RAMBUS (RMBS) Company Report

Rambus's business segments include Patent Licensing ($210 million/year), Silicon IP ($120 million last year, growing 10-15% annually), and a Product Business (data center focused) which was $240 million last year and is projected to grow 40% year-over-year based on Q4 guidance.
The total addressable market (TAM) for Rambus's chipset solutions is approximately $2 billion, encompassing RCD chips, companion chips (including PMIC), mRDIMM, and client solutions.
Rambus expects its PMIC (Power Management IC) revenue contribution to product revenue to reach high single digits in Q4 as a percentage of product revenue, with continued growth anticipated through 2026.
A significant future growth driver is mRDIMM technology, which is JEDEC compliant and expected to ramp in 2026-2027, offering a 4x content increase per module and a target market share of 40-50%.
The company targets 40-45% operating income and maintains strong gross margins across its segments (100% for patents, ~95% for Silicon IP, and 60-65% long-term for chips), with a capital allocation strategy that includes share buybacks, representing 44% of free cash flow since 2021.

Nov 18, 2025, 4:45 PM

Transcript

Rambus Discusses Business Segments and Growth Drivers

RMBS

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Rambus operates three business segments: patent licensing ($210 million annually), silicon IP ($120 million last year, growing 10-15% annually), and a product business focused on data centers ($240 million last year, poised for 40% year-over-year growth based on Q4 guidance midpoint).
The company holds a 40% market share in DDR5 RCD chips, up from 25% in DDR4, with a current Total Addressable Market (TAM) of approximately $800 million.
New opportunities from companion chips (PMIC, other companion chips) and mRDIMM technology are expected to add an additional $1.2 billion to the TAM, bringing the total market opportunity to about $2 billion.
Rambus is ramping its PMIC revenue contribution, expecting it to reach high single-digit as a percentage of product revenue in Q4, with continued growth anticipated over 2026.
The company targets 40-50% market share for mRDIMMs, which are projected to multiply dollar content by 4x per module and are expected to ramp with next-generation Intel and AMD platforms in 2026-2027.

Nov 18, 2025, 4:45 PM

Transcript

Rambus Discusses Business Segments, Growth Drivers, and Financial Targets

RMBS

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Rambus operates three business segments: patent licensing, which generates approximately $210 million annually; a silicon IP business, which was $120 million last year and grows about 10%-15% annually; and a product business, which was about $240 million last year and is poised to grow about 40% year-over-year based on the midpoint of Q4 guidance.
The product business, focused on data center chipsets, holds approximately 40% market share in DDR5 RCD chips and is considered a key growth engine.
Significant growth opportunities include PMIC and companion chips, which add an additional $600 million to the Total Addressable Market (TAM), MRDIMM technology, adding another $600 million to TAM and increasing dollar content by 4x, and client space solutions, adding approximately $200 million to TAM.
The company targets a 60%-65% gross margin for its chip business and 40%-45% operating income, with a capital allocation strategy that includes organic investment, tuck-in acquisitions, and share buybacks.

Nov 18, 2025, 4:45 PM

Transcript

Rambus Reports Strong Q3 2025 Results and Provides Q4 2025 Outlook

RMBS

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rambus delivered strong financial results for Q3 2025, with revenue of $178.5 million and a record product revenue of $93.3 million, representing a 15% sequential increase and 41% year-over-year growth. The company also generated $88.4 million in cash from operations and $80 million in free cash flow.
For Q4 2025, Rambus expects revenue to be between $184 million and $190 million, with non-GAAP earnings per share (EPS) projected between $0.64 and $0.71.
The company maintained market leadership in DDR5 products and saw increasing contributions from new products, driven by strong secular trends in data center and AI markets.
Rambus is progressing with MRDIMM development, anticipating large volume ramps in late 2026 and 2027, and aims for similar market share as DDR5 by 2028. The Silicon IP business also shows strong momentum, particularly with HBM4, GDDR7, and PCIe 7 solutions for AI workloads.

