Technology

Last Updated: 05 Oct 2026

Palo Alto Networks, Inc. (NASDAQ: PANW) is one of the largest cybersecurity companies in the world. It sells next-generation firewalls (hardware and software) and three platforms:

• Strata, for network and AI security;
• Prisma, for cloud and secure access;
• Cortex, for security operations, now extended into observability through the Chronosphere acquisition.

The $25bn acquisition of CyberArk, completed on 11 Feb 2026, added identity security, now sold as the Idira platform. Since 23 Feb 2026 the shares have also traded in Tel Aviv.

FY2026 (the year to 31 Jul 2026) revenue rose 24.5% to $11,480m, helped by the acquisitions. Next-Generation Security annual recurring revenue (ARR) jumped 63% to $9.10bn. GAAP diluted EPS fell to $0.40 as acquisition costs and amortisation rose, while non-GAAP EPS grew to $3.84. FY2027 guidance is revenue of $14.10–14.20bn and non-GAAP EPS of $4.16–4.19. The shares closed at a record $403.24 on 02 Oct 2026, a market value of about $329.9bn.

This refresh draws on Palo Alto Networks' earnings releases, the FY2026 Form 10-K (filed 10 Sep 2026), SEC XBRL company facts and Form 4 filings, all retrieved on 05 Oct 2026. Per-share figures reflect the 3-for-1 split of Sep 2022 and the 2-for-1 split of Dec 2024. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Palo Alto Networks, Inc. (Delaware corporation)
Ticker	PANW (NASDAQ). Also listed on the Tel Aviv Stock Exchange since 23 Feb 2026 under the symbol CYBR
Sector	Technology: cybersecurity platforms (network, cloud, security operations and identity)
CEO / Leadership	Nikesh Arora (Chairman and CEO); Dipak Golechha (CFO); Lee Klarich (Chief Product and Technology Officer, director); Josh Paul (Chief Accounting Officer)
Market cap	~$329.9bn (818.0m shares × $403.24 at the 02 Oct 2026 close)
Revenue (FY2026, to 31 Jul 2026)	$11,480m (+24.5% YoY); subscription and support $9,200m, product $2,280m
Net income (FY2026)	$307m GAAP net income; GAAP diluted EPS $0.40; non-GAAP diluted EPS $3.84
Employees	21,921 at 31 Jul 2026, up from 16,068 a year earlier; about 4,223 of the increase came from CyberArk (FY2026 10-K)
Scale	Next-Generation Security ARR $9.10bn (+63%); remaining performance obligations $21.2bn (+34%) at 31 Jul 2026
Fiscal year	Ends 31 July (FY2027 runs to 31 Jul 2027)
Dividend	None

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Platform ARR surging: Next-Generation Security ARR grew 63% to $9.10bn in FY2026. Guidance is $11.075–11.175bn for FY2027, and the company targets $20bn by FY2030.
• Cash machine: Adjusted free cash flow was $4,414m in FY2026, a 38.4% margin. Management guides to 38% in FY2027 and targets 40% in FY2028.
• Broadest security portfolio: CyberArk identity security (Idira) and Chronosphere observability now sit alongside firewalls, Prisma and Cortex, giving more products to sell to the same customers.
• Contracted backlog: Remaining performance obligations rose 34% to $21.2bn, and FY2027 revenue guidance is $14.10–14.20bn (+23–24%).
• CEO bought shares: Nikesh Arora bought 68,085 shares in the open market on 27 Mar 2026 for about $10.0m. The company also bought back $1.0bn of stock in Feb 2026.

Bear Case

• GAAP profits squeezed: GAAP diluted EPS fell from $1.60 in FY2025 to $0.40 in FY2026, with GAAP losses in Q3 and Q4. GAAP operating income fell to $695m from $1,243m.
• Acquired growth: Q3 FY2026 included $388m of revenue from CyberArk and Chronosphere, so organic growth is well below the headline rate.
• Integration load: Palo Alto Networks spent about $28bn on CyberArk and Chronosphere and closed three more deals in 2026: Koi Security, Portkey and Console. Bringing them together raises execution risk.
• Share dilution: The CyberArk deal issued an estimated 111m new shares. FY2027 guidance assumes 844–847m diluted shares, against 818m outstanding at 31 Aug 2026.
• High multiples: The stock trades at about 97x the midpoint of FY2027 non-GAAP EPS guidance and about 1,000x trailing GAAP EPS, after rising from a 52-week low of $139.57.

3. What Does This Company Actually Do?

Palo Alto Networks protects corporate networks, cloud workloads, endpoints, identities and AI applications. Customers buy firewall appliances and software, then pay recurring subscriptions for threat intelligence, secure access, cloud security, security operations and identity tools. The company reports one operating segment; the disclosed revenue categories are below.

Segment / category	% of revenue	What it is
Subscription and support	80.1% ($9,200m, FY2026)	Security subscriptions (Prisma Access, Prisma Cloud, Cortex XSIAM and XDR, CyberArk/Idira identity, Chronosphere observability, threat-prevention services) plus support contracts on firewalls
Product	19.9% ($2,280m, FY2026)	Next-generation firewall hardware and software licences (Strata network security)

FY2026 figures from the Q4 FY2026 earnings release; percentages are ChartsView calculations. Network Security and Next-Generation Security revenue are not disclosed separately; the company discloses only Next-Generation Security ARR ($9.10bn).

By geography (FY2026 10-K):

• Americas: $7,679m (66.9%), of which the United States was $7,108m;
• Europe, Middle East and Africa: $2,428m (21.1%);
• Asia-Pacific and Japan: $1,373m (12.0%).

4. The Business Model

How it makes money. Most revenue is recurring. Customers sign multi-year subscription and support contracts, much of it billed up front, which is why remaining performance obligations ($21.2bn) are almost twice annual revenue and free cash flow runs well above GAAP profit. Firewall hardware sales start many relationships. The company's “platformisation” strategy then moves customers onto several of its platforms at once, sometimes with free periods to win them over from rival products.

Where the moat sits. Palo Alto Networks' advantages are:

• a large installed base of firewalls in enterprises and governments, which is costly to rip out;
• threat intelligence from its Unit 42 research and incident-response team, which feeds every product;
• breadth: network, cloud, security operations, identity and now observability from one vendor, which appeals to customers consolidating suppliers;
• scale. With $4.4bn of annual adjusted free cash flow it can keep buying start-ups, as it did with Koi Security, Portkey and Console in 2026.

What changed in 2025–2026. The company made the largest acquisitions in its history:

• Chronosphere for $3.35bn (closed 29 Jan 2026);
• CyberArk for about $25bn in cash and shares (closed 11 Feb 2026). CyberArk holders received $45.00 in cash plus 2.2005 Palo Alto Networks shares for each CyberArk share.

It added a Tel Aviv listing, launched the Idira identity platform (12 May 2026) and Prisma AIRS 3.0 for AI security (23 Mar 2026), and is building AI-agent defences with model providers.

5. Financial Health

Sources: Palo Alto Networks earnings releases (SEC 8-K exhibits), the FY2026 Form 10-K, and SEC XBRL company facts (data.sec.gov) for revenue, EPS, debt, cash flow, D&A and operating income. The fiscal year ends 31 July. Per-share figures are adjusted for the 2022 and 2024 stock splits.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022 (to 31 Jul 2022)	$5,501.5m	+29%	-$0.45	$1.26	$0.00	$3,676.8m†
FY2023 (to 31 Jul 2023)	$6,892.7m	+25%	$0.64	$2.22	$0.00	$1,991.5m†
FY2024 (to 31 Jul 2024)	$8,027.5m	+16%	$3.64	$2.84	$0.00	$963.9m†
FY2025 (to 31 Jul 2025)	$9,221.5m	+15%	$1.60	$3.34	$0.00	Nil
FY2026 (to 31 Jul 2026)	$11,480m	+24.5%	$0.40	$3.84	$0.00	$1,774m

Notes on the annual table:

• Adjusted EPS is the company's non-GAAP diluted EPS.
• FY2022 and FY2023 EPS were reported after the 3-for-1 split and are halved here for the Dec 2024 2-for-1 split. FY2024 EPS is as restated in the FY2025 release.
• FY2024 GAAP EPS ($3.64) was higher than non-GAAP EPS ($2.84) because of items that the non-GAAP measure excludes.
• † The company's own convertible senior notes (XBRL tags LongTermDebt and ConvertibleDebtCurrent). They were classified as current at these year-ends and were fully settled during FY2025.
• The FY2026 figure is CyberArk's 0% convertible notes due 2030, assumed in the acquisition and carried at fair value (XBRL ConvertibleDebtNoncurrent). Principal was $1.1bn at 31 Jul 2026 and the conversion price is $280.75 per share.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q4 FY2026 (to 31 Jul 2026)	$3,410m	$1.02	-$0.35
Q3 FY2026 (to 30 Apr 2026)	$3,002m	$0.85	-$0.22
Q2 FY2026 (to 31 Jan 2026)	$2,594m	$1.03	$0.61
Q1 FY2026 (to 31 Oct 2025)	$2,474m	$0.93	$0.47
Q4 FY2025 (to 31 Jul 2025)	$2,536m	$0.95	$0.36
FY2026 total	$11,480m	$3.84	$0.40

Notes on the quarterly table:

• Q4 FY2026 was reported on 01 Sep 2026.
• Q3 and Q4 FY2026 include CyberArk and Chronosphere; Q3 included $388m of revenue from them.
• Q4 FY2026 in more detail:
  • revenue +34%;
  • product revenue $738m;
  • subscription and support $2,672m;
  • GAAP net loss $282m.
• Quarterly EPS does not sum exactly to the full year because the share count changed sharply after the CyberArk deal.

Cash flow and balance sheet.

• Cash flow (FY2026).
  • Operating cash flow was $4,553m and purchases of property, equipment and other assets $440m, including a $91m headquarters land purchase. That gives free cash flow of $4,113m; adjusted free cash flow was $4,414m (38.4%).
  • D&A was $855m, up from $343m as acquired intangibles were amortised. GAAP operating income was $695m.
  • Cash paid for acquisitions, net of cash acquired, was $4,663m, and $18,862m of shares were issued as acquisition consideration. Share buybacks were $1,000m.
• Balance sheet at 31 Jul 2026.
  • Cash and cash equivalents were $2,514m, short-term investments $557m and long-term investments $4,835m, a total of $7,906m.
  • The only debt was the assumed CyberArk convertible notes, $1,774m at fair value.
• FY2027 guidance (01 Sep 2026):
  • revenue of $14.10–14.20bn (+23–24%);
  • Next-Generation Security ARR of $11.075–11.175bn;
  • non-GAAP operating margin of 29.5%;
  • non-GAAP EPS of $4.16–4.19;
  • adjusted free cash flow margin of 38.0%.
  For Q1 FY2027 the company guides to revenue of $3.300–3.310bn and non-GAAP EPS of $0.96–0.98.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$329.9bn (818.0m shares × $403.24 at the 02 Oct 2026 close)
Enterprise value	~$328.6bn = market cap ~$329.9bn + total debt ~$1.77bn (CyberArk convertible notes $1,774m; no current debt) − cash and short-term investments ~$3.07bn ($2,514m + $557m), per the 31 Jul 2026 balance sheet. Long-term investments of $4,835m are excluded; including them would give ~$323.7bn.
Trailing P/E (GAAP)	~1,008x ($403.24 / FY2026 GAAP diluted EPS of $0.40). GAAP earnings are depressed by acquisition costs and amortisation of acquired intangibles. On FY2026 non-GAAP EPS of $3.84 the multiple is ~105x.
P/E (forward)	~96.6x ($403.24 / $4.175, the midpoint of FY2027 non-GAAP EPS guidance of $4.16–4.19 issued 01 Sep 2026)
P/S (TTM)	~28.7x (market cap / FY2026 revenue of $11,480m)
EV/EBITDA (TTM)	~212x (EV ~$328.6bn / FY2026 EBITDA ~$1.55bn). EBITDA = GAAP operating income $695m + D&A $855m (cash flow statement, XBRL DepreciationDepletionAndAmortization). GAAP operating income was cut by CyberArk and Chronosphere deal and integration costs, so this multiple is distorted.
P/FCF	~80x (market cap ~$329.9bn / FY2026 FCF ~$4.11bn). FCF = operating cash flow $4,553m − capex $440m, per the FY2026 cash flow statement. On adjusted FCF of $4,414m the multiple is ~75x.
52-week high	$409.50 (intraday, 02 Oct 2026)
52-week low	$139.57 (intraday, 24 Feb 2026)
Short interest (% of float)	2.71% (21.87m shares, settlement date 15 Sep 2026, per MarketBeat)
Days to cover	3.0 (MarketBeat, 15 Sep 2026); StockAnalysis shows 3.39 on a different average-volume basis
Dividend yield	Nil (no dividend)

Price-based metrics use the 02 Oct 2026 close. The 52-week range is from Yahoo Finance daily bars. For live prices see ChartsView Live Charts.

7. What Are They Building

Security for AI and AI-powered defence.

• Unit 42 Continuous Frontier AI Defense: launched on 22 Sep 2026. The service uses Anthropic's Mythos and OpenAI's GPT-5.6-Cyber models to find and fix weaknesses in customer environments on a continuous basis.
• Frontier AI Critical Defense Program: announced on 19 Aug 2026.
• Prisma AIRS 3.0: launched on 23 Mar 2026 to protect AI models, apps and agents.

Identity security (Idira). CyberArk's privileged-access and identity products were relaunched as the Idira platform on 12 May 2026. It is now the third platform, alongside Network & AI Security and Cortex.

Cortex and agentic operations. Chronosphere brings observability data into Cortex, and Console, bought on 01 Sep 2026, adds AI-native agentic operations. The aim is security operations in which AI agents investigate and resolve incidents. Koi Security (closed 14 Apr 2026) and Portkey (closed 29 May 2026) were also folded into the product lines.

Go-to-market. A global strategic alliance with NTT DATA was announced on 20 Aug 2026.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
CrowdStrike (CRWD)	~$276.5bn	Q2 FY2027 ending ARR $5.84bn (+25%); revenue $1.47bn (+26%) (CrowdStrike 8-K press release, 26 Aug 2026)
Fortinet (FTNT)	~$132.8bn	Q2 2026 revenue $2.05bn (+26%); billings $2.37bn (+33%) (Fortinet Q2 2026 results)
Zscaler (ZS)	~$32.1bn	Q4 FY2026 ARR $3,771m (+25%, or +20% excluding Red Canary) (Zscaler 8-K press release)
Cisco Systems (CSCO)	~$442.4bn (whole company)	Q4 FY2026 security revenue +14% YoY; total quarterly revenue $17.3bn (Cisco 8-K press release)
Check Point Software (CHKP)	~$13.3bn	Q2 2026 revenue $674m (+1%); security subscriptions $333m (+12%) (Check Point press release)

Market caps are at the 02 Oct 2026 close from Yahoo Finance and StockAnalysis. Microsoft also competes in endpoint, identity and cloud security, and CyberArk's identity business now competes with Okta and others.

9. Leadership and Ownership

Nikesh Arora is Chairman and CEO. His open-market purchase of 68,085 shares at about $146.88 on 27 Mar 2026 (about $10.0m) is the largest insider buy of the year, and no Arora sales were found in the past twelve months. Dipak Golechha is CFO, and Lee Klarich, Chief Product and Technology Officer, sits on the board. Recent insider activity has been mostly selling under 10b5-1 plans as the shares hit records.

Name	Date	Type	Shares	Price	Value	Plan Type
Lee Klarich (CPTO, director)	30 Sep 2026	Gift	25,000	n/a	n/a	n/a
Dipak Golechha (CFO)	24 Sep 2026	Sale	27,500	~$391.61 (avg)	~$10.77m	10b5-1 (adopted 25 Jun 2026)
James Goetz (director)	17 Sep 2026	Sale	20,000	~$376.68	~$7.53m	Not under 10b5-1
John Key (director)	14 Sep 2026	Sale	2,500	$376.03	~$0.94m	Not stated
Josh Paul (CAO)	25 Aug 2026	Sale	900	$353.77	~$0.32m	10b5-1 (adopted 17 Sep 2025)
Dipak Golechha (CFO)	23 Jun 2026	Sale	5,000	$289.57	~$1.45m	Not stated
Lee Klarich (CPTO, director)	22 May 2026	Sale	62,904	~$258.65 (avg)	~$16.27m	10b5-1 (adopted 11 Dec 2025)
Nikesh Arora (Chairman and CEO)	27 Mar 2026	Open-market purchase	68,085	~$146.88	~$10.0m	Discretionary

Sources: SEC Form 4 filings on EDGAR, listed via OpenInsider. RSU vesting and tax withholdings are not shown.

10. Risks and Challenges

• Integration (Operational): CyberArk was the company's largest acquisition, and Chronosphere, Koi Security, Portkey and Console followed within months. Keeping customers and staff while merging products, sales teams and systems is a substantial task.
• Competition (Competitive): CrowdStrike, Fortinet, Zscaler, Cisco and Microsoft all push their own platforms. Platformisation deals that offer free periods to win customers can delay revenue and pressure pricing.
• Dilution and stock-based pay (Financial): About 111m shares were issued for CyberArk, and stock-based compensation is excluded from non-GAAP earnings. The 2030 convertible notes add potential dilution above $280.75 a share.
• Product vulnerabilities (Operational): As a security vendor, a serious flaw in its firewalls or software, or a breach of its own systems, would damage customer trust and could invite regulatory scrutiny.
• Geopolitical exposure (Geopolitical): A large share of research and development, including CyberArk's and Koi Security's teams, is in Israel, and the shares are now listed in Tel Aviv. Regional conflict could disrupt operations.
• IT budgets and firewall cycles (Macro): Product revenue depends on firewall refresh cycles and enterprise capital budgets, which can be delayed in a downturn.

11. Recent Developments

• 24 Sep 2026 — CFO share sale. CFO Dipak Golechha sold 27,500 shares at an average of about $391.61 under a 10b5-1 plan. The same day CEO Nikesh Arora told CNBC that slowing AI development is “unrealistic”.
• 22 Sep 2026 — Frontier AI defence service. The company launched Unit 42 Continuous Frontier AI Defense, using Anthropic's Mythos and OpenAI's GPT-5.6-Cyber models.
• 10 Sep 2026 — Annual report and investor conference. The FY2026 Form 10-K was filed, and management presented at the Goldman Sachs Communacopia + Technology Conference.
• 01 Sep 2026 — FY2026 results and FY2027 guidance. Q4 revenue rose 34% to $3,410m and Next-Generation Security ARR 63% to $9.10bn. FY2027 guidance is revenue of $14.10–14.20bn and non-GAAP EPS of $4.16–4.19.
• 01 Sep 2026 — Console acquired. Palo Alto Networks bought Console, an AI-native agentic operations platform, to extend Cortex. Terms were not disclosed.
• 20 Aug 2026 — NTT DATA alliance. A global strategic alliance with NTT DATA was announced.
• 19 Aug 2026 — Frontier AI Critical Defense Program. A program to help customers defend against threats from frontier AI models was launched.
• 12 May 2026 — Idira identity platform. CyberArk's products were relaunched under the Idira brand.

12. Key Dates Coming Up

• Expected 18 Nov 2026 — Q1 FY2027 results after the US market close. The date comes from market calendars and the company has not confirmed it; Q1 FY2026 was reported on 19 Nov 2025. Guidance is revenue of $3.300–3.310bn and non-GAAP EPS of $0.96–0.98.
• Expected Dec 2026 — Annual stockholders' meeting; the 2025 meeting was held on 09 Dec 2025.
• 31 Dec 2026 — Expiry of the $1.0bn share repurchase authorisation approved on 10 Mar 2026.
• Expected Feb 2027 — Q2 FY2027 results.

Macro events are on the ChartsView Economic Calendar, and you can discuss Palo Alto Networks on the ChartsView Forum.

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 06 Oct 2026

Zscaler, Inc. (NASDAQ: ZS) sells cloud-delivered security. Instead of routing traffic through firewalls and VPN appliances in a company's own data centre, customers send it through the Zscaler Zero Trust Exchange, a network of more than 200 data centres that inspects traffic and connects users, devices, applications and now AI agents directly to what they are allowed to reach. Customers pay subscriptions, usually on multi-year contracts, and the company reports a single operating segment.

FY2026 (the year to 31 Jul 2026) revenue was $3,352.5m, up 25%, or 20% excluding Red Canary, which Zscaler bought on 01 Aug 2025. Annual recurring revenue (ARR) reached $3,771m. The company still made a GAAP net loss of $63.2m, mainly because of $821.9m of stock-based compensation, while non-GAAP diluted EPS rose to $4.21 from $3.28. On 03 Sep 2026 management guided FY2027 revenue to $3,908–3,938m, growth of 16.6–17.5%, and announced a 3% workforce reduction. The shares closed at $201.80 on 05 Oct 2026, a market value of about $32.9bn, and the company holds its Investor Day in New York today.

This refresh draws on Zscaler's quarterly press releases (SEC 8-K exhibits), the FY2026 Form 10-K filed on 03 Sep 2026, SEC XBRL company facts and Form 4 filings, all retrieved on 06 Oct 2026. It replaces the version published on 22 May 2026. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Zscaler, Inc.
Ticker	ZS (NASDAQ)
Sector	Technology: cloud security (zero trust, secure access service edge, data security and security operations)
CEO / Leadership	Jay Chaudhry (Founder, Chairman and CEO); Kevin Rubin (CFO since May 2025); Adam Geller (Chief Product Officer); Ross Tackett (Chief Revenue Officer from 01 Oct 2026)
Market cap	~$32.9bn (163.05m shares × $201.80 at the 05 Oct 2026 close)
Revenue (FY2026, to 31 Jul 2026)	$3,352.5m (+25% YoY; +20% excluding Red Canary)
Net income (FY2026)	-$63.2m GAAP net loss; GAAP diluted EPS -$0.39; non-GAAP diluted EPS $4.21
Employees	Over 8,700 (FY2026 Form 10-K)
Scale	ARR $3,771m (+25%); about 11,000 customers; 785 customers with ARR above $1m (+18%); remaining performance obligations $7,365.4m at 31 Jul 2026
Fiscal year	Ends 31 July (FY2027 runs to 31 Jul 2027)
Dividend	None

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Growth held up in FY2026: Revenue grew 25% to $3,352.5m and ARR 25% to $3,771m. Q4 FY2026 revenue rose 25% to $898.2m, the same pace as the previous three quarters.
• Record margins: Q4 FY2026 non-GAAP operating margin was a record 24%. FY2027 guidance calls for non-GAAP operating income of $924–932m (about +21%) and non-GAAP EPS of $4.86–4.90, against $4.21 in FY2026.
• Large customers spending more: Customers with ARR above $1m rose 18% to 785, and Zero Trust Everywhere customers passed 950, up from more than 350 a year earlier.
• Security for AI gaining traction: Security for AI bookings grew more than 50% quarter on quarter in Q4. Zscaler launched an Agentic SOC on 09 Sep 2026 and bought SPLX, SquareX and Symmetry Systems during FY2026 to build out AI and data security.
• Net cash balance sheet: Cash and short-term investments of $3,474.2m at 31 Jul 2026 compare with $1,696.4m of 0% convertible notes due 2028.

Bear Case

• Growth slowing: FY2027 revenue guidance of $3,908–3,938m implies 16.6–17.5% growth, and ARR guidance of 16.6–17.4%. Excluding Red Canary, ARR growth was already 20% in FY2026.
• Still loss-making on GAAP: The GAAP operating loss was $133.3m in FY2026. Stock-based compensation of $821.9m equals about 25% of revenue and keeps diluting shareholders.
• Free cash flow squeezed by capex: Capex and capitalised software rose to $350.5m in FY2026, and Q4 free cash flow was only $60.8m, a 7% margin, against $1,129.7m of operating cash flow for the year.
• Sales leadership change: Chief Revenue Officer Mike Rich stepped down on 24 Sep 2026, weeks after a 3% workforce cut, and the shares fell about 8.5% the next day.
• Share price damage: The shares are about 40% below their 52-week high of $336.99 after falling more than 30% in one day on 27 May 2026 on the first FY2027 growth outlook.

3. What Does This Company Actually Do?

Zscaler runs the Zero Trust Exchange, a cloud platform that sits between users, devices and AI agents on one side and the internet, SaaS applications and private applications on the other. It checks every connection against policy, inspects traffic for threats and data leaks, and connects users only to the specific application they are allowed to use rather than to the whole network. The FY2026 10-K groups the products into four areas: Zero Trust SASE (Zscaler Internet Access, Zscaler Private Access, Zero Trust Branch and Cloud, and Zscaler Digital Experience), Security for AI, Data Security, and Agentic Security Operations, which includes Red Canary's managed detection and response.

Zscaler reports a single operating segment and does not split revenue by product. The disclosed revenue categories are by geography:

Segment / category	% of revenue	What it is
United States	53% ($1,791.8m, FY2026)	Largest market, including US federal agencies; ZIA received a provisional IL5 authorisation from the Department of War in 2026
Europe, Middle East and Africa	28% ($923.4m)	Enterprise and public-sector customers across Europe and the Middle East
Asia Pacific	15% ($519.2m)	Customers in Asia and Australasia, including sovereign-cloud deployments
Other	4% ($118.1m)	Remaining regions, mainly the rest of the Americas

Source: FY2026 Form 10-K geographic revenue note. In FY2025 the split was US 51%, EMEA 30%, Asia Pacific 16% and other 3%. Channel partners accounted for 85% of FY2026 revenue.

4. The Business Model

How it makes money. Customers buy subscriptions to the platform, and Zscaler recognises the revenue evenly over the contract term. That makes ARR ($3,771m) and remaining performance obligations ($7,365.4m, about 45% due within twelve months and about 90% within three years) a guide to future revenue. Deferred revenue was $2,925.8m at 31 Jul 2026, up 19%. About 85% of revenue comes through channel partners. Contracts signed under Z-Flex, Zscaler's flexible purchasing programme, reached more than $1.7bn of total contract value in FY2026.

Where the moat sits. Zscaler's advantages are:

• scale: the platform handles more than 750bn transactions a day, which feeds its threat detection;
• a proxy architecture built for the cloud from the start, rather than firewalls adapted to it;
• switching costs once a large company has rebuilt its network and access policies around the platform;
• a base of more than 40% of the Forbes Global 2000 and more than 50% of the Fortune 500;
• more than 950 patents issued or pending.

What changed in 2025–2026. Zscaler has moved beyond secure access into security operations and AI. It bought Red Canary for $651.4m in cash (closed 01 Aug 2025), then SPLX, SquareX and Symmetry Systems, spending $918.1m net on acquisitions in FY2026. In Jul 2025 it issued $1,725.0m of 0% convertible notes due 2028 and repaid its 2025 notes. Capex rose sharply in Q4 FY2026 as the company expanded data-centre capacity. In Sep 2026 it cut about 3% of staff, at an expected cost of $30–33m, and changed its head of sales.

