Rambus Inc 10-Q for FY2025 Q1

Rambus Inc (RMBS)

10-Q 2025-04-29 For: 2025-03-31

Added on April 10, 2026

About this 10-Q

Rambus Inc filed this 10-Q on April 29, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $166.66M; up 41.4% from $117.87M a year earlier
Net income: $60.3M; up 83.3% from net income of $32.9M a year earlier
Diluted EPS: $0.56; up 86.7% from $0.30 a year earlier

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Delaware						94-3112828
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.001 Par Value	RMBS	The Nasdaq Stock Market LLC
		(The Nasdaq Global Select Market)


			PAGE
Note Regarding Forward-Looking Statements			3
PART I. FINANCIAL INFORMATION			5
Item 1. Financial Statements (Unaudited):			5
Condensed Consolidated Balance Sheets as of March 3 1 , 202 5 and December 31, 20 24			5
Condensed Consolidated Statements of Income for the three months ended March 3 1 , 202 5 and 20 24			6
Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31 , 202 5 and 202 4			7
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31 , 202 5 and 202 4			8
Condensed Consolidated Statements of Cash Flows for the three months ended March 3 1 , 202 5 and 202 4			9
Notes to Unaudited Condensed Consolidated Financial Statements			10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk			31
Item 4. Controls and Procedures			31
PART II. OTHER INFORMATION			33
Item 1. Legal Proceedings			33
Item 1A. Risk Factors			33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			53
Item 3. Defaults Upon Senior Securities			54
Item 4. Mine Safety Disclosures			54
Item 5. Other Information			54
Item 6. Exhibits			55
Signature			56


(In thousands, except shares and par value)	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	132,185	$	99,775
Marketable securities	382,204		382,023
Accounts receivable	119,142		122,813
Unbilled receivables	23,624		25,070
Inventories	44,701		44,634

Prepaids and other current assets	17,600		15,942

Total current assets	719,456		690,257
Intangible assets, net	15,347		17,059
Goodwill	286,812		286,812
Property and equipment, net	81,988		75,509
Operating lease right-of-use assets	20,369		21,454

Deferred tax assets	134,230		136,466
Income taxes receivable	115,898		109,947
Other assets	5,265		5,632
Total assets	$	1,379,365	$	1,343,136
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,356	$	18,522
Accrued salaries and benefits	14,157		19,193


Deferred revenue	20,336		19,903


EDA tools software licenses liability	8,086		8,438
Operating lease liabilities	5,727		5,617

Other current liabilities	6,200		10,139
Total current liabilities	70,862		81,812


Long-term operating lease liabilities	23,467		24,534
Long-term income taxes payable	115,124		109,383

Other long-term liabilities	10,075		6,715
Total liabilities	219,528		222,444
Commitments and contingencies (Notes 9, 10 and 14)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value:
Authorized: 5,000,000 shares; issued and outstanding: no shares as of March 31, 2025 and December 31, 2024	—		—
Common stock, $0.001 par value:
Authorized: 500,000,000 shares; issued and outstanding: 107,411,916 shares as of March 31, 2025 and 106,843,112 shares as of December 31, 2024	107		107
Additional paid-in capital	1,253,924		1,275,505
Accumulated deficit	(93,357)		(153,660)
Accumulated other comprehensive loss	(837)		(1,260)
Total stockholders’ equity	1,159,837		1,120,692
Total liabilities and stockholders’ equity	$	1,379,365	$	1,343,136


	Three Months Ended
	March 31,
(In thousands, except per share amounts)	2025		2024
Revenue:
Product revenue	$	76,309	$	50,360
Royalties	73,975		47,476
Contract and other revenue	16,380		20,035
Total revenue	166,664		117,871
Cost of revenue:
Cost of product revenue	30,583		20,048
Cost of contract and other revenue	546		555
Amortization of acquired intangible assets	1,713		3,056
Total cost of revenue	32,842		23,659
Gross profit	133,822		94,212
Operating expenses:
Research and development	42,620		37,359
Sales, general and administrative	28,058		25,827

Amortization of acquired intangible assets	—		195



Change in fair value of earn-out liability	—		700


Total operating expenses	70,678		64,081
Operating income	63,144		30,131
Interest income and other income (expense), net	4,856		4,587




