Earnings release
Page 1
Exhibit 99.1 News Release RAMBUS REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS • Record quarterly revenue of $218.3 million, up 22% year over year, exceeding guidance range • GAAP diluted earnings per share of $0.69 and non-GAAP diluted earnings per share of $0.84, exceeding guidance range • Record product revenue of $114.3 million, up 15% quarter over quarter and 22% year over year • Expanded product and IP offerings for next-generation AI systems, including industry-leading PMIC for LPDDR6 SOCAMM2 and data center-class Root of Trust security IP SAN JOSE, Calif. – October 26, 2026 – Rambus Inc. (NASDAQ:RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the third quarter ended September 30, 2026. Total revenue for the third quarter was $218.3 million, product revenue was $114.3 million, royalties revenue was $77.0 million and contract and other revenue was $27.0 million. GAAP diluted earnings per share was $0.69 and non-GAAP diluted earnings per share was $0.84. The Company also generated a record $102.5 million of cash from operating activities in the third quarter. Management Commentary “Rambus delivered record quarterly revenue and earnings that exceeded our guidance, with strong customer demand driving record product revenue and record cash from operations,” said Luc Seraphin, president and chief executive officer of Rambus. “We continue to expand our product and IP offerings to address the growing performance requirements of next-generation AI and data center infrastructure. Through ongoing execution on our roadmap and accelerating demand for our differentiated solutions, we expect an even stronger performance in Q4 and are well positioned to deliver long-term profitable growth and value for our stockholders.” GAAP Non-GAAP Quarterly Financial Review Three Months EndedSeptember 30, Three Months EndedSeptember 30, (In millions, except percentages and per share amounts) 2026 2025 2026 2025 Revenue Product revenue $ 114.3 $ 93.3 $ 114.3 $ 93.3 Royalties revenue 77.0 65.1 77.0 65.1 Contract and other revenue 27.0 20.1 27.0 20.1 Total revenue 218.3 178.5 218.3 178.5 Cost of product revenue 45.5 34.3 45.3 34.2 Cost of contract and other revenue 0.8 0.5 0.8 0.5 Amortization of acquired intangible assets (included in total cost of revenue) 1.1 1.7 — — Total operating expenses 87.3 78.7 70.0 64.6 Operating income $ 83.6 $ 63.3 $ 102.2 $ 79.2 Operating margin 38% 35% 47% 44% Net income $ 74.6 $ 48.4 $ 91.7 $ 68.2 Diluted earnings per share $ 0.69 $ 0.44 $ 0.84 $ 0.62 See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below. Note that the applicable non-GAAP measures are presented and that revenue is solely presented on a GAAP basis. GAAP revenue for the quarter was $218.3 million, which exceeded the Company's guidance range of $210 million to $216 million. The Company had product revenue of $114.3 million, royalties revenue of $77.0 million and contract and other revenue of $27.0 million. (1) ( 1 )
Page 2
The Company had total GAAP cost of revenue of $47.4 million and operating expenses of $87.3 million. The Company also had total non- GAAP operating expenses of $116.1 million (including non-GAAP cost of revenue of $46.1 million). The Company had GAAP diluted earnings per share of $0.69 and non-GAAP diluted earnings per share of $0.84. The Company’s basic share count was 108 million shares and its diluted share count was 109 million shares. Cash, cash equivalents, and marketable securities as of September 30, 2026 were $776.9 million, a decrease of $48.0 million as compared to June 30, 2026, mainly due to $135.4 million paid for repurchases of common stock and $11.2 million paid for capital expenditures, partially offset by $102.5 million cash provided by operating activities. 2026 Fourth Quarter Outlook (In millions, except per share amounts) GAAP Non-GAAP Revenue $227 - $233 $227 - $233 Product revenue $127 - $133 $127 - $133 Royalties revenue $68 - $74 $68 - $74 Contract and other revenue $26 - $32 $26 - $32 Total operating costs and expenses $143 - $139 $124 - $120 Diluted earnings per share $0.68 - $0.76 $0.84 - $0.92 See “Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates” table included below. Note that the applicable non-GAAP measures are presented and that revenue is solely presented on a GAAP basis. Total operating costs and expenses include cost of sales and operating expenses. For the fourth quarter of 2026, the Company expects revenue to be between $227 million and $233 million. The Company also expects product revenue to be between $127 million and $133 million, royalties revenue to be between $68 million and $74 million, and contract and other revenue to be between $26 million and $32 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales and solutions licensing, among other matters. The Company also expects GAAP operating costs and expenses to be between $143 million and $139 million and non-GAAP operating costs and expenses to be between $124 million and $120 million. The Company expects interest and other income to be $6.5 million. These expectations also assume a GAAP tax rate of 17.5%, a non-GAAP tax rate of 16% and a diluted share count of 109 million shares, and exclude stock-based compensation expense of $18.2 million, amortization of acquired intangible assets of $1.0 million and other one- time adjustments of ($0.2) million. Additionally, the Company expects GAAP diluted earnings per share to be between $0.68 and $0.76 and non-GAAP diluted earnings per share to be between $0.84 and $0.92. (1) (2) ( 1 ) ( 2 )
