Rambus Inc. Reports Strong Q2 2025 Financial Results

Rambus Inc., a global semiconductor company specializing in memory and security solutions, has released its financial results for the second quarter of 2025. The company reported robust performance, surpassing expectations in revenue and earnings, and achieving record product revenue and cash generation.

Financial Highlights

For the second quarter ended June 30, 2025, Rambus reported GAAP revenue of $172.2 million, a significant increase from $132.1 million in the same period last year. The company achieved a record quarterly product revenue of $81.3 million, up 43% year-over-year. Net income for the quarter was $57.9 million, translating to a diluted net income per share of $0.53, compared to $0.33 in Q2 2024. Additionally, Rambus generated $94.4 million in cash from operating activities, marking a new quarterly record.

Business and Operational Highlights

Rambus's chip business continues to be a major growth driver, with sustained leadership in DDR5 memory interface chips and increasing traction for new products. The company’s total revenue was bolstered by licensing billings of $66.4 million and contract and other revenue of $22.3 million. The cost of product revenue rose to $32.4 million from $22.8 million in the previous year, reflecting the increased sales volume.

Strategic Initiatives and Corporate Developments

During the quarter, Rambus focused on enhancing its product portfolio and expanding its market presence. The company invested $10.4 million in capital expenditures, contributing to its long-term growth strategy. Cash, cash equivalents, and marketable securities increased to $594.8 million, up from $514.4 million at the end of the first quarter of 2025.

Management's Perspective

Luc Seraphin, President and CEO of Rambus, commented on the strong quarterly performance, stating, "Rambus delivered a very strong Q2, with record product revenue and record cash generation reflecting the strength of our business model and execution. Our chip business continues to be a key growth engine for the company. With sustained leadership in DDR5 memory interface chips and growing traction for new products, we are well positioned to capitalize on the accelerating demand for high-performance computing and AI infrastructure and drive long-term profitable growth."

Future Outlook

Looking ahead to the third quarter of 2025, Rambus provided guidance for licensing billings to be between $58 million and $64 million, product revenue to range from $87 million to $93 million, and contract and other revenue to be between $22 million and $28 million. The company expects total operating costs and expenses to be between $115 million and $111 million on a GAAP basis, and between $98 million and $94 million on a non-GAAP basis. These projections assume a tax rate of 20% and a diluted share count of 108.5 million.

SEC Filing: RAMBUS INC [ RMBS ] - 8-K - Jul. 28, 2025