.6 million, up 17% QoQ, and record full-year revenue of $852.5 million, up 115% YoY
• Broadening Scorpio X-Series smart fabric roadmap to address expanding scale-up market opportunities supporting multiple customers, starting production ramp for lead platform
• Appointed Desmond Lynch as Chief Financial Officer with Mike Tate transitioning to the role of Strategic Advisor to the CEO

Astera Labs, Inc., an active player in semiconductor-based connectivity solutions for rack-scale AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year of 2025, ended December 31, 2025.“Astera Labs delivered strong financial results in Q4 with revenue growing by 17% sequentially to a new record level of $270.6 million, highlighting a stellar 2025 with full-year revenue growth of 115% YoY,” said Jitendra Mohan, CEO, Astera Labs. “The market opportunity for our Intelligent Connectivity Platform continues to grow rapidly, encompassing multiple product lines, physical media, form factors, and protocols for standard and custom applications. Considering the strong customer momentum and revenue opportunities, Astera Labs is accelerating R&D investment, including opening a new design center in Israel to further capitalize on this high-growth market opportunity.”

Fourth Quarter of Fiscal 2025 Financial Highlights
GAAP Financial Results:

• Revenue of $270.6 million, up 17% sequentially and up 92% YoY
• GAAP gross margin of 75.6%
• GAAP operating income of $67.0 million
• GAAP operating margin of 24.7%
• GAAP net income of $45.0 million
• GAAP diluted net earnings per share of $0.25

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

• Non-GAAP gross margin of 75.7% 
• Non-GAAP operating income of $108.9 million
• Non-GAAP operating margin of 40.2%
• Non-GAAP net income of $104.8 million
• Non-GAAP pro forma diluted earnings per share of $0.58

Full Year Fiscal 2025 Financial Highlights
GAAP Financial Results:  

• Revenue of $852.5 million, up 115% YoY
• GAAP gross margin of 75.7%
• GAAP operating income of $173.4 million
• GAAP operating margin of 20.3%
• GAAP net income of $219.1 million
• GAAP diluted net earnings per share of $1.22

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

• Non-GAAP gross margin of 75.8% 
• Non-GAAP operating income of $334.4 million
• Non-GAAP operating margin of 39.2%
• Non-GAAP net income of $331.0 million
• Non-GAAP pro forma diluted earnings per share of $1.84

Chief Financial Officer Transition
Astera Labs announced that Mike Tate will transition from his CFO role to become a full-time Strategic Advisor to the CEO. During this time, he will also support a smooth leadership handoff to his successor.

“Mike has been a foundational leader since the earliest days of the company, and I am grateful for his exceptional leadership and continued partnership,” said Jitendra Mohan, CEO. “We are excited to welcome Desmond, an accomplished CFO whose experience across several global semiconductor organizations will be invaluable as we enter our next phase of growth.”

“I’m grateful for my time at Astera Labs and proud of what we have built and accomplished,” said Mike Tate. “The future of the company is extremely bright, and I look forward to continue working closely with the company as well as supporting a smooth transition to Desmond.”

Desmond Lynch will join Astera Labs as CFO effective March 2, 2026. Desmond brings more than 25 years of financial leadership experience in the semiconductor industry and was most recently CFO of Rambus, following senior finance roles at Knowles, IDT, Atmel and National Semiconductor.

“Astera Labs is an established leader within AI connectivity and has an impressive track record of execution and partnership with a broad set of AI and cloud infrastructure providers,” said Desmond Lynch. “I am excited to join the company at such an important time in its growth journey, and I look forward to working with the leadership team to build on the company’s strong momentum.”

Q4 2025 and Recent Business Highlights

• Started production ramp of Scorpio X-Series solutions for lead platform and expanded the Scorpio X-Series Smart Fabric Switch roadmap in collaboration with hyperscaler customers to support next-generation scale-up networking applications. Scorpio X-Series roadmap now includes new features that will support increased radix, platform-specific protocols, in-network computing, Hypercast technology, and optical connectivity. Initial customer momentum and early platform deployments support an acceleration of investment to target the large and growing merchant scale-up switching marketplace, estimated to reach $20 billion annually by 2030
• Expanded global footprint with new Israel Design Center to support growing demand for AI connectivity solutions. Led by industry veteran Guy Azrad, Astera Labs Israel will focus on accelerating the development of next-generation scale-up AI fabrics for high-bandwidth connectivity protocols. This team will also look to drive technical research and development to address memory bottlenecks in AI training and inference applications. The design center will also serve as a critical hub to tightly collaborate with leading Israeli institutions and the local venture ecosystem to advance technologies to support leading-edge AI and cloud infrastructure worldwide
• Expanded product portfolio with custom solutions including connectivity products for NVLink Fusion to address the increasing complexity and diversity of next-generation AI infrastructure featuring a heterogeneous set of computing resources. In collaboration with hyperscaler partners, these custom connectivity solutions will be purpose-built to optimize system performance and drive additional energy efficiency, while lowering cost for a wide range of AI workloads
• Announced Leo CXL Smart Memory Controllers to enable customers to evaluate Compute Express Link (CXL) memory expansion capabilities for their specific workloads within Microsoft Azure M-series virtual machines, the industry’s first announced deployment of CXL-attached memory. Leo CXL Smart Memory Controllers support CXL 2.0 with up to 2TB of memory capacity per controller, enabling cloud service providers to scale server memory capacity by more than 1.5x to unlock performance and scalability benefits for AI and in-memory databases while significantly reducing total cost of ownership

First Quarter of Fiscal 2026 Financial Outlook
Based on current business trends and conditions, Astera Labs estimates the following:

GAAP Financial Outlook:

• Revenue within a range of $286 million to $297 million
• GAAP gross margin of approximately 74%
• GAAP operating expenses within a range of approximately $155 million to $161 million
• GAAP tax rate of approximately 1%
• GAAP diluted earnings per share of approximately $0.36 to $0.38 weighted-average diluted shares outstanding of approximately 184 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 74%
• Non-GAAP operating expenses within a range of approximately $112 million to $118 million
• Non-GAAP tax rate of approximately 12%
• Non-GAAP diluted earnings per share of approximately $0.53 to $0.54 on non-GAAP weighted-average diluted shares outstanding of approximately 184 million