5. Financial Health

Sources: Zscaler quarterly and annual press releases (SEC 8-K exhibits), the FY2026 Form 10-K, and SEC XBRL company facts (data.sec.gov) for revenue, GAAP EPS, convertible notes, cash flow, D&A and operating income. The fiscal year ends 31 July.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022 (to 31 Jul 2022)	$1,090.9m	+62%	-$2.77	$0.69	$0.00	$968.7m
FY2023 (to 31 Jul 2023)	$1,617.0m	+48%	-$1.40	$1.79	$0.00	$1,134.2m
FY2024 (to 31 Jul 2024)	$2,167.8m	+34%	-$0.39	$3.19†	$0.00	$1,142.3m‡
FY2025 (to 31 Jul 2025)	$2,673.1m	+23%	-$0.27	$3.28	$0.00	$1,700.7m
FY2026 (to 31 Jul 2026)	$3,352.5m	+25%	-$0.39	$4.21	$0.00	$1,696.4m

Notes on the annual table:

• Adjusted EPS is Zscaler's non-GAAP diluted EPS as first reported. It excludes stock-based compensation, amortisation of acquired intangibles and other items.
• † In the FY2025 release Zscaler recast FY2024 non-GAAP EPS to $2.60 after adopting a 23% non-GAAP tax rate. From FY2026 the rate is 21%, and FY2025 was not restated.
• Long-term debt is the net carrying value of convertible senior notes (XBRL ConvertibleLongTermNotesPayable and ConvertibleNotesPayableCurrent): the 0.125% notes due 2025 to FY2024, then the $1,725.0m of 0% notes due 2028 issued on 03 Jul 2025.
• ‡ At 31 Jul 2024 the 2025 notes were classified as current because they fell due within a year. They were repaid in FY2025.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q4 FY2026 (to 31 Jul 2026)	$898.2m	$1.19	-$0.02
Q3 FY2026 (to 30 Apr 2026)	$850.5m	$1.08	-$0.09
Q2 FY2026 (to 31 Jan 2026)	$815.8m	$1.01	-$0.21
Q1 FY2026 (to 31 Oct 2025)	$788.1m	$0.96	-$0.07
FY2026 total	$3,352.5m	$4.21	-$0.39

Notes on the quarterly table:

• Release dates: Q4 FY2026 on 03 Sep 2026; Q3 on 26 May 2026; Q2 on 26 Feb 2026; Q1 on 25 Nov 2025.
• Q4 FY2026 in more detail:
  • revenue +25% YoY; ARR $3,771m, of which Red Canary $141m;
  • GAAP operating loss $15.5m (-2% margin);
  • non-GAAP operating income $218.4m (24% margin).
• Quarterly non-GAAP EPS sum to $4.24 against the reported $4.21 for the year because the share count changes.

Cash flow and balance sheet.

• Cash flow (FY2026).
  • Operating cash flow was $1,129.7m. Purchases of property and equipment were $277.3m and capitalised internal-use software $73.2m. That gives free cash flow of $779.1m, a 23% margin.
  • D&A was $148.5m (XBRL DepreciationDepletionAndAmortization) and the GAAP operating loss $133.3m. Stock-based compensation was $821.9m.
  • In Q4 alone, operating cash flow was $279.3m and capex plus capitalised software $218.5m, leaving free cash flow of $60.8m.
• Balance sheet at 31 Jul 2026.
  • Cash and cash equivalents were $928.4m and short-term investments $2,545.8m, a total of $3,474.2m.
  • The 0% convertible notes due 2028 were carried at $1,696.4m (principal $1,725.0m; conversion price $439.52). There is no other borrowing.
  • Deferred revenue was $2,925.8m and the accumulated deficit $1,252.7m.
• FY2027 guidance (03 Sep 2026):
  • revenue of $3,908–3,938m (+16.6–17.5%);
  • ARR of $4,396–4,426m (+16.6–17.4%);
  • non-GAAP operating income of $924–932m;
  • non-GAAP EPS of $4.86–4.90 on about 173m diluted shares;
  • free cash flow margin of about 23.0–23.5%;
  • Q1 FY2027 revenue of $935–939m (about +19%) and non-GAAP EPS of $1.15–1.16.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$32.9bn (163.05m shares × $201.80 at the 05 Oct 2026 close)
Enterprise value	~$31.1bn = market cap ~$32.9bn + total debt ~$1.70bn (convertible notes $1,696.4m, all noncurrent) − cash and short-term investments ~$3.47bn ($928.4m + $2,545.8m), per the 31 Jul 2026 balance sheet
Trailing P/E (GAAP)	n/m: FY2026 GAAP diluted EPS was negative at -$0.39. On FY2026 non-GAAP EPS of $4.21 the multiple is ~47.9x.
P/E (forward)	~41.4x ($201.80 / $4.88, the midpoint of management's FY2027 non-GAAP EPS guidance of $4.86–4.90)
P/S (TTM)	~9.8x (market cap / FY2026 revenue of $3,352.5m, the latest twelve months reported)
EV/EBITDA (TTM)	n/m: GAAP EBITDA is barely positive. FY2026 GAAP operating loss of -$133.3m plus D&A of $148.5m (the wider XBRL DepreciationDepletionAndAmortization total) gives EBITDA of about $15.3m, which would imply a multiple of roughly 2,000x. On non-GAAP operating income of $767.1m, EV is ~40.6x.
P/FCF	~42.2x (market cap ~$32.9bn / FY2026 FCF ~$779.1m). FCF = operating cash flow $1,129.7m − capex $277.3m − capitalised software $73.2m, per the FY2026 cash flow statement.
52-week high	$336.99 (intraday, 03 Nov 2025)
52-week low	$114.62 (intraday, 10 Apr 2026)
Short interest (% of float)	4.82% (6.50m shares, settlement date 15 Sep 2026, per MarketBeat; StockAnalysis puts it at 6.11% on a smaller float estimate)
Days to cover	1.5 (MarketBeat, 15 Sep 2026)
Dividend yield	Nil (no dividend)

Price-based metrics use the 05 Oct 2026 close. The 52-week range is from Yahoo Finance daily bars. For live prices see ChartsView Live Charts.

7. What Are They Building

Security for AI agents.

• Zero Trust Exchange for Agents: Introduced at Zenith Live in Jun 2026 with Endpoint AI Security, it applies zero trust policy to AI agents as well as people. Both are in early access and are expected to scale in the second half of FY2027.
• AI guardrails and red teaming: These come from SPLX, acquired around 31 Oct 2025 for $40.6m in cash plus restricted stock.
• Access governance: Symmetry Systems, acquired on 27 May 2026 for $152.9m in cash, maps which identities and agents can reach which data.

Agentic security operations. The Agentic SOC became generally available on 09 Sep 2026. It combines Zscaler's telemetry, frontier models from Anthropic and OpenAI, and Red Canary's analysts to investigate and contain threats. Zscaler has also joined Anthropic's Project Glasswing and partnered with OpenAI on cyber-security models.

Browser and application protection. SquareX, bought on 05 Feb 2026 for $112.8m in cash, adds security inside the web browser. Autonomous Application Shield, in early access, protects private applications. On 05 Oct 2026 Zscaler said it is working with IBM and Red Hat to combine it with their Lightwell technology.

Investment level. Research and development spending was $903.4m in FY2026, 27% of revenue. Capex rose sharply in Q4 as Zscaler added capacity to its cloud, which now spans more than 200 public data centres.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
Palo Alto Networks (PANW)	~$332.7bn	Q4 FY2026 revenue $3.41bn (+34.5%); next-generation security ARR $9.10bn (+63%) (results reported by 24/7 Wall St, 04 Sep 2026)
CrowdStrike (CRWD)	~$279.2bn	Q2 FY2027 net new ARR $332.8m (+51%); full-year revenue guidance $5.99–6.01bn (24/7 Wall St, 04 Sep 2026)
Fortinet (FTNT)	~$135.1bn	Trailing twelve-month revenue $7.53bn and free cash flow $3.12bn (StockAnalysis)
Cloudflare (NET)	~$128.0bn	Trailing twelve-month revenue $2.51bn (StockAnalysis)
Netskope (NTSK)	~$7.5bn	Trailing twelve-month revenue $802.6m and net loss $737.2m; listed on Nasdaq on 18 Sep 2025 at $19 a share (StockAnalysis, Renaissance Capital)

Market caps are at the 05 Oct 2026 close from Yahoo Finance and StockAnalysis quote pages. Key metrics are the latest reported figures available in Oct 2026.

9. Leadership and Ownership

Jay Chaudhry is Zscaler's founder, Chairman and CEO. He holds 340,186 shares directly and 26,519,261 through a trust, a stake of about 16% of the shares outstanding. Kevin Rubin became CFO in May 2025. Ross Tackett, previously head of worldwide sales, became Chief Revenue Officer on 01 Oct 2026, replacing Mike Rich, who stays on as an adviser until 31 Dec 2026. All insider transactions in 2026 were sales, and many were shares sold to cover tax on vesting awards. There were no open-market purchases.

Name	Date	Type	Shares	Price	Value	Plan Type
Kevin Rubin (CFO)	25 Sep 2026	Sale	519	~$197.28 (avg)	~$0.10m	10b5-1 (adopted 24 Mar 2026)
Robert Schlossman (Chief Legal Officer)	21 Sep 2026	Sale	5,394	$200.00	~$1.08m	10b5-1 (adopted 03 Jul 2025)
Adam Geller (Chief Product Officer)	17 Sep 2026	Sale	4,584	$192.01	~$0.88m	10b5-1 (adopted 20 Mar 2026)
Jay Chaudhry (CEO and Chairman)	16 Sep 2026	Sale (tax cover on vesting)	2,852	$192.76	~$0.55m	Sell-to-cover, not discretionary
Kevin Rubin (CFO)	16 Sep 2026	Sale (tax cover on vesting)	5,957	$192.76	~$1.15m	Sell-to-cover, not discretionary
Adam Geller (Chief Product Officer)	16 Sep 2026	Sale (tax cover on vesting)	5,578	$192.76	~$1.08m	Sell-to-cover, not discretionary
Mike Rich (then CRO)	16 Sep 2026	Sale	4,108	$192.76	~$0.79m	Not verified (same-day price as tax-cover sales)
Jay Chaudhry (CEO and Chairman)	17 Mar 2026	Sale	1,941	$156.59	~$0.30m	Not verified

Sources: SEC Form 4 filings on EDGAR, listed via OpenInsider. Similar sell-to-cover sales took place on 16 Jun 2026 at $126.43, and director James Beer made small sales in Jan, Mar, Jun and Sep 2026. At the 12 Jan 2026 annual meeting a non-binding shareholder proposal to declassify the board passed by 67.0m votes to 63.2m.

10. Risks and Challenges

• Growth slowdown (Operational): FY2027 guidance implies revenue growth of 16.6–17.5%, down from 25% in FY2026, which was helped by the Red Canary acquisition. A further slowdown would weigh on a valuation that rests on growth.
• Competition (Competitive): Palo Alto Networks, CrowdStrike, Fortinet, Cloudflare, Netskope and Microsoft all sell overlapping secure access and security operations products, and several are growing faster. Bundling by larger platforms can pressure pricing.
• Sales execution (Operational): The Chief Revenue Officer changed on 01 Oct 2026, after a 3% workforce reduction approved on 01 Sep 2026 and the earlier departure of the head of corporate strategy. Disruption to the sales force could hit bookings.
• Losses and dilution (Financial): Zscaler has never made a GAAP profit for a full year in the period shown, with an accumulated deficit of $1,252.7m. Stock-based compensation was $821.9m in FY2026, and shares outstanding rose about 3.8% over the past year (StockAnalysis), with no buyback programme to offset it.
• Capex and free cash flow (Financial): Capex and capitalised software rose to $350.5m in FY2026, and Q4 free cash flow margin fell to 7%. Continued heavy data-centre spending would hold back cash generation.
• Security incidents and outages (Operational): As a security provider in the path of customers' traffic, a breach of the platform or a large outage could cause serious reputational and financial damage.
• Channel and macro exposure (Macro): 85% of revenue comes through partners, and the 10-K flags geopolitical risks, including Russia and Ukraine and the Middle East, as well as risks from the company's large operations in India.

11. Recent Developments

• 05 Oct 2026 — IBM and Red Hat collaboration. Zscaler said it will combine its Autonomous Application Shield, now in early access, with IBM and Red Hat's Lightwell to protect private applications from AI-powered attacks.
• 30 Sep 2026 — Ransomware report. Zscaler's ThreatLabz published its 2026 ransomware report, saying attackers using AI are moving to large-scale data theft, executive targeting and multi-million-dollar extortion.
• 24 Sep 2026 — Chief Revenue Officer change. Ross Tackett was named CRO from 01 Oct 2026, replacing Mike Rich, who stepped down for personal reasons. The shares fell about 8.5% on 25 Sep.
• 23 Sep 2026 — Investor Day announced. Zscaler said it would host an Investor Day in New York on 06 Oct 2026 to set out its strategy, long-term growth drivers and financial outlook.
• 14 Sep 2026 — Shares jump 15%. The stock rose 15.0% to $189.15. Zscaler made no announcement that day, and the report of the move did not give a cause.
• 09 Sep 2026 — Agentic SOC launched. Zscaler made its AI-driven security operations service generally available, using Anthropic and OpenAI models alongside Red Canary's analysts.
• 03 Sep 2026 — Q4 FY2026 results and FY2027 outlook. Revenue rose 25% to $898.2m and non-GAAP EPS was $1.19, against $0.89 a year earlier. FY2027 revenue guidance of +16.6–17.5% and a 3% workforce reduction were also announced, and the shares fell about 4–5% to around $170 the next day.
• 27 May 2026 — Record one-day fall. The shares fell more than 30% after Q3 FY2026 results, when management first indicated FY2027 ARR growth of 16–17%.

12. Key Dates Coming Up

• 06 Oct 2026 — Investor Day in New York from 8:30am ET, covering strategy, long-term growth drivers and the financial outlook. Any new long-term targets will be published on the Zscaler investor relations site.
• Expected 24 Nov 2026 — Q1 FY2027 results after the US market close. The date comes from market calendars and Zscaler has not confirmed it; Q1 FY2026 was reported on 25 Nov 2025. Guidance is revenue of $935–939m and non-GAAP EPS of $1.15–1.16.
• 31 Dec 2026 — Mike Rich's advisory role ends, completing the sales leadership handover.
• Expected Jan 2027 — Annual meeting of stockholders; the 2026 meeting was held on 12 Jan 2026.
• Expected Feb 2027 — Q2 FY2027 results; Q2 FY2026 results came on 26 Feb 2026.
• 31 Jul 2027 — FY2027 year-end. Guidance is revenue of $3,908–3,938m and ARR of $4,396–4,426m.

Macro events are on the ChartsView Economic Calendar, and you can discuss Zscaler on the ChartsView Forum.

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 05 Oct 2026

Snowflake Inc. (NYSE: SNOW) runs a cloud data platform called the AI Data Cloud. Companies use it to store, query, share and build AI applications on their data, and it runs on top of Amazon Web Services, Microsoft Azure and Google Cloud. Customers pay mainly for the compute and storage they use, so revenue follows how much work they run on the platform rather than a fixed subscription.

FY2026 (the year to 31 Jan 2026) revenue was $4,683.9m, up 29%. The company still made a GAAP net loss of $1,331.6m, mainly because of stock-based compensation, while non-GAAP diluted EPS was $1.25. Growth then sped up. Q2 FY2027 product revenue rose 37% to $1,491.9m, and on 02 Sep 2026 management raised its FY2027 product revenue guidance to $6,070m (+36%). On 28 Sep 2026 Snowflake priced $3.75bn of new 0% convertible notes. The shares closed at $341.04 on 02 Oct 2026, a market value of about $120.2bn.

This refresh draws on Snowflake's quarterly press releases, the FY2026 Form 10-K, the Q2 FY2027 Form 10-Q, SEC XBRL company facts and Form 4 filings, all retrieved on 05 Oct 2026. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Snowflake Inc.
Ticker	SNOW (NYSE)
Sector	Technology: cloud data platform and AI data infrastructure
CEO / Leadership	Sridhar Ramaswamy (CEO); Brian Robins (CFO); Christian Kleinerman (EVP Product); Frank Slootman (former CEO, still a director)
Market cap	~$120.2bn (352.46m shares × $341.04 at the 02 Oct 2026 close)
Revenue (FY2026, to 31 Jan 2026)	$4,683.9m (+29% YoY); product revenue $4,472.3m
Net income (FY2026)	-$1,331.6m GAAP net loss; GAAP diluted EPS -$3.95; non-GAAP diluted EPS $1.25
Employees	9,060 at 31 Jan 2026, across 36 countries (FY2026 10-K)
Scale	Q2 FY2027: 828 customers paying more than $1m a year (+27%); 829 Forbes Global 2000 customers; net revenue retention 126%; remaining performance obligations $9.00bn (+30%)
Fiscal year	Ends 31 January (FY2027 runs to 31 Jan 2027)
Dividend	None

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Growth re-accelerating: Product revenue growth rose from 34% in Q1 FY2027 to 37% in Q2. FY2027 product revenue guidance has been raised twice, to $6,070m (+36%), and Q3 guidance is $1,588–1,593m (+37–38%).
• Customers spending more: Net revenue retention was 126% in Q2 FY2027, and customers paying more than $1m a year rose 27% to 828.
• Margins widening: Q2 FY2027 non-GAAP operating margin was 15.3%, up from guidance of 12.5%, and the full-year target was raised to 14.5% from 13.5%.
• Strong cash generation: Free cash flow was $1,120.3m in FY2026 (24% of revenue), and $1,195.3m over the twelve months to 31 Jul 2026. Management guides to a 23% adjusted free cash flow margin for FY2027.
• AI products landing: Cortex AI Gateway, dynamic model routing and Cortex Sense extend the platform into AI workloads, and LSEG signed a five-year enterprise-wide agreement on 30 Sep 2026.

Bear Case

• Deep GAAP losses: The GAAP operating loss was $1,435.2m in FY2026 and about $1,237m over the twelve months to 31 Jul 2026. Trailing GAAP diluted EPS is about -$3.18.
• Rich multiples: The shares trade at about 22x trailing revenue and roughly 100x trailing free cash flow.
• Rising debt and dilution risk: The $3.75bn of new convertible notes priced on 28 Sep 2026 sits alongside $2.3bn of existing notes. All of them can convert into shares.
• Databricks closing in: Databricks raised $5bn at a $190bn valuation in Aug 2026 and reports a revenue run-rate above $7bn, growing more than 80%.
• Heavy insider selling: Former CEO Frank Slootman sold 600,000 shares worth about $198m in Aug and Sep 2026. Co-founder Benoit Dageville and director Michael Speiser also sold, and there were no open-market purchases.

3. What Does This Company Actually Do?

Snowflake sells access to one data platform that separates storage from compute, so customers can scale each independently. They load data, run SQL and Python workloads, share data with partners through the Snowflake Marketplace, and build AI applications with Cortex AI. Snowflake reports a single operating segment; the disclosed revenue categories are below.

Segment / category	% of revenue	What it is
Product revenue	95.5% ($4,472.3m, FY2026)	Consumption-based charges for compute, storage and data transfer on the AI Data Cloud, including Cortex AI, Snowpark, Openflow and Marketplace use
Professional services and other	4.5% ($211.6m, FY2026)	Consulting, implementation, training and other services to help customers migrate and adopt the platform

FY2026 figures from the Q4 FY2026 press release; percentages are ChartsView calculations. In Q2 FY2027 the split was 96% product and 4% services.

By geography (FY2026 10-K):

• United States: $3,524.0m (75.2%);
• Europe, Middle East and Africa: $763.7m (16.3%);
• Asia-Pacific and Japan: $271.0m (5.8%);
• other Americas: $125.3m (2.7%).

4. The Business Model

How it makes money. Customers buy capacity contracts, usually paid up front, and Snowflake recognises product revenue as they consume credits for compute, storage and data transfer. Customers on demand pay in arrears. The model rewards Snowflake when existing customers run more workloads, which shows up as net revenue retention of 126%. It also makes revenue sensitive to customers cutting usage or making queries more efficient. Remaining performance obligations, the contracted revenue not yet recognised, were $9.00bn at 31 Jul 2026.

Where the moat sits. Snowflake's advantages are:

• data gravity: once an enterprise has centralised its data and pipelines in Snowflake, moving them is costly and slow;
• a cross-cloud design, so customers are not tied to a single hyperscaler;
• data sharing and the Snowflake Marketplace, where companies such as LSEG distribute data to customers without copying it;
• governance and security features that large regulated firms need, with 829 of the Forbes Global 2000 now customers.

What changed in 2025–2026. Under CEO Sridhar Ramaswamy (appointed in Feb 2024), Snowflake has pushed into AI and open table formats. It added Cortex AI services, support for Apache Iceberg tables and Openflow data ingestion. Growth slowed to 29% in FY2025 and FY2026, then sped back up to 35% in Q2 FY2027. Snowflake also began raising money through convertible notes, issuing $2.3bn in Sep 2024 and pricing $3.75bn in Sep 2026, and has spent $1,173.5m on buybacks since the start of FY2026.

5. Financial Health

Sources: Snowflake quarterly press releases (Business Wire and SEC 8-K exhibits), the FY2026 Form 10-K, the Q2 FY2027 Form 10-Q, and SEC XBRL company facts (data.sec.gov) for revenue, EPS, debt, cash flow, D&A and operating income. The fiscal year ends 31 January.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022 (to 31 Jan 2022)	$1,219.3m	+106%	-$2.26	$0.01	$0.00	Nil
FY2023 (to 31 Jan 2023)	$2,065.7m	+69%	-$2.50	$0.25	$0.00	Nil
FY2024 (to 31 Jan 2024)	$2,806.5m	+36%	-$2.55	$0.98	$0.00	Nil
FY2025 (to 31 Jan 2025)	$3,626.4m	+29%	-$3.86	$0.83	$0.00	$2,271.5m
FY2026 (to 31 Jan 2026)	$4,683.9m	+29%	-$3.95	$1.25	$0.00	$2,279.8m

Notes on the annual table:

• Adjusted EPS is Snowflake's non-GAAP diluted EPS, which excludes stock-based compensation and related items. The FY2022 figure is the comparative shown in the Q4 FY2023 release.
• Long-term debt is the net carrying value of the 0% convertible senior notes issued in Sep 2024 ($1.15bn due 2027 and $1.15bn due 2029), XBRL tag ConvertibleDebtNoncurrent. Snowflake had no borrowings before that. The net carrying value was $2,284.0m at 31 Jul 2026.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 FY2027 (to 31 Jul 2026)	$1,546.8m	$0.62	-$0.55
Q1 FY2027 (to 30 Apr 2026)	$1,391.0m	$0.39	-$0.86
Q4 FY2026 (to 31 Jan 2026)	$1,284.0m	$0.32	-$0.90
Q3 FY2026 (to 31 Oct 2025)	$1,212.9m	$0.35	-$0.87
Q2 FY2026 (to 31 Jul 2025)	$1,145.0m	$0.35	-$0.89
Q1 FY2026 (to 30 Apr 2025)	$1,042.1m	$0.24	-$1.29
FY2026 total	$4,683.9m	$1.25	-$3.95

Notes on the quarterly table:

• Release dates: Q2 FY2027 on 02 Sep 2026; Q1 FY2027 on 27 May 2026; Q4 FY2026 on 25 Feb 2026.
• Q2 FY2027 in more detail:
  • product revenue $1,491.9m (+37%);
  • GAAP operating loss $263.0m (-17.0% margin);
  • non-GAAP operating income $237.0m (15.3% margin).
• Quarterly EPS figures do not sum exactly to the full year because the share count changes.

Cash flow and balance sheet.

• Cash flow (FY2026).
  • Operating cash flow was $1,221.9m and purchases of property and equipment $101.6m. No software was capitalised. That gives free cash flow of $1,120.3m; adjusted free cash flow was $1,192.7m.
  • D&A was $220.4m and the GAAP operating loss $1,435.2m. Buybacks totalled $873.5m.
• Cash flow (H1 FY2027).
  • Operating cash flow was $334.6m, capex $18.0m and D&A $136.2m. The GAAP operating loss was $589.1m, and buybacks were $300.0m, all in Q1.
  • Over the twelve months to 31 Jul 2026, operating cash flow was $1,253.3m and capex $58.0m, giving free cash flow of $1,195.3m.
• Balance sheet at 31 Jul 2026.
  • Cash and cash equivalents were $1,707.2m, short-term investments $637.5m and long-term investments $1,984.5m, a total of $4,329.2m.
  • Convertible notes were carried at $2,284.0m.
  • These figures predate the $3.75bn convertible offering priced on 28 Sep 2026. Of its roughly $3.70bn of net proceeds, $548.3m goes to repurchasing $261.8m of the 2027 notes and $383.5m to capped call transactions.
• FY2027 guidance (02 Sep 2026):
  • product revenue of $6,070m (+36%);
  • non-GAAP operating margin of 14.5%;
  • adjusted free cash flow margin of 23%;
  • non-GAAP product gross margin of 74%;
  • Q3 FY2027 product revenue of $1,588–1,593m at a 15.5% non-GAAP operating margin.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$120.2bn (352.46m shares × $341.04 at the 02 Oct 2026 close)
Enterprise value	~$120.1bn = market cap ~$120.2bn + total debt ~$2.28bn (convertible notes $2,284.0m, all noncurrent) − cash and short-term investments ~$2.34bn ($1,707.2m + $637.5m), per the 31 Jul 2026 balance sheet. Long-term investments ($1,984.5m) are excluded, and so is the $3.75bn convertible priced on 28 Sep 2026.
Trailing P/E (GAAP)	n/m: trailing GAAP diluted EPS is negative, at about -$3.18 (sum of Q3 FY2026 to Q2 FY2027). On trailing non-GAAP EPS of $1.68 the multiple is ~203x.
P/E (forward)	~167x ($341.04 / $2.04, which is H1 FY2027 non-GAAP EPS of $1.02 annualised). Snowflake does not give EPS guidance; its FY2027 guide is a 14.5% non-GAAP operating margin on 380m diluted shares.
P/S (TTM)	~22.1x (market cap / revenue of $5,434.6m over the twelve months to 31 Jul 2026)
EV/EBITDA (TTM)	n/m: EBITDA is negative. Trailing GAAP operating loss of -$1,236.8m (FY2026 -$1,435.2m, less H1 FY2026 -$787.5m, plus H1 FY2027 -$589.1m) plus trailing D&A of $253.0m (XBRL DepreciationDepletionAndAmortization) gives EBITDA of about -$984m.
P/FCF	~101x (market cap ~$120.2bn / trailing FCF ~$1.195bn). FCF = operating cash flow $1,253.3m − capex $58.0m, for the twelve months to 31 Jul 2026. On FY2026 FCF of $1,120.3m ($1,221.9m − $101.6m) the multiple is ~107x.
52-week high	$384.56 (intraday, 03 Sep 2026, the day after Q2 results)
52-week low	$118.30 (intraday, 10 Apr 2026)
Short interest (% of float)	5.59% (18.78m shares, settlement date 15 Sep 2026, per MarketBeat)
Days to cover	2.6 (MarketBeat, 15 Sep 2026, on average volume of 4.00m shares)
Dividend yield	Nil (no dividend)

Price-based metrics use the 02 Oct 2026 close. The 52-week range is from Yahoo Finance daily bars. For live prices see ChartsView Live Charts.

7. What Are They Building

Cortex AI.

• Gateway and routing: Cortex AI Gateway gives customers one controlled entry point to large language models. It includes technology from Natoma, which Snowflake agreed to buy in May 2026. On 18 Aug 2026 Snowflake added dynamic model routing, which sends each request to the most cost-effective model that can handle it.
• Cortex Sense: Cortex Sense was announced with Q2 results on 02 Sep 2026. It is a further AI service that works on data held in Snowflake.

Open data and ingestion. Snowpipe Streaming for partitioned Snowflake-managed Apache Iceberg tables became generally available on 24 Sep 2026, so customers can stream data into open-format tables. A container runtime for Streamlit in Native Apps entered preview on the same day.

Resilience features. Optimized Refresh and RPO Assurance for failover groups became generally available on 30 Sep 2026. Both are aimed at customers that replicate data across regions for disaster recovery.

Ecosystem. Snowflake's partner ecosystem keeps adding integrations:

• LSEG expanded its partnership under a five-year enterprise-wide agreement (30 Sep 2026);
• UiPath launched a two-way integration on Snowflake Marketplace (30 Sep 2026);
• Liquibase Secure became available on the Marketplace (23 Sep 2026).

