Forensic Analysis · Semiconductors · as of Aug 11, 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

12.5

Distress distance

Clean

Earnings quality

Forensic signals

-53.9

P / E (ttm)

-12.8%

ROE

$3.7B

Market cap

0.00%

Dividend yield

37.2%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Ambarella Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 12.5, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-15.2%

FY2026

Return on invested capital. Return on invested capital is -15.2% in the latest fiscal year and slipping from -11% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+3.6%/yr

FY2023–FY2026

Share-count dilution. Diluted share count changed +11% over the last 3 years to FY2026 (+3.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.6% 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 ~10%.

25% of rev

FY2026

Stock-based comp load. Stock-based compensation ran 25% of revenue and 169% of free cash flow in FY2026 — about $2.30 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 3.6% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.

Key fundamentals

Latest Revenue$390.7M

Revenue Growth YoY+37.2%

Revenue CAGR (3yr)+5.0%

Net Margin-19.4%

Free Cash Flow$58.0M

Return on Equity-12.8%

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.