Is the business good?
How good a business is RMBS?
Rambus Inc. earns 34% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
34%
Return on invested capital · cost of capital 9.0% · 25 points above what the capital costs: growth creates value
- Operating margin
- 36%
Operating margin · Semiconductors median 8.5% · 12 months to Q1 2026
- Cash conversion
- 1.46×
Cash conversion · 1.13× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.0%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −18% |
| FY2021 | 7.4% |
| FY2022 | 17% |
| FY2023 | 33% |
| FY2024 | 33% |
| FY2025 | 37% |
Details›
- Gross margin12 months to Q1 2026
- 79%
- Operating margin12 months to Q1 2026
- 36%
- Net margin12 months to Q1 2026
- 32%
- Free cash flow margin
- 46%
- R&D as % of revenue
- 27%
- Revenue, trailing twelve months
- $721M
- Free cash flow, trailing twelve months
- $335M
- Net income, trailing twelve months
- $230M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 34%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.