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Arteris (Nasdaq: AIP) grows Q1 revenue 39% as CFO plans retirement

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Arteris, Inc. reported strong growth for the first quarter ended March 31, 2026, with revenue of $22.9 million, up 39% year-over-year. Annual Contract Value plus royalties reached $92.8 million, also up 39%, and Remaining Performance Obligation was $118.3 million, up 33%.

The company recorded a GAAP operating loss of $9.3 million, including acquisition-related costs, and a Non-GAAP operating loss of $2.5 million. GAAP net loss was $8.0 million or $0.17 per share, while Non-GAAP net loss was $1.2 million or $0.03 per share.

For Q2 2026, Arteris estimates revenue of $23.0–$24.0 million and Non-GAAP operating loss of $2.0–$3.0 million, and for full-year 2026 it guides to revenue of $91.0–$95.0 million, Non-GAAP operating loss of $4.5–$8.5 million, and positive free cash flow. The company announced that Chief Financial Officer Nicholas B. Hawkins will retire effective August 31, 2026, for family reasons and will remain as an advisor during the transition.

Positive

  • Strong revenue and contract growth: Q1 2026 revenue reached $22.9 million, up 39% year-over-year, with ACV plus royalties at $92.8 million and RPO at $118.3 million, indicating robust demand and a growing backlog.
  • Improving profitability metrics and cash outlook: Non-GAAP net loss narrowed to $1.2 million (–$0.03 per share), and 2026 guidance calls for Non-GAAP operating loss of $4.5–$8.5 million and positive free cash flow of $5.0–$9.0 million.
  • Positive 2026 guidance trajectory: The company guides to 2026 revenue of $91.0–$95.0 million and Q2 2026 revenue of $23.0–$24.0 million, implying continued growth from the Q1 2026 run-rate.

Negative

  • Continued losses and cash outflows: Q1 2026 GAAP net loss was $8.0 million, free cash flow was –$7.4 million, and cash and cash equivalents declined to $11.7 million from $33.9 million as of December 31, 2025.
  • CFO transition risk: Chief Financial Officer Nicholas B. Hawkins will retire effective August 31, 2026, requiring a leadership transition in the finance organization during a period of rapid growth and profitability focus.

Insights

Arteris shows fast top-line growth and narrowing Non-GAAP losses, alongside an upcoming CFO transition.

Arteris delivered Q1 2026 revenue of $22.9M, up 39% year-over-year, with ACV plus royalties at $92.8M and RPO at $118.3M, both growing in the mid-30% range. This indicates strong demand across its semiconductor IP customer base.

Despite higher operating expenses, GAAP net loss was $8.0M, while Non-GAAP net loss improved to $1.2M. Guidance for full-year 2026 targets revenue of $91.0–$95.0M and Non-GAAP operating loss of $4.5–$8.5M, with positive free cash flow, suggesting progress toward sustainable profitability.