Snowflake Summit 2026 ran from 01 to 04 Jun 2026 in San Francisco.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
Databricks (private)	~$190bn post-money valuation (not listed)	$5bn funding round closed 13 Aug 2026; revenue run-rate above $7bn in Q2 2026, growing more than 80% (company statements reported by The Next Web and Constellation Research)
Oracle (ORCL)	~$431.4bn	Q1 FY2027 revenue $19.35bn (+30%); remaining performance obligations $664bn (Oracle press release, 10 Sep 2026)
Datadog (DDOG)	~$99.5bn	Q2 2026 revenue $1.12bn (+36%) (Datadog 8-K press release)
MongoDB (MDB)	~$28.8bn	Q2 FY2027 revenue $771.8m (+30%); Atlas revenue up about 29% (MongoDB press release)
Teradata (TDC)	~$2.8bn	Q2 2026 total ARR $1.509bn (+1%); public cloud ARR $686m (+8%) (Teradata press release)

Market caps are at the 02 Oct 2026 close from Yahoo Finance and StockAnalysis quote pages. Snowflake also competes with the data warehouses and lakehouse services of its own cloud hosts: Amazon Redshift, Google BigQuery and Microsoft Fabric.

9. Leadership and Ownership

Sridhar Ramaswamy has been CEO since 27 Feb 2024, when he succeeded Frank Slootman, who remains on the board. Brian Robins is CFO. Ramaswamy filed no open-market purchases or sales in the period below. Insider activity has been all selling, much of it under 10b5-1 plans and linked to exercising old stock options.

Name	Date	Type	Shares	Price	Value	Plan Type
Michael Speiser (director)	02 Oct 2026	Sale	50,741	$344.00	~$17.45m	10b5-1 (adopted 27 Dec 2024)
Christian Kleinerman (EVP Product)	01 Oct 2026	Sale	15,000	$341.57	~$5.12m	Not stated
Benoit Dageville (co-founder, director)	23 Sep 2026	Sale	50,000	$339.08	~$16.95m	Not stated
Frank Slootman (director, former CEO)	21 Sep 2026	Option exercise and sale (18 and 21 Sep)	300,000	~$334.49 (avg)	~$100.3m	10b5-1 (adopted 19 Sep 2025)
Jonathan Beaulier (Chief Revenue Officer)	16 Sep 2026	Sale	12,292	$336.12	~$4.13m	Not stated
Benoit Dageville (co-founder, director)	09 Sep 2026	Sale	50,000	$335.72	~$16.79m	10b5-1 (adopted 03 Apr 2026)
Mark Garrett (director)	04 Sep 2026	Option exercise and sale	50,000	$350.00	~$17.5m	No 10b5-1 footnote
Frank Slootman (director, former CEO)	18 Aug 2026	Option exercise and sale	300,000	$324.75	~$97.4m	Not verified

Sources: SEC Form 4 filings on EDGAR, listed via OpenInsider. Slootman's options had exercise prices of $8.88 or less. RSU vesting and tax withholdings are not shown.

10. Risks and Challenges

• Competition (Competitive): Databricks is growing faster from a similar base, and the cloud platforms Snowflake runs on (AWS, Azure and Google Cloud) sell their own data warehouses. Pricing pressure or lost workloads would slow product revenue growth.
• Consumption volatility (Operational): Revenue depends on how much customers use the platform, not on fixed subscriptions. Customers optimising queries, moving data to open formats such as Iceberg or cutting budgets can reduce revenue quickly.
• Losses and stock-based pay (Financial): Snowflake reported a GAAP net loss in every fiscal year shown in Section 5. The GAAP operating loss was $1,435.2m in FY2026, largely from stock-based compensation, which also dilutes shareholders.
• Convertible debt (Financial): After the Sep 2026 offering Snowflake will owe more than $5.5bn of principal under 0% convertible notes due between 2027 and 2031. Conversion could dilute shareholders, and notes that are not converted must be repaid in cash.
• Reliance on cloud providers (Operational): Snowflake runs on AWS, Azure and Google Cloud, which are also competitors. Higher infrastructure costs or outages at those providers would hit margins and service quality.
• Data security (Regulatory): Snowflake stores sensitive data for thousands of enterprises. A breach of customer accounts, or new data-protection or AI rules, could bring liability and damage trust.
• Macro and IT budgets (Macro): Spending on data and analytics projects tends to be cut when budgets tighten, and growth expectations are high after the guidance raises in 2026.

11. Recent Developments

• 02 Oct 2026 — Director sale. Michael Speiser of Sutter Hill Ventures sold 50,741 shares at $344.00 under a 10b5-1 plan.
• 30 Sep 2026 — LSEG and UiPath deals. LSEG expanded its collaboration with Snowflake under a five-year enterprise-wide agreement, announced at Snowflake World Tour London. UiPath launched a two-way integration on Snowflake Marketplace.
• 28 Sep 2026 — $3.75bn convertible notes priced. The proposed $3.5bn offering was upsized to $3.75bn of 0% notes: $2.0bn due 2029 (conversion price about $500.38) and $1.75bn due 2031 (about $483.98). Snowflake will use $548.3m to repurchase part of its 2027 notes and $383.5m for capped calls with a cap price of $820.30.
• 24 Sep 2026 — Iceberg streaming goes live. Snowpipe Streaming for partitioned Snowflake-managed Iceberg tables became generally available.
• 21 Sep 2026 — Slootman sale. Former CEO Frank Slootman completed a second 300,000-share option exercise and sale under a 10b5-1 plan, worth about $100m.
• 02 Sep 2026 — Q2 FY2027 beat and raise. Revenue rose 35% to $1,546.8m and non-GAAP EPS was $0.62, against $0.35 a year earlier. FY2027 guidance went up to product revenue of $6,070m and a 14.5% operating margin, and the shares hit a 52-week high of $384.56 the next day.
• 18 Aug 2026 — Dynamic model routing. Snowflake added automatic model routing to Cortex AI Gateway to cut AI inference costs for customers.
• 27 May 2026 — Q1 FY2027 results. Revenue rose 33% to $1,391.0m, and FY2027 product revenue guidance was raised to $5,840m.

12. Key Dates Coming Up

• 03 Nov 2026 — Snowflake Expedition, a free virtual global event, runs from 03 to 06 Nov 2026.
• Expected 02 Dec 2026 — Q3 FY2027 results after the US market close. The date comes from market calendars and Snowflake has not confirmed it. Guidance is product revenue of $1,588–1,593m.
• 31 Jan 2027 — FY2027 year-end. Guidance is product revenue of $6,070m and a 14.5% non-GAAP operating margin.
• Expected Feb 2027 — Q4 and FY2027 results; the FY2026 results came on 25 Feb 2026.
• TBC — 2027 annual meeting; the 2026 meeting was held on 29 Jun 2026.

Macro events are on the ChartsView Economic Calendar, and you can discuss Snowflake on the ChartsView Forum.

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 03 Oct 2026

Shopify Inc. (NASDAQ: SHOP; also TSX: SHOP) sells the software and services that merchants use to run online and in-store businesses. Its products include:

• storefront, checkout and point-of-sale software sold on subscription;
• Shopify Payments and Shop Pay, which process a growing share of merchant sales;
• add-on merchant services such as capital, shipping, tax and marketing tools;
• sales channels that push merchant products into marketplaces, social apps and AI assistants.

Merchants on Shopify sold $378.4bn of goods (gross merchandise volume, GMV) in FY2025.

FY2025 revenue rose 30% to $11,556m and free cash flow was $2,007m, a 17% margin. Growth has since accelerated: Q2 2026 revenue rose 34% to $3,583m. Shopify moved its US listing from the NYSE to Nasdaq in Mar 2025, joined the Nasdaq-100 in May 2025 and has authorised $5bn of buybacks in 2026. The shares closed at $151.39 on 02 Oct 2026, a market value of about $194.8bn.

This refresh draws on Shopify's earnings releases (SEC 8-K exhibits), the FY2025 Form 10-K, the Q2 2026 Form 10-Q, SEC XBRL company facts and Form 144 filings, all retrieved on 03 Oct 2026. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Shopify Inc.
Ticker	SHOP (Nasdaq Global Select Market since 31 Mar 2025; also TSX); Nasdaq-100 member since 19 May 2025
Sector	Technology (commerce software and payments)
CEO / Leadership	Tobias Lütke (founder, CEO and Chair); Harley Finkelstein (President); Jeff Hoffmeister (CFO); Jessica Hertz (COO since 09 Oct 2025)
Market cap	~$194.8bn (1,286.6m Class A and B shares at 31 Jul 2026 × $151.39 at the 02 Oct 2026 close)
Revenue (FY2025)	$11,556m (+30.1% YoY)
Net income (FY2025)	$1,231m GAAP; diluted EPS $0.94 (includes equity-investment mark-to-market losses)
Employees	About 7,600 at 31 Dec 2025, down from about 8,100 a year earlier (10-K filings)
Scale (FY2025)	GMV $378,441m (+29%); operating income $1,468m; free cash flow $2,007m
Dividend	None; Shopify has never declared a cash dividend

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Growth accelerating at scale: Q2 2026 revenue rose 34% to $3,583m and GMV 32% to $115.6bn, faster than FY2025's 30%. Q3 2026 guidance is for revenue growth in the low thirties.
• Payments penetration still rising: Shopify Payments processed 68% of GMV ($78.1bn) in Q2 2026, against 64% a year earlier, lifting Merchant Solutions revenue 37%.
• Cash generation and buybacks: Q2 2026 free cash flow was $654m, an 18% margin. Shopify bought back $1,966m of stock in H1 2026 under a buyback authorisation raised to $5bn on 02 Jun 2026.
• Early position in agentic commerce: On 21 Sep 2026 Shopify announced Shop Pay checkout inside Meta's Muse AI agent, and on 28 Sep 2026 it opened checkout to browser-based AI agents for all eligible merchants.
• No debt: The $920m convertible notes were settled in 2025. At 30 Jun 2026 Shopify held $4,947m of cash and marketable securities and no borrowings.

Bear Case

• High multiples: At ~14.7x TTM sales, ~83x TTM free cash flow and ~101x TTM EBITDA, the valuation leaves little room for a growth slowdown.
• Gross profit lagging revenue: Q2 2026 gross profit grew 31% against 34% revenue growth, and Q3 guidance calls for mid-to-high-twenties gross profit growth against low-thirties revenue growth, as lower-margin payments revenue grows faster.
• GAAP earnings swing on investments: Equity-investment marks produced a $941m loss in Q1 2026 (GAAP EPS -$0.45) and a $1,063m after-tax gain in Q2 2026 (GAAP EPS $1.16).
• Steady insider selling: Tobias Lütke filed Form 144 notices in Mar 2026 covering about 719,000 shares (about $86.5m) under 10b5-1 plans, and President Harley Finkelstein filed for about $23m in Jun 2026.
• Privacy litigation: On 30 Jul 2026 a federal judge denied Shopify's second motion to dismiss a California class action alleging its checkout software collects shopper data.

3. What Does This Company Actually Do?

Shopify gives merchants of every size a single system to sell online, in person and through other channels. Merchants pay a monthly subscription, then pay Shopify again as they sell, mainly through payment processing fees. Shopify reports two revenue categories.

Segment / category	% of revenue	What it is
Merchant Solutions	76.2% ($8,804m, +35%)	Shopify Payments and Shop Pay processing fees, plus capital, shipping, tax, marketing and other services that scale with merchant sales
Subscription Solutions	23.8% ($2,752m, +17%)	Monthly and annual plan fees (Basic through Plus and enterprise), theme and app sales, and domain fees

FY2025 figures from the Q4 2025 release (11 Feb 2026). Monthly recurring revenue (MRR) was $221m in Q2 2026, against $185m a year earlier.

4. The Business Model

How it makes money. Subscription fees give Shopify a recurring base, but most revenue comes from taking a small share of what merchants sell. In FY2025 revenue was about 3.05% of GMV ($11,556m on $378,441m). As Shopify Payments takes a larger share of GMV, more of each merchant's sales flow through Shopify's own fees, although payments revenue carries a lower gross margin than software.

Where the moat sits. Shopify's advantages are:

• a large merchant base that would face real switching costs to move storefront, checkout and back office elsewhere;
• Shop Pay, a saved-credentials checkout that now also works inside third-party AI agents;
• a large app and partner ecosystem built around its platform;
• very low capital needs: FY2025 capex was $26m against $2,033m of operating cash flow.

What changed in 2025–2026. Shopify moved its US listing to Nasdaq (31 Mar 2025) and joined the Nasdaq-100. It settled its convertible notes and became debt-free, started its first buyback programme in Feb 2026, and shifted product effort towards AI agents, including the Universal Commerce Protocol and syndication of merchant catalogues to ChatGPT, Copilot, Gemini and the Shop app.

5. Financial Health

Sources: Shopify quarterly and annual earnings releases (SEC 8-K exhibits), the FY2025 Form 10-K, the Q2 2026 Form 10-Q, and SEC XBRL company facts (data.sec.gov) for revenue, EPS, debt, cash flow, D&A and operating income. The fiscal year ends 31 December.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$4,612m	+57.4%	$2.29	$2.29†	$0.00	$911m
FY2022	$5,600m	+21.4%	-$2.73	-$2.73†	$0.00	$913m
FY2023	$7,060m	+26.1%	$0.10	$0.10†	$0.00	$916m
FY2024	$8,880m	+25.8%	$1.55	$1.55†	$0.00	$918m‡
FY2025	$11,556m	+30.1%	$0.94	$0.94†	$0.00	Nil

Notes on the annual table:

• † Shopify's earnings releases do not present an adjusted EPS figure (non-GAAP per-share data sits in a separate financial supplemental), so the GAAP figure is repeated. GAAP EPS swings with mark-to-market gains and losses on Shopify's equity investments.
• FY2021 EPS is restated for the 10-for-1 stock split of Jun 2022. FY2020 revenue was $2,929.5m, the base for the FY2021 YoY figure.
• Debt is the carrying value of the $920m 0.125% convertible senior notes due Nov 2025 (XBRL ConvertibleDebtNoncurrent and ConvertibleDebtCurrent). ‡ At FY2024 year-end the notes were classified as current. They were settled in Q4 2025, so Shopify had no debt at 31 Dec 2025.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026 (to 30 Jun 2026)	$3,583m	$1.16†	$1.16
Q1 2026 (to 31 Mar 2026)	$3,170m	-$0.45†	-$0.45
Q4 2025 (to 31 Dec 2025)	$3,672m	$0.57†	$0.57
Q3 2025 (to 30 Sep 2025)	$2,844m	$0.20†	$0.20
FY2025 total	$11,556m	$0.94†	$0.94

Notes on the quarterly table:

• Release dates: Q2 2026 on 05 Aug 2026; Q1 2026 on 05 May 2026; Q4 2025 on 11 Feb 2026; Q3 2025 on 04 Nov 2025.
• † GAAP repeated, as above. Shopify's releases do give non-GAAP net income excluding equity investments: $439m in Q2 2026 and $360m in Q1 2026.
• Q4 2025 revenue and GAAP EPS are FY2025 less the nine months to Sep 2025 (XBRL).
• Q2 2026 in more detail: GMV $115,567m (+32%), Merchant Solutions $2,781m (+37%), Subscription Solutions $802m (+22%), gross profit $1,708m (+31%) and operating income $488m, up from $291m.

Cash flow and balance sheet.

• Cash flow (FY2025).
  • Operating cash flow was $2,033m and capex (purchases of property and equipment) $26m, giving free cash flow of $2,007m, a 17% margin.
  • D&A was $31m and GAAP operating income $1,468m.
• Cash flow (H1 2026).
  • Operating cash flow was $1,139m, capex $9m and D&A $14m. GAAP operating income was $870m.
  • Trailing-twelve-month operating cash flow was $2,377m and capex $25m, giving free cash flow of $2,352m.
• Balance sheet at 30 Jun 2026.
  • Cash and cash equivalents were $1,656m and marketable securities $3,291m, a total of $4,947m.
  • There was no debt. Buybacks of $521m in Q1 2026 and $1,445m in Q2 2026 reduced the cash pile.
• Q3 2026 outlook (05 Aug 2026):
  • revenue growth in the low thirties per cent;
  • gross profit growth in the mid-to-high twenties;
  • operating expenses at 33% to 34% of revenue;
  • stock-based compensation of $150m;
  • a free cash flow margin from the high teens to the low twenties.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$194.8bn (1,286.6m shares at 31 Jul 2026 × $151.39 at the 02 Oct 2026 close)
Enterprise value	~$189.8bn = market cap ~$194.8bn + total debt $0 − cash and marketable securities ~$4.9bn ($1,656m + $3,291m), per the 30 Jun 2026 balance sheet
Trailing P/E (GAAP)	~102x ($151.39 / TTM GAAP diluted EPS of $1.48, Q3 2025 to Q2 2026). GAAP earnings include large equity-investment gains and losses; Shopify does not publish an adjusted EPS figure in its releases.
P/E (forward)	n/a: Shopify does not give EPS or earnings guidance
P/S (TTM)	~14.7x (market cap / TTM revenue of $13,269m, Q3 2025 to Q2 2026)
EV/EBITDA (TTM)	~101x (EV ~$189.8bn / TTM EBITDA ~$1.87bn). EBITDA = TTM GAAP operating income $1,844m (FY2025 $1,468m less H1 2025 $494m plus H1 2026 $870m) + TTM D&A $29m (XBRL DepreciationDepletionAndAmortization). Operating income excludes the equity-investment marks.
P/FCF	~83x (market cap ~$194.8bn / TTM FCF ~$2.35bn). FCF = operating cash flow $2,377m − capex $25m (FY2025 less H1 2025 plus H1 2026). On FY2025 FCF of $2,007m the multiple is ~97x.
52-week high	$182.19 (TradingView daily bars, 12 months to 02 Oct 2026)
52-week low	$94.00 (TradingView daily bars, 12 months to 02 Oct 2026)
Short interest (% of float)	1.28% (16.45m shares, settlement date 15 Sep 2026, per MarketBeat), down 11.1% from the previous report
Days to cover	1.8 (MarketBeat, 15 Sep 2026)
Dividend yield	Nil (no dividend)

Share-price-based metrics use the 02 Oct 2026 close. For live prices see ChartsView Live Charts.

7. What Are They Building

Checkout for AI agents.

• Meta: Meta was added as an AI sales channel in the Shopify admin on 08 Sep 2026. On 21 Sep 2026 Tobias Lütke announced agentic checkout with Shop Pay inside Meta's Muse AI agent across all Shopify stores.
• Browser agents: On 28 Sep 2026 Shopify opened checkout to browser-based AI agents on all eligible merchants, using WebMCP checkout and the Universal Commerce Protocol, and added Instinct's agent for Shop Pay checkout.
• Agent-callable storefronts: WebMCP went live on Liquid storefronts on 05 Aug 2026.

Editions Summer '26. Released on 17 Jun 2026 with more than 150 updates, including the Universal Commerce Protocol, AI merchandising tools and syndication of merchant products to ChatGPT, Microsoft Copilot, Google AI Mode and Gemini, and the Shop app.

Payments and capital return. Shopify Payments reached 68% of GMV in Q2 2026. The board raised the buyback authorisation from $2bn to $5bn on 02 Jun 2026, with repurchases run through pre-arranged algorithmic instructions.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
Amazon (AMZN)	~$2.71 trillion	FY2025 net sales $716.9bn, +12% (Amazon Q4 2025 release)
Salesforce (CRM), including Commerce Cloud	~$193.1bn	FY2026 (year to Jan 2026) revenue $41.5bn, +10% (Salesforce Q4 FY2026 release on SEC)
MercadoLibre (MELI)	~$86.0bn	FY2025 net revenue $28.9bn, +39% (MercadoLibre Q4 2025 results)
Adyen (ADYEN)	~€27.1bn	FY2025 net revenue €2,364.2m, +18%; processed volume €1,394.3bn (Adyen H2 2025 results)
Wix (WIX)	~$3.0bn (estimate)	FY2025 revenue $1.99bn, +13% (Wix Q4 2025 release on SEC)
Commerce.com (CMRC), formerly BigCommerce	~$0.27bn	FY2025 revenue $342.3m, +2.8% (Commerce.com Q4 2025 results)

Market caps are 02 Oct 2026 closing prices (TradingView) multiplied by the latest share counts on each company's SEC or exchange filings. Wix's share count is estimated from its Apr 2026 tender offer, so treat that figure as approximate. Squarespace and WooCommerce are private.

9. Leadership and Ownership

Tobias Lütke founded Shopify and is CEO and Chair. Harley Finkelstein is President, Jeff Hoffmeister is CFO and Jessica Hertz, previously General Counsel, became COO on 09 Oct 2025. Shareholders elected 10 directors at the AGM on 16 Jun 2026, with Joseph Natale as Lead Independent Director. No Section 16 Form 4 open-market transactions by Shopify officers were found on EDGAR for 2026. The sales below are taken from Form 144 notices, which list each filer's actual sales over the previous three months. No insider purchases were found.

Name	Date	Type	Shares	Price	Value	Plan Type
Gail Goodman (director at the time of filing)	05 Aug 2026	Sale	7,650	~$146.80	~$1,123,000	10b5-1 (adopted 06 Mar 2025)
Gail Goodman (director at the time of filing)	28 Jul 2026	Sale	5,000	~$129.74	~$648,700	10b5-1 (adopted 06 Mar 2025)
Jean Niehaus (officer)	28 Jul 2026	Sale	432	~$132.53	~$57,300	Tax sale on RSU vesting
Harley Finkelstein (President)	16 Jun 2026	Sale	3,000	~$111.79	~$335,400	10b5-1 (adopted 14 Nov 2025)
Joseph Natale (director)	01 Jun 2026	Sale	1,177	~$123.01	~$144,800	Tax sale on RSU vesting
Jessica Hertz (COO)	28 May 2026	Sale	3,716	~$109.89	~$408,400	Tax sale on RSU vesting
Jeff Hoffmeister (CFO)	28 May 2026	Sale	1,910	~$109.89	~$209,900	Tax sale on RSU vesting
Harley Finkelstein (President)	15 Apr 2026	Sale	6,000	~$122.01	~$732,100	10b5-1 (adopted 14 Nov 2025)

Sources: Form 144 filings on SEC EDGAR. Prices are the reported sale value divided by shares. Larger proposed sales were also filed: Lütke on 06 Mar 2026 (about 719,000 shares, about $86.5m, under 10b5-1 plans adopted 08 Dec 2025, partly through Thistledown Foundation and a holding company) and Finkelstein on 22 Jun 2026 (about 213,000 shares from RSUs and options, about $23m). Form 144 shows intended sales, not completed ones.

10. Risks and Challenges

• Consumer-cycle exposure (Macro): Most revenue is a share of merchant sales, so a slowdown in consumer spending would reach Shopify's revenue directly through GMV.
• Margin mix (Financial): Payments revenue is growing faster than subscription revenue but carries a lower gross margin, so gross profit is growing more slowly than revenue.
• Equity-investment volatility (Financial): Mark-to-market moves on Shopify's stakes in other companies swung quarterly GAAP net income by about $1bn in each direction in 2026.
• Dependence on AI platforms (Competitive): Agentic checkout relies on partners such as Meta, OpenAI and Google. Amazon has blocked Meta's Muse agent from shopping on Amazon.com, which shows how platforms can wall off traffic.
• Privacy litigation (Legal): The Briskin class action, covering California buyers since Aug 2017, is moving ahead after the second motion to dismiss was denied on 30 Jul 2026.
• Valuation sensitivity (Market): The shares have traded between $94.00 and $182.19 over the past year. At ~14.7x TTM sales, any slowdown in growth could move the price sharply.

11. Recent Developments

• 28 Sep 2026 — Checkout opened to browser agents. Shopify enabled checkout by browser-based AI agents on all eligible merchants through WebMCP and the Universal Commerce Protocol, and added Instinct's agent for Shop Pay.
• 21 Sep 2026 — Shop Pay inside Meta's Muse. Tobias Lütke announced agentic checkout with Shop Pay in Meta's Muse AI agent on all Shopify stores. The shares rose 7.3% that day to $137.92 and a further 7.1% on 22 Sep 2026.
• 08 Sep 2026 — Meta becomes an AI sales channel. Meta was added as an AI sales channel in the Shopify admin.
• 07 Aug 2026 — Director share sales. Gail Goodman filed a Form 144 for 4,000 shares, after selling 7,650 shares on 05 Aug 2026 under a 10b5-1 plan.
• 05 Aug 2026 — Q2 2026 results. Revenue was $3,583m (+34%), GMV $115.6bn (+32%), GAAP EPS $1.16 and free cash flow $654m (18% margin). The shares rose nearly 19% during the session, according to Dow Jones Market Data.
• 30 Jul 2026 — Privacy case proceeds. A federal judge in the Northern District of California denied Shopify's second motion to dismiss the Briskin data-privacy class action.
• 17 Jun 2026 — Editions Summer '26. Shopify shipped more than 150 updates, including the Universal Commerce Protocol and product syndication to ChatGPT, Copilot and Gemini.
• 02 Jun 2026 — Buyback raised to $5bn. The board added $3bn to the $2bn programme announced in Feb 2026. About $1.45bn had been repurchased by 01 Jun 2026.

12. Key Dates Coming Up

• Expected Nov 2026 — Q3 2026 results. Shopify had not announced the date at the time of writing; Q3 2025 results came on 04 Nov 2025.
• Expected Feb 2027 — Q4 and full-year 2026 results (Q4 2025 results came on 11 Feb 2026).
• TBC — Next steps in the Briskin data-privacy class action in the Northern District of California.
• Expected Jun 2027 — 2027 annual general meeting (the 2026 AGM was held on 16 Jun 2026).

Macro events are on the ChartsView Economic Calendar, and you can discuss Shopify on the ChartsView Forum.

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 15 May 2026

GLOBALFOUNDRIES Inc. (NASDAQ: GFS) is a US-headquartered, Cayman Islands-incorporated semiconductor foundry that fabricates mainstream (non-leading-edge) wafers for fabless chip designers and integrated device manufacturers across automotive, communications infrastructure, smart-mobile, IoT and home-and-industrial end markets. The shares last traded at $73.84 (15 May 2026 intraday per the JSON price block), down from a $74.99 previous close, with an intraday range of $72.895–$75.33 and a 52-week range of $31.51–$76.98 — a 2.34x advance from the bottom of the range, with the stock now trading approximately 4.1% below its 52-week high. Market capitalisation at that price is approximately $40.50 billion and enterprise value is $39.27 billion. The company filed its FY2025 annual report on Form 20-F (the foreign-filer equivalent of a 10-K) on 27 February 2026 — GFS is incorporated in the Cayman Islands and reports as a foreign private issuer, so its annual filing is a 20-F rather than a 10-K. The first two weeks of May 2026 brought a clustered set of company-specific developments: a Q1 2026 earnings beat reported on 11 May, a 2026 Investor Day on 7 May setting a 40% gross-margin "target" and announcing a new capital-return framework with the company's first quarterly dividend, and the appearance of an ex-dividend date in the JSON calendar for 24 June 2026. This report rebuilds the picture from the supplied JSON data feed dated 15 May 2026 and the FY2025 20-F extract — with no analyst opinions, price targets or third-party ratings.

1. Company Snapshot

Name	GLOBALFOUNDRIES Inc.
Ticker / Exchange	GFS / Nasdaq Global Select Market (NMS)
Sector / Industry	Technology / Semiconductors
Country (operating HQ)	United States
Incorporation	Cayman Islands exempted company (per the FY2025 10-K, Item 7, filed 2026-02-27)
Foreign private issuer status	Yes — files Form 20-F, not 10-K/10-Q (per the FY2025 10-K, Item 7, filed 2026-02-27)
Market cap	$40.50 billion (15 May 2026)
Enterprise value	$39.27 billion
Shares outstanding	548,416,440
Float	124,638,604 (~22.7% of shares outstanding)
FY2025 revenue	$6,791m (+0.61% YoY)
FY2025 net income	$885m
FY2025 free cash flow	$1,009m
Cash & equivalents (31 Dec 2025)	$1,809m
Total debt (31 Dec 2025)	$1,707m
Employees	14,000
CEO	Mr. Timothy Graham Breen
Headquarters	400 Stonebreak Road Extension, Malta, New York, United States
Website	gf.com
Fiscal year-end	31 December
CIK	0001709048
Latest annual filing	Form 20-F for FY2025, filed 27 February 2026
Next earnings	4 August 2026 (per JSON calendar)
Ex-dividend date	24 June 2026 (per JSON calendar)

2. Bull Case vs Bear Case

Bull case

• Return to GAAP profitability is now banked. Per the JSON financials_annual[], FY2025 net income was $885m — a $1,150m year-on-year swing from the FY2024 GAAP net loss of $265m — on revenue of $6,791m, with operating income of $797m (vs $728m in FY2024). Net margin (per the JSON ratios block) is 13.03% and FCF yield (free cash flow / market cap, per the JSON ratios block) is 2.49%.
• Quarterly cadence is improving. Per the JSON financials_quarterly[], gross margin expanded from 22.4% in Q1 2025 to 27.8% in Q4 2025 (508/1,830) and held at 27.6% in Q1 2026 (451/1,634) — a c.520 basis-point expansion over four quarters. Q4 2025 was the strongest quarter in the displayed series on revenue ($1,830m) and gross profit ($508m).
• Capital return framework is live. Per the FY2025 10-K (Item 8, filed 2026-02-27): "In February 2026, we announced that our Board of Directors approved a share repurchase authorization of up to $500 million of our ordinary shares. The authorization is valid for an initial period of 12 months and may be modified, suspended or terminated at any time." Separately, per the JSON recent_news[] item dated 2026-05-07 (https://www.marketbeat.com/instant-alerts/globalfoundries-investor-day-ai-photonics-push-40-margin-targetand-new-quarterly-dividend-2026-05-07/?utm_source=yahoofinance&utm_medium=yahoofinance), the company introduced "a new shareholder re[turn]" framework at its 2026 Investor Day and the JSON calendar.ex_dividend_date is 24 June 2026 (an ex-dividend date — i.e. the first dividend is scheduled).
• Q1 2026 revenue beat. Per the JSON recent_news[] item dated 2026-05-11 (https://www.manufacturingdive.com/news/globalfoundries-q1-2026-revenue-wafers-chips/819861/): "GlobalFoundries Q1 revenue surpasses $1.6B, beats expectations" — driven, per the article summary, by "meaningful traction in secular growth end markets" cited by CEO Timothy Breen on the call. The JSON financials_quarterly[] row for Q1 2026 (quarter ended 31 March 2026) shows revenue of $1,634m, gross profit $451m, operating income $180m, net income $103m and EPS of $0.18.
• Net-cash balance sheet, manageable leverage. Per the JSON financials_annual[] for FY2025: cash and equivalents of $1,809m against total debt of $1,707m — a small net-cash position. Debt-to-equity (per the JSON ratios block) is 0.143, the current ratio is 2.62, and total equity is $11,928m. Total debt has declined for three consecutive years: $2,856m (FY2022) → $2,754m (FY2023) → $2,320m (FY2024) → $1,707m (FY2025).
• Strategic shareholder anchor. Per the JSON holders.institutional_top[] (positions as of 31 December 2025): Mubadala Investment Co PJSC holds 450,387,613 shares — 80.94% of the company. FMR LLC (Fidelity) is the next largest at 9.97%. The free float is consequently limited (124,638,604 shares per the JSON price block), but the controlling shareholder is a sovereign-affiliated long-term holder.

Bear case

• Group revenue is still below the 2022 peak. Per the JSON financials_annual[]: FY2022 $8,108m → FY2023 $7,392m (−8.83%) → FY2024 $6,750m (−8.69%) → FY2025 $6,791m (+0.61%). FY2025 group revenue is still 16.2% below the FY2022 level, and the FY2025 year-on-year growth is essentially flat.
• Headline valuation multiples are elevated. Per the JSON price.trailing_pe_yfinance, the trailing P/E is 53.12 (implying TTM EPS of approximately $1.39 — sum of Q2 2025 through Q1 2026 EPS lines in the JSON financials_quarterly[]: 0.41 + 0.44 + 0.36 + 0.18 = $1.39 — and price $73.84). The forward P/E (per the JSON price.forward_pe_yfinance) is 29.79. Per the JSON ratios block: P/B 3.40, P/S (trailing) 5.96, EV/Revenue 5.78, EV/EBITDA proxy 49.27 (the JSON _calc_notes flags this proxy uses operating income rather than EBITDA because D&A is not in the cleanly-extracted XBRL — a foundry's true EV/EBITDA would be materially lower than 49x because depreciation is large, but the disclosed proxy is what the JSON carries).
• Gross margin is structurally well below leading-edge peers. The JSON ratios block reports a gross margin of 24.89% for FY2025 (gross profit $1,690m on revenue $6,791m), and the strongest quarter in the displayed series (Q4 2025) reached 27.8%. Per the JSON recent_news[] item dated 2026-05-07 (https://www.marketbeat.com/instant-alerts/globalfoundries-investor-day-ai-photonics-push-40-margin-targetand-new-quarterly-dividend-2026-05-07/?utm_source=yahoofinance&utm_medium=yahoofinance), the company set "a 40% margin target" at Investor Day — i.e. management itself sees a roughly 1,200-basis-point gap between current group gross margin and aspirational margin. Whether and over what timeframe that closes is the central operating debate.
• Beta is high, public float is thin. Per the JSON price.beta field: 1.713. Float of 124,638,604 against 548,416,440 shares outstanding (per the JSON price block) is 22.7% — i.e. roughly three-quarters of the share register sits with non-public holders (overwhelmingly Mubadala at 80.94% per the JSON holders.institutional_top[]). 10-day average daily volume per the JSON is 5,324,830 shares, but the 15 May session volume was 2,320,128 — well below average.
• Concentrated controlling shareholder. Per the FY2025 10-K (Item 7, filed 2026-02-27): "we have entered into a shareholder's agreement with Mubadala, which entitles Mubadala, subject to the level of Mubadala's beneficial ownership of our ordinary shares, to certain consent rights and director nomination rights and, from time to time, we contract with Mubadala to provide management and operations support. As a result, Mubadala will continue to have significant influence over the management and affairs of our company, as well as the ability to control the outcome of matters submitted to our shareholders for approval, including the election of directors and the approval of significant corporate transactions… The interests of Mubadala may not always coincide with, and in some cases may conflict with, our interests and the interests of our other shareholders."
• Foreign-private-issuer governance is reduced. Per the FY2025 10-K (Item 7, filed 2026-02-27), as a foreign private issuer GFS is exempt from various Nasdaq requirements that apply to US-listed companies — including the requirement to "have a majority of the Board of Directors consist of independent directors", to have "an independent compensation committee" and "an independent nominating committee", and to "seek shareholder approval for the implementation of certain equity compensation plans and issuances of ordinary shares". The company also notes that "On June 4, 2025, the SEC published a Concept Release on Foreign Private Issuer Eligibility… some of which could impact our eligibility to qualify as a foreign private issuer."
• Cayman Islands incorporation reduces minority-shareholder recourse. Per the FY2025 10-K (Item 7, filed 2026-02-27): "Specifically, subject to limited exceptions, under Cayman Islands law, a minority shareholder may not bring a derivative action against the Board of Directors. Our Cayman Islands counsel is not aware of any reported class actions having been brought in a Cayman Islands court. Class actions are not recognized in the Cayman Islands, but groups of shareholders with identical interests may bring representative proceedings, which are similar."
• Insider activity in the JSON appears to be regular small dispositions. Per the JSON holders.insider_transactions[], an Officer recorded as "AZAR SAMAK L" has eight separate 500-share transactions logged on consecutive weeks from 19 March 2026 through 7 May 2026 (values $20,795 through $36,095). The JSON transaction field is blank for all entries — i.e. the buy/sell direction is not in the source data — but the cadence and uniform 500-share size are typical of programmatic 10b5-1 disposals; readers should treat this as suggestive rather than confirmed.

3. What Does This Company Actually Do?

In plain English, GlobalFoundries is a pure-play semiconductor foundry — it manufactures wafers and finished semiconductor devices on behalf of fabless customers and integrated device manufacturers, but does not design and sell its own branded end-customer silicon. Per the JSON company.description field, GFS "provides range of mainstream wafer fabrication services and technologies in the United States, Europe, the Middle East, Africa, and internationally" and the chip-product families fabricated for customers include:

• Microprocessors
• Mobile application processors
• Baseband processors
• Network processors
• Radio-frequency (RF) modems
• Microcontrollers (MCUs)
• Power management units (PMUs)

The "mainstream" descriptor is the most important word in that sentence: GlobalFoundries operates trailing-node and specialty-process fabs rather than the leading-edge (3nm/2nm) logic that Taiwan Semiconductor Manufacturing Company and Samsung Foundry chase. The company exited the race to develop sub-7nm leading-edge logic in 2018 and refocused on differentiated mature nodes — radio frequency (RF-SOI), silicon-germanium (SiGe), FD-SOI, embedded non-volatile memory, silicon photonics, automotive-grade and high-voltage analog/mixed-signal processes. This is the segmentation gap that explains why GFS group gross margin (24.89% per the JSON ratios block) is structurally well below the high-50s/low-60s that a leading-edge foundry posts.

Segment splits, percentages by end market (Smart Mobile / Communications Infrastructure / Automotive / Home & Industrial / Personal Computing), and geographic revenue mix are not disclosed in this report's source data — the FY2025 20-F extract supplied to this analysis covers Item 1 (Identity of Directors — "Not applicable" in this filing), Item 1A (Risk Factors — listed in meta.sections_missing), Item 7 (Major Shareholders and Related Party Transactions), Item 7A (Quantitative and Qualitative Disclosures About Market Risk — listed in meta.sections_missing) and Item 8 (Financial Information — narrative on the share-repurchase authorization, anti-takeover provisions and Cayman Islands exclusive forum). The 20-F's Item 4 (Information on the Company), Item 5 (Operating and Financial Review and Prospects), and the granular segment tables in the financial statements are not in the cleanly-extracted sections. For end-market revenue mix, geographic mix and capacity utilisation readers should consult the 20-F directly at https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm.

Because no segment percentages can be quoted from the supplied source data, the conditional revenue-mix donut chart is not emitted in this section — the data condition (≥2 segment percentages quoted from source data) is not met.

What the company has chosen to communicate publicly outside the 20-F (per the JSON recent_news[] items dated 2026-05-07 and 2026-05-11) is a three-part thematic positioning: (1) AI-centric markets, defined to include both AI-data-centre infrastructure adjacencies and "physical AI" devices at the edge — per the Insider Monkey summary dated 2026-05-11 (https://finance.yahoo.com/markets/stocks/articles/globalfoundries-gfs-launches-dividend-capital-143827000.html): GFS "said during its Investor Day that it sees durable growth opportunities tied to AI-centric markets, supported by an expanding technology roadmap focused on scaling AI data centers and enabling AI applications"; (2) silicon photonics for high-bandwidth optical interconnect; and (3) supply-chain resiliency — per the MarketBeat 2026-05-07 summary, demand "tied to AI infrastructure, 'physical AI' devices, and supply chain resiliency". The 40% gross-margin "target" referenced by the same article is the headline numerical anchor for what management is selling.

4. The Business Model

The revenue mechanic. GFS sells wafer fabrication services. Customers ship a chip design (or license a foundry-supplied design platform), GFS allocates the design to one of its process nodes across its three production sites (Malta, NY; Dresden, Germany; Singapore — names from public industry reporting, not the supplied 20-F extract), schedules wafer starts, and ships finished wafers (or in some cases, packaged units). Revenue is recognised on shipped wafers under multi-year supply agreements that typically include volume commitments and pricing tiers, with a meaningful share of revenue tied to long-term agreements (the detailed LTA quantification is in the parts of the 20-F not present in the cleanly-extracted sections used here).

Margin profile. From the JSON financials_annual[] block, FY2025 metrics:

• Revenue $6,791m
• Gross profit $1,690m → gross margin 24.89% (per the JSON ratios block: 0.2489)
• Operating income $797m → operating margin 11.74% (per the JSON ratios block: 0.1174)
• Net income $885m → net margin 13.03% (per the JSON ratios block: 0.1303)
• Operating cash flow $1,731m against capex of $722m → free cash flow $1,009m
• Operating expenses of $893m on $1,690m of gross profit — i.e. opex is ~13.1% of revenue

The FY2025 net margin (13.03%) exceeds the operating margin (11.74%) per the JSON ratios block; this is because pre-tax income of $911m benefits from items below the operating line (per the JSON financials_annual[]: pretax income $911m vs operating income $797m, with interest expense of $50m — so non-operating income net of interest is approximately +$164m, and the tax provision is only $23m on $911m of pretax income, a 2.5% effective tax rate that reflects the company's Cayman Islands tax base and statutory NOL utilisation in operating jurisdictions). The detailed reconciliation is in the 20-F's Item 18 financial statements, which are not in the cleanly-extracted sections used here.

Moat. GlobalFoundries' competitive position is not at the leading edge. Its moat is incumbency on specialty processes (RF, FD-SOI, SiGe, silicon photonics, automotive-qualified mature CMOS) where switching costs are high and design wins are sticky over decade-long product cycles (e.g. automotive engine-control units, baseband modems for premium smartphones). The 7 May 2026 Investor Day messaging (per the MarketBeat recent_news summary) emphasises this — AI infrastructure adjacencies (silicon photonics for optical interconnect), "physical AI" devices at the edge (where mature-node power efficiency matters more than transistor density), and supply-chain resiliency (the geographic diversity argument that the US and EU governments have funded via CHIPS-Act-style incentives).

Government incentives / regulatory credits. The dollar amount and percentage of revenue tied to government subsidies, tax credits or regulatory credits is not disclosed in the available 20-F extract — Item 5 (Operating and Financial Review) where this would normally be quantified is not in the cleanly-extracted sections. Industry reporting outside the supplied source data indicates GFS has secured CHIPS Act direct funding for capacity expansion in Malta, NY and Burlington, VT, but the dollar quantum and the year-by-year amortisation effect on the P&L cannot be sourced from this report's data feed. Readers should consult the 20-F directly at https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm.

Capital structure. Per the JSON financials_annual[] for FY2025: total assets $17,141m, total liabilities $5,158m, total equity $11,928m. Total debt was $1,707m (long-term debt $1,065m). Cash and equivalents were $1,809m — i.e. cash exceeded total debt by $102m (a slim net-cash position). The deleveraging trajectory is clean: total debt declined from $2,856m at year-end FY2022 to $1,707m at year-end FY2025 — a $1,149m reduction over three years. Per the JSON ratios block, debt-to-equity is 0.14 and the current ratio is 2.62 (current assets $6,205m against current liabilities $2,368m). The interest-expense line dropped from $106m in FY2024 to $50m in FY2025 — consistent with the debt paydown.

Capital return. Per the FY2025 10-K (Item 8, filed 2026-02-27): "In February 2026, we announced that our Board of Directors approved a share repurchase authorization of up to $500 million of our ordinary shares. The authorization is valid for an initial period of 12 months and may be modified, suspended or terminated at any time. Our repurchase program does not require us to repurchase any specific dollar amount or to acquire any specific number of ordinary shares." Cumulative buyback execution captured in the JSON financials_annual[] stock_buybacks field has been modest: $0 in FY2022, $0 in FY2023, $200m in FY2024 and $5m in FY2025 (signs reversed). The $500m authorization is therefore approximately 2.5x cumulative FY2024–FY2025 buyback execution. Separately, per the JSON calendar.ex_dividend_date field, GFS has scheduled its first ex-dividend date for 24 June 2026 — the dividend itself was announced at the 7 May 2026 Investor Day per the JSON recent_news[] MarketBeat item. The JSON price.dividend_yield field is 0.65, indicating a 0.65% indicated forward yield on the 15 May 2026 share price.

5. Financial Health

Five-year revenue, profit, cash and balance-sheet trajectory (figures from the JSON financials_annual[] block; FY2021 fields are null in the JSON for everything except EPS basic/diluted of −$0.50 on 508m shares, and are shown as "n/d" elsewhere). All figures in USD millions unless noted.

Fiscal year (Dec)	Revenue	Op. income	Net income	Diluted EPS	Op. cash flow	Free cash flow	Total debt	Cash & equivalents
FY2021	n/d	n/d	n/d	−$0.50	n/d	n/d	n/d	n/d
FY2022	8,108	1,261	1,448	$2.62	2,624	−435	2,856	2,352
FY2023	7,392	1,200	1,020	$1.83	2,125	321	2,754	2,387
FY2024	6,750	728	−265	−$0.48	1,722	1,097	2,320	2,192
FY2025	6,791	797	885	n/d	1,731	1,009	1,707	1,809

Five takeaways from the five-year picture: - Revenue is U-shaped, not V-shaped. The four-year sequence is $8,108m → $7,392m (−8.83%) → $6,750m (−8.69%) → $6,791m (+0.61%) per the JSON revenue_growth_yoy fields. FY2025 has flattened but not turned. - The FY2024 net loss is the standout disclosure. Net income swung from +$1,020m in FY2023 to −$265m in FY2024 — a $1,285m year-on-year swing — even though operating income only fell from $1,200m to $728m (a $472m decline). The remaining gap is below-the-line items the JSON does not decompose; in FY2024 pretax income was −$170m against operating income of $728m and interest expense of $106m, so non-operating charges net of operating-line items reached approximately $792m of negative below-the-operating-line items. The 20-F's Item 18 financial statements would normally contain the impairments, asset-write-down, and tax-related items driving this — these are not in the cleanly-extracted sections used here. - FY2025 EPS is null in the JSON (per the financials_annual[] row) — a known gap in the data feed; the quarterly EPS lines for Q2–Q4 2025 (0.41, 0.44, 0.36 per the JSON financials_quarterly[]) sum to $1.21 and adding the Q1 2025 figure of $0.38 gives a calendar-2025 EPS sum of approximately $1.59. Readers should treat this as a back-of-the-envelope reconciliation rather than a JSON-disclosed figure. - Capex moderated sharply from peak. FY2022 capex was $3,059m (37.7% of revenue), FY2023 $1,804m (24.4%), FY2024 $625m (9.3%) and FY2025 $722m (10.6%) per the JSON financials_annual[]. The 2022 wave of fab-build investment is now in run-rate operating depreciation rather than incremental capex. - Free cash flow turned firmly positive from FY2023 onwards: −$435m (FY22) → +$321m (FY23) → +$1,097m (FY24) → +$1,009m (FY25). FY2025 FCF yield of 2.49% on the current market cap (per the JSON ratios block) is the structural support for the new dividend.

Quarterly cadence (last five completed quarters with data). All figures in USD millions; EPS in USD. Gross margin is computed from JSON gross_profit/revenue for each quarter.

Quarter ended	Revenue	Gross profit	Gross margin	Op. income	Net income	Diluted EPS	Op. cash flow	Free cash flow
31 Mar 2025 (Q1 2025)	1,585	355	22.4%	151	210	$0.38	331	165
30 Jun 2025 (Q2 2025)	1,688	408	24.2%	196	228	$0.41	431	272
30 Sep 2025 (Q3 2025)	1,688	419	24.8%	195	248	$0.44	595	406
31 Dec 2025 (Q4 2025)	1,830	508	27.8%	255	199	$0.36	374	166
31 Mar 2026 (Q1 2026)	1,634	451	27.6%	180	103	$0.18	542	230

The quarterly picture is the cleanest read of the business: gross margin has expanded c.520 basis points from 22.4% in Q1 2025 to 27.6% in Q1 2026, while quarterly revenue has stayed in a $1,585m–$1,830m band over five sequential quarters. Q1 2026 net income of $103m and diluted EPS of $0.18 are the lowest of the five quarters shown despite revenue and gross profit both being higher than Q1 2025 — the gap sits between gross profit ($451m, up from $355m) and net income ($103m, down from $210m), implying that below-the-line items (tax, non-operating, possibly equity-method or fair-value items the JSON does not decompose) compressed Q1 2026 net income relative to operating performance. The 20-F's segment notes and the next 6-K interim would clarify the driver.

0.0 0.5 1.0 1.5 2.0

0% 7.5% 15% 22.5% 30%

$1.585

$1.688

$1.688

$1.830

$1.634

22.4% 24.2% 24.8% 27.8% 27.6%

Q1 25 Q2 25 Q3 25 Q4 25 Q1 26

Revenue ($bn) Gross Margin (%)

Revenue Gross Margin

6. Valuation & Market Data

All figures from the JSON price, ratios, and holders blocks as of 15 May 2026 (price block as_of: 2026-05-15T05:20:23Z). Raw numbers — no commentary on whether they represent "cheap" or "expensive".

Metric	Value	Source / note
Current price	$73.84	JSON `price.current` (15 May 2026)
Previous close	$74.99	JSON `price.previous_close`
Day's range	$72.895 – $75.33	JSON `price.day_low` / `day_high`
52-week high	$76.98	JSON `price.fifty_two_week_high`
52-week low	$31.51	JSON `price.fifty_two_week_low`
Distance from 52w high	−4.1%	Computed from JSON: (73.84 − 76.98) / 76.98
Advance from 52w low	+134.3%	Computed from JSON: (73.84 − 31.51) / 31.51
Market capitalisation	$40.495 billion	JSON `price.market_cap`
Enterprise value	$39.271 billion	JSON `price.enterprise_value`
Shares outstanding	548,416,440	JSON `price.shares_outstanding`
Public float	124,638,604 (22.7% of shares out)	JSON `price.float_shares`
Beta (5y monthly)	1.713	JSON `price.beta`
Volume (15 May 2026)	2,320,128	JSON `price.volume`
Avg. daily volume (10d)	5,324,830	JSON `price.avg_volume_10d`
Trailing P/E	53.12	JSON `price.trailing_pe_yfinance`
Forward P/E	29.79	JSON `price.forward_pe_yfinance`
Price / Book	3.40	JSON `ratios.pb`
Price / Sales (trailing)	5.96	JSON `ratios.ps_trailing`
EV / Revenue	5.78	JSON `ratios.ev_revenue`
EV / EBITDA (proxy)	49.27	JSON `ratios.ev_ebitda_proxy` — uses operating income as proxy; D&A not in JSON (note from `_calc_notes`)
FCF yield	2.49%	JSON `ratios.fcf_yield`
Indicated dividend yield	0.65%	JSON `price.dividend_yield` (= 0.65, interpreted as percent)
Gross margin (FY2025)	24.89%	JSON `ratios.gross_margin`
Operating margin (FY2025)	11.74%	JSON `ratios.operating_margin`
Net margin (FY2025)	13.03%	JSON `ratios.net_margin`
ROE (FY2025)	7.42%	JSON `ratios.roe`
ROA (FY2025)	5.16%	JSON `ratios.roa`
Debt / Equity	0.143	JSON `ratios.debt_to_equity`
Current ratio	2.62	JSON `ratios.current_ratio`

Short interest, days-to-cover, and put/call ratio are not in this report's source data and are not quoted. The JSON _calc_notes flag on EV/EBITDA explicitly states: "D&A unavailable; conservative proxy; op_income source: yfinance (XBRL unavailable)" — i.e. the 49.27 figure is meaningfully higher than a true EV/EBITDA would be once D&A is added back to operating income, because foundry depreciation is structurally large; the true multiple is materially lower than the proxy shown, but the precise figure is not available from this report's source data.

7. What Are They Building / What's Coming?

The JSON recent_news[] items dated 2026-05-07 and 2026-05-11 are the primary source for forward-positioning disclosed during this report's window. The 2026 Investor Day (held 7 May 2026, per the MarketBeat item) framed three thematic growth pillars:

• AI infrastructure adjacencies. Per the JSON recent_news[] MarketBeat item dated 2026-05-07 (https://www.marketbeat.com/instant-alerts/globalfoundries-investor-day-ai-photonics-push-40-margin-targetand-new-quarterly-dividend-2026-05-07/?utm_source=yahoofinance&utm_medium=yahoofinance): "GlobalFoundries (NASDAQ:GFS) used its 2026 Investor Day to outline how management expects demand tied to AI infrastructure, 'physical AI' devices, and supply chain resiliency to support growth and profitability improvements over the next several years." The Insider Monkey 2026-05-11 item (https://finance.yahoo.com/markets/stocks/articles/globalfoundries-gfs-launches-dividend-capital-143827000.html) characterises the AI exposure as "scaling AI data centers and enabling AI applications" — i.e. selling differentiated mature-node and specialty processes into the optical-interconnect, power-management and edge-inference parts of the AI value chain rather than competing for the leading-edge GPU socket itself.
• Silicon photonics. Per the JSON recent_news[] MarketBeat item dated 2026-05-07: "GlobalFoundries Investor Day: AI, photonics push, 40% margin target — and new quarterly dividend". Photonics is the AI-adjacent process technology where GFS has an established differentiated foundry offering for high-bandwidth optical interconnect on silicon — the most direct route into the AI capex cycle for a mature-node-focused foundry.
• 40% gross-margin target. Per the same MarketBeat 2026-05-07 item, management set a 40% margin target as the headline numerical aspiration of Investor Day. The JSON ratios.gross_margin for FY2025 was 24.89% — i.e. the target implies approximately a 1,510-basis-point expansion from the FY2025 group gross margin. The timeframe over which management expects to bridge that gap, and the underlying mix, pricing and utilisation assumptions, are not disclosed in this report's source data; the Investor Day deck on the company's IR site (gf.com) would provide the build-up.

The capital-return framework is the other "what's coming" item this fortnight. Per the FY2025 10-K (Item 8, filed 2026-02-27): "In February 2026, we announced that our Board of Directors approved a share repurchase authorization of up to $500 million of our ordinary shares. The authorization is valid for an initial period of 12 months and may be modified, suspended or terminated at any time." That February 2026 authorization was layered with the May 2026 Investor Day announcement of an inaugural quarterly dividend (per the JSON recent_news[] 2026-05-07 MarketBeat item: "new quarterly dividend") — the JSON calendar.ex_dividend_date is 24 June 2026 and the JSON price.dividend_yield is 0.65 (interpreted as a 0.65% indicated yield on the current price).

R&D and patents. The 20-F's Item 4 (Information on the Company) and Item 5 (Operating and Financial Review) — which would normally contain R&D spend breakdown and patent-portfolio detail — are not in the cleanly-extracted sections of this report's 20-F extract. Readers should consult the 20-F directly at https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm.

8. Competitive Landscape

GlobalFoundries' direct competitors in the dedicated foundry market are: Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Foundry, United Microelectronics Corporation (UMC), Semiconductor Manufacturing International Corporation (SMIC), Hua Hong Semiconductor, Tower Semiconductor (now part of Intel after the failed acquisition attempt was unwound; today operates as a standalone), Intel Foundry (the IDM-foundry hybrid stood up by Intel), Vanguard International Semiconductor (VIS, a TSMC affiliate), and Powerchip Semiconductor Manufacturing Corp. (PSMC).

Within that field, the relevant comparison set for GFS is not the leading-edge cohort (TSMC, Samsung Foundry, Intel Foundry on 3nm/2nm logic) but the mature-node and specialty-process cohort — UMC, SMIC's mature-node operations, Hua Hong, Tower, Vanguard and PSMC — where the competitive battleground is RF, power management, embedded NVM, FD-SOI, BCD, automotive-qualified mature CMOS, and silicon photonics. Industry public reporting suggests TSMC remains by far the largest foundry overall, with GlobalFoundries one of several second-tier specialty/mature-node operators behind UMC and SMIC. However, named market-share percentages for the mature-node specialty-foundry market segment are not disclosed in this report's source data — neither in the JSON nor in the cleanly-extracted sections of the 20-F. Because the data condition for the conditional Competitor Share SVG chart (≥3 competitors with named share %) cannot be met from sourced data, that chart is not emitted in this section.

The structural competitive question is whether GFS can deliver the c.1,510-basis-point gross-margin expansion implied by the 40% target (per the MarketBeat 2026-05-07 recent_news item) while the broader specialty-foundry cohort is also expanding capacity into AI-adjacent end markets. The 7 May 2026 Investor Day positioning suggests the company sees its strongest differentiation in silicon photonics and AI-adjacent specialty processes; whether that converts to share gains in revenue dollars or merely defends existing share is the open question that quarterly disclosures over the next four quarters will start to answer.

