Rambus Inc. (NASDAQ:RMBS) shares are down during premarket trading on Tuesday following the company’s fourth-quarter financial results.
The stock’s decline comes as the company achieved record revenue and earnings, which have not been enough to buoy investor sentiment in a mixed market environment.
Earnings
Rambus reported record revenue of $190.2 million for the fourth quarter of 2025, surpassing expectations, with product revenue of $96.8 million, up 41% year over year.
Additionally, the company generated $99.8 million in cash from operating activities during the quarter, bringing annual cash flow to $360 million.
Rambus reported an adjusted EPS of 68 cents for the fourth quarter of 2025, in line with expectations.
Luc Seraphin, the CEO of Rambus, commented, “2025 was a record-breaking year for Rambus, delivering strong growth in revenue and earnings, and new quarterly and annual highs for product revenue and cash from operations. Our sustained leadership in DDR5 RCDs and growing contributions from new products drove substantial year-over-year product growth. With a robust roadmap and deep expertise aligned to the secular trends transforming data center and AI, we are well positioned to meet industry needs and drive long-term profitable growth.”
Outlook
For the first quarter of 2026, …