Oct 27, 2025, 9:00 PM

Transcript

Rambus Reports Strong Q3 2025 Results and Provides Q4 2025 Outlook

RMBS

Earnings

Guidance Update

Product Launch

Rambus delivered strong Q3 2025 financial results, with revenue of $178.5 million and a record product revenue of $93.3 million, marking a 41% year-over-year growth. The company also generated $88.4 million in cash from operations and $80 million in free cash flow.
For Q4 2025, Rambus anticipates revenue to be between $184 million and $190 million and expects non-GAAP earnings per share (EPS) in the range of $0.64 to $0.71.
The company maintains market leadership in DDR5 products and expects full-year product revenue growth of over 40%. They are also experiencing strong momentum in silicon IP driven by AI, with solutions like HBM4, GDDR7, and PCIe7.
Rambus expects MRDIMM products to ramp in large volumes towards the end of 2026 and 2027, with a potential market share realization around 2028, and estimates the MRDIMM market opportunity (TAM) to be approximately $600 million.

Oct 27, 2025, 9:00 PM

Transcript

Rambus Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

RMBS

Earnings

Guidance Update

New Projects/Investments

Rambus reported strong Q3 2025 financial results, with revenue of $178.5 million and a record product revenue of $93.3 million, representing a 41% year-over-year growth driven by DDR5 products and new product contributions.
For Q4 2025, the company expects revenue between $184 million and $190 million and non-GAAP operating results (profit) between $81 million and $91 million.
The company highlighted continued market leadership in DDR5 products and strong demand for its high-speed memory and interconnect silicon IP (HBM4, GDDR7, PCIe7) driven by AI adoption.
Rambus is progressing with MRDIMM development, anticipating market share similar to DDR5 by 2028, with an estimated MRDIMM market TAM of approximately $600 million.
Rambus generated $88 million in cash from operations and $80 million in free cash flow in Q3 2025, strengthening its balance sheet with $673.3 million in cash, cash equivalents, and marketable securities.

Oct 27, 2025, 9:00 PM

Transcript

Rambus Reports Record Q3 2025 Product Revenue and Provides Q4 2025 Outlook

RMBS

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rambus reported record quarterly product revenue of $93.3 million and total revenue of $178.5 million for Q3 2025.
The company achieved its fourth consecutive quarterly product revenue record, primarily led by Memory Interface Chips, and generated $88.4 million in cash from operations.
Rambus is on track to outpace the market with annual product revenue growth, driven by DDR5 RCD leadership and new products, with strong alignment to data center and AI trends.
For Q4 2025, the company projects product revenue between $94 million and $100 million and licensing billings between $60 million and $66 million.

Oct 27, 2025, 9:00 PM

Presentation

Rambus Announces Strong Q3 2025 Results and Q4 2025 Guidance

RMBS

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rambus reported strong Q3 2025 revenue of $178.5 million, exceeding expectations, and achieved a record product revenue of $93.3 million, representing a 41% year-over-year increase.
The company generated $88 million in cash from operations and $80 million in free cash flow in Q3 2025, strengthening its balance sheet to $673.3 million in cash, cash equivalents, and marketable securities.
For Q4 2025, Rambus anticipates revenue between $184 million and $190 million and non-GAAP earnings per share between $0.64 and $0.71.
Rambus expects full-year product revenue growth of over 40% driven by continued leadership in DDR5 products and ramping new contributions, with MRDIMM development progressing towards large volume ramps in late 2026/2027.

Oct 27, 2025, 9:00 PM

Transcript

Rambus Reports Q3 2025 Financial Results and Provides Q4 2025 Outlook

RMBS

Earnings

Guidance Update

Revenue Acceleration/Inflection

Rambus Inc. reported GAAP revenue of $178.5 million for the third quarter ended September 30, 2025, with product revenue reaching a record $93.3 million. The company also generated $88.4 million in cash from operating activities.
For Q3 2025, Rambus Inc. achieved diluted net income per share of $0.44.
For the fourth quarter of 2025, Rambus Inc. expects licensing billings between $60 million and $66 million, product revenue between $94 million and $100 million, and contract and other revenue between $25 million and $31 million.

Oct 27, 2025, 8:11 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for RAMBUS.

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