Page 3
Conference Call The Company’s management will discuss the results of the quarter during a conference call scheduled for 2:00 p.m. PT today. The call will be audio, slides will be available online at investor.rambus.com, and a replay will be available for the next week at the following numbers: (833) 309-1852 (domestic) or +44 800-007-4044 (international) with ID# 254362271. Non-GAAP Financial Information In the commentary set forth above and in the financial statements included in this earnings release, the Company presents the following non-GAAP financial measures: cost of product revenue, operating expenses, operating income, gross margin, operating margin, net income and diluted net income per share (diluted earnings per share). In computing each of these non-GAAP financial measures, the following items were considered as discussed below: stock-based compensation expense, restructuring charges, amortization of acquired intangible assets, facility closure costs, income tax adjustment, and certain other one-time adjustments. The non-GAAP financial measures disclosed by the Company 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. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release. The Company’s non-GAAP financial measures reflect adjustments based on the following items: Stock-based compensation expense. These expenses primarily relate to employee stock purchase plans, and employee non-vested equity stock and non-vested stock units. The Company excludes stock-based compensation expense from its non-GAAP measures primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results. Additionally, given the fact that other companies may grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation expense permits more accurate comparisons of the Company’s results with peer companies. Restructuring charges. These charges include severance, exit costs and other related costs. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses. Amortization of acquired intangible assets. The Company incurs expenses for the amortization of intangible assets acquired in acquisitions. The Company excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from the Company’s prior acquisitions and have no direct correlation to the operation of the Company’s core business. Facility closure costs. These charges consist of exit costs associated with building leases that were abandoned. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses. Income tax adjustment. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 16 percent and 20 percent for 2026 and 2025, respectively, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company’s planning. On occasion in the future, there may be other items, such as significant gains or losses from contingencies, that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management.
Page 4
About Rambus Inc. Rambus delivers industry-leading chips and silicon IP for data-intensive computing systems, focusing on data center and AI infrastructure. With over three decades of advanced semiconductor experience, our products and technologies address the critical bottlenecks between memory and processing to accelerate data-intensive workloads. By enabling greater bandwidth, efficiency and security across next- generation computing platforms, we make data faster and safer. For more information, visit rambus.com. Forward-Looking Statements This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to Rambus’ expectations regarding business opportunities, the Company’s ability to deliver long-term, profitable growth, product and investment strategies, and the Company’s outlook and financial guidance for the fourth quarter of 2026 and related drivers, and the Company’s ability to effectively manage market challenges. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by the Company’s management. Actual results may differ materially. The Company’s business generally is subject to a number of risks which are described more fully in Rambus’ 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. Contact Sumeet Gagneja Senior Vice President and Chief Financial Officer (408) 462-8000 sgagneja@rambus.com Source: Rambus Inc.
