Ambiq Micro, Inc.

1. Basis of Presentation

Ambiq Micro, Inc. (the "Company") is a fabless semiconductor company that has developed semiconductor solutions based on a patented Sub-threshold Power Optimized Technology (SPOT®) platform that significantly reduces the amount of power consumed by integrated circuits. The following subsidiaries were formed by the Company and are wholly owned:

Ambiq Micro Singapore Private Ltd.

Shenzhen DeKean Electronics Co.

Ambiq Micro Asia Ltd.

Ambiq Micro Asia Ltd. Taiwan

Ambiq (Shenzhen) Electronics Co., Ltd.

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of its financial position, results of operations, cash flows and stockholders' equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information and include the accounts of the Company and its wholly owned subsidiaries. Accordingly, these statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements, and should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended December 31, 2025. The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the operating results expected for the full fiscal year or future operating periods.

The condensed consolidated balance sheet as of December 31, 2025 has been derived from the Company’s audited consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.

There have been no material changes to the Company’s significant accounting policies described in Note 2 -Summary of Significant Accounting Policies, of the notes to the Company’s audited consolidated financial statements.

Secondary Listing

The Company's common stock is listed on The New York Stock Exchange ("NYSE") under the symbol "AMBQ". On July 30, 2026, the Company completed a secondary listing of its common stock on the Main Board of Singapore Exchange Securities Trading Limited (the "SGX-ST") under the symbol "AMQ". The shares listed on the SGX-ST are fully fungible with the shares listed on the NYSE.

Follow-On Offerings

On January 26, 2026, the Company completed a follow-on offering of 2,679,600 shares of common stock, at a public offering price of$31.00 per share, of which 2,636,651 shares were issued and sold by the Company and 42,949 shares were sold by certain selling stockholders. The Company received net proceeds of$75.3 million after deducting underwriting discounts and commissions of approximately$5.0 million and offering expenses of approximately$1.5 million. The Company did not receive any proceeds from the sale of shares by the selling stockholders.

On June 25, 2026, the Company completed a follow-on offering of 2,300,000 shares of common stock, at a public offering price of$78.00 per share. The Company received net proceeds of$167.9 million after deducting underwriting discounts and commissions of$10.8 million and offering expenses of approximately$0.7 million.

Initial Public Offering

On July 18, 2025, the Company effected a 1-for-28 reverse stock split (the Stock Split) of the Company’s issued and outstanding shares of common stock and options to purchase common stock. The Stock Split reduced the number of shares of the Company’s issued and outstanding common stock, as well as the numbers of shares underlying restricted stock units ("RSUs") and the numbers of shares reserved and available for future issuance and underlying outstanding options to purchase common stock. The Stock Split did not affect the par values per share or total authorized shares of common stock. Accordingly, all share and per share amounts for all periods presented in the consolidated financial statements have been adjusted retroactively, where applicable, to reflect the Stock Split.

On July 31, 2025, the Company completed its initial public offering ("IPO"), in which 4,600,000 shares of common stock, par value $0.000001 per share, were issued and sold, inclusive of the exercise in full of the underwriters' option to purchase 600,000 additional shares. The Company received net proceeds of $99.8 million after deducting underwriting discounts and commissions of $7.7 million and offering expenses of approximately $2.8 million. In connection with the IPO, all shares of redeemable convertible preferred stock then outstanding automatically converted into an aggregate of 12,729,240 sharesof common stock, and the Company issued 424,033 shares of common stock upon exercise of warrants and issued 34,254 shares of common stock after the expiration of the IPO lock-up upon settlement of RSUs outstanding for which the performance-based vesting condition was satisfied in connection with the IPO.

Deferred Offering Costs

Prior to the follow-on offerings, deferred offering costs, consisting primarily of accounting, legal and other fees related to the follow-on offerings, were capitalized within Prepaid expenses and other current assets in the condensed consolidated balance sheets. Upon consummation of the follow-on offerings,$2.2 million of such costs were recorded as a reduction of the proceeds generated from the offering, which was recognized in additional paid-in capital.

