Slides
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Rambus Third Quarter 2025 Financial Results
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This presentation contains forward-looking statements, including those relating to the Company’s expectations regarding businessopportunities, the Company’s ability to deliver long-term profitable growth, industry growth rates, timing of expected product launches, demand forexisting and newly- acquired technologies, product and investment strategies, the Company’s outlook and financial guidance for recent and upcoming quarters and related drivers, the Company’s ability to effectively manage market challenges, the effects of ASC 606 on reported revenue, and geopolitical and macroeconomic environment, among other items. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in the Company’s periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof. This presentation contains non-GAAP financial measures, including cost of product revenue and operating costs and expenses. In computing these non- GAAP financial measures, stock-based compensation expenses, acquisition related costs and retention bonus expense, amortization of acquired intangible assets, provision for income taxes, change in fair value of earn-out liability and certain other one-time adjustments were considered. The non- GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Management believes the non- GAAP financial measures are appropriate for both its own assessment of, and to show investors, how the Company’s performance compares to other periods. Reconciliations from GAAP to non-GAAP results are made available and more fully described on our website as well as in the back of this deck and in the earnings release. Safe Harbor for Forward-Looking Statements; Other Disclosures
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3 Third Quarter 2025 Highlights CASH FROM OPERATIONSPRODUCT REVENUE RECORD Quarterly Results ➢ Delivered strong Q3 results and generated excellent cash from operations ➢ Achieved fourth consecutive quarterly product revenue record led by Memory Interface Chips ➢ On track to outpace market with annual product revenue growth, driven by DDR5 RCD leadership and ramping contributions from new products ➢ Strong alignment with positive trends in data center and AI driving long-term growth $93M $88M THIRD QUARTER FINANCIAL HIGHLIGHTS EXCELLENT Quarterly Results
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Financials Profitable Growth
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ASC 606 ASC 606 ASC 606 ASC 606 ASC 606 In Millions Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Revenue $145.5 $161.1 $166.7 $172.2 $178.5 Achieved fourth consecutive quarterly product revenue record Total Operating Costs and Expenses1 $80.5 $89.2 $90.4 $93.2 $99.3 Strategic R&D investment to support core growth initiatives Operating Income1 $65.1 $71.9 $76.3 $79.0 $79.2 Profitable results drive cash generation Cash from Operations $62.1 $59.0 $77.4 $94.4 $88.4 Excellent cash generation ¹Please refer to reconciliations of non-GAAP financial measures included in this presentation and in our earnings release Outstanding Cash Generation 5
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Strong Balance Sheet Supports Strategic Initiatives In Millions Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Total Cash & Marketable Securities $432.7 $481.8 $514.4 $594.8 $673.3 Driven by continued strong cash from operations Total Assets $1,251.6 $1,343.1 $1,379.4 $1,467.8 $1,406.4 Strong balance sheet and debt free Stockholders’ Equity $1,039.0 $1,120.7 $1,159.8 $1,228.0 $1,288.5 Cash from Operations $62.1 $59.0 $77.4 $94.4 $88.4 Excellent cash generation 6
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Q4 2025 Non-GAAP Outlook 7 Outlook (1) Product Revenue (ASC 606) $94 – $100M Total Operating Costs (3) $103 – $99M Licensing Billings (2) $60 – $66M Interest Income (Expense) $6M Contract & Other Revenue (ASC 606) $25 – $31M Fully Diluted Shares Outstanding 109.5M (1) The Q4 2025 outlook for Royalty revenue (ASC 606) (a component of total revenue) is $59 - $65M. The Company’s Non-GAAP outlook assumes a tax rate of 20%. (2) Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. (3) Excludes stock-based compensation expense ($15M) and amortization of acquired intangible assets ($2M).