9. Leadership and Ownership

Chief Executive Officer. Per the JSON company.ceo field, the CEO is Mr. Timothy Graham Breen. Per the JSON recent_news[] item dated 2026-05-11 (Manufacturing Dive, https://www.manufacturingdive.com/news/globalfoundries-q1-2026-revenue-wafers-chips/819861/), Mr. Breen is identified as "CEO Timothy Breen" hosting the Q1 2026 earnings call. Detailed biographical and tenure information for Mr. Breen is not in this report's source data — Item 6 of the 20-F (Directors, Senior Management and Employees) is not in the cleanly-extracted sections.

Institutional ownership. Per the JSON holders.institutional_top[] (positions and dollar values as listed in the JSON, mostly as of 31 December 2025 with two holdings as of 31 March 2026):

Holder	Shares	% held	Position value	As of
Mubadala Investment Co PJSC	450,387,613	80.94%	$33,256,619,694	31 Dec 2025
FMR LLC (Fidelity)	55,462,583	9.97%	$4,095,356,925	31 Dec 2025
JPMorgan Chase & Co	5,067,930	0.91%	$374,215,932	31 Mar 2026
Slate Path Capital, LP	4,856,000	0.87%	$358,567,022	31 Dec 2025
BlackRock Inc.	3,087,928	0.55%	$228,012,592	31 Mar 2026
AQR Capital Management, LLC	2,865,046	0.51%	$211,554,986	31 Dec 2025
Bessemer Group, Inc.	2,813,582	0.51%	$207,754,884	31 Mar 2026
Marshall Wace LLP	2,382,003	0.43%	$175,887,092	31 Dec 2025
Millennium Management LLC	2,286,806	0.41%	$168,857,746	31 Dec 2025
Squarepoint Ops LLC	2,021,035	0.36%	$149,233,216	31 Dec 2025

The top-10 list together holds roughly 94.0% of shares outstanding — Mubadala alone holds 80.94%, and Fidelity (FMR) is the only other holder above 5%. The free public float of 124,638,604 shares (per the JSON price.float_shares) is approximately 22.7% of shares outstanding; netting the FMR position against that, the genuinely freely-traded slice of the register is around 13–14%.

Per the FY2025 10-K (Item 7, filed 2026-02-27), the controlling stake gives Mubadala consent rights and director nomination rights "subject to the level of Mubadala's beneficial ownership of our ordinary shares" — and the company explicitly notes that "Mubadala could attempt to delay or prevent a change in control of our company even if such change in control would benefit our other shareholders, or attempt to force or accelerate a change in control even if such change in control would not benefit our other shareholders. Additionally, Mubadala could sell their shares at a discount."

Insider transactions disclosed in the JSON (most recent first). Per the JSON holders.insider_transactions[]. The JSON transaction field is blank for every row in this dataset — i.e. the buy/sell direction is not in the source data; only the participant, position, share count, dollar value and date are disclosed. Readers should pull Form 144 / SEC ownership filings for the buy/sell flag and any 10b5-1 plan identifier. The cadence and uniform 500-share lot pattern recorded for "AZAR SAMAK L" is typical of programmatic disposals under a 10b5-1 plan, but this report cannot confirm direction from the supplied JSON alone.

Insider	Position	Shares	Value	Date
Vicari, Samuel	Officer	8,692	$657,289	11 May 2026
Azar, Samak L.	Officer	500	$36,095	7 May 2026
Azar, Samak L.	Officer	500	$31,500	30 Apr 2026
Azar, Samak L.	Officer	500	$29,830	23 Apr 2026
Dorchak, Glenda Mary	Director	4,000	$233,840	20 Apr 2026
Azar, Samak L.	Officer	500	$24,355	16 Apr 2026
Azar, Samak L.	Officer	500	$23,800	9 Apr 2026
Azar, Samak L.	Officer	500	$21,480	2 Apr 2026
Azar, Samak L.	Officer	500	$22,995	26 Mar 2026
Azar, Samak L.	Officer	500	$20,795	19 Mar 2026

The implied per-share value for the Azar transactions tracks the daily share price — the 19 March 2026 transaction at $20,795 / 500 = $41.59 per share, climbing to the 7 May 2026 transaction at $36,095 / 500 = $72.19 per share — which is consistent with the 52-week range disclosed in the JSON ($31.51–$76.98).

10. Risks and Challenges

Risk Factors content (the 20-F's Item 3D, the foreign-filer analogue of an Item 1A) is not cleanly available from this filing's extract — meta.sections_missing in the supplied 20-F extract explicitly lists "Item 1A. Risk Factors" and "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" as not extracted. Readers needing a full enumerated risk catalogue should consult the 20-F directly at https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm. The following list is therefore not a substitute for the 20-F risk catalogue — it is the set of risks that can be sourced either from the cleanly-extracted parts of Items 7 and 8 of the 20-F or from the JSON data feed itself, and so satisfies the report's source-discipline rules.

• Controlling-shareholder concentration (Mubadala 80.94%). Per the FY2025 10-K (Item 7, filed 2026-02-27): Mubadala has consent rights and director-nomination rights via a shareholder's agreement, and "may continue to have significant influence over the management and affairs of our company, as well as the ability to control the outcome of matters submitted to our shareholders for approval, including the election of directors and the approval of significant corporate transactions". The disclosure further warns "Mubadala could sell their shares at a discount" — i.e. the controlling holder may at some point monetise part of its position in a manner that disrupts the share price.
• Foreign private issuer governance carve-outs. Per the FY2025 10-K (Item 7, filed 2026-02-27), as a foreign private issuer GFS is exempt from Nasdaq rules requiring a majority of independent directors, independent compensation and nominating committees, and shareholder approval of certain equity-compensation plans. The Audit Committee is fully independent per the same filing, but the carve-outs around board composition, committee independence and equity-plan approvals materially reduce minority-shareholder governance protections relative to a US domestic issuer.
• Potential loss of FPI status. Per the FY2025 10-K (Item 7, filed 2026-02-27): "On June 4, 2025, the SEC published a Concept Release on Foreign Private Issuer Eligibility… some of which could impact our eligibility to qualify as a foreign private issuer. To the extent the SEC adopts rules amending the definition of 'foreign private issuer,' we may no longer qualify as a foreign private issuer in the future." Losing FPI status would force the company to convert to US-GAAP filings, full quarterly reporting and Sarbanes-Oxley compliance comparable to a US domestic issuer — the filing flags "significant compliance costs, operational complexity and increased regulatory exposure."
• Cayman Islands incorporation reduces shareholder recourse. Per the FY2025 10-K (Item 7, filed 2026-02-27): "Specifically, subject to limited exceptions, under Cayman Islands law, a minority shareholder may not bring a derivative action against the Board of Directors… Class actions are not recognized in the Cayman Islands". The Memorandum and Articles also designate the Cayman Islands courts as the exclusive forum for governance and intra-corporate disputes (per the FY2025 10-K, Item 8, filed 2026-02-27).
• Officer/director external corporate-opportunity carve-out. Per the FY2025 10-K (Item 7, filed 2026-02-27): "our Memorandum and Articles of Association provide that, to the fullest extent permitted by applicable law: (i) no individual serving as a director or an officer shall have any duty, except and to the extent expressly assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business as us; (ii) we renounce any interest or expectancy in, or in being offered an opportunity to participate in, any potential transaction or matter which may be a corporate opportunity for any director or officer". This is broader than typical Delaware practice and may produce conflicts of interest where directors or officers also hold roles at related entities (notably Mubadala-affiliated portfolio companies).
• Indemnification of officers and directors at company expense. Per the FY2025 10-K (Item 8, filed 2026-02-27): "Our Memorandum and Articles of Association and applicable law of the Cayman Islands provide for the indemnification of our directors and officers, under certain circumstances, against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions in connection with our company, other than such liability (if any) that they may incur by reason of their own actual fraud, dishonesty, willful neglect or willful default." The same disclosure flags that "in the opinion of the SEC, indemnification for liabilities arising under federal securities laws is against public policy as expressed in the Securities Act, and is, therefore, unenforceable."
• Capital-return execution risk. Per the FY2025 10-K (Item 8, filed 2026-02-27): "Our repurchase program does not require us to repurchase any specific dollar amount or to acquire any specific number of ordinary shares. We cannot guarantee that the program will be fully consummated or renewed, or that it will enhance long-term stockholder value. The timing and amount of any repurchases, if any, will depend on factors such as our historical and expected business performance and cash and liquidity positions, the price of our ordinary shares, economic and market conditions and regulatory requirements." The same disclosure flags that "the program could also affect the trading price of our ordinary shares and increase volatility, and any announcement of a termination or change of this program may result in a decrease in the trading price of our ordinary shares."
• Anti-takeover provisions. Per the FY2025 10-K (Item 8, filed 2026-02-27): "Our Board of Directors is divided into three classes with staggered, three-year terms. Our Board of Directors has the ability to designate the terms of and issue preferred shares without shareholder approval. We are also subject to certain provisions under Cayman Islands law that could delay or prevent a change of control." These provisions reduce the likelihood (and any premium) of a hostile takeover.
• Margin-gap execution risk. Per the JSON ratios.gross_margin, FY2025 group gross margin was 24.89% against the c.40% target referenced at the 7 May 2026 Investor Day (per the JSON recent_news[] MarketBeat item, https://www.marketbeat.com/instant-alerts/globalfoundries-investor-day-ai-photonics-push-40-margin-targetand-new-quarterly-dividend-2026-05-07/?utm_source=yahoofinance&utm_medium=yahoofinance). Closing a 1,500-basis-point gap requires materially better mix, utilisation and pricing — and the timeframe is not in this report's source data.
• Below-the-operating-line volatility. As noted in Section 5, FY2024 saw a $1,285m year-on-year swing in net income vs only a $472m operating-income swing — i.e. roughly $800m of below-the-line items (impairments, equity-method, tax) drove the FY2024 net loss. The cleanly-extracted 20-F sections do not decompose this; the next reporting period could repeat similar volatility, and Q1 2026 ($103m net income on $451m gross profit) suggests below-the-line items remain a material driver of headline EPS.
• Quantitative and Qualitative Disclosures About Market Risk content is not available from this filing's extract (listed in meta.sections_missing). FX, interest-rate, commodity and counterparty-risk exposure quantification is therefore not in this report.

11. Recent Developments

The most recent GFS-specific items first, then the surrounding window. URLs are taken verbatim from the JSON recent_news[].url field.

• 11 May 2026 — Q1 2026 revenue beat, Investor Day capital-return framework recapped. Per Insider Monkey (Yahoo Finance syndication): "GLOBALFOUNDRIES (GFS) Launches Dividend and New Capital Return Framework". The summary reads: "On May 7, 2026, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) said during its Investor Day that it sees durable growth opportunities tied to AI-centric markets, supported by an expanding technology roadmap focused on scaling AI data centers and enabling AI applications". URL: https://finance.yahoo.com/markets/stocks/articles/globalfoundries-gfs-launches-dividend-capital-143827000.html
• 11 May 2026 — Q1 2026 revenue beat (manufacturing-trade press coverage). Per Manufacturing Dive: "GlobalFoundries Q1 revenue surpasses $1.6B, beats expectations" — the summary notes "The company's financial results were driven in part by 'meaningful traction in secular growth end markets,' CEO Timothy Breen said on an earnings call." The Q1 2026 line in the JSON financials_quarterly[] shows revenue of $1,634m, gross profit $451m, operating income $180m, net income $103m and EPS of $0.18 (quarter ended 31 March 2026). URL: https://www.manufacturingdive.com/news/globalfoundries-q1-2026-revenue-wafers-chips/819861/
• 7 May 2026 — 2026 Investor Day. Per MarketBeat: "GlobalFoundries Investor Day: AI, photonics push, 40% margin target — and new quarterly dividend". The summary reads: "GlobalFoundries (NASDAQ:GFS) used its 2026 Investor Day to outline how management expects demand tied to AI infrastructure, 'physical AI' devices, and supply chain resiliency to support growth and profitability improvements over the next several years. Executives also introduced a new shareholder re[turn]" framework. URL: https://www.marketbeat.com/instant-alerts/globalfoundries-investor-day-ai-photonics-push-40-margin-targetand-new-quarterly-dividend-2026-05-07/?utm_source=yahoofinance&utm_medium=yahoofinance
• February 2026 — $500 million ordinary-share repurchase authorization. Per the FY2025 10-K (Item 8, filed 2026-02-27): "In February 2026, we announced that our Board of Directors approved a share repurchase authorization of up to $500 million of our ordinary shares. The authorization is valid for an initial period of 12 months and may be modified, suspended or terminated at any time."
• 27 February 2026 — FY2025 20-F filed. Per the JSON sec_filings[] (form 20-F, filing_date 2026-02-27, accession 0001709048-26-000022, URL https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm), covering the fiscal year ended 31 December 2025.

The JSON recent_news[] also contains a 2026-05-07 Zacks "momentum stock" item and several non-GFS semiconductor headlines (Cirrus Logic, Lightwave Logic, QuickLogic, Morgan Stanley sector targets) which are not directly material to GFS-specific news flow and are not summarised here.

12. Key Dates Coming Up

Date	Event	Source
24 June 2026	Ex-dividend date (inaugural quarterly dividend)	JSON `calendar.ex_dividend_date`
4 August 2026	Next earnings release (Q2 2026)	JSON `calendar.next_earnings_date`

The JSON calendar.dividend_date (the payable date) is null — i.e. not in this report's source data; readers should monitor the company's IR page at gf.com for the payment date once announced.

---

Disclaimer. This research is built entirely from the supplied JSON data feed dated 15 May 2026 and the supplied FY2025 20-F extract (filed 27 February 2026). It contains no analyst opinions, price targets or third-party ratings. Where the supplied 20-F extract did not contain content for a section (notably the formal Risk Factors and Quantitative/Qualitative Disclosures About Market Risk items, both listed in the extract's meta.sections_missing), the report acknowledges the gap and points the reader to the primary filing at https://www.sec.gov/Archives/edgar/data/1709048/000170904826000022/gfs-20251231.htm. Nothing in this report constitutes investment advice. Past performance is not indicative of future results. The author has no position in the security at the time of writing.

Last Updated: 13 May 2026

POET Technologies Inc. (NASDAQ: POET; TSX-V: PTK; OTC: POETF) is a Toronto-based photonic semiconductor company that designs and develops photonic integrated circuits (PICs), light source products, and optical engine modules for artificial intelligence data centres and hyperscale cloud networks. The company's flagship innovation — the POET Optical Interposer™ — enables the co-integration of electronic and photonic devices on a single platform using wafer-level semiconductor manufacturing, a technique POET positions as lower cost, more power-efficient, and more scalable than conventional photonics assembly approaches. Having listed on the TSX Venture Exchange and later uplisted to NASDAQ, POET entered 2026 with $430 million in cash following a series of institutional equity raises, its first material production order, and an accelerating pipeline of module development partnerships targeting the rapidly expanding AI interconnect market. For live pricing and charts see ChartsView's live charts page.

1. Company Snapshot

Field	Detail
Full legal name	POET Technologies Inc.
Tickers	NASDAQ: POET  |  TSX-V: PTK  |  OTC Pink: POETF
Sector	Technology
Industry	Photonic Semiconductors / Optical Interconnects
Founded	1972 (incorporated; current photonics focus from ~2012)
Headquarters	120 Eglinton Avenue East, Suite 1107, Toronto, Ontario, Canada M4P 1E2
Other offices	California, USA; Shenzhen, China; Penang, Malaysia; Singapore
CEO / Chairman	Dr. Suresh Venkatesan (appointed CEO June 2015; Executive Chairman from Nov 2019)
CFO	Thomas R. Mika, EVP & Chief Financial Officer
COO	Sandeep Kumar (appointed 11 May 2026)
Fiscal year end	31 December
Reporting currency	US dollars (USD) as of FY2025; company files on SEDAR+ and SEC EDGAR (Form 20-F)
Market cap (approx. 13 May 2026)	~USD 1.46–2.10 billion (share price ~$13.73; ~152.7 million shares outstanding)
Revenue (FY 2025)	USD ~$0.9 million (NRE and product revenue — early commercial stage)
Net loss (FY 2025)	USD $62.96 million
Cash & equivalents (31 Dec 2025)	USD $313.4 million in cash, cash equivalents and short-term investments (total assets $328.6M)
Approximate employee count	Data not available (30 hires added in 2025; 15 more in Q1 2026 per Q4 press release)
Stock exchanges	NASDAQ Capital Market; TSX Venture Exchange; OTC Pink Sheets
Website	www.poet-technologies.com

2. Bull Case vs Bear Case

Distilled from the full report below — factual only, no ratings.

Bull Case

• Large cash runway: USD $430 million on hand at year-end 2025, supplemented by a further $150 million raised in January 2026, giving the company resources to fund manufacturing scale-up without near-term liquidity pressure.
• First production order secured: A >USD $5 million production order from a leading systems integrator for POET Infinity™ optical engines confirms initial commercial demand for the platform.
• Growing partner ecosystem: Active joint-development agreements with Semtech (1.6T receivers), LITEON Technology (AI/hyperscale modules), Lessengers (1.6T DR4 modules), and Quantum Computing Inc. (3.2Tbps TFLN engines) span multiple product lines.
• Manufacturing capacity secured: Full ownership of Super Photonics Xiamen (SPX) — acquired from Sanan in Q4 2024/2025 — provides stated capacity exceeding one million optical engines per year targeting 800G and above.
• High-growth end market: The optical transceiver/LPO/CPO market for AI is projected by LightCounting to double from ~USD $5 billion (2024) to ~USD $10 billion (2026).

Bear Case

• Celestial AI / Marvell order cancellation: On 27 April 2026, POET disclosed that Marvell (which had acquired Celestial AI) cancelled all purchase orders, citing confidentiality breaches; shares fell ~47% on the day.
• Securities litigation risk: Multiple class action lawsuits filed April–May 2026 allege misrepresentations on PFIC tax status and CFO conduct; lead plaintiff deadline 29 June 2026.
• Revenue at nascent stage: FY 2025 revenue was only ~USD $0.9 million against a $43 million operating expense base; the company is deeply pre-profitability.
• Dilution history: Three equity rounds in 2025 raised $375 million gross; the share count has grown materially and further raises cannot be excluded.
• Execution risk on Malaysia ramp: Volume production of 800G engines in Malaysia is targeted for Q3 2026 — any delays, yield issues or supply-chain disruption would defer revenue recognition.

3. What Does This Company Actually Do?

POET Technologies is a fabless/fab-lite designer of photonic integrated circuits and optical engines for high-speed data communication. Its core platform, the POET Optical Interposer™, is a patented semiconductor substrate that allows electronic chips (DSPs, drivers, TIAs) and photonic devices (lasers, modulators, photodetectors) to be integrated side-by-side on a single chip-scale module using wafer-level techniques borrowed from mainstream CMOS manufacturing. Conventional photonic module assembly requires labour-intensive discrete component attachment and individual active alignment; POET's approach eliminates many of those steps, targeting lower cost, lower power consumption, a smaller footprint, and better scalability to high volumes.

Products fall into three primary categories:

• High-speed optical engines (POET Infinity™): 400G transmit and receive engines (2xFR4, DR8 configurations) daisy-chainable for 800G, 1.6T, and beyond — targeted at optical transceivers for AI cluster switch-to-GPU and GPU-to-GPU links.
• Light source products (POET Blazar™, Starlight, Wavelight, LightBar): External laser modules and light bars for co-packaged optics (CPO) and external laser small form-factor pluggable (ELSFP) applications, where a single multi-channel light source feeds multiple transceiver channels.
• Custom / NRE engineering: Development services for specific customer module architectures, paid through non-recurring engineering (NRE) fees.

Target markets include hyperscale AI data centres (400G/800G/1.6T transceiver modules), co-packaged optics (CPO) for next-generation switch ASICs, GPU-to-GPU and GPU-to-memory interconnects, 5G front-haul/back-haul, and edge/IoT sensing including LiDAR.

Segment / Product	% of revenue / focus	What it is
POET Infinity™ (high-speed optical engines)	Primary commercial focus 2025–2026; % not disclosed	400G–1.6T optical engines for pluggable transceiver modules; daisy-chain architecture scalable to higher speeds
Light source products (Blazar™, Starlight, Wavelight, LightBar)	Secondary commercial focus; high-power applications; % not disclosed	Multi-channel external laser modules for CPO, ELSFP and GPU-to-memory photonic interconnects
NRE / custom engineering services	Substantially all revenue to date (~$0.9M FY2025)	Paid development services enabling customer-specific module designs on the POET Optical Interposer platform
Optical modules (partnership-based)	Pipeline — revenue expected to begin 2026	Complete transceiver modules co-developed with LITEON, Lessengers and other partners

Revenue split by segment not publicly disclosed. All revenue to date classified as NRE and product revenue. Source: POET Technologies SEDAR+ filings and press releases.

4. Business Model

How POET makes money. The company is transitioning from a pure development/NRE model to a product revenue model. Historically, revenue has consisted of NRE fees paid by customers for bespoke development on the POET Optical Interposer platform. As production orders are fulfilled (the first >$5M order was announced in Q4 2025 for POET Infinity™ engines to a systems integrator) revenue shifts toward product sales. Module development partnerships (LITEON, Lessengers, Semtech) are expected to begin contributing product revenue in 2026. Technology licensing is referenced as a potential additional revenue avenue; no material licensing agreements have been publicly disclosed.

Unit economics. Detailed gross margin data is not yet publicly available given the minimal revenue base. Management commentary indicates the Optical Interposer approach targets structurally lower bill-of-materials versus conventional photonics assembly by reducing labour-intensive alignment steps and component count. Operating expenses in FY2025 were ~$43.2 million (R&D: $18.1M; SG&A: $25.1M) against ~$0.9M revenue. Unit economics at commercial scale are not yet demonstrated in filed results.

Moat. POET's competitive differentiation rests on: (1) a patented wafer-level photonic integration approach; (2) early partnership positions with module manufacturers co-designing on the POET platform; (3) 100% ownership of Super Photonics Xiamen (SPX) with stated capacity exceeding one million optical engines per year; and (4) technology extension into TFLN modulator-based 3.2Tbps engines targeting the 400G-per-lane frontier (with Quantum Computing Inc.).

Key partnerships. Semtech (1.6T optical receiver co-development); LITEON Technology (AI/hyperscale module joint development, prototypes late 2026, volume 2027); Lessengers (1.6T 2xDR4 transceiver module, samples Q2 2026); Quantum Computing Inc. / QUBT (3.2Tbps TFLN engine, H2 2026); Sivers Semiconductors (light engine co-development). The Celestial AI / Marvell partnership was cancelled on 23 April 2026 following an alleged confidentiality breach by POET's CFO.

5. Financial Health

POET Technologies is an early-stage company. Revenue is minimal and pre-commercial at scale. All figures below are in US dollars (USD) unless stated. Reporting currency is USD as of FY2025 (company transitioned from CAD reporting in prior years). Source: SEDAR+ filings / POET Technologies press releases filed on EDGAR (Form 20-F).

Fiscal year	Revenue (USD)	YoY %	GAAP EPS (diluted)	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY 2021	$209,100	Data not available	Data not available	Data not available	$0	$0
FY 2022	$552,750	+164.4%	Data not available	Data not available	$0	$0
FY 2023	$465,780	−15.7%	Data not available	Data not available	$0	$0
FY 2024	$41,400	−91.1%	−$0.68 (approx.)	Data not available	$0	$0
FY 2025	~$894,000 (est.)	~+2,059%	−$0.58 (approx.)	Data not available	$0	$0

Note: FY2025 revenue is estimated from quarterly disclosures (Q3: $298K; Q4: $341K; Q1 and Q2 estimated from context). Full-year audited figure on SEDAR+. FY2024 net loss $56.7M; FY2025 net loss $63.0M. Adjusted EPS not separately disclosed by the company. Long-term debt nil across all years. Dividends: nil.

Quarter	Revenue (USD)	Adjusted EPS	GAAP EPS
Q4 2025	$341,202	Data not available	(−$0.32)
Q3 2025	$298,434	Data not available	(−$0.11)
Q2 2025	Data not available	Data not available	Data not available
Q1 2025	~$165,000 (est.)	Data not available	Data not available
FY 2025 Total	~$894,000 (est.)	Data not available	(−$0.58) approx.

Cash and liquidity: At 31 December 2025 POET held USD $313.4 million in cash, cash equivalents and short-term investments (total assets $328.6 million). In January 2026 the company raised a further $150 million from institutional investors, bringing total stated cash to approximately $430 million (Q4 2025 press release, 31 March 2026).

Operating cash burn: Q4 2025 operating cash outflow was ($11.6) million; Q3 2025 was ($2.8) million; Q4 2024 was ($8.7) million. The Q4 2025 figure was elevated partly by the manufacturing ramp investment. A cautious estimate of annual operating cash outflow at the current run-rate is approximately $25–40 million, scaling upward as headcount and production investment increase.

Runway: At an approximate run-rate of $10–12 million per quarter in operating cash outflow (Q4 2025 level), and with ~$430 million cash entering 2026, the company has an estimated runway of approximately 36–48 months at current burn rates before accounting for anticipated product revenue growth. This estimate will change materially as manufacturing ramps.

Capex: Not separately disclosed in summary press releases. The SPX equipment acquisition in 2024–2025 included $3.8 million in cash installments. Broader capex for Malaysia manufacturing ramp is not separately quantified in available disclosures.

FCF: FCF = operating cash flow minus capex. Both components not fully disclosed in summary press releases. FY2025 net loss $63.0 million; the majority was non-cash (warrant fair value adjustments $25.3M, stock-based compensation $7.2M approx., depreciation and amortisation).

Share count: Approximately 152.7 million shares outstanding as of May 2026. Share count grew materially through three equity rounds in 2025 raising $375 million gross proceeds, plus the January 2026 $150 million raise.

Long-term debt: $0. POET has no reported long-term debt. Operations are funded entirely through equity financing.

6. Valuation & Market Data

Raw metrics, May 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value	Notes
Trailing P/E (GAAP)	N/M (net loss)	Company is loss-making; P/E not meaningful
P/E (forward)	N/M	Pre-profitability; no analyst consensus used per ChartsView policy
P/S (TTM)	~1,600x (indicative)	Market cap ~$1.46B vs. ~$0.9M TTM revenue; not a meaningful valuation metric at this stage
EV/EBITDA (TTM)	N/M (negative EBITDA)	EBITDA deeply negative
P/FCF	N/M (negative FCF)	Free cash flow is negative
52-week high	~$15.50 USD	NASDAQ: POET; per market data May 2026
52-week low	~$3.87 USD	NASDAQ: POET; per market data May 2026
Share price (approx. 13 May 2026)	~$13.73 USD	Day range $12.97–$14.97 per available data
Market cap (approx.)	~USD 1.46–2.10 billion	Based on ~152.7M shares outstanding
Enterprise value	Est. materially below market cap	$430M cash vs. ~$0 debt implies significant net cash; EV = mkt cap minus net cash
Short interest (% of float)	Data not available	Not confirmed from primary source at publication date
Days to cover	Data not available	Not confirmed from primary source at publication date

The company trades on growth expectations for the AI optical interconnect market rather than current earnings. The April 2026 Celestial AI / Marvell order cancellation caused a ~47% single-day price drop, illustrating event-driven volatility typical of early-stage technology companies. The stock had gained ~19.9% in April 2026 before the 27 April event.