Prior to the IPO, deferred offering costs, consisting primarily of accounting, legal and other fees related to the IPO, were capitalized within Prepaid expenses and other current assets in the condensed consolidated balance sheets. Upon consummation of the IPO, $2.8 million of such costs were recorded as a reduction of the proceeds generated from the offering, which was recognized in additional paid-in capital.

Concentration of Risks

Financial Instruments

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalent balances in highly rated financial institutions, which at times may exceed federally insured limits or be held in foreign jurisdictions. The Company has not experienced any loss relating to cash and cash equivalents in these accounts and believes no significant concentration risk exists with respect to cash. The Company performs periodic credit evaluations of its customers’ financial conditions and generally does not require collateral.

Demand

The Company hadthree customers representing 33.8%,20.3% and 11.7%, respectively, of total accounts receivable as of September 30, 2026. The Company hadfive customers representing 25.6%,22.7%,15.1%,14.9% and 10.7% respectively, of total accounts receivable as of December 31, 2025, three of which were the same customers as of September 30, 2026.

There were four end customers representing 27.1%,19.8%,16.2% and 16.1%, respectively, of total net sales for the three months ended September 30, 2026. These same four end customers represented 25.5%,23.7%,21.1% and 11.1%, respectively, of total net sales for the nine months ended September 30, 2026.

There were three end customers representing 40.8%,26.1% and 21.4%, respectively, of total net sales for the three months ended September 30, 2025. These same three end customers represented 39.1%,28.2% and 18.4%, respectively, of total net sales for the nine months ended September 30, 2025.

The topthree end customers for thethree and nine months ended September 30, 2025 were also among the topfour end customers for thethree and nine months ended September 30, 2026.

The loss of one or more of these customers could have a material adverse impact on the Company’s results of operations and financial position.

Geographic Concentration of End Customers

Although the Company recognizes revenue and directly invoices distributors for sales of its products, the timing and uncertainty of its revenue and cash flows are most impacted by the ultimate end customer. The following is a summary of net sales for thethree and nine months ended September 30, 2026 and 2025, based on the country of the corporate headquarters of the ultimate end customer:

Supply

The Company's products depend on a sole supplier of wafers and a limited number of third-party manufacturers. The continued and timely supply of input materials and the availability of manufacturing capacity and packaging and testing services impact the Company's ability to meet customer demand. Supply chain disruptions, shortages of raw materials and manufacturing limitations could limit the Company's ability to meet customer demand and result in delayed, reduced or canceled orders. The Company has established relationships with leading suppliers and partners, and believes these relationships increase the resiliency of the Company's supply chain for its customers. From time to time, subject to inventory disruptions, the Company's customers may buy and hold excess inventories. Consequently, the Company may be subject to resulting fluctuations in the demand for its products.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Targeted Improvements to the Accounting for Internal-Use Software. The amendments require that an entity capitalize software costs when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the potential impact of adopting this ASU on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting Narrow Scope Improvements, which is intended to clarify the guidance in ASC 270. The amendments address the form and content of interim financial statements, adds lists of the interim disclosures required by all other codification topics, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures.

Recently Adopted Accounting Pronouncements

In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU provides a practical expedient to assume that conditions as of the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This guidance is effective for reporting periods beginning after December 15, 2025, with early adoption permitted. The Company's adoption of ASU 2025-05 electing the practical expedient method did not have a material impact on its financial position and results of operations.

2. Net Loss Per Share

The table below sets forth the computation of basic and diluted net loss per share for the periods presented:

Since the Company incurred a net loss for the three and nine months ended September 30, 2026 and 2025, the diluted net loss per share calculation excludes potentially dilutive securities. Thefollowing table summarizes the number of shares of common stock issuable under various securities that were excluded from the calculation of diluted net loss per share because their inclusion would have been anti-dilutive:

3. Inventories

The following table represents the components of inventories as of September 30, 2026 and December 31, 2025:

4. Property, Equipment and Software

Property, equipment and software consisted of the following as of September 30, 2026, and December 31, 2025:

Depreciation and amortization expense is allocated to cost of sales, selling, general and administrative and research and development expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. Depreciation and amortization expense relating to the Company's property, equipment and software was approximately$0.4 million and$0.3 million for the three months ended September 30, 2026 and 2025, respectively, and approximately$1.2 million and$1.1 million for the nine months ended September 30, 2026 and 2025, respectively.