The announced retirement of CFO Nicholas B. Hawkins, effective August 31, 2026, introduces leadership change but is stated to be for family reasons and not due to disagreements. The board has begun a comprehensive search, and Hawkins will advise post-retirement to support continuity during this financial inflection period.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 revenue $22.9 million Up 39% year-over-year for quarter ended March 31, 2026
ACV plus royalties $92.8 million Annual Contract Value plus royalties, up 39% year-over-year
Remaining Performance Obligation $118.3 million RPO as of March 31, 2026, up 33% year-over-year
Q1 2026 GAAP net loss $7.959 million Net loss for quarter ended March 31, 2026
Q1 2026 Non-GAAP net loss $1.178 million Non-GAAP net loss for quarter ended March 31, 2026
Q1 2026 free cash flow -$7.357 million Net cash used in operating activities minus capex
Cash and cash equivalents $11.674 million Balance as of March 31, 2026
FY 2026 revenue guidance $91.0–$95.0 million Full-year 2026 outlook provided in guidance table
Annual Contract Value (ACV) financial
"Annual Contract Value (ACV) plus royalties of $92.8 million, up 39% year-over-year"
Annual Contract Value (ACV) shows how much money a company expects to earn in one year from a single customer’s contract. It helps businesses understand the size and value of their customer relationships, much like knowing how much a subscription or membership costs each year. This metric is important for measuring growth and planning future sales.
Remaining Performance Obligation (RPO) financial
"Remaining Performance Obligation (RPO) of $118.3 million, up 33% year-over-year"
The remaining performance obligation (RPO) is the value of goods or services a company has contractually promised to deliver in the future but has not yet completed. Think of it as a confirmed backlog or a prepaid order book: it shows revenue that’s likely to flow in later periods and gives investors a clearer view of near-term sales visibility, revenue sustainability, and potential fulfillment or timing risks.
Non-GAAP operating loss financial
"Non-GAAP operating loss of $2.5 million, compared to a Non-GAAP operating loss of $3.2 million"
Non-GAAP operating loss is a company's reported operating loss after management removes certain items they consider unusual, one-time, or not part of regular business (for example, restructuring charges, stock-based compensation, or asset write-downs). Investors care because it reflects management’s view of the business’s ongoing operating performance—like looking at a car’s speed after smoothing out bumps—but it can be shaped differently by each company and so is less standardized than GAAP figures.
free cash flow financial
"We define free cash flow as net cash (used in) provided by operating activities less cash used for purchases of property and equipment"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
equity method investment financial
"Loss from equity method investment, net of tax | 2,989"
An equity method investment is an accounting way to report ownership in another company when an investor has significant influence (commonly around 20–50% of voting rights). Instead of listing the other company’s full assets and debts, the investor records its share of that company’s profits or losses on its own income statement—like keeping track of your share of a neighborhood bakery’s monthly earnings. Investors care because those shared profits, losses and changes in the investee’s value directly affect the investor’s reported earnings and balance sheet, so this method can materially change a company’s financial picture and valuation.
Revenue $22.9 million +39% year-over-year
GAAP net loss $8.0 million slightly improved vs. $8.1 million prior-year quarter
Non-GAAP net loss $1.2 million improved from $3.6 million prior-year quarter
ACV plus royalties $92.8 million +39% year-over-year
Guidance

For Q2 2026, Arteris guides to revenue of $23.0–$24.0 million and Non-GAAP operating loss of $2.0–$3.0 million. For full-year 2026, it expects revenue of $91.0–$95.0 million, Non-GAAP operating loss of $4.5–$8.5 million, and free cash flow of $5.0–$9.0 million.

Understanding 8-K Material Events →
FALSE000166701100016670112026-05-122026-05-12

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (date of earliest event reported): May 12, 2026
 
ARTERIS, INC.

(Exact name of Registrant, as specified in its charter)
Delaware001-4096027-0117058
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

900 E. Hamilton Ave., Suite 300
Campbell, CA 95008
(Address of principal executive offices, including Zip code)

Registrant's telephone number, including area code: (408) 470-7300


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading
Symbol(s)		 Name of each exchange
on which registered
Common Stock, $0.001 par value per share AIP The Nasdaq Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02          Results of Operations and Financial Condition.

On May 12, 2026, Arteris, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information contained in this Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including the accompanying Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On May 8, 2026, Nick Hawkins, Chief Financial Officer of the Company, notified the Company he will retire effective August 31, 2026. Mr. Hawkins will continue to serve as an advisor to the Company after his retirement date to facilitate an orderly transition.

Mr Hawkins’ decision to retire is due to an illness in his family and is not the result of any disagreement with the Company or its independent registered public accountants on any matter relating to the Company’s financial statements, operations, policies or practices.

The Board of Directors of the Company has initiated a comprehensive search for a new Chief Financial Officer.

