Astera Labs, Inc.

Good afternoon. My name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Estera Labs Q425 earnings conference call. All lines have been placed on mute to prevent any background noise. After management's 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 Astera Labs. Leslie, you may begin.

Thank you, Carly. Good afternoon, everyone, and welcome to the Astera Labs fourth 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 in the periodic reports 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. 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 statements. 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 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. A 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 issued 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 Astera Labs. Jitendra.

Thank you, Leslie. Good afternoon, everyone, and thanks for joining our fourth quarter conference call for fiscal year 2025. Today, I'll provide an overview of our Q4 and full year 2025 results, followed by a discussion around the current trends within the AI infrastructure markets. I will then turn the call over to Sanjay to walk through Astera Labs' near and long-term growth profile. Finally, Mike will give an overview of our Q4 2025 financial results and provide details regarding our financial guidance for Q1 2026. Astera Labs delivered strong results in Q4 with revenue at $270.6 million, up 17% from the prior quarter and up 92% versus Q4 of last year. For full year 2025, revenue was $852.5 million, up 115% versus the prior year. Growth within the quarter and for the year was broad-based, spanning across our signal conditioning, smart cable module, and switch fabric product portfolios as we continue to diversify our business profile with several new design wins across multiple customers. Secular trends remain robust within the AI and cloud infrastructure space, supported by exceptionally strong spending commentary coming from the top U.S. hyperscalers, with Google and AWS alone guiding nearly $400 billion in total CapEx spending for 2026. We are benefiting from this increased spending both in the near term and long term. Furthermore, the market opportunity for our intelligent connectivity platform is substantially larger than we initially anticipated, encompassing multiple product lines, physical media types, form factors, and protocols, for both standard and custom applications. Starting with Scorpio, our P Series family continued its volume ramp at our lead customers with growth coming from both existing and incremental platform designs. For the full year, Scorpio P Series exceeded our target of 10% of revenue and remains the only PCIe 6 fabric shipping in volume in the market. Looking into 2026, we anticipate continued growth for Scorpio P Series at our lead customers as well as commencing shipments into at least two additional major hyperscalers on their next generation AI platforms. Moving to Scorpio X series, we expect to incrementally grow revenue in the first half of 2026, followed by a transition to high volume production in the second half of 2026. We continue to make excellent progress with additional engagements looking to leverage PCIe for scale-up networking. As previously communicated, we are engaged with 10-plus customers for Scorpio X family, and our current expectation is that we will ship initial quantities of Scorpio X series to support new customer platforms in the second half of 2026, with volume ramps set for 2027. Solid traction continues to develop with respect to UV-Link, with a vibrant ecosystem including product announcements, broad IP availability, and compliance methodologies being finalized. Decent public roadmap announcements from AWS and AMD, along with other ongoing engagements, indicate a broad adoption. UA-Link remains the highest performance, lowest latency, fully open solution for AI scale of connectivity, and we will be ready to intercept the initial customer platform ramps in 2027. Our ARIES portfolio continues to perform well, with PCIe 6 solutions contributing robust growth during the quarter, and the overall portfolio growing nearly 70% year-over-year in 2025. The demand for ARIES is driven by increasing deployments of custom AI accelerators at large hyperscalers. Our ARIES Gen 6 products are the industry's only PCI-6 DSP retimer solutions shipping to customers in high volume today, and we are well positioned to maintain our leadership role in the market. We remain very early in the PCIe 6 transition cycle and anticipate additional customers will launch PCIe 6 capable AI accelerators and systems throughout 2026 and into 2027. As a result, we expect our Aries product line to continue growing in 2026 and beyond. Doris was our strongest performing product family during Q4 as new programs began shipping in volume to support designs across both AI and general purpose systems. In 2025, we saw Taurus revenue grow by more than 4x year over year, driven by a breadth of 400 gig designs that will serve as a baseline for continued growth in 2026. We look for the transition to 800 gig switching platforms to be the next catalyst for market expansion, driving further growth opportunities for Taurus. Finally, we made good progress with our Leo CXL memory expansion products in 2025 and look to build upon that in 2026. We are excited to announce our partnership with Microsoft, Intel, and SAP to enable customers to evaluate CXL memory expansion capabilities for their specific workloads within Microsoft Azure M series virtual machines. This program represents the industry's first publicly announced deployment of CXL attached memory, and we expect initial production volumes to commence in the second half of 2026. Overall, we are proud of the progress we have made in 2025. We added new product lines to service more sockets and address custom applications, increased the dollar content per accelerator, diversified our customer base with new designing, and scaled our operations. This progress and a strong track record of technology and operational execution has helped us forge tight relationships with key AI and cloud infrastructure providers. As an example, an update on our relationship with Amazon can be found in our 8K file today. Looking at the combination of growing AI infrastructure deployments and the increasing complexity of high-speed interconnect architectures is poised to drive significant growth for the AI connectivity space. We estimate our self-addressable market opportunity will expand by more than 10x over the next five years to reach $25 billion. This market opportunity spans our existing and announced copper-based product families, including Aries and Taurus signal conditioning solutions, Scorpio AI Fabric switches, US EXL memory controllers, and our recently announced custom solutions for scale-up connectivity. While these numbers and opportunities are substantial and exciting, there is a significant amount of work that needs to be done. Astera Labs is deeply committed to building an A-plus team with an execution mindset and capabilities essential to support our customers' technology roadmap and maximize our share of the large market opportunity ahead of us. Therefore, we are strategically investing in the expansion of our team and capabilities to execute against a broadening set of revenue opportunities generated by our customers. We took an exciting step in this direction this week with the announcement of a significant expansion in our global engineering operations through the establishment of an advanced design center in Israel. Our investment in this talented ASIC engineering team substantially increases our resource pool and will help accelerate development of cutting-edge, high bandwidth and custom AI fabric, and emerging AI inference technology. I would like to take a moment to thank our global team of Asterians, our partners, and our vendors who worked tirelessly in 2025 to deliver world-class AI connectivity solutions to the market. Their steadfast focus and effort have placed Astera Labs in a position of strength heading into 2026 as we continue solving next-generation AI connectivity challenges. Finally, we announced today that Mike Tate will transition from the CFO role into a full-time role as a strategic advisor reporting to me. Mike has been instrumental in Estella Labs' growth and development since inception, and we are very grateful for his many contributions. We are also very excited to announce Desmond Lynch will join Estella Labs as our new CFO effective March 2nd. Desmond brings great semiconductor financial experience to the company, and we look forward to drawing on his expertise as we enter our next phase of growth. We're also thankful that Mike will continue to work full-time in his new role to support the company and ensure a smooth transition to Desmond. 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.