Astera Labs, Inc

asteralabs.com

What Do They Do?

Builds semiconductor-based connectivity products and embedded software for cloud and AI infrastructure, serving hyperscalers, AI accelerator vendors, and system OEMs.

How Do They Make Money?

Customers order connectivity products through purchase orders; Astera gets paid for the sale when products ship or arrive, depending on shipping terms.

revenue

Segment	Share	Revenue	How money arrives
Product sales Sold outright	100% FY2022: 98%		Sold outright
Engineering services	0.0% FY2022: 2.1%

Who Are Their Customers?

Hyperscalers, AI accelerator vendors, and system OEMs are end customers. Astera sells directly to customers and through distributors, while also selling primarily to distributors and customers’ manufacturing partners.

Do Revenues Turn Into Profits?

Yes. It kept 26 cents of every revenue dollar as net income in FY2025 and turned 33 cents into free cash flow.

Operating income, FY2025

20% of revenue

▲ Now profitable vs FY2024 (−$116.1M, −29%)

Net income, FY2025

26% of revenue

▲ Now profitable vs FY2024 (−$83.4M, −21%)

Free cash flow, FY2025

33% of revenue

▲ +175% vs FY2024 ($102.4M, 26%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +104%; vs $191.9M in Q2 FY2025
Net income: ▲ +199%; vs $51.2M in Q2 FY2025

Growing. Revenue grew 10.7x in 3 years, from $79.9M in FY2022 to $852.5M in FY2025, about 120% a year.

Revenue over time

Product sales Engineering services

$1B$500M$0

FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Broadcom, Credo Technology Group Holding, Marvell Technology, Microchip Technology, Montage Technology, Parade Technologies, and Rambus

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