Item 9.01          Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit No.Description
99.1
Press Release dated May 12, 2026
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).
2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: May 12, 2026

 
   
 By:/s/ Nicholas B. Hawkins
 Name:Nicholas B. Hawkins
 Title:
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

3

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Arteris Announces Financial Results for the First Quarter and Estimated Second Quarter and Updated Full Year 2026 Guidance
Announces Retirement of Chief Financial Officer
CAMPBELL, Calif. - May 12, 2026 - Arteris, Inc. (Nasdaq: AIP), a leading provider of semiconductor technology for accelerating innovation in the AI era, today announced financial results for the first quarter ended March 31, 2026 and provided estimated second quarter and updated full year 2026 guidance.
“Arteris delivered a strong first quarter to start the year, achieving a record Annual Contract Value plus royalties of $92.8 million, up 39% year-over-year, and new highs in revenues, royalties and remaining performance obligation,” said K. Charles Janac, President and Chief Executive Officer of Arteris. “Our customers continue to innovate across high-growth areas, including AI-enabled chips and chiplet architectures spanning data centers, edge devices and emerging physical AI systems. As these increasingly complex systems require a combination of high performance, energy efficiency, functional safety and cybersecurity, we believe we are well positioned to enable efficient and secure data movement across a broad range of end-markets including enterprise computing, automotive, communications, industrial automation and aerospace and defense,” concluded Janac.
First Quarter 2026 Financial Highlights:
•Revenue of $22.9 million, up 39% year-over-year
•Trailing-twelve-months variable royalties of $7.9 million, up 67% year-over-year
•Annual Contract Value (ACV) plus royalties of $92.8 million, up 39% year-over-year
•Remaining Performance Obligation (RPO) of $118.3 million, up 33% year-over-year
•Operating loss of $9.3 million, partially attributable to one-time acquisition related deal consideration elements and fees, compared to an operating loss of $7.7 million in the first quarter of 2025
•Non-GAAP operating loss of $2.5 million, compared to a Non-GAAP operating loss of $3.2 million in the first quarter of 2025
•Net loss of $8.0 million or $0.17 per share
•Non-GAAP net loss of $1.2 million or $0.03 per share
First Quarter 2026 Business Highlights:
•First quarter deal activity was driven by growing customer engagement in enterprise computing, automotive, communications, consumer electronics, and aerospace and defense sectors, with increasing AI integration from data center to edge and physical AI systems;
•Key wins include a leading global hyperscaler expanding its use of Arteris technology, and a leading global memory supplier accelerating chip development for high bandwidth memory (HBM) solutions;
•Arteris technology is finding further adoption in space-exploration related innovation, with a leading U.S. space infrastructure company expanding its use of Arteris, and with Arteris IP used in the Artemis lunar missions through AMD chips;
•We announced Renesas deployed Arteris System IP for its most advanced R-Car Gen 5 SoC series for ADAS and autonomous driving systems;
•We announced a collaboration with MIPS to accelerate development of physical AI solutions, licensing FlexGen smart NoC IP and Magillem SoC integration automation software;
•A leading US-based hyperscaler, an existing Arteris customer, licensed Arteris security technology to help reduce cybersecurity risks;
•Arteris was named to Fast Company’s list of the World’s Most Innovative Companies of 2026 in North America, joining companies such as Google, Nvidia, Anthropic, and more; and
•Arteris Radix technology has been named the winner of a Stevie award in the 2026 America Business Awards for Technology Innovation of the Year in the Software category.


Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP net loss, Non-GAAP net loss per share, and free cash flow are Non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.
Estimated Second Quarter and Updated Full Year 2026 Guidance:
Q2 2026
FY 2026
(in millions)
ACV + royalties
$95.0 - $99.0
$102.0 - $106.0
Revenue
$23.0 - $24.0
$91.0 - $95.0
Non-GAAP operating loss
$2.0 - $3.0
$4.5 - $8.5
Free cash flow
$2.0 - $8.0
$5.0 - $9.0
The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP.

