Is the business good?
How good a business is ALAB?
Astera Labs, Inc. earns 46% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
46%
Return on invested capital · cost of capital 9.0% · 37 points above what the capital costs: growth creates value
- Operating margin
- 23%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 0.75×
Cash conversion · 2.10× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +2.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2022 | −75% |
| FY2023 | −25% |
| FY2024 | −29% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 75%
- Operating margin12 months to Q2 2026
- 23%
- Net margin12 months to Q2 2026
- 31%
- Free cash flow margin
- 23%
- R&D as % of revenue
- 36%
- Revenue, trailing twelve months
- $1.20B
- Free cash flow, trailing twelve months
- $277M
- Net income, trailing twelve months
- $369M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 46%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.