0001736297-26-000020
SEC filingRevenue grew 93% YoY to $308.4M, driven by strong demand for Scorpio, Aries, and Taurus products; gross margin expanded 136 bps to 76.3%.
For the three months ended March 31, 2026, Astera Labs reported revenue of $308.4 million, a 93% increase compared to $159.4 million in the same period of 2025. The growth was primarily driven by higher unit shipments across the Scorpio, Aries, and Taurus product families, as well as an increase in average selling prices due to a favorable mix shift toward hardware modules and Scorpio products.
Gross profit rose 97% to $235.1 million, with gross margin expanding 136 basis points to 76.3%. The margin improvement was attributed to a favorable product mix, partially offset by higher cost of revenue from increased volumes. Non-GAAP gross margin was 76.4%, up from 74.9%.
Operating income increased significantly to $61.8 million from $11.3 million, representing a 448% jump. Operating margin improved to 20.1% from 7.1%, driven by revenue growth outpacing expense increases. Research and development expenses grew 95% to $125.6 million, reflecting higher headcount and investments in hardware and software. Sales and marketing expenses remained relatively flat at $21.9 million, while general and administrative expenses rose 18% to $25.8 million, primarily due to professional services and personnel costs.
Net income was $80.3 million, up 152% from $31.8 million, benefiting from higher operating income and interest income of $11.6 million. The income tax benefit decreased to $6.9 million from $10.1 million due to lower excess tax benefits from equity compensation.
Non-GAAP net income was $110.1 million, compared to $59.6 million, with non-GAAP operating income of $111.7 million (36.2% margin) versus $53.7 million (33.7% margin).
The MD&A does not provide a formal segment breakdown. However, the company highlights strong demand across its product families: Scorpio smart fabric switches, Aries retimers and cable modules, and Taurus Ethernet cable modules. The revenue growth was driven by a combination of volume increases and a shift toward higher-value hardware modules and Scorpio products, which carry higher average selling prices. No specific segment revenue or operating income figures were disclosed.
Astera Labs did not provide explicit forward guidance in the MD&A. The company stated that it believes its current cash, cash equivalents, and marketable securities of $1.2 billion are sufficient to fund operations for at least the next 12 months. Management noted that future capital requirements will depend on growth rate, R&D and sales investments, capital expenditures, market acceptance, and potential mergers or acquisitions. Cash flow from operations improved to $74.6 million, reflecting strong operational performance. The company also incurred acquisition-related costs of $1.0 million during the quarter, related to a business combination.
As of March 31, 2026, Astera Labs held $148.3 million in cash and cash equivalents and $1.04 billion in marketable securities, totaling $1.18 billion in liquidity. The company has no short-term or long-term debt, with total stockholders' equity of $1.49 billion. Inventory stood at $60.2 million, up slightly from $59.0 million at year-end 2025.
Purchase commitments totaled $79.6 million as of March 31, 2026, primarily for wafer manufacturing, software licenses, and cloud services. The obligations are scheduled as follows: $29.6 million in the remainder of 2026, $49.7 million in 2027-2028, and $0.4 million in 2029 and beyond. Operating lease commitments amounted to $52.7 million in future minimum payments, with $41.9 million recognized as liabilities. The company also has $14.8 million in additional lease obligations for expansion options not yet commenced.
During Q1 2026, Astera Labs completed a business combination for $74.0 million, consisting of $65.0 million cash, $5.0 million holdback, and $4.0 million in share-based consideration. No share repurchases or dividends were reported. The company issued a warrant to a customer in February 2026 covering up to 3.3 million shares, with a fair value of $85.83 per share, to be recognized as a reduction of revenue over time.
The company operates as a single segment. Revenue for Q1 2026 was $308.4 million, with significant geographic concentration: Taiwan 30%, Singapore 30%, China 29%, United States 5%, and other 6%. Customer concentration was notable, with five customers each representing 10% or more of revenue.