Astera Labs' Top Customer Hit 53% Of Quarterly Revenue, Up From 29% In The Prior Quarter
The chip maker's biggest buyer also held 58% of receivables, while inventory more than tripled since year-end.
One unnamed buyer, listed as Customer A, accounted for 53% of Astera Labs' third-quarter revenue and 58% of its accounts receivable at September 30, according to the company's 10-Q filed Wednesday. Astera Labs designs connectivity chips and software for cloud and AI data centers, and the filing shows its sales concentration tightening just as its balance sheet swells.
One buyer, a bigger share
Customer A was 29% of revenue in the prior quarter's filing and 23% in the third quarter of 2025. For the first nine months of 2026 it was 40%, against 21% a year earlier.
Its share of receivables was 30% at June 30, and under 10% at December 31, 2025. Customer B was 14% of third-quarter revenue and 13% of receivables, while Customer C was 10% of revenue. Customer D, at 27% a year ago, fell below 10% for the quarter.
The filing warns that some listed customers are manufacturing partners buying on behalf of end customers. Because end customers can shift production among partners, the percentages may not reflect changes in underlying end-customer demand.
Receivables and inventory balloon
Accounts receivable rose to $284.3 million from $83.2 million at year-end. Inventory climbed to $200.9 million from $59.0 million, with work-in-progress at $160.7 million, up from $35.8 million.
The company reported operating cash flow of $341.5 million for the first nine months, up from $224.0 million a year earlier. Growth in receivables absorbed $201.2 million of cash and inventory $146.2 million. The filing attributes the inventory build to anticipated demand.
The company reported no material allowance for credit losses at September 30.
Record revenue, thinner margins
Revenue reached a record $584.9 million, up 154% from a year earlier and 49% from the second quarter. Net income was $182.9 million, up 101%, or $0.99 per diluted share.
Gross margin slid to 72.3% from 76.2%, which the filing ties to higher inventory-related charges, higher manufacturing overhead and the effect of customer warrants. A customer warrant issued in February covers up to 3,262,299 shares at $142.82 each, vesting as the holder meets purchase targets. The warrants reduced revenue by $18.1 million in the quarter.
Unrecognized stock-based compensation on unvested restricted stock units stood at $802.9 million at September 30. Cash and marketable securities totaled $1.4 billion.
Guidance for the fourth quarter
The company guided fourth-quarter revenue to a range of $730 million to $750 million, with gross margin of about 72%. Its market value was $40.5 billion as of Wednesday morning.
Astera Labs' top three end customers made up about 86% of 2025 revenue, according to its annual report.
Sources
- 10-Q Filing — Astera Labs (ALAB) — SEC EDGAR
- 10-Q Filing — Astera Labs (ALAB), Q2 FY2026 filed 2026-08-05 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, q326exhibit991.htm) — Astera Labs, filed 2026-11-03 — SEC EDGAR