Page 5
Rambus Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) September 30,2026 December 31,2025 ASSETS Current assets: Cash and cash equivalents $ 110,531 $ 182,826 Marketable securities 666,376 579,005 Accounts receivable 142,149 137,476 Unbilled receivables 26,818 25,209 Inventories 87,235 44,098 Prepaids and other current assets 18,323 20,202 Total current assets 1,051,432 988,816 Intangible assets, net 5,711 10,171 Goodwill 286,812 286,812 Property and equipment, net 107,918 113,051 Operating lease right-of-use assets 13,702 17,112 Deferred tax assets 86,500 105,542 Other assets 6,157 8,041 Total assets $ 1,558,232 $ 1,529,545 LIABILITIES & STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 23,349 $ 35,915 Accrued salaries and benefits 20,372 22,044 Deferred revenue 32,391 29,980 EDA tools software licenses liability 14,795 14,884 Operating lease liabilities 5,645 6,310 Other current liabilities 15,543 11,441 Total current liabilities 112,095 120,574 Long-term operating lease liabilities 14,572 18,671 Long-term EDA tools software licenses liability 9,053 20,908 Other long-term liabilities 4,781 4,967 Total long-term liabilities 28,406 44,546 Total stockholders’ equity 1,417,731 1,364,425 Total liabilities and stockholders’ equity $ 1,558,232 $ 1,529,545
Page 6
Rambus Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months EndedSeptember 30, Nine Months EndedSeptember 30, (In thousands, except per share amounts) 2026 2025 2026 2025 Revenue: Product revenue $ 114,315 $ 93,342 $ 301,471 $ 250,976 Royalties 76,958 65,120 230,861 207,702 Contract and other revenue 27,016 20,051 73,531 58,708 Total revenue 218,289 178,513 605,863 517,386 Cost of revenue: Cost of product revenue 45,458 34,337 118,762 97,338 Cost of contract and other revenue 753 531 2,659 1,708 Amortization of acquired intangible assets 1,164 1,724 4,459 5,158 Total cost of revenue 47,375 36,592 125,880 104,204 Gross profit 170,914 141,921 479,983 413,182 Operating expenses: Research and development 49,355 49,511 150,683 138,462 Sales, general and administrative 37,684 29,155 107,616 85,328 Restructuring charges 223 — 3,543 — Total operating expenses 87,262 78,666 261,842 223,790 Operating income 83,652 63,255 218,141 189,392 Interest income and other income (expense), net 7,162 6,327 21,373 16,411 Interest expense (279) (294) (860) (1,053) Interest and other income (expense), net 6,883 6,033 20,513 15,358 Income before income taxes 90,535 69,288 238,654 204,750 Provision for income taxes 15,970 20,911 36,626 38,135 Net income $ 74,565 $ 48,377 $ 202,028 $ 166,615 Net income per share: Basic $ 0.69 $ 0.45 $ 1.87 $ 1.55 Diluted $ 0.69 $ 0.44 $ 1.84 $ 1.53 Weighted-average shares used in per share calculations: Basic 107,644 107,622 108,032 107,483 Diluted 108,788 109,304 109,552 108,962
Page 7
Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (Unaudited) Three Months EndedSeptember 30, (In thousands, except per share amounts) 2026 2025 Cost of product revenue $ 45,458 $ 34,337 Adjustment: Stock-based compensation expense (185) (180) Non-GAAP cost of product revenue $ 45,273 $ 34,157 Total operating expenses $ 87,262 $ 78,666 Adjustments: Stock-based compensation expense (16,936) (14,026) Restructuring charges (223) — Facility closure costs (78) — Non-GAAP total operating expenses $ 70,025 $ 64,640 Operating income $ 83,652 $ 63,255 Adjustments: Stock-based compensation expense 17,121 14,206 Amortization of acquired intangible assets 1,164 1,724 Restructuring charges 223 — Facility closure costs 78 — Non-GAAP total operating income $ 102,238 $ 79,185 Net income $ 74,565 $ 48,377 Stock-based compensation expense 17,121 14,206 Amortization of acquired intangible assets 1,164 1,724 Restructuring charges 223 — Facility closure costs 78 — Income tax adjustment (1,489) 3,867 Non-GAAP net income $ 91,662 $ 68,174 Non-GAAP diluted earnings per share $ 0.84 $ 0.62 Weighted-average shares used in non-GAAP diluted per share calculation 108,788 109,304
Page 8
Rambus Inc. Reconciliation of GAAP Forward-Looking Estimates to Non-GAAP Forward-Looking Estimates (Unaudited) 2026 Fourth Quarter Outlook Three Months Ended December 31, 2026 (In millions, except per share amounts) Low High Forward-looking operating costs and expenses $ 143.0 $ 139.0 Adjustments: Stock-based compensation expense (18.2) (18.2) Amortization of acquired intangible assets (1.0) (1.0) Other 0.2 0.2 Forward-looking Non-GAAP operating costs and expenses $ 124.0 $ 120.0 Forward-looking net income $ 74.7 $ 82.9 Adjustments: Stock-based compensation expense 18.2 18.2 Amortization of acquired intangible assets 1.0 1.0 Other (0.2) (0.2) Income tax adjustment (1.7) (1.5) Forward-looking Non-GAAP net income $ 92.0 $ 100.4