Definitions of the other business metrics used in this press release including ACV, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”
Chief Financial Officer Retirement
On May 8, 2026, Nicholas B. Hawkins, Chief Financial Officer of Arteris, notified Arteris he will retire effective August 31, 2026. Mr. Hawkins will continue to serve as an advisor to the Company after his retirement date to facilitate an orderly transition.
“Nick has been an invaluable partner during a transformative period for Arteris” said Mr. Janac. “Nick played a key role in Arteris’ growth and development, including transitioning the Company into the public market. We appreciate his contributions, leadership and partnership. We thank him for his dedication to the Company and wish him all the best.”
“It has been a rewarding and enjoyable experience to help lead Arteris through an important stage in its development,” said Mr. Hawkins. “I am proud of the exceptional finance team we have built and what the Company has accomplished. During my seven years at Arteris, in addition to leading the company through its IPO, I have also led our M&A processes, including the important recent acquisition of the cybersecurity company, Cycuity. Arteris has grown substantially in revenue and market capitalization, is now cash positive and is transitioning to Non-GAAP profitability this year. It has been a privilege to serve under Charlie and our excellent board, and alongside our industry-leading leadership team and all our people. Arteris is well positioned for the future, and I look forward to following the Company’s continued progress in the years ahead.”
Mr. Hawkins’ decision to retire is due to an illness in his family and is not the result of any disagreement with the Company or its independent registered public accountants on any matter relating to the Company’s financial statements, operations, policies or practices.
The Board of Directors of Arteris has initiated a comprehensive search for a new CFO.


Conference Call
Arteris will host a conference call today on May 12, 2026 to review its first quarter 2026 financial results and to discuss its financial outlook.
Time:
4:30PM ET
United States/Canada Toll Free:
1-800-717-1738
International Toll:
1-646-307-1865
A live webcast will also be available in the Investor Relations section of Arteris’ website at: https://ir.arteris.com/events-and-presentations
A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.


About Arteris
Arteris is a leading provider of semiconductor technology that accelerates the creation of high-performance, power-efficient silicon with built-in safety, reliability, and security. Innovative Arteris products are designed to optimize data movement and help ease complexity in the modern AI era with network-on-chip (NoC) interconnect intellectual property (IP), system-on-chip (SoC) software for integration automation and hardware security assurance. All are used by the world’s top technology companies to improve overall performance and engineering productivity, reduce risk, lower costs, and bring cutting-edge designs to market faster. Learn more at arteris.com.
© 2004-2026 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

Investor Contacts:
Arteris
Nick Hawkins
Chief Financial Officer
IR@arteris.com
Sapphire Investor Relations, LLC
Erica Mannion and Michael Funari
+1 617 542 6180
IR@arteris.com


Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including but not limited to, statements regarding market trends and whether we are well positioned to capture these opportunities, our long-term growth opportunity and future financial and operating performance, including our GAAP and Non-GAAP estimated second quarter and updated full year 2026 guidance. The words such as "may," "will," "could," "expect," "approximately," "believe," "estimate," "future," "guidance," "outlook," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations. Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the significant competition we face from larger companies and third-party providers; our history of net losses; the amount of our future revenue recognition as it relates to our RPO as of March 31, 2026; whether semiconductor companies in the aerospace and defense market, automotive market, communications market, consumer electronics market, enterprise computing market, and industrial market incorporate our solutions into their end products and the growth and economic stability of these end markets; our ability to attract new customers and the extent to which our customers renew their subscriptions for our solutions; the ability of our customers’ end products achieving market acceptance or growth; our ability to sustain or grow our licensing revenue; our ability, and the cost, to successfully execute on research and development efforts; the occurrence of product errors or defects in our solutions; if we fail to offer high-quality support; the occurrence of macro-economic conditions that adversely impact us, our customers and their end product markets including, but not limited to, the imposition of tariffs in markets where we operate; the effects of geopolitical conflicts, such as the military conflict between Russia and Ukraine as well as the ongoing conflict in the Middle East; the range of regulatory, operational, financial and political risks we are exposed to as a result of our dependence on international customers and operations; our ability to protect our proprietary technology and inventions through patents and other IP rights; whether we are subject to any liabilities or fines as a result of government regulation, including import, export and economic sanctions laws and regulations; the occurrence of a disruption in our networks or a security breach; risks associated with doing business in China, including as a result of changes to trade relations between the United States and China; and the other factors described under the heading “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the Securities and Exchange Commission (SEC) on May 12, 2026. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended March 31, 2026 are not necessarily indicative of our operating results for any future periods.