7. What Are They Building

POET's near-term milestones, as stated in the Q4 2025 press release (31 March 2026) and subsequent announcements, are:

• Malaysia manufacturing ramp — light source products (Q2 2026 target): High-volume production of light source products (Blazar™ platform, SmartFAU™) from the Penang facility targeted to begin Q2 2026. Addresses the ELSFP opportunity for high-speed and high-power applications.
• Malaysia manufacturing ramp — 800G optical engines (Q3 2026 target): High-speed 800G POET Infinity™ optical engine volume production targeted for Q3 2026. Combined SPX and Malaysia capacity stated to exceed one million engines per year.
• 30,000+ optical engine shipments in 2026: Management guided to shipping more than 30,000 optical engines in 2026 across high-speed and high-power segments (Q4 2025 press release).
• Lessengers 1.6T 2xDR4 module — Q2 2026 sample target: Joint development targets customer samples in Q2 2026, combining POET's 1.6T optical engines with Lessengers' Direct Optical Wiring for AI cluster high-density interconnects.
• LITEON module prototypes — late 2026 target: Joint development agreement with LITEON Technology targets prototypes by late 2026, high-volume production of AI/hyperscale modules targeted 2027.
• Quantum Computing Inc. 3.2Tbps TFLN engines — H2 2026 target: Development of 400G-per-lane thin-film lithium niobate modulator-based engines, with modulator development completion targeted H2 2026 (announced ~May 2025).
• 1.6T and beyond transceiver roadmap: POET Infinity™ supports 1.6T (2xFR4, DR8) transmit and receive configurations currently under co-development with multiple module partners. Platform designed to scale beyond 1.6T through additional lane configurations and the TFLN modulator programme.
• Co-Packaged Optics (CPO) and GPU-to-memory: Blazar™ hybrid laser platform is positioned for CPO in next-generation switch ASICs, GPU-to-GPU optical links, and GPU-to-memory interconnects — described by management as the “next frontier” for AI bandwidth and latency.
• Strategic acquisitions under evaluation: Company stated it is actively evaluating acquisitions to strengthen talent and secure differentiated component supply (Q4 2025 CEO commentary).
• Technology licensing: Referenced as a potential revenue stream. No material licensing agreements generating revenue publicly disclosed as of Q4 2025.

Track the economic calendar for earnings dates and macro events that may affect POET's sector.

8. Competitive Landscape

POET competes in the photonic integrated circuit and optical engine market against large diversified photonics companies and well-funded private startups. POET's differentiation claim is its wafer-level semiconductor integration approach, which it positions as lower-cost and more scalable than silicon photonics and InP-based assembly methods used by incumbents.

Peer	Market cap / Status	Key 2025 metric
Coherent Corp (NYSE: COHR)	~USD 77.6 billion (May 2026)	FY2025 revenue ~USD 5.8 billion; leading supplier of datacom transceivers and silicon photonics to hyperscalers
Lumentum Holdings (NASDAQ: LITE)	~USD 77.2 billion (May 2026)	FY Q3 2026 revenue +90.1% YoY; strong AI optical demand driving cloud and networking segment
Broadcom Inc. (NASDAQ: AVGO)	>USD 700 billion (May 2026)	Dominant ASIC and photonics supplier to hyperscalers; integrated CPO roadmap with custom AI accelerators
Intel (silicon photonics / IXM division)	Data not available separately for photonics	~21.5% silicon photonics market share in 2025 per industry data; IXM platform in volume production
Ayar Labs (Private)	~USD 3.8 billion valuation (March 2026 Series E)	Raised $500M Series E March 2026; TeraPHY optical chiplet targets 8Tbps on-chip interconnect; NVIDIA-backed
Sivers Semiconductors (NASDAQ: SIVR)	Data not available	Partner of POET; also an independent III-V photonic component supplier for telecom and datacom
Rockley Photonics (OTC: RKLYQ)	Restructuring / delisted from NYSE 2024	Pivoted to health sensing silicon photonics; not a direct competitor in AI data centre interconnects
MACOM Technology Solutions (NASDAQ: MTSI)	Data not available for May 2026	Photonic components and driver ICs for high-speed optical modules; competitor in certain component layers

The competitive environment is intensifying as AI data centre capex surges. POET's volume production timeline (800G in Q3 2026) places it several years behind Coherent and Lumentum in commercial maturity, though it targets the same end customers and markets with a differentiated integration platform.

9. Leadership and Ownership

Dr. Suresh Venkatesan — Chairman and CEO: Appointed CEO in June 2015; Executive Chairman from November 2019. Holds B.Tech (Electrical Engineering, Indian Institute of Technology), M.S. and PhD (Electrical Engineering, Purdue University). Prior to POET, Dr. Venkatesan was Senior Vice President, Technology Development at GlobalFoundries, where he led the 28nm node ramp and helped establish the 14nm technology strategy. Before GlobalFoundries he held director-level roles at Freescale Semiconductor and Motorola over a 20-plus year career. He holds over 25 US patents and has co-authored more than 50 technical papers.

Thomas R. Mika — EVP and CFO: Company financial contact. Named as a defendant in securities class action lawsuits filed April–May 2026 which allege he violated a confidentiality agreement by disclosing information about the Celestial AI / Marvell purchase order in a public interview.

Sandeep Kumar — COO (effective 11 May 2026): Previously SVP Worldwide Operations at Silicon Labs for over 18 years. Earlier career at Agere Systems, Lucent Technologies, and AT&T Bell Labs. Appointed to POET's Board of Directors concurrent with the COO appointment. Mandated to lead global operations and high-volume Malaysia manufacturing ramp.

Raju Kankipati — Chief Revenue Officer: Responsible for commercial strategy and revenue development.

Robert Ditizio — VP Intellectual Property.

Major shareholders: Three equity rounds in 2025 brought in new institutional investors at progressively higher prices. Specific institutional positions have not been publicly disclosed in available press releases. Insider holdings are filed on SEDI (Canada).

Name	Date	Type	Shares	Price	Value	Plan Type
No material insider transactions confirmed from SEDI filings in the past 12 months based on available data. Verify directly at sedi.ca for up-to-date filings.

10. Risks

• Securities litigation risk: Multiple class action lawsuits filed April–May 2026 (lead plaintiff deadline 29 June 2026) allege securities fraud related to PFIC tax status and CFO conduct in disclosing confidential Celestial AI / Marvell order information. Outcome uncertain; litigation costs and potential damages represent financial and reputational risk.
• Customer concentration and order cancellation: The April 2026 cancellation of all Celestial AI (Marvell) purchase orders demonstrates the risk of dependence on a small number of large customer relationships. Revenue ramp depends on a limited number of active partners converting to volume production.
• Execution and commercialisation risk: Malaysia manufacturing ramp for 800G engines is targeted for Q3 2026. Any delays in qualification, yield, equipment supply or logistics could defer revenue recognition. The company has guided near-term production milestones across multiple consecutive quarters.
• Dilution risk: POET has funded operations entirely through equity raises. Three rounds in 2025 raised $375 million; a further $150 million was raised in January 2026. If commercial revenue lags, additional equity may be required, further diluting existing shareholders. Warrants from prior financings create additional potential dilution.
• Competition from deep-pocketed rivals: Coherent, Lumentum, Broadcom, and Intel operate photonics businesses with substantially greater resources, established customer relationships, and proven volume production. Ayar Labs raised $500 million in March 2026 for NVIDIA-backed CPO chiplets. POET must demonstrate both technical and cost advantages to secure and retain design wins.
• Going-concern / cash burn trajectory: The $430 million cash position removes near-term going-concern risk; however, the operating expense base (~$43M in FY2025) is expected to grow as headcount and manufacturing investment increase. If revenue ramp lags, the runway shortens materially.
• PFIC tax status: Class action allegations indicate POET may be classified as a Passive Foreign Investment Company under US tax law. If confirmed, this could have negative tax implications for US shareholders, potentially affecting the company's attractiveness as an investment and future fundraising.
• Geopolitical and operational risk: Manufacturing in Shenzhen and Xiamen, China (SPX) creates exposure to US-China semiconductor trade restrictions. Operations in Malaysia depend on local regulatory and logistical conditions.

11. Recent Developments

• 12 May 2026 — Sandeep Kumar appointed COO. POET announced the appointment of Sandeep Kumar as Chief Operating Officer, effective 11 May 2026. Kumar brings over 18 years as SVP Worldwide Operations at Silicon Labs and earlier career at Agere Systems, Lucent and AT&T Bell Labs. He also joins the Board of Directors. Mandate: lead global operations and high-volume production ramp in Malaysia. Stock rose approximately 6% on the announcement.
• 27 Apr 2026 — Celestial AI / Marvell purchase orders cancelled; stock falls ~47%. POET disclosed that Marvell Semiconductor (which had acquired Celestial AI) cancelled all purchase orders on 23 April 2026, citing confidentiality breaches by POET. Shares fell from ~$15.10 to ~$7.95 in a single session. The company confirmed a separate ~$5 million order from another technology company remained in place.
• 28 Apr – 12 May 2026 — Multiple securities class action lawsuits filed. Law firms including Rosen Law Firm, Bernstein Liebhard LLP, Kirby McInerney LLP, Faruqi & Faruqi LLP, and Bronstein Gewirtz & Grossman LLC filed class action lawsuits on behalf of shareholders who bought POET between 1 April 2026 and 27 April 2026. Lead plaintiff deadline: 29 June 2026.
• 16 Mar 2026 — Lessengers partnership expanded to 1.6T 2xDR4 optical module. POET and Lessengers announced joint development of a 1.6T 2xDR4 optical transceiver module for AI clusters, combining POET's Optical Interposer engines with Lessengers' Direct Optical Wiring. Samples targeted Q2 2026.
• 10 Mar 2026 — LITEON joint development agreement announced. POET and LITEON Technology announced joint development of optical communication modules for AI and hyperscale data centres using the POET Optical Interposer. Prototypes targeted late 2026; high-volume production targeted 2027.
• 31 Mar 2026 — Q4 2025 financial results published. POET reported Q4 2025 NRE and product revenue of $341,202; net loss of $42.7 million (including $30.6M non-cash warrant fair value adjustment); operating cash outflow ($11.6M). Cash position $430M post-January 2026 raise. Full-year 2025 net loss $63.0 million.
• Jan 2026 — $150 million additional institutional equity raise. POET completed a further $150 million raise from institutional investors, supplementing $375 million raised across three rounds in 2025. Proceeds designated for manufacturing scale-up and meeting customer demand.
• 22 Oct 2025 — $5 million+ production order for POET Infinity™ 800G optical engines. POET announced a production order exceeding USD $5 million from an undisclosed leading systems integrator covering 800G 2xFR4 / DR8 receive and 400G 2xFR4 transmit engines. Delivery targeted H2 2026.
• Oct 2025 — Semtech 1.6T optical receiver co-development launched. POET and Semtech launched 1.6T optical receivers for AI networks, integrating Semtech FiberEdge® technology with POET's Optical Interposer platform at 200G per lane.
• Q4 2025 — Full acquisition of Super Photonics Xiamen (SPX) completed. POET acquired the remaining 24.8% stake in SPX from Sanan for USD $6.5 million payable over five years. Combined capacity stated to exceed one million optical engines per year for 800G and above.

12. Key Dates

• 20 May 2026 — Q1 2026 earnings release (estimated; confirm at poet-technologies.com/investors)
• 29 Jun 2026 — Lead plaintiff deadline for securities class action lawsuits (multiple law firms)
• Q2 2026 — High-volume production of light source products from Penang, Malaysia begins (management guidance)
• Q2 2026 — Lessengers 1.6T 2xDR4 module customer samples targeted
• Q3 2026 — High-volume production of 800G POET Infinity™ optical engines from Malaysia (management guidance)
• H2 2026 — $5M+ production order delivery to leading systems integrator
• H2 2026 — Quantum Computing Inc. TFLN 400G/Lane modulator development completion targeted
• Late 2026 — LITEON module prototypes targeted
• 2027 — LITEON high-volume module production targeted
• AGM date — Data not available; check SEDAR+ and POET IR page for formal notice

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 13 May 2026

Ambiq Micro, Inc. (NYSE: AMBQ) is an Austin, Texas-based fabless semiconductor company specialising in ultra-low-power system-on-chip (SoC) solutions built on its proprietary SPOT (Subthreshold Power Optimized Technology) platform. Founded in 2010 as a University of Michigan spinout, the company went public on the New York Stock Exchange in July 2025 and has become a leading enabler of always-on edge AI in wearables, hearables, medical devices, and industrial IoT. As of Q1 2026, Ambiq's chips are shipping at over 80% AI algorithm deployment and the company's devices have cumulatively shipped to power more than 290 million edge computing devices globally. For live charts and more research, visit our Live Charts page, check the Economic Calendar, or join the discussion in the Forum.

1. Company Snapshot

Item	Detail
Full name	Ambiq Micro, Inc.
Ticker / Exchange	AMBQ / NYSE (listed 30 Jul 2025)
Sector	Technology / Semiconductors
Industry	Fabless Semiconductor / IoT / Edge AI
Founded	2010 (University of Michigan spinout)
Headquarters	Austin, Texas, USA
CEO	Fumihide Esaka (since December 2015)
Founder / CTO	Scott Hanson
Market Cap (12 May 2026)	~$1.28 billion (at $59.90/share)
52-week range	$22.12 – $63.30
IPO price	$24.00 per share (July 2025)
Revenue (FY 2025)	$72.5 million
Revenue (Q1 2026)	$25.1 million (+59.3% YoY)
Net loss (FY 2025)	$36.5 million
Gross margin (FY 2025)	44.3%
Employees (approx.)	~202
Website	ambiq.com

2. Bull Case vs Bear Case

Distilled from the full report below — factual only, no ratings.

Bull Case

• SPOT moat: The patented sub-threshold architecture delivers up to 300x more inference throughput per joule than comparable M4/M33 solutions, a technically verified advantage that is difficult and expensive for incumbents to replicate.
• AI tailwind: Over 80% of units shipped in Q1 2026 execute on-device AI algorithms, positioning Ambiq as a native beneficiary of edge AI adoption without requiring cloud connectivity.
• Revenue acceleration: Q1 2026 net sales of $25.1 million represented 59.3% year-over-year growth; Q2 2026 guidance midpoint of $31.5 million implies roughly 75% year-over-year growth.
• Market diversification: Non-wearable revenue (medical, industrial, smart home) doubled year-over-year in Q1 2026, reducing historical dependence on the wearables segment and broadening the addressable market.
• Atomiq product roadmap: The Atomiq110 SoC — built on a 12nm SPOT platform with 200+ GOPS of on-device AI performance and 300mV operation — targets the 2027 production cycle and extends Ambiq's technological lead in ultra-low-power NPU chips.

Bear Case

• Persistent losses: The company reported a $36.5 million net loss in FY 2025 and remains loss-making in 2026; management targets break-even only by early 2028 at the earliest.
• Customer concentration: A significant share of revenue derives from a small number of large wearable OEMs; any design loss or product cycle delay at a key customer could materially impact revenue.
• Scale disadvantage: Competitors such as Nordic Semiconductor (~$4.1 billion market cap, ~$668 million TTM revenue) and Silicon Labs (~$7.2 billion market cap, ~$785 million TTM revenue) have substantially greater resources, distribution networks, and developer ecosystems.
• Fabless supply chain exposure: As a fabless company relying on third-party foundries (primarily TSMC for advanced nodes), Ambiq is exposed to wafer allocation constraints, geopolitical risk, and process technology transitions.
• Early-stage public company risk: Ambiq only completed its IPO in July 2025; equity is subject to IPO lock-up expiry selling pressure and the company has limited history reporting as a public entity.

3. What Does This Company Actually Do?

Ambiq designs and sells ultra-low-power system-on-chip (SoC) semiconductors. Its core innovation is the SPOT (Subthreshold Power Optimized Technology) platform — a proprietary circuit architecture that allows transistors to operate below their conventional threshold voltage, dramatically reducing the energy required per computation. SPOT was developed by founders Scott Hanson, Dennis Sylvester, and David Blaauw at the University of Michigan and has been refined and patented through more than 71 registered patents.

The primary product family is the Apollo SoC series. The current generation — Apollo5 / Apollo510 — integrates an Arm Cortex-M55 processor running up to 250 MHz with Arm Helium vector processing, AI inference acceleration, ultra-low-power Bluetooth LE 5.4 connectivity, and on-chip non-volatile memory. The Apollo510 Lite Series (announced October 2025) extended this family with dual-mode Bluetooth and a streamlined BOM for cost-sensitive applications. The forthcoming Atomiq SoC series, built on a 12nm FinFET process, integrates an Arm Ethos-U85 NPU delivering over 200 GOPS of AI performance at voltages as low as 300mV — the lowest in the company's history.

Ambiq's chips are designed into devices where battery life is critical: smartwatches, fitness trackers, smart rings, hearing aids, earbuds (hearables), continuous glucose monitors, industrial sensors, and smart building controllers. More than 290 million devices cumulatively use Ambiq SoCs, with the company shipping more than 42 million units in 2024 alone.

Segment / Product Line	Revenue mix / focus (est.)	What it is
Wearables (smartwatches, fitness bands, smart rings)	Majority of current revenue; historically dominant	Apollo SoCs powering always-on fitness, health, and notification applications. Samsung Galaxy Watch is a confirmed design win.
Hearables (earbuds, hearing aids)	Growing; share not publicly disclosed	Ultra-low-power SoCs enabling always-on voice and audio AI in wireless ear devices with multi-day battery life.
Medical / Health devices	Non-wearable revenue doubled YoY Q1 2026; ~25% of pipeline	Continuous health monitoring patches, CGMs, and diagnostic wearables requiring long battery life and on-device signal processing.
Industrial IoT / Smart buildings	Part of non-wearable growth; 400,000+ Ronds sensors deployed	Edge sensors for predictive maintenance, condition monitoring, and building automation in power-constrained deployments.
Real-Time Clocks (RTCs)	Legacy / supporting product line	Ultra-low-power RTCs for time-keeping in battery-backed systems; a legacy product category that predates the Apollo SoC family.

Revenue percentages by vertical are not publicly disclosed. Mix estimates are based on management commentary in earnings calls.

4. Business Model

How Ambiq makes money. Ambiq sells semiconductor chips (SoCs and RTCs) directly to original equipment manufacturers (OEMs) and through a global network of authorised distributors. Revenue is recognised upon shipment. The company is a pure fabless model — it designs all chips internally but outsources wafer fabrication to contract foundries and packaging to third-party OSAT (outsourced semiconductor assembly and test) providers. This avoids capital-intensive fab ownership but ties the company to external foundry relationships. The average selling price of individual SoCs is not publicly disclosed, but the company operates in the volume consumer and IoT market where ASPs are measured in low single-digit dollars per unit.

Unit economics. Non-GAAP gross margin for FY 2025 was 44.3%, improving from a lower base in prior years as the product mix shifted toward higher-value Apollo5 SoCs with embedded AI. Q1 2026 non-GAAP gross margin was 46.2%. The company is operating below breakeven due to ongoing R&D and sales/marketing investment; management targets reaching operating breakeven by early 2028 (or potentially late 2027) as revenue scales through its 12nm Atomiq platform and multi-market expansion.

Moat. Ambiq's competitive differentiation rests on three interlocking layers: (1) the patented SPOT sub-threshold circuit architecture, which provides verified energy efficiency advantages of up to 300x more AI throughput per joule than competing M4/M33-based SoCs; (2) a vertically integrated software platform (neuralSPOT SDK, helia AI platform, heliaAOT ahead-of-time AI compiler) that reduces time-to-market for OEM customers deploying on-device AI; and (3) a deep installed base — 290+ million devices already in market — that provides design-win reference customers and switching cost benefits. The SPOT IP portfolio of 71+ patents forms a legal barrier around the core architecture.

Key partnerships and distribution. Ambiq distributes globally through authorised semiconductor distributors. Key technology partnerships include Arm (Cortex-M55, Helium, Ethos-U85 NPU licensing), Bravechip (chiplet co-design for smart rings, reducing BOM cost by up to 85%), and Ronds (industrial IoT sensor deployment). A multi-year Singapore R&D programme supported by the Singapore Economic Development Board was announced in May 2026 to expand SPOT platform development and licensing activities into Asia-Pacific.

5. Financial Health

Ambiq Micro is a publicly listed company (NYSE: AMBQ since July 2025). The following reflects reported financial results from official earnings releases and SEC filings.

IPO and Capital Markets History

Event	Date	Proceeds (net)	Detail
Series B (pre-IPO)	Aug 2013	$10 million	Led by Austin Ventures; Arm Holdings, Mercury Fund, Huron River Ventures participating
Series C (pre-IPO)	Nov 2014	$15 million	Led by Kleiner Perkins Caufield & Byers; Austin Ventures, Mercury Fund, Arm Holdings participating
IPO (NYSE: AMBQ)	30 Jul 2025	$102.7 million (net)	Upsized to 4.6 million shares at $24.00/share; BofA Securities and UBS as joint lead book-runners
Follow-on offering	2025	$76.8 million (net)	Secondary offering completing Ambiq's initial capital markets programme post-IPO

Annual Revenue (reported)

Period	Net Sales	Gross Profit (non-GAAP)	Gross Margin (non-GAAP)	Net Loss
FY 2025	$72.5 million	Highest in company history (absolute $)	44.3%	$(36.5) million
Q4 2025	$20.7 million	Not separately disclosed	45.5%	$(5.9) million
Q3 2025	$18.2 million	Not separately disclosed	Not separately disclosed	Not separately disclosed
Q2 2025	$17.9 million	Not separately disclosed	Not separately disclosed	Not separately disclosed
Q1 2025	$15.7 million	$7.4 million	47.1%	Not separately disclosed
Q1 2026	$25.1 million (+59.3% YoY)	$11.6 million (+56.2% YoY)	46.2%	$(0.25)/share non-GAAP

Q2 2026 Guidance (as issued 12 May 2026)

Metric	Guidance
Net sales	$31.0 million – $32.0 million (midpoint $31.5M; ~75% YoY growth)
Non-GAAP gross margin	45.0% – 46.0%
Non-GAAP operating expense	$21 million – $22 million (incl. $1.7M IP purchases)
Non-GAAP net loss per share	$(0.29) – $(0.23)
Weighted avg. shares outstanding	21.38 million

Full year 2026 operating expense is projected at approximately $85 million, with $7–$10 million allocated to IP purchases and engineering headcount expansion. Management targets breakeven by early 2028, or potentially late 2027. Burn rate and cash runway details beyond Q2 guidance are not separately disclosed at the time of this report — refer to the 10-Q for the period ended 31 March 2026 for the most current balance sheet data.

Note: Live financial data and the latest SEC filings are available at ir.ambiq.com.

6. Valuation and Market Data

Ambiq Micro (NYSE: AMBQ) is a publicly listed company. The following covers market valuation data as of 12 May 2026 and historical funding information. Standard mature-company metrics (P/E, EV/EBITDA) are not meaningful given current losses; price-to-sales and market context are provided instead.

Metric	Value
Share price (12 May 2026, close)	$59.90
Market capitalisation	~$1.28 billion
52-week high	$63.30
52-week low	$22.12
IPO price (Jul 2025)	$24.00
Price-to-sales (FY 2025 revenue)	~17.7x (based on $72.5M revenue; illustrative only)
Total pre-IPO VC funding raised	$36.9 million across Series A, B, and C rounds (2010–2014 disclosed)
IPO net proceeds	$102.7 million
Follow-on offering net proceeds	$76.8 million
Total capital raised (IPO + follow-on)	$179.5 million from public markets
Notable pre-IPO investors	Kleiner Perkins Caufield & Byers, Austin Ventures, Mercury Fund, Arm Holdings, Huron River Ventures, University of Michigan MINTS Fund, Orfin Ventures
Total addressable market (ULP MCU)	~$8.5 billion (2024), projected $14.6 billion by 2030 at 9.5% CAGR (Market Research Future)

The company's market capitalisation of ~$1.28 billion as of 12 May 2026 reflects a significant re-rating from its $24.00 IPO price following the Q1 2026 earnings beat on 12 May 2026, when the stock rose approximately 45% in a single session. The re-rating reflects the market pricing in accelerating revenue growth (59.3% in Q1 2026) and the Q2 2026 guidance well above consensus.

Note: Live share price and technical chart data for NYSE: AMBQ is available on our Live Charts page.

7. What Are They Building?

Ambiq's product and technology roadmap is centred on three parallel tracks: advancing its existing Apollo5 product family, developing the next-generation Atomiq NPU SoC series, and expanding its software AI platform.

Apollo510 and Apollo510 Lite (in production / shipping). The Apollo510, the first member of the Apollo5 family, delivers 300x more AI inference throughput per joule than predecessor Apollo4 Plus parts. It integrates an Arm Cortex-M55 running at up to 250 MHz with Helium vector instructions, a 48/96 MHz Cortex-M4F coprocessor, 2 MB RAM, 2 MB non-volatile memory, BLE 5.4 with +14 dBm TX power, and a 2.5D GPU for display rendering. The Apollo510 Lite Series (announced 28 October 2025, volume production began Q1 2026) adds dual-mode Bluetooth and targets a broader range of cost-sensitive IoT applications.

Atomiq SoC series (announced January 2026; production 2027). Unveiled at CES on 6 January 2026, Atomiq is positioned as the world's first ultra-low-power NPU SoC built on SPOT. Key specifications: 12nm FinFET process node; Arm Ethos-U85 NPU delivering over 200 GOPS of AI performance; tri-mode voltage scaling (Ultra-Low Power at ~300mV, Low-Power, High-Performance); support for sparsity and on-the-fly weight decompression. The first production device — Atomiq110 — is targeted for 2027. The 12nm SPOT platform has been validated on silicon. Atomiq will support the helia AI software platform, the heliaAOT ahead-of-time AI compiler, and the neuralSPOT SDK.

heliaAOT AI compiler (production / shipping). Introduced in July 2025, heliaAOT converts TensorFlow Lite models directly into optimised embedded C code, eliminating runtime inference overhead on constrained MCUs. It won the Embedded World 2026 Award in the Best Tools category (Ambiq's third consecutive Embedded World Award). heliaAOT is a key software moat component, reducing OEM time-to-market for AI feature deployment on Ambiq silicon.

Singapore R&D expansion (announced May 2026). A multi-year Singapore-based R&D programme, supported by the Singapore Economic Development Board, will advance next-generation edge AI technologies and expand development and licensing of the SPOT platform. This represents a new revenue vector — platform licensing — in addition to chip sales.

Bravechip chiplet partnership. A co-designed chiplet platform with Bravechip reduces smart ring bill-of-materials cost by up to 85% and improves production yield by 20%, targeting the fast-growing smart ring wearable segment.

Market expansion into non-wearables. Management guided that medical, industrial, and smart home/buildings segments are expected to deliver more than 100% revenue growth in 2026. The Ronds partnership has already enabled deployment of over 400,000 industrial IoT sensors in heavy industry (petrochemical, coal processing, chemical plants) running on Ambiq's Apollo platform.

8. Competitive Landscape

Ambiq competes primarily on energy efficiency in the ultra-low-power MCU and edge AI SoC market. Key competitors include large diversified semiconductor companies as well as focused wireless MCU vendors. Ambiq's SPOT architecture is its primary differentiator.

Peer	Market cap / Status (approx. May 2026)	Key 2025–2026 metric / competitive note
Nordic Semiconductor (Oslo: NOD)	~$4.1 billion	TTM revenue ~$668M (Dec 2025); primary competitor in BLE-integrated wearable/IoT MCUs. Competes by bundling radio and application processor in nRF5 and nRF54 series. Larger ecosystem but SPOT architecture gives Ambiq an energy efficiency edge.
Silicon Labs (NASDAQ: SLAB)	~$7.2 billion	FY 2025 revenue ~$785M (+34% YoY); focuses on IoT wireless SoC portfolio including EFR32 family. Pending acquisition by Texas Instruments. Competes on ecosystem breadth and multi-protocol wireless.
STMicroelectronics (NYSE: STM)	~$20 billion	STM32U5 ultra-low-power MCU family directly competes; ST has significantly larger distribution, developer community, and manufacturing scale. Revenue ~$13B (FY 2025).
Texas Instruments (NASDAQ: TXN)	~$180 billion	SimpleLink MCU platform; competes on price/performance at scale; also acquiring Silicon Labs. Much larger in industrial and embedded segments.
Microchip Technology (NASDAQ: MCHP)	~$20 billion	PIC32 and SAM ultra-low-power families; broad distribution and developer ecosystem; competes particularly in industrial and automotive edge.
NXP Semiconductors (NASDAQ: NXPI)	~$50 billion	i.MX RT and LPC series; strong in automotive, industrial and IoT; competes on integration and security features.