During the nine months ended September 30, 2025, the Company received mask sets in exchange forno consideration from a vendor in lieu of reimbursement. The mask sets were capitalized and a$1.6 million gain was recorded within cost of sales in accordance with ASC 845: Nonmonetary Transactions.

5. Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following as of September 30, 2026, and December 31, 2025:

6. Commitments and Contingencies

Contract Manufacturer Commitments

The Company relies on a third-party foundry and contract manufacturer for the manufacturing of its products. Generally, its foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders. Purchase orders are placed in advance with consideration of estimates of future demand. These purchase orders can be canceled and rescheduled upon agreement of the Company and the contract manufacturer. As of September 30, 2026 and 2025, the Company had total manufacturing purchase commitments of$33.6 million and$6.3 million, respectively.

Litigation

From time to time, the Company may become involved in various legal actions arising in the ordinary course of business. As of September 30, 2026, management was not aware of any existing, pending, or threatened legal actions that would have a material impact on the financial position, results of operations or cash flows of the Company.

7. Warrants, Redeemable Convertible Preferred Stock and Stockholders’ Equity

Common Stock

The Company's amended and restated certificate of incorporation authorizes for issuance up to 500,000,000 shares of common stock with a par value of$0.000001 per share.

The holders of common stock are entitled to receive dividends at the discretion of the board of directors, subject to preferences that may apply to shares of preferred stock outstanding at the time.

All holders of common stock are entitled toone vote per share on all matters to be voted on by the Company’s stockholders. Upon liquidation, dissolution or winding up, the holders of common stock are entitled to share equally in all the Company’s assets remaining after payment of all liabilities.

At September 30, 2026, the Company had reserved an aggregate of 4,043,473 shares of common stock for the conversion, exercise or issuance, as applicable, of the following outstanding securities:

Preferred Stock

The Company's amended and restated certificate of incorporation provides its board of directors with the authority to issue up to 10,000,000 shares of undesignated preferred stock with a par value of$0.000001 per share and to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon these shares without further vote or action by the Company's stockholders. The Company doesnot have outstanding preferred stock issued as of September 30, 2026.

Warrants

During the nine months ended September 30, 2026, a related party exercised 238,931 common warrants for proceeds of $3.0 million.

Redeemable Convertible Preferred Stock

During the period from January 1, 2025 through July 30, 2025, there were no issuances, conversions or other changes to the Company's redeemable convertible preferred stock across all series (Series Seed through Series G), with total shares and carrying values remaining unchanged during the period.

The Company's redeemable convertible preferred stock across all series (Series Seed through Series G) outstanding were automatically converted into shares of the Company's common stock in connection with the Company's IPO as of July 31, 2025.

As of September 30, 2026, all series of redeemable convertible preferred stock had been converted or redeemed, resulting in no shares outstanding and no carrying value.

8. Stock Compensation Plans and Stock-Based Compensation

In July 2025, the Company's board of directors adopted, and the Company's stockholders approved, the 2025 Equity Incentive Plan (the "2025 Plan"). The 2025 Plan became effective on July 29, 2025, the date the final prospectus was filed in connection with the IPO. The 2025 Plan came into existence upon its adoption by the Company's board of directors. No further awards will be granted under the 2010 Equity Incentive Plan (the "2010 Plan") or 2020 Equity Incentive Plan (the "2020 Plan," and collectively, along with the 2025 Plan and 2010 Plan, the "Plans").

The following table summarizes the effects of stock-based compensation on cost of sales, research and development and selling, general and administrative expenses granted under the Plans for the three and nine months ended September 30, 2026 and 2025:

The total unrecognized stock-based compensation expense related to unvested RSUs and subject to recognition in future periods was approximately$49.7 million at September 30, 2026. The Company anticipates this expense to be recognized over a weighted-average period of approximately 3.3 years.

The total unrecognized stock-based compensation expense related to unvested stock options and subject to recognition in future periods was approximately$1.2 million at September 30, 2026. The Company anticipates this expense to be recognized over a weighted-average period of approximately 2 years.

