Astera Labs (ALAB.US) Q3 revenue surged 104% to $230.6 million, fourth quarter GAAP earnings per share guidance lower than expected.

Astera Labs (ALAB.US) announced its preliminary financial performance for the third quarter of 2025 after the market closed on November 4th, Eastern Time. The financial report shows that the company's quarterly revenue reached $230.6 million, setting a new record high with a 20% increase compared to the previous quarter and a staggering 104% increase year-on-year, surpassing analysts' estimates of $206.5 million. GAAP net profit was $91.1 million, non-GAAP net profit was $88.2 million, compared to a net loss of $7.593 million in the same period last year; GAAP diluted earnings per share were $0.50, non-GAAP diluted earnings per share were $0.49, compared to a loss per share of $0.05 in the same period last year, achieving a turnaround from losses to profit. The doubling of revenue year-on-year is primarily due to the increased production of multiple product series on the AI platform. CEO Jitendra Mohan pointed out that the demand for signal conditioning, intelligent cable modules, and switching fabric products exceeded expectations this quarter, particularly with the large-scale production of new AI platforms. In terms of gross margin, GAAP gross margin was 76.2%, non-GAAP gross margin was 76.4%; GAAP operating income was $55.4 million, non-GAAP operating income was $96.1 million, with corresponding operating profit margins of 24.0% and 41.7%, showing a significant improvement in profitability. In addition, recent operational highlights for the company include: completing the acquisition agreement of fiber chip coupling technology supplier aiXscale Photonics GmbH to enhance photon-scalable solution development capabilities; showcasing a full range of connectivity solutions based on open standards such as PCIe, UALink, Ethernet, CXL, and OpenBMC at the 2025 OCP Global Summit, outlining the vision of AI rack-level deployment, and sharing deployment strategies through six technical seminars; partnering with over 30 industry chain partners such as AMD, Arm, and Cadence to drive rack-level innovation in an open ecosystem; participating in the Arm Total Design program to provide multi-protocol chip solutions to simplify customized SoC development based on Arm Neoverse CSS. Looking ahead, the company expects fourth-quarter revenue to reach $245 to $253 million, with non-GAAP diluted earnings per share of approximately $0.51, higher than the market's expectations of $0.42, while GAAP earnings per share are expected to be $0.20, below the expected $0.25. Mohan stated that demand for PCIe 6 in the fourth quarter will remain strong, and Taurus Ethernet intelligent cable modules are expected to achieve significant growth.