Astera Labs, Inc.

operator today. At this time, I would like to welcome everyone to the Estera Labs Q325 earnings conference call. All lines have been placed on mute to prevent any background noise. After management remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I'll now turn the call over to Leslie Green, Investor Relations for Estera Labs. Leslie, you may begin.

Good afternoon, everyone, and thank you, Eric. Welcome to Astera Labs' third quarter 2025 earnings conference call. Joining us on the call today are Jitendra Mohan, chief executive officer and co-founder, Sanjay Gajendra, president and chief operating officer and co-founder, and Mike Tate, chief financial officer. Before we get started, I would like to remind everyone that certain comments made in this call today may include forward-looking statements, regarding among other things expected future financial results, strategies and plans, future operations, and the markets in which we operate. These forward-looking statements reflect management's current beliefs, expectations, and assumptions about future events, which are inherently subject to risks and uncertainties that are discussed in detail in today's earnings release and the periodic reports filed and filings we file from time to time with the SEC including the risks set forth in our most recent annual report on Form 10-K and our upcoming filing on Form 10-Q. It is not possible for the company's management to predict all risks and uncertainties that could have an impact on these forward-looking statements or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties, and assumptions, The results, events, or circumstances reflected in the forward-looking statements discussed during this call may not occur, and actual results could differ materially from those anticipated or implied. All of our statements are made based on information available to management as of today, and the company undertakes no obligation to update such statements after the date of this conference call except as required by law. Also during this call, we will refer to certain non-GAAP financial measures which we consider to be an important measure of the company's performance. These non-GAAP financial measures are provided in addition to, and not as a substitute for, financial results prepared in accordance with U.S. GAAP. The discussion of why we use non-GAAP financial measures and reconciliations between our GAAP and non-GAAP financial measures is available in the earnings release we issue today, which can be accessed through the investor relations portion of our website. With that, I would like to turn the call over to Jitendra Mohan, CEO of Estera Labs. Jitendra?

Thank you, Leslie. Good afternoon, everyone, and thanks for joining our third quarter conference call for fiscal year 2025. Today, I'll provide an overview of our Q3 results, followed by a discussion around the current trends within AI infrastructure 2.0. I will then turn the call over to Sanjay to walk through Estera Labs' near and long-term growth profile. Finally, Mike will give an overview of our Q3 2025 financial results and provide details regarding our financial guidance for Q4. Estera Labs delivered strong results in Q3 with our revenue and profitability metrics coming in above our outlook. Quarterly revenue of $230.6 million was up 20% from the prior quarter and up 104% versus Q3 of last year. Growth within the quarter was broad-based across our signal conditioning, smart cable module, and switch fabric products. Scorpio P-Series continued its initial volume ramp at our lead customer, and we are excited that our P-Series revenue will further broaden with recent new design wins across a variety of AI platforms at multiple hyperscaler customers. Scorpio X-Series is shipping in pre-production quantities with a volume ramp expected throughout 2026. Our ARIES portfolio continues to perform well with PCI-6 solutions contributing robust growth during the quarter. Our ARIES 6 products are the industry's first and only PCI-6 retimer solutions ramping in high volume today. Taurus drove strong growth during the quarter as incremental opportunities began shipping in volume across both AI and general-purpose systems, and we expect further growth in 2026 as we expand to 800-gig switching platforms. For Leo CXL memory expansion products, customers are exploring AI inference use cases, especially to offload memory from expensive on-package HPM to large pools of DDR5 memory. This will broaden Leo opportunities beyond the current general-purpose compute applications that we continue to support. On the organizational front, we have grown aggressively and plan to exit 2025 with a global team of more than 700 employees, up 60%, compared with the beginning of the year. Lastly, we are happy to report that our non-GAAP operating margin of 41.7% marked a new record level for the company. In addition to our strong financial performance and new design wins, we continue to lay the foundation for future growth with the advancement of our technology roadmap and scaling of our team and capabilities In October, we announced that Estera Labs had entered into a definitive agreement to acquire Xscale Photonics, a provider of leading-edge fiber chip coupling technologies. This acquisition will help enable us to develop photonic scale-up solutions by combining Xscale's fiber chip coupling capabilities with Estera Labs' connectivity and signal conditioning expertise. We envision future Scorpio scale-up switches to be enabled with photonic solutions to optically expand backscale cluster sizes containing hundreds of connected AI accelerators. This acquisition represents an important step within our long-term optical journey to intercept a large additive market opportunity associated with scale-up photonics. The industry continues to see strong momentum with major announcements pointing to ongoing rapid growth in large-scale AI infrastructure deployment. Increasing AI use cases are driving higher monetization and surging demand for compute, as evidenced by token generation doubling every two months and significant year-over-year increases in LLM user activity. To meet this demand, the industry is rapidly adopting Raxial infrastructure, which analysts forecasting CapEx at the top four U.S. hyperscalers to surpass $500 billion in 2026. This shift to AI infrastructure 2.0 will require ultra-low latency, all-to-all connectivity for large workloads, and Astera Labs is advancing its intelligent connectivity platform to deliver high-performance, energy-efficient, fabric-switching solutions that maximize AI platform efficiency and productivity. To achieve the goal of providing our customers with a wide choice of innovative, flexible, and efficient connectivity solutions, we are building our portfolio based on open standards. Our full portfolio of standard-based solutions was on display at the 2025 Open Compute Project Global Summit with the support of 15 industry partners, all highlighting the importance of an open ecosystem for AI Rackscale infrastructure. We believe the proliferation of open standards-based AI Rackscale platforms will allow the industry to leverage broad innovation and enable interoperability while providing a diverse multi-vendor supply chain. They're particularly enthusiastic about the continued momentum behind the UA-Link scale-up connectivity standard, which exemplifies the open ecosystem approach by combining the low latency of PCIe and the fast data rates of Ethernet to deliver best-in-class end-to-end latency and bandwidth. UA-Link was built from the ground up with broad contributions from market-leading AI infrastructure participants to specifically solve the mounting challenges of scale-up networking. We believe ULing delivers the bandwidth efficiency and the ultra-low latency needed to unlock full accelerator performance and enable effective scaling as AI clusters expand. Customer activity around ULing continues to be strong. We are engaged with several leading hyperscalers and AI platform providers in the RFP and RFQ stages to align on the designs and applications that fit best with their technology and business requirements. We continue to expect a portfolio of Eolink solutions to be available to customers in the second half of 2026, with early revenues generated in 2027. With that, let me turn the call over to our President and COO, Sanjay Gajendra, to outline our vision for growth over the next several years.