Forensic Analysis · Technology / Software · as of Jun 27, 2026
AMBARELLA INC (AMBA)
A forensic read on AMBARELLA INC built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
2.9
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-11.8%
ROE
$2.7B
Market cap
AMBARELLA INC earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 2.9, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-15%Return on invested capital.Return on invested capital is -15% and slipping from -11% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+3.8%/yrShare-count dilution.Diluted share count changed +11% over the last 3 years to FY2026 (+3.8%/yr). The count is GROWING — existing holders are being diluted. That's ~3.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~11%.
25% of revStock-based comp load.Stock-based compensation ran 25% of revenue and 169% of free cash flow in FY2026 — about $2.30 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
120dInventory days.Days inventory outstanding moved from 112 to 120 FY2025→FY2026 (against cost of goods sold; inventory +52% vs +42% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
Key fundamentals
Net Margin-19.4%
Free Cash Flow$58.0M
Latest Revenue$390.7M
Return on Equity-12.8%
Revenue Growth YoY+37.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on AMBARELLA INC:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about AMBA's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown