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Arteris (Nasdaq: AIP) Q2 revenue up 46%, sets 2026 outlook

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

Rhea-AI Filing Summary

Arteris, Inc. reported second quarter 2026 results with revenue of $24.1 million, up 46% year-over-year. Annual Contract Value (ACV) plus royalties reached $99.5 million, up 44%, variable royalties were $8.6 million, and Remaining Performance Obligation was $135 million, all described as record or new high metrics.

The company recorded a GAAP operating loss of $13.9 million and net loss of $14.1 million ($0.30 per share), while Non-GAAP net loss was $4.7 million ($0.10 per share). Free cash flow for the quarter was $8,615 (in thousands), and cash and cash equivalents were $93,270 (in thousands) as of June 30, 2026, helped by $72,546 (in thousands) of net proceeds from an at-the-market stock offering in the first half. Guidance for Q3 2026 calls for revenue of $24.0–$25.0 million, and for full-year 2026 revenue of $95.0–$98.0 million, Non-GAAP operating loss of $7.0–$10.0 million, and free cash flow of $5.0–$9.0 million.

Positive

  • Revenue grew 46% year-over-year to $24.1 million, while ACV plus royalties rose 44% to $99.5 million and RPO increased 36% to $135 million, indicating rapid growth in contracted and in-period revenue.
  • Free cash flow improved to $8,615 (in thousands) in Q2 2026 from negative $2,840 (in thousands) a year earlier, and cash from an at-the-market equity offering increased cash and cash equivalents to $93,270 (in thousands).

Negative

  • GAAP operating loss widened to $13,908 (in thousands) from $8,248 (in thousands) in Q2 2025, and GAAP net loss rose to $14,065 (in thousands), reflecting higher research and development, sales and marketing, general and administrative, and acquisition-related costs.

Filing Explained

The first-half ATM issuance produced net proceeds and increased reported shares outstanding, creating a disclosed dilution mechanism for existing holders.

This Form 8-K reports that Arteris issued common stock under its at-the-market offering, generating net proceeds of $72,546 thousand during the six months ended June 30, 2026; shares issued and outstanding were 49,051,892 at June 30, versus 44,268,816 at December 31, 2025. Because issuing additional shares increases the total share count and, absent offsetting changes, reduces an existing holder’s percentage ownership, the disclosed issuance has a dilutive ownership consequence for existing common holders.

An at-the-market program allows an issuer to sell new shares gradually into the open market at prevailing prices rather than in one priced deal. The filing also announces that Saurabh Sinha will join Arteris as chief financial officer on September 8, 2026, so that management change is scheduled after this August 6 filing rather than reported as effective in it.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $24.1 million Revenue for the quarter ended June 30, 2026, up 46% year-over-year
ACV plus royalties $99.5 million Annual Contract Value plus trailing-twelve-months royalties exiting Q2 2026, up 44% year-over-year
Remaining Performance Obligation $135 million RPO as of June 30, 2026, up 36% year-over-year
Q2 2026 GAAP net loss $14,065 (in thousands) Net loss for the quarter ended June 30, 2026
Q2 2026 Non-GAAP net loss $4,726 (in thousands) Non-GAAP net loss for the quarter ended June 30, 2026
Q2 2026 free cash flow $8,615 (in thousands) Free cash flow for the three months ended June 30, 2026
Cash and cash equivalents 93,270 Cash and cash equivalents as of June 30, 2026 (in thousands)
ATM offering proceeds 72,546 Proceeds from issuance of common stock under the at-the-market offering in the six months ended June 30, 2026 (in thousands)
Annual Contract Value (ACV) financial
"We define Annual Contract Value (ACV) for an individual customer agreement"
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
"We define Remaining Performance Obligations as the amount of contracted future revenue"
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.
free cash flow financial
"We define free cash flow as net cash provided by (used in) operating activities"
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"
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.
at-the-market offering financial
"Proceeds from issuance of common stock under the at-the-market offering"
An at-the-market offering is a method companies use to sell new shares of stock directly into the open market over time, rather than all at once. This allows them to raise money gradually, similar to selling small pieces of a product instead of a large batch. For investors, it means the company can access funding more flexibly, but it may also increase the supply of shares and influence the stock’s price.
Revenue $24.1 million up 46% year-over-year
Variable royalties (TTM) $8.6 million up 65% year-over-year
ACV plus royalties $99.5 million up 44% year-over-year
Remaining Performance Obligation $135 million up 36% year-over-year
GAAP net loss $14.1 million compared with $9.1 million in Q2 2025
Non-GAAP net loss $4.7 million compared with $4.4 million in Q2 2025
Guidance

For Q3 2026, ACV plus royalties of $99.0–$103.0 million, revenue of $24.0–$25.0 million, and Non-GAAP operating loss of $1.0–$3.0 million; for full-year 2026, ACV plus royalties of $102.0–$106.0 million, revenue of $95.0–$98.0 million, Non-GAAP operating loss of $7.0–$10.0 million, and free cash flow of $5.0–$9.0 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Arteris (AIP) perform on revenue in Q2 2026?
Arteris (AIP) generated $24.1 million in revenue in Q2 2026, a 46% year-over-year increase. Growth was supported by higher licensing, support and maintenance, variable royalties of $2.1 million, and professional services, which together lifted total revenue from $16.5 million in Q2 2025.

What were Arteris (AIP)'s profitability and loss metrics for Q2 2026?
Arteris (AIP) reported a GAAP net loss of $14.1 million or $0.30 per share in Q2 2026. Non-GAAP net loss was $4.7 million or $0.10 per share, and GAAP operating loss reached $13.9 million, compared with $8.2 million in the prior-year quarter.

What guidance did Arteris (AIP) provide for Q3 and full-year 2026?
For Q3 2026, Arteris (AIP) expects revenue of $24.0–$25.0 million and Non-GAAP operating loss of $1.0–$3.0 million. For full-year 2026, it guides to $95.0–$98.0 million in revenue, Non-GAAP operating loss of $7.0–$10.0 million, and free cash flow of $5.0–$9.0 million.

How strong is Arteris (AIP)'s cash position as of June 30, 2026?
As of June 30, 2026, Arteris (AIP) held $93,270 in cash and cash equivalents and $28,794 in short-term investments (both in thousands). Net cash from financing activities was $73,639 (in thousands), driven mainly by $72,546 (in thousands) of net proceeds from an at-the-market stock offering.

What is Arteris (AIP)'s free cash flow trend in 2026?
Arteris (AIP) delivered $8,615 (in thousands) of free cash flow in Q2 2026 versus negative $2,840 (in thousands) a year earlier. For the first half of 2026, free cash flow was $1,258 (in thousands), and full-year 2026 free cash flow is guided to $5.0–$9.0 million.

What key business developments did Arteris (AIP) highlight in Q2 2026?
Arteris (AIP) cited record engagement across enterprise computing, automotive, aerospace and defense, communications, consumer electronics, and industrial markets. Notable customers included Speedata, Li Auto, and SiEngine, and Arm expanded its partnership by licensing Arteris hardware security assurance technology.
FALSE000166701100016670112026-08-062026-08-06

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): August 6, 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 classTrading
Symbol(s)		Name of each exchange
on which registered
Common Stock, $0.001 par value per shareAIPThe 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 August 6, 2026, Arteris, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 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 9.01          Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit No.Description
99.1
Press Release dated August 6, 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: August 6, 2026

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

3

aiplogo.jpg
Arteris Announces Financial Results for the Second Quarter and Estimated Third Quarter and Updated Full Year 2026 Guidance
CAMPBELL, Calif. - August 6, 2026 - Arteris, Inc. (Nasdaq: AIP), a leading provider of semiconductor technology for accelerating innovation in the AI era, today announced financial results for the second quarter ended June 30, 2026 and provided estimated third quarter and updated full year 2026 guidance.
"In the second quarter we delivered multiple record-breaking results, including new highs in Annual Contract Value plus royalties exiting the quarter at $99.5 million, up 44% year-over-year, and record revenue, royalties and Remaining Performance Obligation” said K. Charles Janac, President and Chief Executive Officer of Arteris. "Customer design activity remained strong, with number of design starts up 21% over the trailing-twelve-months compared to the previous trailing-twelve-months, as the majority of new designs now incorporate some form of AI compute. Data center chip and chiplet development remains a key growth driver, with enterprise computing averaging 29% of our Annual Contract Value plus royalties over the past four quarters and AI infrastructure deals among our largest in the quarter. With this momentum, we believe we remain well positioned to support our customers as they innovate across data centers, edge devices, and physical AI systems in the years ahead,” concluded Janac.
Second Quarter 2026 Financial Highlights:
•Revenue of $24.1 million, up 46% year-over-year
•Trailing-twelve-months variable royalties of $8.6 million, up 65% year-over-year
•Annual Contract Value (ACV) plus royalties of $99.5 million, up 44% year-over-year
•Remaining Performance Obligation (RPO) of $135 million, up 36% year-over-year
•Operating loss of $13.9 million, compared to an operating loss of $8.2 million in the second quarter of 2025
•Non-GAAP operating loss of $4.6 million, compared to a Non-GAAP operating loss of $3.5 million in the second quarter of 2025
•Net loss of $14.1 million or $0.30 per share
•Non-GAAP net loss of $4.7 million or $0.10 per share
Second Quarter 2026 Business Highlights:
•Second quarter deal activity was driven by record customer engagement in enterprise computing, automotive, aerospace and defense, communications, consumer electronics, and industrial markets;
•Healthy design activity in the quarter, with a 21% year-over-year increase in customer confirmed design starts in the trailing-twelve-months ended June 30, 2026 compared to the previous trailing-twelve-months;
•Speedata, developer of the purpose-built Analytics Processing Unit (APU), has deployed Arteris in its Callisto processor for large-volume analytics processing for applications;
•Li Auto, a leader in China’s new energy vehicle market, deployed its in-house designed autonomous driving chips in their newest SUV, leveraging Arteris technology;
•SiEngine, a provider of advanced automotive chips, selected Arteris for its intelligent cockpit, advanced driver assistance, and AI cockpit-drive fusion solutions;
•Arm expanded its partnership with Arteris, licensing Arteris hardware security assurance technology, already in use in selected Arm CPUs; and
•Saurabh Sinha will join Arteris as Chief Financial Officer starting September 8, 2026. Saurabh joins from Aeva Technologies where he was instrumental in taking the company public on Nasdaq and in managing financial operations, capital allocation and investor relations.


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 Third Quarter and Updated Full Year 2026 Guidance:
Q3 2026
FY 2026
(in millions)
ACV + royalties
$99.0 - $103.0
$102.0 - $106.0
Revenue
$24.0 - $25.0
$95.0 - $98.0
Non-GAAP operating loss
$1.0 - $3.0
$7.0 - $10.0
Free cash flow
*
$5.0 - $9.0
*As previously mentioned during the first quarter 2026 earnings call, we will no longer provide quarterly free cash flow guidance.

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.”
Conference Call
Arteris will host a conference call today on August 6, 2026 to review its second 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 serve our customers as they innovate across data centers, edge devices, and physical AI systems in the years ahead, our long-term growth opportunity and future financial and operating performance, including our GAAP and Non-GAAP estimated third 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 June 30, 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 June 30, 2026 to be filed with the Securities and Exchange Commission (SEC) on August 6, 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 June 30, 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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenue
Licensing, support and maintenance
$
20,824 
$
15,088 
$
40,096 
$
30,423 
Variable royalties
2,103 
1,402 
4,606 
2,569 
Professional services and other
1,207 
12 
2,368 
42 
Total revenue
24,134 
16,502 
47,070 
33,034 
Cost of revenue
3,607 
1,742 
6,857 
3,268 
Gross profit
20,527 
14,760 
40,213 
29,766 
Operating expenses:
Research and development
16,762 
12,171 
31,219 
24,033 
Sales and marketing
9,386 
6,335 
17,916 
12,864 
General and administrative
6,072 
4,502 
11,487 
8,825 
Acquisition-related costs
2,215 
— 
2,799 
— 
Total operating expenses
34,435 
23,008 
63,421 
45,722 
Loss from operations
(13,908)
(8,248)
(23,208)
(15,956)
Interest expense
(30)
(42)
(68)
(90)
Other income (expense), net
570 
786 
1,240 
1,504 
Loss before income taxes and loss from equity method investment
(13,368)
(7,504)
(22,036)
(14,542)
Loss from equity method investment, net of tax
— 
780 
2,989 
1,595 
Loss before income taxes
(13,368)
(8,284)
(25,025)
(16,137)
Provision for (benefit from) income taxes
697 
846 
(3,001)
1,114 
Net loss
$
(14,065)
$
(9,130)
$
(22,024)
$
(17,251)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.30)
$
(0.22)
$
(0.47)
$
(0.42)
Weighted-average shares used in computing per share amounts, basic and diluted
47,276,533 
41,819,427 
46,415,392 
41,338,907 



Arteris, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
As of
June 30,
December 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$
93,270 
$
33,901 
Short-term investments
28,794 
20,698 
Accounts receivable, net of allowance of $73 as of both June 30, 2026 and December 31, 2025
15,222 
19,183 
Prepaid expenses and other current assets
9,055 
8,608 
Total current assets
146,341 
82,390 
Property and equipment, net
5,968 
3,872 
Long-term investments
1,198 
4,946 
Equity method investment
— 
2,989 
Operating lease right-of-use assets
4,918 
3,919 
Intangibles, net
18,767 
2,168 
Goodwill
35,299 
4,178 
Other assets
12,222 
10,569 
TOTAL ASSETS
$
224,713 
$
115,031 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
558 
$
340 
Accrued expenses and other current liabilities
30,442 
19,094 
Operating lease liabilities, current
1,466 
1,233 
Deferred revenue, current
59,577 
51,367 
Vendor financing arrangements, current
1,302 
1,166 
Total current liabilities
93,345 
73,200 
Deferred revenue, noncurrent
49,280 
43,974 
Operating lease liabilities, noncurrent
3,725 
3,116 
Vendor financing arrangements, noncurrent
2,193 
452 
Deferred income, noncurrent
5,867 
6,452 
Other liabilities
2,629 
2,469 
Total liabilities
157,039 
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 June 30, 2026 and December 31, 2025
— 
— 
Common stock, par value of $0.001 - 300,000,000 shares authorized as of both June 30, 2026 and December 31, 2025; 49,051,892 and 44,268,816 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
49 
44 
Additional paid-in capital
261,174 
156,776 
Accumulated other comprehensive income
106 
179 
Accumulated deficit
(193,655)
(171,631)
Total stockholders' equity (deficit)
67,674 
(14,632)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
$
224,713 
$
115,031 


Arteris, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended
June 30,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(22,024)
$
(17,251)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
2,861 
1,689 
Stock-based compensation
11,858 
8,809 
Amortization of deferred income
(585)
(585)
Loss from equity method investment
2,989 
1,595 
Deferred income taxes
(4,103)
— 
Net accretion of discounts on available-for-sale securities
(69)
(221)
Change in fair value of contingent consideration liability
2,058 
— 
Other, net
(55)
378 
Changes in operating assets and liabilities:
Accounts receivable, net
5,376 
1,855 
Prepaid expenses and other assets
(2,504)
(2,261)
Accounts payable
(794)
319 
Accrued expenses and other liabilities
(2,916)
(277)
Deferred revenue
10,056 
6,325 
Net cash provided by operating activities
2,148 
375 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(890)
(538)
Purchases of available-for-sale securities
(16,329)
(17,160)
Proceeds from maturities of available-for-sale securities
11,978 
18,282 
Payments for business combination, net of cash acquired
(11,179)
— 
Net cash (used in) provided by investing activities
(16,420)
584 
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under vendor financing arrangements
(681)
(558)
Proceeds from exercise of stock options
1,037 
1,452 
Proceeds from employee stock purchase plan
644 
535 
Proceeds from issuance of common stock under the at-the-market offering, net of commissions and offering costs
72,546 
— 
Other financing activities
93 
27 
Net cash provided by financing activities
73,639 
1,456 
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
59,367 
2,415 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
34,250 
14,072 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
93,617 
$
16,487 


