Summary
- Revenue surged 104% YoY to $230.6 million, beating estimates by nearly 12%, with sequential growth holding steady at 20%.
- GAAP operating margin expanded to 24%, up from (7.9%) a year ago, while non-GAAP margin hit a record 41.7%.
- Scorpio P-Series contributed 10% of revenue, expected to double by year-end, with X-Series ramping in 2026 and higher ASP potential.
- Balance sheet remains strong with $1.13 billion in cash, zero debt, and sustained positive operating cash flow of $78 million.
- Despite trading at 32.7x EV/Sales, Astera’s triple-digit growth, 40%+ margins, and early optical roadmap justify its valuation premium.
monsitj/iStock via Getty Images
Investment Thesis
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Summary
- Revenue surged 104% YoY to $230.6 million, beating estimates by nearly 12%, with sequential growth holding steady at 20%.
- GAAP operating margin expanded to 24%, up from (7.9%) a year ago, while non-GAAP margin hit a record 41.7%.
- Scorpio P-Series contributed 10% of revenue, expected to double by year-end, with X-Series ramping in 2026 and higher ASP potential.
- Balance sheet remains strong with $1.13 billion in cash, zero debt, and sustained positive operating cash flow of $78 million.
- Despite trading at 32.7x EV/Sales, Astera’s triple-digit growth, 40%+ margins, and early optical roadmap justify its valuation premium.
monsitj/iStock via Getty Images
Investment Thesis
Astera Labs (ALAB) is proving it’s more than just another AI infrastructure player, it’s becoming the connective backbone of the ecosystem. Despite the post-earnings rally that pushed ALAB above $190, the broader tech sell-off dragged it
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