Interest expense	(377)		(366)
Interest and other income (expense), net	4,479		4,221
Income before income taxes	67,623		34,352
Provision for income taxes	7,320		1,454
Net income	$	60,303	$	32,898
Net income per share:
Basic	$	0.56	$	0.30
Diluted	$	0.56	$	0.30
Weighted-average shares used in per share calculation:
Basic	107,236		108,090
Diluted	108,628		110,037


	Three Months Ended
	March 31,
(In thousands)	2025		2024
Net income	$	60,303	$	32,898
Other comprehensive income (loss):
Foreign currency translation adjustment	308		(95)
Unrealized gain (loss) on marketable securities, net of tax	115		(492)
Total comprehensive income	$	60,726	$	32,311


	For the Three Months Ended March 31, 2025
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Gain (Loss)
(In thousands)	Shares	Amount								Total
Balances as of December 31, 2024	106,843	$	107	$	1,275,505	$	(153,660)	$	(1,260)	$	1,120,692
Net income	—	—		—		60,303		—		60,303
Foreign currency translation adjustment	—	—		—		—		308		308
Unrealized gain on marketable securities, net of tax	—	—		—		—		115		115
Common stock issued under employee stock plans, net of withholding taxes	609	—		(30,807)		—		—		(30,807)

Repurchase and retirement of common stock under repurchase program	(40)	—		(2,157)		—		—		(2,157)
Stock-based compensation	—	—		11,383		—		—		11,383






Balances as of March 31, 2025	107,412	$	107	$	1,253,924	$	(93,357)	$	(837)	$	1,159,837

	For the Three Months Ended March 31, 2024
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
(In thousands)	Shares	Amount								Total
Balances as of December 31, 2023	107,854	$	108	$	1,324,796	$	(285,534)	$	(1,269)	$	1,038,101
Net income	—	—		—		32,898		—		32,898
Foreign currency translation adjustment	—	—		—		—		(95)		(95)
Unrealized loss on marketable securities, net of tax	—	—		—		—		(492)		(492)
Common stock issued under employee stock plans, net of withholding taxes	744	—		(37,504)		—		—		(37,504)
Repurchase and retirement of common stock under repurchase program	(817)	—		(2,865)		(47,947)				(50,812)
Stock-based compensation	—	—		9,496		—		—		9,496






Balances as of March 31, 2024	107,781	$	108	$	1,293,923	$	(300,583)	$	(1,856)	$	991,592


	As of
(In thousands)	March 31, 2025		December 31, 2024
Unbilled receivables	$	27,181	$	29,104
Deferred revenue	$	22,008	$	21,852


(In thousands)	As of December 31, 2024		Adjustment to Goodwill		As of March 31, 2025
Total goodwill	$	286,812	$	—	$	286,812


		As of March 31, 2025
(In thousands, except useful life)	Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Existing technology	3 to 10 years	$	288,001	$	(272,654)	$	15,347
Customer contracts and contractual relationships	0.5 to 10 years	37,496		(37,496)		—
Non-compete agreements and trademarks	3 years	300		(300)		—

Total intangible assets		$	325,797	$	(310,450)	$	15,347


Years Ending December 31:	Amount
2025 (remaining nine months)	$	5,554
2026	5,163
2027	1,917
2028	1,480
2029	1,233

Total intangible assets	$	15,347


	Three Months Ended March 31,
(In thousands)	2025		2024
Total revenue	$	166,664	$	117,871
Adjusted cost of revenue (1)	(30,967)		(20,479)
Adjusted research and development (2)	(38,089)		(33,841)
Adjusted sales, general and administrative (3)	(21,347)		(19,862)
Other segment items:
Stock-based compensation expenses (4)	(11,383)		(9,496)
Amortization of acquired intangible assets (4)	(1,713)		(3,251)

Acquisition-related costs (5)	(21)		(111)
Change in fair value of earn-out liability	—		(700)
Interest and other income (expense), net	4,479		4,221



Provision for income taxes	(7,320)		(1,454)
Net income	$	60,303	$	32,898


	As of
Customer	March 31, 2025		December 31, 2024
Customer 1	34	%	39	%
Customer 2	27	%	17	%
Customer 3	15	%	*


	As of March 31, 2025
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses
Cash	$	105,933	$	105,933	$	—	$	—
Cash equivalents:
Money market funds	13,212		13,212		—		—