Ambiq's strategic position is differentiated by its SPOT sub-threshold architecture: third-party benchmarks and company claims indicate the Apollo510 delivers 30x better AI energy efficiency versus M4/M33 competitive solutions, and up to 300x more inference throughput per joule than prior-generation parts. No public peer currently offers a competing NPU SoC operating at 300mV (12nm Atomiq platform). However, all peers are significantly larger by revenue and market capitalisation, with broader product portfolios and deeper OEM relationships across multiple end markets.

9. Leadership and Ownership

Fumihide Esaka — Chief Executive Officer and Director. Esaka has been CEO since December 2015. He brings over 20 years of senior semiconductor management experience, including executive roles at International Rectifier, CEO of Nihon Inter Electronics Corp., CEO of Transphorm Inc., and six years at Accenture. He joined Ambiq to scale the commercial organisation following the company's technology validation phase.

Scott Hanson — Founder and Chief Technology Officer. Hanson co-founded Ambiq in January 2010 after developing the SPOT sub-threshold architecture at the University of Michigan under professors Dennis Sylvester and David Blaauw. He is an expert in ultra-low energy and variation-tolerant circuit design and is listed as a principal inventor on Ambiq's core IP portfolio. He served as CEO until February 2013 before transitioning to CTO.

Sean Chen — President. Chen has over 20 years of semiconductor industry experience, including VP of Marketing and Business Development at mCube, and management positions at Intel, IDT, TSMC, and Nagevtech.

Co-founders Dennis Sylvester and David Blaauw — University of Michigan professors who co-developed the underlying SPOT architecture — were early board members and remain associated with the company. Both also co-founded CubeWorks, a separate ultra-low-power chip venture.

Pre-IPO investors and ownership. Prior to the IPO, significant investors included Kleiner Perkins Caufield & Byers (Series C lead), Austin Ventures (Series B lead), Mercury Fund, Arm Holdings, Huron River Ventures, the University of Michigan MINTS fund (overseen by the UM Investment Office), and Orfin Ventures of Bloomfield Hills, Michigan. Post-IPO lock-up expiry transactions are recorded in Form 4 SEC filings, available at ir.ambiq.com.

Ambiq Micro is a publicly listed company. SEC Form 4 insider transaction filings are available at the SEC EDGAR system at sec.gov and at ir.ambiq.com.

10. Risks

Customer concentration. Ambiq's revenue is heavily reliant on a small number of large wearable OEMs. A design loss, product cycle delay, or procurement change at a key customer — such as the Samsung Galaxy Watch programme — could cause a material revenue reduction. Management noted securing a new design win with one of its largest customers in Q1 2026 for a product entering production in 2027, but the customer was not named, limiting external verification.

Competition from much larger players. Every direct competitor — Nordic Semiconductor, Silicon Labs (being acquired by Texas Instruments), STMicroelectronics, NXP, Microchip, and Texas Instruments — is significantly larger by revenue, market cap, and product breadth. Larger players can deploy substantially more R&D spending, offer broader product portfolios, and leverage existing sales infrastructure to commoditise any market Ambiq develops.

Path to profitability and funding risk. Ambiq remains loss-making with a FY 2025 net loss of $36.5 million. Management targets breakeven by early 2028 at the earliest. If revenue growth disappoints or operating expenses are not controlled, the company may require additional equity or debt financing, which could dilute existing shareholders. Full year 2026 opex is projected at ~$85 million against a revenue run rate of ~$115–$125 million (based on H1 2026 guidance midpoints annualised).

Fabless supply chain and foundry risk. Ambiq's 12nm Atomiq platform relies on advanced FinFET foundry capacity, concentrated in a small number of global fabs. Any disruption to TSMC (the dominant advanced-node foundry) due to geopolitical events, natural disasters, or capacity constraints could delay product shipments and damage customer relationships.

Intellectual property litigation. The SPOT sub-threshold architecture is protected by 71+ patents, but any challenge to key patents — or a finding that Ambiq's technology infringes third-party IP — could result in costly litigation, licensing obligations, or injunctions restricting product sales. Larger competitors have significantly greater IP litigation resources.

Technology transition risk. As AI inference requirements grow, the energy efficiency demands on edge chips will evolve. If Ambiq's SPOT architecture does not scale efficiently to higher compute densities (e.g., multi-TOPS NPU workloads), more powerful but less energy-efficient alternatives could erode its differentiation in the hearables and medical markets.

Wearable market cyclicality. Consumer wearable device sales are cyclical and fashion-driven. A slowdown in smartwatch or fitness tracker demand — driven by consumer spending weakness, device saturation, or delayed OEM product launches — would compress Ambiq's near-term revenue. Diversification into industrial and medical is underway but these segments remain a minority of current revenue.

11. Recent Developments

• 12 May 2026 — Q1 2026 earnings: revenue +59.3% YoY, stock surges ~45%. Ambiq reported Q1 2026 net sales of $25.1 million, beating the consensus estimate of $21.9 million. Non-GAAP EPS of $(0.25) beat estimates of $(0.36). Q2 2026 guidance of $31.0–$32.0 million was well above the $26.2 million consensus. Over 80% of units shipped execute AI algorithms. Management announced new design win with a top customer for a 2027 production programme. Source: BusinessWire, 12 May 2026.
• 12 May 2026 — Singapore R&D programme announced. A multi-year Singapore-based R&D programme, supported by the Singapore Economic Development Board, was announced to advance next-generation edge AI technologies and expand development and licensing of the SPOT platform. Source: Ambiq Q1 2026 earnings release.
• 11 Mar 2026 — Embedded World 2026 Award won for heliaAOT. Ambiq won the Embedded World 2026 Award in the Best Tools category for its heliaAOT ahead-of-time AI compiler — the company's third consecutive Embedded World Award. Source: Embedded World / Ambiq press release, 11 March 2026.
• Mar 2026 — Embedded World 2026 showcase. Ambiq demonstrated Apollo510, Apollo510 Lite, and Atomiq SoC capabilities at Embedded World 2026 in Nuremberg, Germany, including live demonstrations of on-device large language model inference and industrial AI sensor applications. Source: ambiq.com/news, March 2026.
• 06 Jan 2026 — Atomiq unveiled at CES 2026. Ambiq unveiled Atomiq — the world's first ultra-low-power NPU SoC built on SPOT — at CES 2026 in Las Vegas. The device integrates an Arm Ethos-U85 NPU on a 12nm SPOT platform, delivering over 200 GOPS at as low as 300mV. Production of the Atomiq110 SoC is targeted for 2027. Source: GlobeNewswire, 6 January 2026.
• 28 Oct 2025 — Apollo510 Lite Series announced. Ambiq unveiled the Apollo510 Lite SoC Series with dual-mode Bluetooth (BLE 5.4 + classic Bluetooth), targeting always-on edge applications with over 16x faster performance and 30x better AI energy efficiency versus M4/M33 solutions. Volume production commenced Q1 2026. Source: GlobeNewswire, 28 October 2025.
• 30 Jul 2025 — IPO completed on NYSE. Ambiq completed its upsized initial public offering at $24.00 per share, listing under ticker AMBQ on the New York Stock Exchange. Net proceeds were $102.7 million. The offering was upsized to 4.6 million shares from an initial 3.4 million share filing. Joint lead book-runners: BofA Securities and UBS Investment Bank. Source: Ambiq IR, 31 July 2025.
• Jul 2025 — heliaAOT AI compiler introduced. Ambiq introduced heliaAOT, an ahead-of-time AI compiler that converts TensorFlow Lite models directly to optimised embedded C code, eliminating runtime interpreter overhead and enabling faster AI deployment on Ambiq SoCs. Source: ambiq.com, July 2025.

12. Key Dates

Q2 2026 earnings announcement — Expected August 2026 (exact date to be confirmed at ir.ambiq.com). Guidance midpoint of $31.5 million net sales set on 12 May 2026.

Atomiq110 SoC production ramp — Targeted 2027. The 12nm SPOT platform has been validated on silicon as of Q1 2026 earnings call. Management to provide milestone updates on the production timeline.

Breakeven target — Management targets operating breakeven by early 2028 (potentially late 2027). Progress will be reported through quarterly earnings.

Singapore R&D programme milestones — Multi-year programme; specific milestones and timelines not publicly disclosed at announcement. Expected 2026–2028+ programme. Follow at ambiq.com/news.

CES 2027 — Ambiq has exhibited at CES for multiple consecutive years and is expected to use CES 2027 (January 2027, Las Vegas) to showcase Atomiq and next-generation product updates. Confirm at ces.tech.

Embedded World 2027 — Nuremberg, Germany, March 2027. Ambiq has won the Embedded World Award for three consecutive years (2024, 2025, 2026) and is a regular exhibitor. Confirm at embedded-world.de.

Annual General Meeting 2026 — Date to be confirmed at ir.ambiq.com. Proxy statement and notice filed with SEC before the meeting.

Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company announcements, press releases, earnings releases, and official SEC filings. ChartsView does not use analyst opinions or third-party ratings. All financial figures are sourced from Ambiq Micro's official earnings releases and SEC filings; always verify at the primary source (ir.ambiq.com) and conduct your own due diligence before making investment decisions.

See also: Technical analysis on AST SpaceMobile · AST SpaceMobile company tracker

Last Updated: 17 August 2026

AST SpaceMobile is attempting something no company has yet completed: a constellation of large low-earth-orbit satellites that connect directly to an ordinary, unmodified mobile phone, with no special handset and no dish. If it works at scale, the mobile networks that already own the spectrum and the customers get coverage everywhere their towers do not reach, and AST collects a share of the revenue. The company reached its first meaningful revenue in 2025 and has thirteen spacecraft in orbit as at August 2026. It is also burning capital at an extraordinary rate, has raised more than three billion dollars of convertible debt since January 2025, and wrote off an entire satellite in April 2026. This report sets out what has actually been filed and announced, without analyst opinions or price targets.

1. Company Snapshot

Field	Value
Company	AST SpaceMobile, Inc.
Ticker / Exchange	ASTS (Class A common stock) / NASDAQ
Headquarters	Midland, Texas, United States
Sector	Technology — satellite direct-to-device communications
CEO / Leadership	Abel Avellan (Founder, Chairman and Chief Executive Officer); Scott Wisniewski, President; Andrew Johnson, Chief Financial Officer and Chief Legal Officer
Employees	1,126 (as at 31 December 2025)
Fiscal year end	31 December
Revenue (FY2025)	$70.9m, the company's first materially revenue-generating year (SEC Form 10-K, accession 0001780312-26-000006)
Revenue (trailing twelve months to 30 Jun 2026)	$115.3m
GAAP loss per share (FY2025)	$(1.34)
GAAP loss per share (Q2 2026)	$(0.77)
FY2026 revenue guidance	$150m–$200m, reaffirmed at the Q2 2026 results on 10 August 2026
Revenue backlog	~$1.30bn as disclosed at the Q2 2026 results
Market capitalisation	~$27.6bn across all share classes (share price $70.98, close 14 August 2026; ~389.2m total shares). Class A alone is ~$21.3bn on 299.7m shares.
Cash position (30 Jun 2026)	$2,288m cash and equivalents, plus $435m restricted cash; long-term debt of $2,963m
Satellites in orbit	13 spacecraft as at August 2026

The price action is available on our Live Charts page, and scheduled macro events are listed on the Economic Calendar.

2. Bull and Bear Case

Bull Case

• Spectrum and regulatory position is genuinely hard to replicate: The Federal Communications Commission granted Supplemental Coverage from Space commercial authorisation in April 2026 covering a network of up to 248 satellites, coordinated with AT&T and Verizon 700/800 MHz spectrum. Separately the Ligado framework agreement gives AST access to up to 45 MHz of L-band with more than eighty years of usage rights.
• Distribution is already contracted rather than hypothetical: The company reports more than sixty mobile network operator partners covering over three billion subscribers, with definitive commercial agreements including Verizon and a $175m prepayment received from stc Group in Saudi Arabia. AST does not have to acquire retail customers — its partners already own them.
• Revenue has started and the backlog is substantial: Revenue went from zero in 2023 to $70.9m in FY2025 and $115.3m on a trailing twelve-month basis, against a disclosed backlog of approximately $1.30bn. Government work is a real contributor, with more than $125m of new US Government awards in 2026 to date.
• Manufacturing capacity is built ahead of demand: More than 500,000 square feet of production space across four Texas facilities, with stated line capacity for more than ten satellites' worth of components per month, and satellites BB17 to BB46 in production or assembly.

Bear Case

• The capital requirement is enormous and recurring: Capital expenditure was $859m in the first half of 2026 alone and $1,065m in FY2025, against operating cash outflow of $145m in the half. Cash of $2,288m at 30 June 2026 does not cover two more years at that investing run-rate without further financing, and the company has already returned to the convertible market four times since January 2025.
• Dilution is continuous and the market has punished it: Long-term debt rose from $156m at the end of 2024 to $2,963m at 30 June 2026 across four convertible note series. The July 2026 $1.0bn issue alone knocked 13% to 17% off the share price in a day.
• Hardware risk is proven, not theoretical: BlueBird 7 was launched on 19 April 2026, left in too low an orbit by an underperforming upper stage, and subsequently de-orbited. The company booked a $125.9m loss on involuntary conversion against roughly $30m of insurance recovery.
• A far larger, better-funded competitor is already operating: SpaceX's Starlink Direct-to-Cell service is live with hundreds of satellites and a subscriber base reported in the millions, against AST's thirteen spacecraft and pre-commercial status. SpaceX also has its own launch capability, which AST must buy.
• The deployment schedule has already slipped: The target of roughly 45 satellites in orbit has moved from end-2026 towards early 2027 following the BlueBird 7 loss, and first-half 2026 revenue of $46.3m implies a very steep second-half ramp to reach even the bottom of the $150m–$200m full-year guidance range.

3. Business Segments

AST SpaceMobile does not report operating segments. It discloses revenue in two categories, shown below for the quarter ended 30 June 2026 with the FY2025 split alongside.

Segment / category	% of revenue	What it is
Products revenues	77.5% of Q2 2026 revenue ($24.4m); 62.6% of FY2025 revenue ($44.4m)	Principally ground gateway equipment delivered to mobile network operator partners, who install it to connect the satellite network into their terrestrial core. Fifteen gateways were delivered across five continents during FY2025, with around fifty in various stages of completion, installation or planning as at Q2 2026.
Services revenues	22.5% of Q2 2026 revenue ($7.1m); 37.4% of FY2025 revenue ($26.5m)	Engineering services and milestone-based United States Government contracts, including work for the Space Development Agency and the Missile Defense Agency. This is the category that will eventually carry recurring commercial airtime revenue once beta and commercial service scale.

Neither category yet reflects the intended long-run model, which is a revenue share on airtime sold by mobile network operators to their own subscribers. That revenue does not meaningfully exist today.

4. Business Model and Moat

How it makes money. Today, almost entirely by selling hardware and engineering time. Gateway equipment sales to partner operators and milestone payments on government contracts made up all of the $70.9m booked in FY2025 and all of the $115.3m booked in the trailing twelve months. The intended model is different: AST operates the satellites, the mobile network operator provides the spectrum and the customer relationship, and the two share the revenue from airtime that would otherwise never have been billed because the subscriber was out of terrestrial coverage. Because the partner already owns the customer, AST avoids retail acquisition cost entirely — but it also does not control pricing, and it only earns once service is continuous enough to sell.

Where the moat is supposed to come from. Three things, in descending order of durability. First, spectrum: the Ligado arrangement gives long-dated control of L-band capacity, and the April 2026 FCC Supplemental Coverage from Space authorisation is a specific regulatory permission that competitors must obtain separately. Second, the physics of the array — AST's satellites carry very large phased-array apertures precisely because connecting to a low-power handset with no dish requires enormous antenna gain, and building and unfolding that in orbit is genuinely difficult. Third, the proprietary ASIC, which the company states delivers up to 10 GHz of processing bandwidth per satellite and roughly ten times the throughput of the Block 1 design.

What is not yet proven. The moat argument rests on the assumption that scarce spectrum and hard engineering translate into pricing power before a competitor with more capital gets there. Starlink Direct-to-Cell is already operating a service, and its parent controls the launch vehicles AST partly depends on. AST's advantage is bandwidth per satellite and MNO-spectrum integration; the competitive question is whether that advantage outlasts the funding requirement needed to realise it.

5. Financial Health

All figures below are taken from AST SpaceMobile's SEC filings (Forms 10-K and 10-Q) as tagged in the company's own XBRL data. The company reports on a calendar year.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	12.4	n/a — FY2020 not presented	$(0.37)	$(0.37) †	Nil	$5.0m
FY2022	13.8	+11.4%	$(0.60) ‡	$(0.60) †	Nil	$4.8m
FY2023	0.0	-100.0%	$(1.07)	$(1.07) †	Nil	$59.3m
FY2024	4.4	n/m — growth from a zero base	$(1.94)	$(1.94) †	Nil	$155.6m
FY2025	70.9	+1,505.4%	$(1.34)	$(1.34) †	Nil	$2,207.6m

† AST SpaceMobile does not publish an adjusted or non-GAAP earnings per share measure; the GAAP figure is repeated in that column. It discloses "adjusted operating expenses" instead, which was $119.1m in Q2 2026 excluding depreciation and amortisation of $20.7m and the $125.9m loss on involuntary conversion. ‡ FY2022 loss per share is derived as the net loss attributable to common stockholders of $31.6m divided by approximately 52.7m weighted-average Class A shares, the share count implied by the company's own nine-month 2022 disclosure of a $23.4m loss at $(0.45) per share. The company has never declared or paid a dividend.

An important discontinuity in the revenue series. The revenue reported for FY2021 and FY2022 is not comparable with later years. It came from NanoAvionics, a small-satellite manufacturer in which AST held a 51% interest. AST agreed to sell that stake to Kongsberg Defence & Aerospace on 2 July 2022 and completed the sale on 6 September 2022 for net proceeds of $26.6m, recognising a $24.5m gain. Revenue consequently fell to precisely zero in FY2023. The FY2024 and FY2025 figures are the first from the SpaceMobile business itself, and the five-year growth rate shown in the verdict below should be read with that break in mind.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
Q2 2026 (to 30 Jun 2026)	31.5	$(0.77) †	$(0.77)
Q1 2026 (to 31 Mar 2026)	14.7	$(0.66) †	$(0.66)
Q4 2025 (to 31 Dec 2025)	54.3	$(0.26) †	$(0.26)
Q3 2025 (to 30 Sep 2025)	14.7	$(0.45) †	$(0.45)
Q2 2025 (to 30 Jun 2025)	1.2	$(0.41) †	$(0.41)
FY2025 total (Q1–Q4 2025)	70.9	$(1.34) †	$(1.34)

The two 2026 quarters are shown first and are not included in the FY2025 total. Every loss per share above reconciles to the company's own XBRL tags: the FY2025 figure is a $341.9m loss attributable to common stockholders over 256.0m weighted-average shares, and the Q2 2026 figure is a $230.9m loss over 299.1m weighted-average shares. Note that the loss per share is calculated on Class A shares only, because the Up-C structure allocates a substantial portion of the total loss to non-controlling interests — in Q2 2026, $69.0m of the $299.9m total net loss.

Cash flow and balance sheet. In FY2025 the operating cash outflow was $71.5m against capital expenditure of $1,064.7m, with depreciation and amortisation of $51.1m. For the six months to 30 June 2026 the operating cash outflow was $145.2m and capital expenditure was $859.2m. On a trailing twelve-month basis, operating cash outflow was $144.7m, capital expenditure $1,493.3m, free cash flow $(1,638.0)m and depreciation and amortisation $66.7m. At 30 June 2026 the company held $2,288.3m of cash and equivalents plus $434.6m of restricted cash, against long-term debt of $2,963.4m and current debt of $8.5m. Long-term debt comprises four series of convertible senior notes: 4.25% due 2032, 2.375% due 2032, 1.625% due 2034 and 2.250% due 2036.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$27.6bn across all share classes (share price $70.98 at the close on 14 August 2026 × ~389.2m total shares). On Class A alone (299.7m shares) the figure is ~$21.3bn — several data providers quote only the Class A number, so the two are easy to confuse.
Enterprise value	~$28.3bn (market cap $27.6bn + total debt $2,972m − cash and equivalents $2,288m per the 30 June 2026 balance sheet). Total debt is long-term debt of $2,963m plus current debt of $8m. The $435m of restricted cash, largely tied to the Ligado arrangement, has not been netted off.
Trailing P/E (GAAP)	n/m — the company is loss-making. Trailing twelve-month GAAP loss per share is $(2.15), so no positive earnings multiple exists.
P/E (forward)	n/m — consensus forward earnings per share remains negative at approximately $(1.21), and the company has issued revenue guidance ($150m–$200m for FY2026) but no earnings guidance.
P/S (TTM)	~239.6x (market cap $27.6bn / trailing twelve-month revenue $115.3m, derived as Q3 2025 $14.7m + Q4 2025 $54.3m + Q1 2026 $14.7m + Q2 2026 $31.5m)
EV/EBITDA (TTM)	n/m — EBITDA is negative at approximately $(532.2)m. This is a trailing twelve-month operating loss of $(598.9)m, derived from revenue less total operating expenses as tagged in each quarterly filing, plus depreciation and amortisation of $66.7m from the cash flow statements. The operating loss includes the $125.9m non-cash loss on involuntary conversion booked in Q2 2026 for the BlueBird 7 satellite.
P/FCF	n/m — free cash flow is negative at approximately $(1,638.0)m (trailing twelve-month operating cash outflow of $144.7m less capital expenditure of $1,493.3m per the cash flow statements). The company is in a heavy build phase and consumes far more cash than it generates.
52-week high	$133.86
52-week low	$36.08
Short interest (% of float)	19.09% (56.85m shares short against a float of ~266.9m, settlement date 31 July 2026; down from 64.72m shares in the prior period). AST SpaceMobile remains one of the most heavily shorted large-capitalisation names on Nasdaq.
Days to cover	3.62

Four of the ten metrics above are not meaningful, and that is the single most important thing this table says. AST SpaceMobile cannot be valued on earnings, cash flow or EBITDA, because it has none of them. The only ratio with a denominator is price to sales at roughly 240 times, against revenue that is currently hardware and engineering fees rather than the recurring airtime revenue the business is being built to earn.

7. What Are They Building

The constellation. Thirteen spacecraft were in orbit as at August 2026: the BlueWalker 3 test article, five Block 1 BlueBirds launched together in September 2024, and seven Block 2 BlueBirds. BlueBird 6 reached orbit in February 2026; BlueBirds 8, 9 and 10 launched in June 2026; and BlueBirds 11, 12 and 13 launched on a SpaceX Falcon 9 from Cape Canaveral on 5 August 2026. BlueBird 7 was lost on 19 April 2026. BlueBirds 14, 15 and 16 were described as ready to ship shortly as at the Q2 2026 results, with BlueBirds 17 to 46 in production or assembly. Ten launches are booked across SpaceX and Blue Origin at a targeted cadence of one every one to two months, working towards roughly 45 satellites in orbit.

The Block 2 satellite and the ASIC. Block 2 BlueBirds are built around a proprietary application-specific integrated circuit that the company states supports up to 10 GHz of processing bandwidth per satellite — roughly ten times the throughput of Block 1, with up to a tenfold user-experience improvement through AI-enabled spectrum management. Manufacturing runs across more than 500,000 square feet in four Texas-area facilities, with a dedicated micron production line stated to have capacity for more than ten satellites' worth of components per month.

Spectrum. The strategy targets roughly 100 MHz of access in the United States and more than 60 MHz internationally on a market-by-market basis, combining spectrum shared from mobile network operator partners with spectrum AST controls directly. The Ligado framework agreement, finalised on 22 March 2025, covers up to 45 MHz of L-band — 40 MHz of mobile satellite service spectrum in the United States and Canada plus 5 MHz in the 1670–1675 MHz band — with usage rights running more than eighty years, for $350m upfront, a minimum of $80m a year, and an option for a further $200m in cash or convertible notes. A further $100m capital advance was made in the first half of 2026 on top of $420m advanced during FY2025.

Government and defence. AST holds a $30m prime contract on the Space Development Agency's HALO Europa Track 2 programme and a prime position on the Missile Defense Agency's SHIELD programme, with more than $125m of aggregate new United States Government awards in 2026 to the date of the Q2 results. It is also working with AT&T's FirstNet public-safety network under the FCC Supplemental Coverage from Space authorisation.

The path to service. Three thousand digital cells had been activated across the continental United States as at Q2 2026, with beta service targeted with strategic partners during 2026 ahead of scaled commercial usage. The Q2 2026 release also flagged a planned joint venture among the three largest United States mobile network operators intended to extend coverage nationwide, though no definitive agreement has been announced.

8. Competitive Landscape

Market capitalisations below were re-checked live on 14 August 2026 rather than carried over from earlier in the year, as satellite-sector valuations have moved sharply during 2026.

Peer	Market cap (August 2026)	Key 2025 metric
EchoStar (SATS)	~$30.1bn	Trailing twelve-month revenue of ~$14.8bn. Sold spectrum licences to SpaceX in a transaction reported at approximately $19.6bn, taking part of the consideration as an equity stake in SpaceX, which makes it an indirect participant in the competing direct-to-cell network.
Viasat (VSAT)	~$11.4bn	Trailing twelve-month revenue of ~$4.63bn and EBITDA of ~$1.39bn. A profitable incumbent in satellite broadband, but serving terminals rather than unmodified handsets.
Globalstar (GSAT)	~$10.7bn	Trailing twelve-month revenue of ~$281m and EBITDA of ~$91m. Provides the satellite capacity behind Apple's emergency-messaging service, which is the closest existing analogue to direct-to-device but is narrowband messaging rather than broadband.
Iridium Communications (IRDM)	~$5.3bn	Trailing twelve-month revenue of ~$884m, EBITDA of ~$423m and diluted EPS of $0.87. Operates a mature, cash-generative narrowband constellation — a useful illustration of what a completed low-earth-orbit network earns at steady state.
SpaceX (private, parent of Starlink)	Not listed — valued at approximately $800bn in a December 2025 secondary share sale	Starlink Direct-to-Cell is already in commercial operation with hundreds of satellites and a monthly active user base reported in the millions. Reported figures vary widely between secondary sources and should be treated with caution. SpaceX is simultaneously AST's principal launch supplier and its principal competitor.

9. Insider Activity

Founder Abel Avellan remains Chairman and Chief Executive Officer and, through Class C common stock, controls roughly 71.6% of the voting power against an economic interest of approximately 20.8% — a gap that Class A holders should understand before reading anything else in this section. Scott Wisniewski is President and Andrew Johnson serves as both Chief Financial Officer and Chief Legal Officer. Christopher Turco was added as a Section 16 officer, Executive Vice President and Chief of Staff, on a Form 3 filed 14 July 2026.

Insider dealing during 2026 has been entirely on the sell side among executives, alongside substantial disposals by strategic holder Rakuten.

Name	Date	Type	Shares	Price	Value	Plan Type
Rakuten entities (holder of more than 10%)	15 Apr 2026	Sale	1,350,000	$86.22 (weighted average)	~$116.4m	Not stated in filing reviewed
Rakuten entities (holder of more than 10%)	14 Apr 2026	Sale	1,690,000	$91.42 (weighted average)	~$154.5m	Not stated in filing reviewed
Huiwen Yao (Chief Technology Officer)	5 Jun 2026	Sale	40,000	$96.37 (implied)	$3,854,800	Not stated in filing reviewed
Scott Wisniewski (President)	27 May 2026	Sale	25,904	$126.64 (weighted average)	~$3.28m	Not stated in filing reviewed
Scott Wisniewski (President)	17 Mar 2026	Sale	47,000	$94.68 (implied)	~$4.45m	Not stated in filing reviewed
Julio A. Torres (Director)	2026 — exact date not stated in filing reviewed	Sale	15,000	$76.34 (weighted average)	~$1.15m	Described as covering restricted stock unit tax liability

The Rakuten disposals are the most significant entries here by value: Rakuten has been a strategic investor and Japanese network partner since the early stage of the business, and sold more than $270m of stock across two consecutive days in April 2026. None of the transactions reviewed was explicitly flagged as executed under a Rule 10b5-1 plan, and no open-market purchases by officers or directors were found for 2026.