Arteris, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2026
2025
Revenue
Licensing, support and maintenance
$
19,272 
$
15,335 
Variable royalties
2,503 
1,167 
Professional services and other
1,161 
30 
Total revenue
22,936 
16,532 
Cost of revenue
3,250 
1,526 
Gross profit
19,686 
15,006 
Operating expenses:
Research and development
14,457 
11,862 
Sales and marketing
8,530 
6,529 
General and administrative
5,415 
4,323 
Acquisition related costs
584 
— 
Total operating expenses
28,986 
22,714 
Loss from operations
(9,300)
(7,708)
Interest expense
(38)
(48)
Other income (expense), net
670 
718 
Loss before income taxes and loss from equity method investment
(8,668)
(7,038)
Loss from equity method investment, net of tax
2,989 
815 
Loss before income taxes
(11,657)
(7,853)
Provision for (benefit from) income taxes
(3,698)
268 
Net loss
$
(7,959)
$
(8,121)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.17)
$
(0.20)
Weighted-average shares used in computing per share amounts, basic and diluted
45,544,682 
40,853,048 



Arteris, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
As of
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
11,674 
$
33,901 
Short-term investments
26,429 
20,698 
Accounts receivable, net of allowance of $73 as of both March 31, 2026 and December 31, 2025
14,694 
19,183 
Prepaid expenses and other current assets
8,740 
8,608 
Total current assets
61,537 
82,390 
Property and equipment, net
3,594 
3,872 
Long-term investments
3,779 
4,946 
Equity method investment
— 
2,989 
Operating lease right-of-use assets
5,165 
3,919 
Intangibles, net
19,548 
2,168 
Goodwill
35,195 
4,178 
Other assets
11,058 
10,569 
TOTAL ASSETS
$
139,876 
$
115,031 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
563 
$
340 
Accrued expenses and other current liabilities
27,028 
19,094 
Operating lease liabilities, current
1,373 
1,233 
Deferred revenue, current
54,729 
51,367 
Vendor financing arrangements, current
829 
1,166 
Total current liabilities
84,522 
73,200 
Deferred revenue, noncurrent
39,602 
43,974 
Operating lease liabilities, noncurrent
4,086 
3,116 
Vendor financing arrangements, noncurrent
452 
452 
Deferred income, noncurrent
6,161 
6,452 
Other liabilities
2,462 
2,469 
Total liabilities
137,285 
129,663 
Stockholders' equity (deficit):
Preferred stock, par value of $0.001 - 10,000,000 shares authorized and no shares issued and outstanding as of both March 31, 2026 and December 31, 2025
— 
— 
Common stock, par value of $0.001 - 300,000,000 shares authorized as of both March 31, 2026 and December 31, 2025; 46,017,908 and 44,268,816 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
46 
44 
Additional paid-in capital
182,014 
156,776 
Accumulated other comprehensive income
121 
179 
Accumulated deficit
(179,590)
(171,631)
Total stockholders' equity (deficit)
2,591 
(14,632)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
$
139,876 
$
115,031 


Arteris, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended
March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(7,959)
$
(8,121)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization
1,346 
844 
Stock-based compensation
5,511 
4,313 
Amortization of deferred income
(291)
(291)
Loss from equity method investment
2,989 
815 
Deferred income taxes
(4,103)
— 
Net accretion of discounts on available-for-sale securities
(47)
(128)
Other, net
(86)
183 
Changes in operating assets and liabilities:
Accounts receivable, net
5,904 
10,339 
Prepaid expenses and other assets
(739)
(911)
Accounts payable
(834)
(308)
Accrued expenses and other liabilities
(6,341)
(1,977)
Deferred revenue
(2,412)
(1,898)
Net cash (used in) provided by operating activities
(7,062)
2,860 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(295)
(183)
Purchases of available-for-sale securities
(10,352)
(8,738)
Proceeds from maturities of available-for-sale securities
5,778 
8,800 
Payments for business combination, net of cash acquired
(11,179)
— 
Net cash used in investing activities
(16,048)
(121)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under vendor financing arrangements
(337)
(227)
Proceeds from exercise of stock options
349 
148 
Proceeds from issuance of common stock under the at-the-market agreement, net of commissions and offering costs
844 
— 
Other financing activities
26 
27 
Net cash provided by (used in) financing activities
882 
(52)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(22,228)
2,687 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
34,250 
14,072 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
12,022 
$
16,759 