Corporate bonds, commercial paper and notes	13,040		13,044		—		(4)
Total cash equivalents	26,252		26,256		—		(4)
Total cash and cash equivalents	132,185		132,189		—		(4)
Marketable securities:
Time deposits	12,870		12,870		—		—
U.S. Government bonds and notes	201,989		201,875		173		(59)
Corporate bonds, commercial paper and notes	167,345		167,305		101		(61)
Total marketable securities	382,204		382,050		274		(120)
Total cash, cash equivalents and marketable securities	$	514,389	$	514,239	$	274	$	(124)


	Fair Value				Gross Unrealized Losses
(In thousands)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Less than 12 months
U.S. Government bonds and notes	$	55,038	$	83,162	$	(59)	$	(162)
Corporate bonds, commercial paper and notes	98,920		48,360		(65)		(109)





Total cash equivalents and marketable securities in a continuous unrealized loss position	$	153,958	$	131,522	$	(124)	$	(271)


	Three Months Ended March 31,
(In thousands)	2025		2024
Payroll and benefits	$	37,929	$	32,251
Professional fees	5,489		5,655
Variable research and development expenses (1)	4,809		5,837
Facilities costs	3,084		2,785
Temporary labor services and consulting expenses	2,843		2,650
Amortization and depreciation	2,781		2,378
Other expenses	2,501		2,147
Total adjusted operating expenses	$	59,436	$	53,703


	Three Months Ended
	March 31,
(In thousands)	2025		2024
South Korea	$	68,025	$	42,966
Singapore	51,676		5,167
United States	26,390		51,917
Other	20,573		17,821
Total	$	166,664	$	117,871


Years ending December 31,	Amount
2025 (remaining nine months)	$	5,346
2026	7,511
2027	5,991
2028	4,858
2029	4,871
Thereafter	4,918
Total minimum lease payments	33,495
Less: amount of lease payments representing interest	(4,301)
Present value of future minimum lease payments	29,194
Less: current obligations under leases	(5,727)
Long-term lease obligations	$	23,467


(In thousands)	Total		Remainder of 2025		2026		2027		2028
Contractual obligations (1) (2)
Software licenses (3)	$	16,760	$	7,070	$	5,101	$	4,493	$	96
Acquisition retention bonuses (4)	260		260		—		—		—
Other contractual obligations	235		98		137		—		—


Total	$	17,255	$	7,428	$	5,238	$	4,493	$	96



(In thousands)	March 31, 2025
Due in less than one year	$	301,855
Due from one year through three years	93,389
Total	$	395,244


						Shares Available for Grant
Total shares available for grant as of December 31, 2024						10,889,878




Nonvested equity stock and stock units granted (1)						(51,449)
Nonvested equity stock and stock units forfeited (1)						95,826
Total shares available for grant as of March 31, 2025						10,934,255


Nonvested Equity Stock and Stock Units	Shares	Weighted- Average Grant-Date Fair Value
Nonvested as of December 31, 2024	3,150,161	$	44.72
Granted	51,449	$	55.35
Vested	(856,378)	$	33.15
Forfeited	(53,452)	$	49.60
Nonvested as of March 31, 2025	2,291,780	$	49.16


	Three Months Ended
	March 31,				Change in
(Dollars in millions)	2025		2024		Percentage
Total revenue:
Product revenue	$	76.3	$	50.4	51.5	%
Royalties	74.0		47.5		55.8	%
Contract and other revenue	16.4		20.0		(18.2)	%
Total revenue	$	166.7	$	117.9	41.4	%


	As of
(In millions)	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	132.2	$	99.8
Marketable securities	382.2		382.0
Total cash, cash equivalents and marketable securities	$	514.4	$	481.8


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Number of Shares that May Yet be Purchased Under the Program
Cumulative shares repurchased as of December 31, 2024	14,330,433	$	32.33	14,330,433	5,669,567
February 1, 2025 - February 28, 2025	4,125	$	56.52	4,125	5,665,442
March 1, 2025 - March 31, 2025	35,946	$	53.53	35,946	5,629,496
Cumulative shares repurchased as of March 31, 2025	14,370,504			14,370,504


Exhibit Number						Description of Document

31.1						Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2						Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1†						Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2†						Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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†						The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.


		RAMBUS INC.

Date:	April 29, 2025	By:	/s/ Desmond Lynch
			Desmond Lynch
			Senior Vice President, Finance and Chief Financial Officer
			(Principal Financial Officer and Duly Authorized Officer)


			Date: April 29, 2025

			By:			/s/ Luc Seraphin
			Name:			Luc Seraphin
			Title:			Chief Executive Officer (Principal Executive Officer)