During the three months ended September 30, 2026 and 2025, the Company received$3.8 million and$0.2 million from the exercise of stock options granted under the Plans, respectively. During the nine months ended September 30, 2026 and 2025, the Company received$9.9 million and$0.4 million from the exercise of stock options granted under the Plans, respectively.

9. Income Taxes

Effective Tax Rate

The following table presents the provision for income taxes and the effective tax rates for thethree and nine months ended September 30, 2026 and 2025:

The income tax amount for each of the three and nine months ended September 30, 2026 and 2025 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to an increase in the valuation allowance. The effective tax rate was less than 1% for each of thethree and nine months ended September 30, 2026 and 2025. The provision for income taxes is primarily related to the foreign subsidiaries’ local country obligations. There is no federal provision for income taxes as the Company has sufficient carryforward of net operating losses to offset any operating income earned since inception and has projected an operating loss in the current year.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Due to the uncertainty of the Company’s ability to realize the benefit of the deferred tax assets, the net deferred tax assets are fully offset by a valuation allowance at September 30, 2026 and December 31, 2025.

10. Related Party Transactions

The Company defines related parties as any party that controls or can significantly influence the management or operating policies of the Company to the extent that the Company may be prevented from fully pursuing its own interests, such as directors, executive officers and stockholders, including beneficial owners of greater than 10% of the Company’s capital stock, and their affiliates or immediate family members.

During the nine months ended September 30, 2026, a related party exercised common warrants for cash proceeds of $3.0 million. The proceeds were recorded within additional paid-in capital.

For the three months ended September 30, 2026 and 2025 and the nine months ended September 30, 2025, the Company didnot have any related party transactions.

11. Segment and Geographic Information

The Company’s chief operating decision maker ("CODM") is the Company’s chief executive officer ("CEO"). The CODM reviews the financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. The CODM uses revenue, gross margin, operating expenses and net loss by itssingle operating and reportable segment to make strategic business decisions.

The following table sets forth the Company’s disaggregation of operating expenses that were reviewed by the CODM for thethree and nine months ended September 30, 2026 and 2025:

The following is a summary of net sales for thethree and nine months ended September 30, 2026 and 2025, based on the country to which the Company's products were shipped, which may be different from the geographic locations of the ultimate end customers:

The following illustrates property, equipment and software, net, and right-of-use assets, net by geographic location based on physical location:

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We may, in some cases, use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” or the negative of those terms and similar expressions that convey uncertainty of future events or outcomes to identify these forward-looking statements. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•

the timing, cost and success of new products, features, integrations, capabilities, and enhancements to our products, including the successful integration of AI;

•

our end customer relationships and our ability to retain and expand our end customer relationships and to achieve design wins;

•

our ability to compensate for decreases in average selling prices of our products or increases in prices for inputs to our products;

•

our ability to address market and end customer demands and to timely develop new or enhanced products to meet those demands;

•

anticipated trends, challenges and growth in our business and the markets in which we operate, including pricing expectations;

•

our expectations regarding our revenue, gross margin and expenses;

•

the size and growth potential of the markets for our products, and our ability to serve those markets;

•

our plans to expand sales and marketing efforts through increased collaboration with our distributors, resellers and contracted sales representatives;

•

our expectations regarding competition in our existing and new markets, including our expectations concerning our mix of revenue by geography;

•

our dependence on international end customers and operations;

•

our expectations regarding our interaction with, and the performance of, our third-party suppliers and manufacturers;

•

the cyclical nature of the semiconductor industry;

•

our ability to attract and retain key management personnel;

•

our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act;

•

our estimates regarding capital requirements and needs for additional financing;

•

our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; and

•

the potential impact of macroeconomic conditions and geopolitical conflicts, recession fears, fluctuations in global interest rates, foreign exchange volatility and inflationary pressures on our business and the businesses of our suppliers and end customers.

These forward-looking statements reflect our management’s beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this Quarterly Report on Form 10-Q and are subject to risks and uncertainties. We discuss many of these risks in greater detail under “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference and have filed as exhibits to this Quarterly Report on Form 10-Q, completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of the forward-looking statements in this Quarterly Report on Form 10-Q by these cautionary statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q to conform these statements to actual results or to changes in our expectations, except as required by law.