Non-GAAP Financial Measures
To supplement our financial results, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core performance. These non-GAAP measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define "Non-GAAP gross profit" and "Non-GAAP gross margin" as GAAP gross profit and GAAP gross margin, respectively, adjusted for stock-based compensation expense included in cost of revenue and amortization of acquired intangible assets included in cost of revenue. We define “Non-GAAP loss from operations” as our GAAP loss from operations adjusted to exclude stock-based compensation expense, amortization of acquired intangible assets and acquisition related costs. We define “Non-GAAP net loss” as our net loss adjusted to exclude stock-based compensation, amortization of acquired intangible assets and acquisition related costs.
We define “Non-GAAP net loss per share attributable to common stockholders, basic and diluted”, as our Non-GAAP net loss divided by our GAAP weighted-average number of shares outstanding for the period on a basic or diluted basis, respectively. Management uses this non-GAAP measure to evaluate the performance of our business on a comparable basis from period to period.
The above items are excluded from our Non-GAAP gross profit, Non-GAAP loss from operations and Non-GAAP net loss because these items are non-cash in nature, or are not indicative of our core operating performance, and render comparisons with prior periods and competitors less meaningful. We believe Non-GAAP gross profit, Non-GAAP loss from operations and Non-GAAP net loss provide useful supplemental information to investors and others in understanding and evaluating our results of operations, as well as provide a useful measure for period-to-period comparisons of our business performance.
We define free cash flow as net cash (used in) provided by operating activities less cash used for purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors, even if negative, about the amount of cash (used in) provided by our operations other than that used for investments in property and equipment.



Other Business Metrics
Annual Contract Value (ACV) – we define Annual Contract Value for an individual customer agreement as the total fixed fees under the agreement divided by the number of years in the agreement term. Our total ACV is the aggregate ACVs for all our customers as measured at a given point in time. Total fixed fees includes licensing, support and maintenance and other fixed fees under IP licensing or software licensing agreements but excludes variable revenue derived from licensing agreements with customers, particularly royalties. We define ACV plus royalties as ACV plus the trailing-twelve-months variable royalties and other revenue.
Confirmed Design Starts – we define Confirmed Design Starts as when customers confirm their commencement of new semiconductor designs using our interconnect IP and notify us. Confirmed Design Starts is a metric management uses to assess the activity level of our customers in terms of the number of new semiconductor designs that are started using our interconnect IP in a given period. We believe that the number of Confirmed Design Starts is an important indicator of the growth of our business and future royalty revenue trends.
Remaining Performance Obligations (RPO) – we define Remaining Performance Obligations as the amount of contracted future revenue that has not yet been recognized, including deferred revenue, billed and unbilled cancelable and non-cancelable contracted amounts.


Arteris, Inc.
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
2026
2025
Gross profit
$
19,686 
$
15,006 
Add:
Stock-based compensation expense included in cost of revenue
321 
205 
Amortization of acquired intangible assets (1)
50 
50 
Non-GAAP gross profit
$
20,057 
$
15,261 
Gross margin
86 
%
91 
%
Non-GAAP gross margin
87 
%
92 
%
Research and development
$
14,457 
$
11,862 
Stock-based compensation expense
(2,256)
(1,973)
Amortization of acquired intangible assets (1)
(319)
(110)
Non-GAAP research and development
$
11,882 
$
9,779 
Sales and marketing
$
8,530 
$
6,529 
Stock-based compensation expense
(1,383)
(969)
Amortization of acquired intangible assets (1)
(317)
(57)
Non-GAAP sales and marketing
$
6,830 
$
5,503 
General and administrative
$
5,415 
$
4,323 
Stock-based compensation expense
(1,551)
(1,166)
Non-GAAP general and administrative
$
3,864 
$
3,157 
Acquisition related costs
$
584 
$
— 
Acquisition related costs (2)
(584)
— 
Non-GAAP acquisition related costs
$
— 
$
— 
Total operating expenses
$
28,986 
$
22,714 
Stock-based compensation expense
(5,190)
(4,108)
Amortization of acquired intangible assets (1)
(636)
(167)
Acquisition related costs (2)
(584)
— 
Total Non-GAAP operating expenses
$
22,576 
$
18,439 
Loss from operations
$
(9,300)
$
(7,708)
Stock-based compensation expense
5,511 
4,313 
Amortization of acquired intangible assets (1)
686 
217 
Acquisition related costs (2)
584 
— 
Non-GAAP loss from operations
$
(2,519)
$
(3,178)
Net loss
$
(7,959)
$
(8,121)
Stock-based compensation expense
5,511 
4,313 
Amortization of acquired intangible assets (1)
686 
217 
Acquisition related costs (2)
584 
— 
Non-GAAP net loss (3)
$
(1,178)
$
(3,591)
Net loss per share attributable to common stockholders, basic and diluted    
$
(0.17)
$
(0.20)
Per share impacts of adjustments to net loss (4)
$
0.14 
$
0.11 
Non-GAAP net loss per share attributable to common stockholders, basic and diluted
$
(0.03)
$
(0.09)
Weighted-average shares used in computing per share amounts, basic and diluted
45,544,682 
40,853,048 
(1) Represents the amortization expenses of our intangible assets attributable to our acquisitions.
(2) Includes advisory, legal, accounting, valuation, other professional or consulting fees and integration costs associated with the Cycuity acquisition.