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, which include advisory, legal, accounting, valuation, other professional or consulting fees, integration costs and changes in the fair value of the contingent consideration related to our acquisition of Cycuity. 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 provided by (used in) 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 provided by (used in) 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)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Gross profit
$
20,527 
$
14,760 
$
40,213 
$
29,766 
Add:
Stock-based compensation expense included in cost of revenue
384 
232 
705 
437 
Amortization of acquired intangible assets (1)
50 
50 
100 
100 
Non-GAAP gross profit
$
20,961 
$
15,042 
$
41,018 
$
30,303 
Gross margin
85 
%
89 
%
85 
%
90 
%
Non-GAAP gross margin
87 
%
91 
%
87 
%
92 
%
Research and development
$
16,762 
$
12,171 
$
31,219 
$
24,033 
Stock-based compensation expense
(2,562)
(1,926)
(4,818)
(3,898)
Amortization of acquired intangible assets (1)
(368)
(110)
(687)
(220)
Non-GAAP research and development
$
13,832 
$
10,135 
$
25,714 
$
19,915 
Sales and marketing
$
9,386 
$
6,335 
$
17,916 
$
12,864 
Stock-based compensation expense
(1,668)
(1,048)
(3,051)
(2,017)
Amortization of acquired intangible assets (1)
(359)
(57)
(676)
(114)
Non-GAAP sales and marketing
$
7,359 
$
5,230 
$
14,189 
$
10,733 
General and administrative
$
6,072 
$
4,502 
$
11,487 
$
8,825 
Stock-based compensation expense
(1,733)
(1,291)
(3,284)
(2,457)
Non-GAAP general and administrative
$
4,339 
$
3,211 
$
8,203 
$
6,368 
Acquisition-related costs
$
2,215 
$
— 
$
2,799 
$
— 
Acquisition-related costs (2)
(2,215)
— 
(2,799)
— 
Non-GAAP acquisition-related costs
$
— 
$
— 
$
— 
$
— 
Total operating expenses
$
34,435 
$
23,008 
$
63,421 
$
45,722 
Stock-based compensation expense
(5,963)
(4,265)
(11,153)
(8,372)
Amortization of acquired intangible assets (1)
(727)
(167)
(1,363)
(334)
Acquisition-related costs (2)
(2,215)
— 
(2,799)
— 
Total Non-GAAP operating expenses
$
25,530 
$
18,576 
$
48,106 
$
37,016 
Loss from operations
$
(13,908)
$
(8,248)
$
(23,208)
$
(15,956)
Stock-based compensation expense
6,347 
4,497 
11,858 
8,809 
Amortization of acquired intangible assets (1)
777 
217 
1,463 
434 
Acquisition-related costs (2)
2,215 
— 
2,799 
— 
Non-GAAP loss from operations
$
(4,569)
$
(3,534)
$
(7,088)
$
(6,713)
Net loss
$
(14,065)
$
(9,130)
$
(22,024)
$
(17,251)
Stock-based compensation expense
6,347 
4,497 
11,858 
8,809 
Amortization of acquired intangible assets (1)
777 
217 
1,463 
434 
Acquisition-related costs (2)
2,215 
— 
2,799 
— 
Non-GAAP net loss (3)
$
(4,726)
$
(4,416)
$
(5,904)
$
(8,008)
(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. Acquisition-related costs also include changes in the fair value of the contingent consideration related to our acquisition of Cycuity.
(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.




Arteris, Inc.
Reconciliation of GAAP Measures to Non-GAAP Measures
(Unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss per share attributable to common stockholders, basic and diluted    
$
(0.30)
$
(0.22)
$
(0.47)
$
(0.42)
Per share impacts of adjustments to net loss (1)
$
0.20 
$
0.11 
$
0.34 
$
0.22 
Non-GAAP net loss per share attributable to common stockholders, basic and diluted
$
(0.10)
$
(0.11)
$
(0.13)
$
(0.20)
Weighted-average shares used in computing per share amounts, basic and diluted
47,276,533 
41,819,427 
46,415,392 
41,338,907 
(1) 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
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(in thousands)
Net cash provided by (used in) operating activities
$
9,210 
$
(2,485)
$
2,148 
$
375 
Less:
Purchase of property and equipment
(595)
(355)
(890)
(538)
Free cash flow
$
8,615 
$
(2,840)
$
1,258 
$
(163)
Net cash (used in) provided by investing activities
$
(372)
$
705 
$
(16,420)
$
584 
Net cash provided by financing activities
$
72,757 
$
1,508 
$
73,639 
$
1,456 


Source: View Original Filing on SEC EDGAR

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