Astera Labs, Inc.

Good afternoon. My name is Holly and I will be your conference operator today. At this time, I would like to welcome everyone to the Estera Labs Q2 2026 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 1 again. Thank you. I will now turn the call over to Leslie Green, Investor Relations for Astera Labs. Leslie, you may begin.

Thank you, Holly, and good afternoon, everyone, and welcome to the Astera Labs second quarter 2026 earnings conference call. Joining us on the call today is Jitendra Mohan, Chief Executive Officer and Co-Founder Sanjay Gajendra, President and Chief Operating Officer and Co-Founder, and Desmond Lynch, 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 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 statement. In light of these risks and 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 based on information available to management as of today and the company undertakes no obligation to update such statements after the call except as required by law. Also during this call, we will refer to certain non-GAAP financial measures which we consider to be important measures of the company's performance. For example, the overview of our Q2 financial results and Q3 financial guidance refer to various non-GAAP financial measures. 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 and outlook are 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 Astera Labs. Jitendra?

Thank you, Leslie. Good afternoon, everyone, and thanks for joining our second quarter conference call for fiscal year 2026. Today, I'll provide an update on AI infrastructure market trends, our Q2 results, and recent announcements. I'll then turn the call over to Sanjay to discuss Astera Labs' long-term growth profile. Des will then cover our Q2 financial results and Q3 guidance. Since our last earnings call, investment in AI infrastructure has continued to accelerate. Multiple industry forecasts now point to hyperscaler AI and cloud infrastructure spending in 2027 reaching into the trillion-dollar range, with sovereign AI initiatives, inference workloads, and enterprise adoption expanding globally. These secular trends are increasing the need for intelligent connectivity and expanding our long-term growth opportunity. Acera Labs delivered outstanding results in Q2, with record revenue of $392.4 million, up 27% sequentially and up 104% year-over-year. This strong performance was driven by broad-based strength across our entire product portfolio, reflecting the diversification of our business as we continue to win new designs across multiple customers and product categories. PCI-6 momentum further accelerated in Q2. representing more than 50% of our total revenue driven by both Scorpio AI Fabric switches and Aries retimers. This milestone demonstrates the maturity and scale of our Gen 6 portfolio and clear market leadership. On the AI Fabric front, Scorpio delivered significant growth in Q2. High-rated Scorpio X series has entered volume production and will continue to scale materially in the second half of this year. We expect Scorpio to become our largest product family in Q3, which is one quarter ahead of our prior expectations, marking an important strategic milestone. We are now shipping multiple configurations of Scorpio X series into scale-up applications to our initial customers, and we remain on track to ship Scorpio X series to additional customers by year-end. Scorpio P series also continued to expand across multiple customers. with new shipments to hyperscalers and AI infrastructure providers. These programs are currently in pre-production and are expected to ramp more meaningfully in 2027. We are also closely engaged with our customers to support their future system architectures with purpose-built AI fabrics including next-generation PCI Express and UA-Link protocols. Upcoming AI systems will employ more complex switching topologies to enable larger XPU cluster sizes and higher bandwidth. These designs are expected to drive a material increase in our silicon dollar content per XPU. To summarize, a Scorpio fabric switch family is well positioned for a multi-year growth cycle driven by the following factors. First, higher dollar content per XPU due to greater attach rate and increased capabilities. Second, expanding customer base with exceptional traction and design in pipeline. Third, a greenfield TAM growing rapidly with broadening use cases across training and inferencing. Turning to our signal conditioning business, ARIES delivered record quarterly revenue in Q2, driven by strong adoption of retimers and gearboxes across scale-up and scale-out topologies in AI and general-purpose compute platforms. ARIES growth is being fueled by increased AI system deployment, expanding AI accelerator cluster sizes, greater unit attach rates, and higher ASPs associated with the transition to PCIe 6. Taurus also provided strong revenue growth in Q2 with increased units shipped across a variety of AI and general purpose platforms. During the quarter, we also shipped pre-production volume of our 100 gig per lane Taurus smart cable modules for 800 gig AECs for scale out applications. We expect Taurus to continue its growth trajectory in the second half of the year as 800 gig deployments expand. driving improved attach rates and higher ASPs compared to 400-gig solutions. We also expanded our Taurus portfolio with a new family of 3.2T smart retimers and smart redrivers supporting 200-gig per lane for next-generation Ethernet and ULing connectivity. These are the industry's first solutions to enable smart swap, giving platform designers the flexibility to choose between low-power smart redrivers and long-reach smart retimers without requiring a board redesign. This architectural flexibility is critical as AI systems evolve rapidly and designers need to address increasing signal integrity challenges at higher data rates while optimizing system power consumption. We expect our new high-speed 200-gig-per-lane retimers and redrivers to double our Taurus portfolio market opportunity to over $4 billion by 2030. In CXL, we are seeing renewed momentum as industry is recognizing its potential to unlock performance and utilization benefits in agentic AI applications. For a growing set of memory-intensive inference and agentic AI workloads, memory capacity and utilization are increasingly becoming system constraints, and CXL-attached memory can offer attractive cost performance relative to local HBM. As our hyperscaler customers look to address current memory supply and pricing dynamics, We are also seeing additional opportunities for CXL in mainstream general-purpose server platforms. During Q2, we closed a new design win with our standard Leo memory controller at a US hyperscaler. Looking into 2027, we expect to ship both standard and custom Leo CXL memory controllers in volume across general-purpose compute and AI inferencing applications to two US hyperscalers. Activity and engagement within the CXL ecosystem continues to be robust, and we expect to convert additional designs in the coming quarters. In closing, I'm proud of the results we have delivered and what excites me most is the trajectory ahead for Astera Labs. Scorpio X series is in volume production and we expect our Scorpio family to become our largest product category by revenue in Q3, a significant milestone in our evolution as a company. At the same time, new and existing designs across Aries, Taurus and Leo are contributing to our broad-based growth. Intelligent connectivity is now fundamental to AI infrastructure, and we are winning with the customers and platforms that define the market. With proven execution, deep customer partnerships, and growing design-win visibility, we are confident in our ability to continue outgrowing the market. With that, let me turn the call over to our president and COO, Sanjay Gajendra, to provide more details on our product momentum and strategic initiatives.