(3) Our GAAP tax provision is primarily related to foreign withholding taxes and income tax in profitable foreign jurisdictions. We maintain a full valuation allowance against our deferred tax assets in the US. Accordingly, there is no significant tax impact associated with these Non-GAAP adjustments.
(4) Reflects the aggregate adjustments made to reconcile Non-GAAP net loss to our net loss as noted in the above table, divided by the GAAP diluted weighted average number of shares of the relevant period.
Free Cash Flow
Three Months Ended
March 31,
2026
2025
Net cash (used in) provided by operating activities
$
(7,062)
$
2,860 
Less:
Purchase of property and equipment
(295)
(183)
Free cash flow
$
(7,357)
$
2,677 
Net cash used in investing activities
$
(16,048)
$
(121)
Net cash provided by (used in) financing activities
$
882 
$
(52)


Source: View Original Filing on SEC EDGAR

FAQ

How did Arteris (AIP) perform financially in Q1 2026?

Arteris reported Q1 2026 revenue of $22.9 million, up 39% year-over-year, with GAAP net loss of $8.0 million. Non-GAAP net loss improved to $1.2 million, reflecting adjustments for stock-based compensation, amortization of acquired intangibles and acquisition-related costs.

What were Arteris (AIP) key growth metrics like ACV and RPO in Q1 2026?

Arteris reported Annual Contract Value plus royalties of $92.8 million, up 39% year-over-year, and Remaining Performance Obligation of $118.3 million, up 33%. These figures show growth in contracted business and future revenue visibility beyond the quarter’s recognized revenue.

What guidance did Arteris (AIP) provide for Q2 2026 and full year 2026?

For Q2 2026, Arteris expects revenue of $23.0–$24.0 million and Non-GAAP operating loss of $2.0–$3.0 million. For full-year 2026, it guides to revenue of $91.0–$95.0 million, Non-GAAP operating loss of $4.5–$8.5 million, and free cash flow of $5.0–$9.0 million.

Is Arteris (AIP) profitable on a GAAP or Non-GAAP basis in Q1 2026?

Arteris is not yet profitable. In Q1 2026, GAAP net loss was $8.0 million and GAAP operating loss was $9.3 million. On a Non-GAAP basis, operating loss was $2.5 million and net loss was $1.2 million, both narrower than the prior year.

What leadership change did Arteris (AIP) announce regarding its CFO?

Arteris announced that Chief Financial Officer Nicholas B. Hawkins will retire effective August 31, 2026 due to a family illness. He will remain as an advisor after retirement, and the board has started a comprehensive search for a new Chief Financial Officer.

How did Arteris (AIP) cash position and free cash flow change in Q1 2026?

Cash and cash equivalents were $11.7 million as of March 31, 2026, compared with $33.9 million at December 31, 2025. Free cash flow for Q1 2026 was –$7.4 million, calculated as operating cash flow of –$7.1 million less $0.3 million of capital expenditures.

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