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➢Amplified opportunity in data center fueled by AI with expanding product portfolio and sustained technical leadership ➢Pioneer of industry-leading chips and silicon IP enabling critical performance improvements for AI and other advanced workloads ➢Continued innovation feeds patent portfolio and product roadmap ➢Focused investment on expansion of leadership products and strategic initiatives drives financial results and long-term profitable growth ➢Strong cash generation fuels growth initiatives and return of value to stockholders Rambus Investment Summary 8
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Thank you
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Net Income in Millions Q3 2024 (ASC 606) Q4 2024 (ASC 606) Q1 2025 (ASC 606) Q2 2025 (ASC 606) Q3 2025 (ASC 606) GAAP Net Income $49 $62 $60 $58 $48 Adjustments: Stock-based compensation $12 $12 $11 $14 $14 Amortization of acquired intangible assets $3 $2 $2 $2 $2 Provision for income taxes ($5) ($17) ($9) ($7) $4 Change in fair value of earn-out liability ($5) $0 $0 $0 $0 Non-GAAP Net Income $54 $60 $65 $67 $68 Operating Income in Millions Q3 2024 (ASC 606) Q4 2024 (ASC 606) Q1 2025 (ASC 606) Q2 2025 (ASC 606) Q3 2025 (ASC 606) GAAP Operating Income $55 $58 $63 $63 $63 Adjustments: Stock-based compensation $12 $12 $11 $14 $14 Amortization of acquired intangible assets $3 $2 $2 $2 $2 Change in fair value of earn-out liability ($5) $0 $0 $0 $0 Non-GAAP Operating Income $65 $72 $76 $79 $79 Depreciation $7 $7 $7 $7 $8 Adjusted EBITDA $72 $79 $83 $86 $87 Reconciliation of Non-GAAP Financial Measures * Tables exclude the following items which round to $0M: Acquisition related costs and retention bonus expense 10
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Revenue and Licensing Billings ¹ Licensing billings is an operational metric that reflects amounts invoiced to our patent and technology licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. 2 Interest income associated with the significant financing component of licensing agreements as a result of the adoption of ASC 606. Certain amounts may be off $0.1M due to rounding. ASC 606 ASC 606 In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Q1’25 Q2’25 Q3’25 YTD 2025 Product Revenue $50.4 $56.7 $66.4 $73.4 $246.8 $76.3 $81.3 $93.3 $251.0 Royalty Revenue 47.5 56.4 64.1 58.2 226.2 74.0 68.6 65.1 207.7 Contract and Other Revenue 20.0 19.1 15.0 29.5 83.6 16.4 22.3 20.1 58.7 Total $117.9 $132.1 $145.5 $161.1 $556.6 $166.7 $172.2 $178.5 $517.4 In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Q1’25 Q2’25 Q3’25 YTD 2025 Royalty Revenue $47.5 $56.4 $64.1 $58.2 $226.2 $74.0 $68.6 65.1 $207.7 Licensing Billings1 63.2 61.5 65.4 63.6 253.7 73.3 66.4 66.1 205.7 Delta $15.7 $5.2 $1.3 $5.4 $27.5 ($0.7) ($2.2) $1.0 ($2.0) In Millions Q1'24 Q2'24 Q3'24 Q4'24 FY 2024 Q1’25 Q2’25 Q3’25 YTD 2025 ASC 606 Interest Income2 $0.2 $0.1 $0.2 $0.0 $0.5 $0.1 $0.0 $0.2 $0.3 11
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GAAP to Non-GAAP Income Statement GAAP Non-GAAP Delta In Millions Actual Actual to Q3’25 Q3’25 GAAP Revenue $178.5 $178.5 $- Cost of revenue 36.6 34.7 (1.9) Research and development 49.5 44.5 (5.0) Sales, general and administrative 29.2 20.2 (9.0) Total operating cost and expenses 115.3 99.3 (15.9) Operating income 63.3 79.2 15.9 Interest and other income (expense), net 6.0 6.0 0.0 Income before income taxes 69.3 85.2 15.9 Provision for income taxes¹ 20.9 17.0 (3.9) Net income $48.4 $68.2 $19.8 Certain amounts may be off $0.1M due to rounding. ¹ Assumes a non-GAAP tax rate of 20%. 12