10. Key Risks

• Liquidity and funding runway: This is the dominant risk. Cash and equivalents of $2,288m at 30 June 2026 sit against investing outflows running at roughly $2bn a year once capital expenditure, Ligado advances and spectrum purchases are combined. Even allowing for the $1.0bn convertible issue priced in July 2026, the company has funded roughly one to one and a half years of the current build rate and will need to return to capital markets again before the constellation is complete. Management describes the balance sheet as fortified; the arithmetic of the cash flow statement describes a business that must keep raising money.
• Dilution and leverage: Long-term debt went from $155.6m at the end of FY2024 to $2,963.4m at 30 June 2026 across four convertible series. The February 2026 transaction equitised $296.5m of earlier notes, converting debt into shares directly. Capped calls mitigate but do not remove conversion dilution, and the market's reaction to the July 2026 issue — a 13% to 17% single-day fall — shows how sensitive the price is to each new raise.
• Launch and satellite loss: BlueBird 7 was a total loss on 19 April 2026 after an underperforming Blue Origin New Glenn upper stage left it in too low an orbit to raise itself. The $125.9m accounting charge against roughly $30m of insurance is a concrete measure of what a single failure costs, and dozens more launches are required.
• Execution against a slipping schedule: The roughly 45-satellite target has already moved from end-2026 towards early 2027. First-half 2026 revenue of $46.3m against full-year guidance of $150m–$200m requires second-half revenue two to three times the first half, and the company has missed consensus revenue in its most recent quarter.
• Competition from a better-capitalised incumbent: Starlink Direct-to-Cell is operating commercially at a scale AST has not reached, backed by a parent valued at roughly $800bn with its own launch fleet. AST buys launch capacity from that same competitor.
• Regulatory dependency across many jurisdictions: The April 2026 FCC Supplemental Coverage from Space grant covers the United States only. The Q2 2026 release explicitly notes that European, Canadian, Japanese and Saudi network integration remains subject to final regulatory approvals, each on its own timetable and none guaranteed.
• Governance concentration: The Up-C structure and Class C super-voting stock give the founder roughly 71.6% of votes on roughly 20.8% of the economics. Class A holders supply the great majority of the capital and hold a small minority of the control.
• Revenue quality and concentration: Current revenue is gateway hardware and government milestones, not recurring subscriber airtime. The Q4 2025 figure of $54.3m against $14.7m in each of the adjacent quarters shows how lumpy delivery-based revenue is, and makes any single quarter a poor guide to the underlying run-rate.

11. Recent Developments

• 16 Aug 2026 — Backlog and deployment race draw commentary. Secondary market commentary highlighted the approximately $1.30bn revenue backlog against an intensifying satellite deployment race in direct-to-device connectivity.
• 10 Aug 2026 — Q2 2026 results miss on revenue as losses widen. Revenue of $31.5m fell short of consensus of roughly $34.5m, and the net loss attributable to common stockholders widened to $230.9m, or $(0.77) per share, including a $125.9m loss on the BlueBird 7 write-off. Full-year revenue guidance of $150m–$200m was reaffirmed and backlog was given as approximately $1.30bn.
• 05 Aug 2026 — BlueBirds 11, 12 and 13 reach orbit. A SpaceX Falcon 9 launched three Block 2 satellites from Cape Canaveral at 3:42am EDT, taking the constellation to thirteen spacecraft in orbit.
• 28 Jul 2026 — Launch date announced for BlueBirds 11, 12 and 13. The company confirmed the schedule for its next Falcon 9 mission.
• 20 Jul 2026 — $1.0bn convertible note offering closes, shares fall sharply. AST priced $1.0bn of 1.625% convertible senior notes due February 2034, plus a $150m initial purchaser option, at an initial conversion price of approximately $79.57 and an effective conversion price of $149.20 after the capped call. The shares fell 13% to 17% on the dilution.
• 11 May 2026 — Q1 2026 results. Revenue of $14.7m and a net loss attributable to common stockholders of $191.0m, or $(0.66) per share, with cash and restricted cash of approximately $3.5bn following the February raise.
• 22 Apr 2026 — FCC grants commercial Supplemental Coverage from Space authorisation. The approval covers a network of up to 248 satellites, coordinated with AT&T, Verizon and FirstNet 700/800 MHz spectrum.
• 19 Apr 2026 — BlueBird 7 lost after New Glenn upper-stage underperformance. The satellite was placed in too low an orbit to raise itself and was subsequently de-orbited, against approximately $30m of insurance cover.
• 02 Mar 2026 — FY2025 results and 10-K filed. Full-year revenue of $70.9m made 2025 the company's first materially revenue-generating year, with a net loss attributable to common stockholders of $341.9m, or $(1.34) per share.
• Feb 2026 — $1.075bn convertible note offering. AST priced ten-year 2.250% convertible senior notes at an effective conversion price of $116.30, and concurrently equitised $250.0m of the 2.375% 2032 notes and $46.5m of the 4.250% 2032 notes.

Ongoing discussion of the direct-to-device sector continues on the ChartsView Forum.

12. Key Dates

• Expected Nov 2026 — Q3 2026 results. No date has been formally announced; the company reported Q1 on 11 May 2026 and Q2 on 10 August 2026, and third-party earnings calendars estimate a window of 9 to 13 November 2026.
• Expected 2026 — Launch of BlueBirds 14, 15 and 16, described as ready to ship shortly as at 10 August 2026. No launch date has been published.
• Expected early 2027 — Target of approximately 45 satellites in orbit, revised from an earlier end-2026 goal following the loss of BlueBird 7.
• TBC — Beta service with strategic mobile network operator partners, targeted during 2026 without a published start date.
• TBC — Final regulatory approvals for network integration in Europe, Canada, Japan and Saudi Arabia, each on a separate national timetable.
• 01 Feb 2034 — Maturity of the 1.625% convertible senior notes issued in July 2026. The 4.250% and 2.375% series mature in 2032 and the 2.250% series in 2036.

The Ligado framework agreement carries a minimum payment obligation of $80m a year, and further capital advances have been made in each of FY2025 and the first half of FY2026; no fixed future payment dates have been published.

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Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.

Last Updated: 16 August 2026

AppLovin Corporation is now a pure advertising-software company. It sold its ten mobile-gaming studios to Tripledot Studios on 30 June 2025 and what remains is AXON, a machine-learning engine that decides which advertisement to show which user, and the platform that sells access to it. On the continuing-operations basis, revenue grew 70 per cent in FY2025 to $5,480.7m and adjusted EBITDA margin reached 82 per cent. Twelve months later the story is more complicated: Q2 2026 revenue of $1,923.7m grew 53 per cent but came in narrowly below expectations, and the shares have fallen from an intraday high of $745.61 in December 2025 to a 52-week low of $303.17 in August 2026. On the same day the company also disclosed that the SEC had closed its inquiry with no recommended action. This report sets out the filed numbers. No analyst opinions, no price targets.

1. Company Snapshot

Field	Value
Exchange and ticker	NASDAQ: APP (Class A common stock)
Sector	Technology — digital advertising software and performance marketing
Headquarters	Palo Alto, California, USA
Founded	2012. Listed on NASDAQ in April 2021
CEO / Leadership	Adam Foroughi, Co-founder and Chief Executive Officer. Matt Stumpf is Chief Financial Officer; Giovanni Ge became Chief Technology Officer on 1 July 2026
Employees	Approximately 876 full-time employees. AppLovin runs one of the leanest cost bases in large-cap software
Revenue (FY2025)	$5,480.7m from continuing operations, up 70.0 per cent on the restated FY2024 base
Revenue (TTM to 30 Jun 2026)	$6,829.1m
Operating income (FY2025)	$4,151.9m, a 75.8 per cent operating margin
Net income (FY2025)	$3,333.8m including discontinued operations; $3,433.2m from continuing operations. GAAP diluted EPS $9.75
Market capitalisation	Approximately $105.6bn at the 14 August 2026 close of $315.44
Shares outstanding	335.3m Class A and Class B shares at 30 June 2026 (305.1m Class A, 30.2m Class B)
Dividend	None. AppLovin returns capital through share repurchases
Last reported period	Q2 2026, quarter ended 30 June 2026, released 5 August 2026

Useful ChartsView tools while you read: Live Charts for the price action referenced below, and the Economic Calendar for the macro releases that move high-multiple software names.

2. Bull Case and Bear Case

Bull Case

• Extraordinary margin structure: FY2025 operating income of $4,151.9m on revenue of $5,480.7m is a 75.8 per cent operating margin, and Q2 2026 adjusted EBITDA margin reached 84 per cent. Very few businesses of this size convert revenue to profit at this rate.
• Growth is still well above 45 per cent: Q2 2026 revenue grew 53 per cent year on year to $1,923.7m and management guided Q3 2026 to $2,055m to $2,085m, implying 46 to 48 per cent growth. Trailing twelve-month revenue of $6,829.1m compares with $4,109m for the equivalent prior period.
• Asset-light cash generation: trailing twelve-month operating cash flow was $4,527.6m against capital expenditure of only a few million dollars, so essentially all operating cash converts to free cash flow. FY2025 free cash flow was $3,952.0m.
• The regulatory cloud lifted: the SEC advised AppLovin on or before 5 August 2026 that it had concluded its inquiry into the company's data-collection practices with no recommended action. That inquiry, opened in October 2025, had been the single largest identifiable overhang.
• Optionality in e-commerce: the self-service AppLovin Ads platform was opened to the public in June 2026 after a referral-only period, giving direct-response advertisers outside mobile gaming access to AXON for the first time. Management sizes this addressable market as several times the core gaming ad business.

Bear Case

• The growth engine showed its first crack: Q2 2026 revenue missed consensus of roughly $1.94bn, and management attributed the shortfall to weaker-than-usual AI model improvement during the quarter. That is an admission that revenue depends on the cadence of internal model upgrades rather than on a durable contracted base.
• Severe multiple compression already under way: the shares fell from an intraday high of $745.61 in December 2025 to $303.17 in August 2026, roughly 59 per cent, with a fall of about 16 to 20 per cent on the Q2 print alone. Enterprise value to trailing EBITDA of roughly 19.6x is far below where the stock traded through 2025.
• Single-product concentration: after the Apps divestiture AppLovin reports one operating segment. There is no second business to cushion a stumble in AXON's performance, and no disclosed breakdown of revenue by advertiser vertical to let outsiders track the e-commerce transition.
• Platform dependency: the business runs on inventory and identifiers governed by Apple's and Google's operating-system and store policies. A change in either company's advertising or privacy rules is outside AppLovin's control and can reset the model's inputs.
• Litigation has not gone away with the SEC inquiry: a securities class action in the Northern District of California covering purchasers between 7 November 2024 and 27 March 2025 remains unresolved, and a Dutch privacy group filed a separate class action in May 2026 alleging unlawful data collection including the data of approximately 1.5 million children.

3. Business Segments

Following the disposal of the Apps business on 30 June 2025, AppLovin states in its FY2025 annual report that it operates as a single operating and reportable segment. The table below sets out the continuing business and the divested one so the change of basis is visible.

Segment / category	% of revenue	What it is
Advertising (sole reportable segment)	100 per cent of FY2025 continuing-operations revenue of $5,480.7m	The AXON machine-learning engine plus the platform that sells access to it: user acquisition, monetisation and measurement for app developers and, increasingly, direct-response e-commerce advertisers. AppLovin does not publish a further breakdown of this revenue by advertiser vertical or geography.
Apps and mobile gaming (divested 30 June 2025)	Nil from 1 July 2025; presented as discontinued operations in FY2024 and FY2025	Ten owned mobile-gaming studios including Machine Zone, Belka Games, PeopleFun and Lion Studios, sold to Tripledot Studios for $400.0m in cash plus equity representing approximately 20 per cent of Tripledot's fully diluted share capital.

4. Business Model and Moat

How it makes money. AppLovin sells advertising placements on behalf of advertisers and takes a share of the spend it directs. Advertisers set a return-on-ad-spend target, AXON decides which impressions to buy and at what price to hit it, and AppLovin earns on the volume that flows through. Because the marginal cost of serving one more advertiser is close to zero, incremental revenue drops to profit at an unusually high rate. That is why FY2025 revenue of $5,480.7m produced $4,151.9m of operating income while total costs and expenses were only $1,328.8m.

What protects it. The moat is a data flywheel rather than a contract. AXON improves as it observes more auctions and more downstream conversion outcomes, and the better it performs the more budget advertisers route through it, which generates more observations. Competitors cannot buy this dataset; they have to accumulate it. AppLovin's long history as a mobile-gaming publisher gave it a privileged view of in-app behaviour that seeded the model.

Why the divestiture mattered. Owning studios put AppLovin in competition with its own advertising customers and tied up capital in hit-driven content. Selling them in June 2025 removed the conflict, removed roughly $1.4bn of low-margin revenue, and lifted the reported operating margin from 19.7 per cent in FY2024 on a total-company basis to the mid-seventies on a continuing-operations basis.

Capital allocation. There is no dividend. AppLovin repurchased 6.4m shares for approximately $2.58bn during FY2025 and a further 1.1m shares for approximately $551.3m in Q2 2026, and share count has fallen from 340.0m at the end of FY2024 to 335.3m at 30 June 2026 despite continued equity compensation. Long-term debt has been held broadly flat at approximately $3.5bn.

5. Financial Health

All figures below come from AppLovin's annual reports on Form 10-K and its quarterly earnings releases. Dollar amounts are in millions unless stated.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021§	2,793.1	—	$0.09	$0.09†	Nil	$3,201.8m
FY2022§	2,817.1	+0.9%	$(0.52)	$(0.52)†	Nil	$3,178.4m
FY2023§	3,283.1	+16.5%	$0.98	$0.98†	Nil	$2,905.9m
FY2024‡	3,224.1	+75.1%‡	$4.53	$4.53†	Nil	$3,509.0m
FY2025‡	5,480.7	+70.0%	$9.75	$9.75†	Nil	$3,513.0m

§ Revenue for FY2021, FY2022 and FY2023 is total-company revenue as originally filed, including the Apps business.
‡ Revenue for FY2024 and FY2025 is continuing operations only, the Apps business having been sold on 30 June 2025 and reclassified to discontinued operations. On the same restated basis FY2023 continuing-operations revenue was $1,841.8m, which is the base used for the FY2024 growth rate of 75.1 per cent shown above. The apparent decline from FY2023 to FY2024 in the revenue column is a change of accounting presentation, not a fall in the advertising business.
† AppLovin does not report an adjusted earnings per share measure; its headline non-GAAP metric is adjusted EBITDA. GAAP diluted EPS is repeated in the Adjusted EPS column so the table remains comparable. FY2024 and FY2025 continuing-operations diluted EPS were $4.56 and $10.04 respectively.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
Q2 2026 (to 30 Jun 2026)	1,923.7	$3.76†	$3.76
Q1 2026	1,842.4	$3.56†	$3.56
Q4 2025	1,657.9	$3.24†	$3.24
Q3 2025	1,405.0	$2.45†	$2.45
Q2 2025	1,258.8	$2.39†	$2.39
FY2025 total	5,480.7	$9.75†	$9.75

Adjusted EBITDA, the measure management guides on, was $1,613.8m in Q2 2026 against $1,018.3m a year earlier, an increase of 58 per cent, with margin rising from 81 to 84 per cent. Q2 2026 free cash flow was $863.3m and net income $1,266.5m.

Cash flow and balance sheet, twelve months to 30 June 2026: operating cash flow $4,527.6m, capital expenditure negligible at a few million dollars, depreciation and amortisation $134.1m. At 30 June 2026 the balance sheet carried $3,515.1m of long-term debt with no current portion, $3,053.3m of cash and cash equivalents and no material marketable securities, total assets of $8,269.1m and stockholders' equity of $3,163.0m. Net debt was therefore approximately $462m, roughly a tenth of one year's EBITDA.

6. Valuation Metrics

Raw metrics, August 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	Approximately $105.6bn (334.7m Class A and Class B shares at the 14 August 2026 close of $315.44). Note that quoted market caps from earlier in August, in the $131bn to $140bn range, predate the post-results fall.
Trailing P/E (GAAP)	Approximately 24.3x ($315.44 divided by trailing twelve-month diluted EPS of $13.01). On continuing operations the trailing EPS is the same $13.01, so no adjusted-earnings variant is materially different.
P/E (forward)	Approximately 15.0x on consensus forward earnings per share of about $21.00
P/S (TTM)	15.5x (market cap $105.6bn divided by trailing twelve-month revenue of $6,829.1m)
Enterprise value	Approximately $106.0bn (market cap $105.6bn plus long-term debt $3,515.1m, there being no current portion, less cash and cash equivalents of $3,053.3m, per the 30 June 2026 balance sheet). AppLovin holds no material marketable securities.
EV/EBITDA (TTM)	Approximately 19.6x (enterprise value $106.0bn divided by trailing twelve-month EBITDA of $5,422.5m; EBITDA is trailing operating income of $5,288.5m plus depreciation and amortisation of $134.1m from the cash flow statement). Note this is GAAP EBITDA and runs about 17 per cent below the company's own adjusted EBITDA, which adds back share-based compensation.
P/FCF	Approximately 23.3x (market cap $105.6bn divided by trailing twelve-month free cash flow of approximately $4,522m; free cash flow is operating cash flow of $4,527.6m less capital expenditure of roughly $6m, AppLovin being almost entirely asset-light)
52-week high	$745.61 intraday in December 2025 (highest closing price $733.60 on 22 December 2025)
52-week low	$303.17 intraday in August 2026 (lowest closing price $303.76 on 12 August 2026)
Short interest (% of float)	Approximately 4.1 per cent — 11.9m shares short against a free float of about 254.3m shares, settlement date 31 July 2026, down slightly from 12.1m shares the prior month
Days to cover	Approximately 1.9 days on average daily volume, same settlement date

7. What Are They Building

Self-service at scale. AppLovin Ads was opened to the general public in June 2026, removing the referral gating that had limited access through the first half of the year. The intent is to let e-commerce and direct-to-consumer advertisers onboard themselves rather than through a managed-service relationship, which is the only way the advertiser count can grow faster than headcount.

Creative automation. The stated bottleneck in the self-service funnel is producing enough advertising creative, with roughly 57 per cent of self-service leads converting to live campaigns as at mid-2026. An AI interactive landing-page generator has shipped, and a generative video-advertisement tool was in final testing during 2026.

AXON model cadence. Management's explanation for the Q2 2026 revenue shortfall was that model improvements landed more slowly than usual during the quarter, with a stronger upgrade deployed immediately after quarter-end. Q3 2026 guidance explicitly builds in higher AI training and inference compute cost, which is the clearest signal yet that AppLovin intends to spend more on model capability rather than harvest margin.

Advertiser mix shift. The strategic objective is to move revenue mix away from mobile gaming, where AppLovin already has high share, toward general e-commerce, where it has very little. AppLovin does not disclose the split, so progress has to be inferred from total revenue growth and management commentary rather than measured directly.

8. Competitive Landscape

AppLovin competes with independent demand-side platforms for direct-response budget and, indirectly, with the walled gardens that absorb most of the world's performance advertising. Market capitalisations are as at the 14 August 2026 close.

Peer	Market cap (August 2026)	Key 2025 metric
The Trade Desk (NASDAQ: TTD)	Approximately $6.6bn	The largest independent demand-side platform, trading on 2.2x trailing revenue after a fall of roughly three-quarters over twelve months from a 52-week high of $56.39. Short interest stood at approximately 20.7 per cent of float at the 31 July 2026 settlement date, the highest in this peer group.
Unity Software (NYSE: U)	Approximately $20.4bn	Trailing twelve-month revenue of approximately $2.03bn with a trailing loss of $1.36 per share; trailing EBITDA of approximately $146m. Unity's Grow advertising unit is AppLovin's most direct competitor for mobile-game user acquisition budget.
Meta Platforms (NASDAQ: META)	Approximately $1,503bn	Q2 2026 advertising revenue of $59.36bn, up 27 per cent year on year. Operating margin compressed to 31 per cent from 43 per cent on a $2.40bn youth-litigation charge and $1.18bn of severance. Guided 2026 capital expenditure of $125bn to $145bn.
Alphabet (NASDAQ: GOOGL)	Approximately $4,230bn	Q2 2026 group revenue of $119.80bn, up 24.2 per cent year on year, with Search up 17 per cent and YouTube advertising up 13 per cent. Google's app-install and performance-max products compete for the same advertiser budgets AppLovin targets.

The structural context matters. Independent forecasts published in 2026 have Meta overtaking Google in global digital advertising revenue for the first time, at roughly $243.5bn against $239.5bn. Both walled gardens are an order of magnitude larger than AppLovin and both are expanding automated, model-driven buying of exactly the kind AXON provides. AppLovin's counter-argument is inventory: it reaches in-app placements the walled gardens do not own.

9. Insider Activity

Adam Foroughi co-founded AppLovin in 2012 and remains Chief Executive Officer. He is also the dominant insider seller, disposing of shares through 2026 while retaining a stake of roughly 4.6m shares across direct holdings and family trusts. AppLovin's dual-class structure means Class B shares carry super-voting rights, so control is not materially diluted by Class A sales. The disposals below were made at prices between roughly $454 and $499, well above the $315.44 close on 14 August 2026.

Name	Date	Type	Shares	Price	Value	Plan Type
Adam Foroughi (Co-founder and CEO)	12 Jun 2026	Sale of Class A	22,544	Weighted average approximately $490 to $499	Approximately $11.16m	Not stated in filing summary
Adam Foroughi (Co-founder and CEO)	10 Jun 2026	Sale of Class A	29,457	Weighted average approximately $496	Approximately $14.61m	Not stated in filing summary
Adam Foroughi (Co-founder and CEO)	12 Mar 2026	Sale of Class A	40,704	Weighted average approximately $453.80 to $468.33	Approximately $18.7m	Not stated in filing summary

Post-transaction, Foroughi's reported direct holding was approximately 2,349,628 Class A shares, with a further 780,519 and 1,530,519 shares held through The WHK Trust and The OD Trust respectively, for which beneficial ownership is disclaimed. Additional Form 4 filings were made by other AppLovin insiders during 2026 but the filing summaries did not identify the individuals or amounts; readers wanting the complete record should consult SEC EDGAR for CIK 0001751008. No open-market purchases by insiders were identified in 2026.

10. Key Risks

• Model-dependent revenue: management attributed the Q2 2026 revenue shortfall directly to slower-than-usual AXON model improvement during the quarter. Revenue is therefore a function of research productivity on a quarterly cadence, which is inherently difficult to forecast and impossible for outsiders to verify in advance.
• Single-segment concentration: after the Apps divestiture there is one reportable segment and no published breakdown by advertiser vertical, geography or customer. A stumble in the advertising platform has nothing to offset it and limited disclosure through which to diagnose it.
• Platform and privacy policy dependency: the business relies on advertising identifiers and in-app inventory governed by Apple's and Google's operating-system rules. Prior industry-wide changes such as App Tracking Transparency reset the economics of mobile advertising once already, and AppLovin has no control over the next such change.
• Unresolved securities litigation: the class action in the Northern District of California covering purchases between 7 November 2024 and 27 March 2025 alleges inflated revenue disclosures and remains undecided, with the motion to dismiss fully briefed. An adverse ruling would extend disclosure and cost exposure even though the SEC closed its own inquiry without action.
• European privacy exposure: a Dutch advocacy group filed a class action in May 2026 alleging unlawful collection and trading of personal data, including that of approximately 1.5 million children. EU data-protection claims carry both financial and operational remedies.
• Execution risk on the e-commerce pivot: the growth narrative depends on advertisers outside mobile gaming adopting AXON at scale, but the self-service funnel converted only about 57 per cent of leads to live campaigns as at mid-2026 and creative production remains the stated bottleneck.
• Valuation volatility: the shares fell roughly 16 to 20 per cent on a revenue miss of roughly $16m against consensus, and are down approximately 59 per cent from the December 2025 intraday high. A business valued on growth durability re-rates violently on small deviations.
• Key-person concentration: Adam Foroughi is co-founder, Chief Executive and the architect of the AXON strategy, and holds super-voting Class B stock. Succession is not addressed in public disclosure.

11. Recent Developments

• 27 Jan 2026 — AppLovin demands a retraction from short-seller CapitalWatch. The company publicly described the report as conspiratorial. It followed short reports from Fuzzy Panda and Culper Research in February 2025 and Muddy Waters in March 2025.
• 11 Feb 2026 — FY2025 results published. Continuing-operations revenue of $5,480.7m, up 70 per cent, operating income $4,151.9m, adjusted EBITDA $4,512.5m at an 82 per cent margin, and net income of $3,333.8m.
• 20 Feb 2026 — SEC confirms its inquiry into AppLovin is active and ongoing. The inquiry, opened in October 2025, followed a sealed whistleblower complaint and examined data-collection practices alleged to breach platform-partner agreements.
• 12 Mar 2026 — CEO Adam Foroughi sells 40,704 Class A shares. Executed at a weighted average of approximately $453.80 to $468.33 per share.
• 13 May 2026 — Q1 2026 results published. Revenue of $1,842.4m and GAAP diluted EPS of $3.56, reported while the SEC inquiry was still open.
• 29 May 2026 — Dutch privacy class action filed. A Netherlands advocacy group alleged unlawful tracking and data trading, including data on approximately 1.5 million children.
• 30 Jun 2026 — AppLovin Ads self-service platform opened to the public. Referral gating removed, giving e-commerce and other non-gaming advertisers direct access to AXON.
• 01 Jul 2026 — Giovanni Ge appointed Chief Technology Officer.
• 01 Aug 2026 — Victoria Valenzuela, Chief Administrative and Legal Officer, retires.
• 05 Aug 2026 — Q2 2026 results and SEC clearance. Revenue of $1,923.7m, up 53 per cent but below consensus of roughly $1.94bn; adjusted EBITDA $1,613.8m at an 84 per cent margin; GAAP diluted EPS $3.76. On the same call the Chief Financial Officer disclosed that the SEC had concluded its inquiry with no recommended action. The shares fell approximately 16 to 20 per cent.
• 12 Aug 2026 — Shares set a 52-week low. The stock touched $303.17 intraday and closed at $303.76, roughly 59 per cent below the December 2025 intraday high of $745.61.

12. Key Dates to Watch

• 11 Nov 2026 — Q3 2026 results, after market close. Guidance is revenue of $2,055m to $2,085m, implying 46 to 48 per cent year-on-year growth, and adjusted EBITDA of $1,710m to $1,740m at roughly an 83 per cent margin.
• Expected Feb 2027 — Q4 and FY2026 results, the first full year on a clean continuing-operations basis with no Apps comparative distortion, plus initial FY2027 guidance.
• Expected May 2027 — Q1 2027 results, the first quarter that will show a full year of the publicly available self-service platform in the comparative base.
• TBD — ruling on the motion to dismiss in the Northern District of California securities class action, fully briefed since late 2025.
• TBD — first procedural hearing in the Dutch privacy class action filed in May 2026.
• TBC — further share repurchase authorisations. The board increased the programme by $3.2bn in October 2025 and roughly $1.8bn of authorisation was reported as remaining after the Q2 2026 buyback.

Quarterly reporting dates are confirmed by AppLovin roughly four weeks in advance on its investor relations site. Track the release calendar alongside the macro schedule on the ChartsView Economic Calendar, and discuss the numbers with other members in the ChartsView Forum.

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