Astera Labs ALAB Q1 2025 earnings

[wpr101]

Astera reported revenue of 159.4M which was up 144% yoy and 13% qoq. Their original guidance was for 151-155M. Profitability came in really strong as well with a guide of GAAP EPS of 0.03 to 0.04 which landed at 0.18

The company mentioned they are seeing no impact from tariffs currently which is a nice reassurance as the company seemed to be trading on tariff news the past few months. Their Aries retimer business in China was cut off “hard stop” in the quarter because of new regulations but they managed to beat their guidance still.

The most encouraging part of this report from my perspective was that Q2 is seeing pre-production ramps of their newer products. Additionally, they keep saying the 2nd half of 2025 is going to see huge production ramp ups. Hyperscalers are continued to spend on their original plans, with one hyperscaler investing even more than anticipated. Overall, I’m optimistic where the company is headed after this report.

I have a video review of the report in depth for those interested to learn more about some details from the report,

Astera Labs ALAB Q1 2025 earnings review

[Wjr81]

Thanks for the work on this! Why is the operating income so much lower than the net income? Where are they getting this extra money from? Interest on cash? Investments? Licensing?

[wpr101]

@Wjr81 It looks like it’s a combination of interest income and a tax benefit that resulted to have net income be higher than operating income. The tax benefit may be a carry over from previous losses they were racking up in prior quarters or pre-IPO.

Looking at the numbers below we take,

11,285 (operating income) + 10,432 (interest income) + 10,102 (tax benefit) = 31,819 net income

It did seem like that GAAP EPS beat was a bit high. It makes more sense now knowing they had about 10M in interest income combined with a 10M tax benefit.