Exhibit 99.1
Arbe
Announces Q1 2026 Financial Results
TEL
AVIV, Israel, May 28, 2026 -- Arbe Robotics Ltd. (NASDAQ: ARBE) (TASE: ARBE), a global leader in perception radar solutions, today
announced financial results for its first quarter ending March 31, 2026.
Recent
Highlights
| ● | Follow-on
orders for Arbe’s Phoenix radar in the robotaxi market: Arbe received additional orders from
global robotaxi players using Phoenix to support L4 autonomy with 360-degree sensing. We believe the repeat orders further validate Phoenix’s
ability to deliver the high-resolution performance and coverage required for full eyes-off autonomous platforms. |
| ● | Arbe
began shipping chipsets to Hirain for its L4 project which it announced in December: Hirain, Arbe’s Tier 1, is using
Arbe’s chipset for a high-resolution 48x48 imaging radar project with a Chinese automaker. |
| ● | Hirain is expanding
Arbe’s reach in China with a new 24x12 channel radar platform: In addition to its existing 48x48 radar system, Hirain is
developing another radar platform for the Chinese market based on Arbe’s chipset. With 34.4 million vehicles sold in China in
2025, the new Hirain platform gives Arbe a direct path into one of the world’s largest and fastest-moving markets for L2+ and
L3 deployment. |
| ● | Growing
automotive traction: Arbe continues to advance data collection initiatives with global automakers and leading mobility players. Furthermore,
Arbe has moved into the advanced selection processes with specific Chinese and European automakers. This is a part of the Company’s efforts
to advance global adoption of its ultra-high-resolution radar technology. |
| ● | Arbe
begins sales of full radar systems: This complements Arbe’s chipset offerings. Arbe has established a dedicated production
line to manufacture its radar systems. Initial units have been shipped to various major players in the perimeter-security, and physical
AI fields. |
| ● | Strengthened
balance sheet: During the first quarter, Arbe closed an underwritten registered direct offering, raising $18.5 million in gross proceeds. |

Management
Comments
Kobi
Marenko, President and Co-Founder of Arbe, commented, “The first quarter of 2026 has been one of accelerating execution against
the broadened strategy we set out at the start of this year. We are focused on translating Arbe’s technology leadership into commercial momentum across multiple end markets in parallel. We
have already received orders for radar systems serving a range of applications. These are all important steps in our broadening from a pureplay automotive chipset company to a supplier of complete
radar solutions.”
Ram
Machness, CEO of Arbe, added, “Recent decisions by leading automotive OEMs to reassess their first-generation L3 programs underscore
why Arbe’s technology is important and needed. Arbe is being increasingly recognized as a leading technological provider and we continue
to capitalize on our differentiated product, which provides the highest number of channels in the market at a lower price than competitors.
Arbe is in discussions with many OEMs who view high-resolution radar as a critical element within their next generation of eyes-off driving.”
Concluded
Mr. Machness, “The rise of physical AI is increasing the strategic value of high-quality sensing. Arbe’s dense, long-range,
all-weather radar is positioned to be a critical perception layer for this next era of autonomy, in both automotive and the new verticals
we are addressing. With our broadened market focus, transition to system sales, our growing commercial pipeline, and a strengthened balance
sheet, we are confident that Arbe is well-positioned for the road ahead, which is expected to generate revenue growth in the upcoming
quarters of 2026.”
First
Quarter 2026 Financial Results Highlights
Revenues
for Q1 2026 were $0.5 million, compared to $0.04 million in Q1 2025. Backlog as of March 31, 2026, amounted to $1 million.
Negative
gross profit for Q1 2026 was ($0.1) million, compared to a negative gross profit of ($0.3) million in Q1 2025.
Operating
expenses in Q1 2026 were $11.2 million, compared to $13.1 million in Q1 2025.
The
decrease was primarily driven by lower share-based compensation expenses, which reflect the full vesting of equity grants, along with
the latest award being structured half in cash and half in equity. The decrease was also related to a tape-out expense in Q1 2025 as
part of our chip productization. This decrease was partially offset by the unfavorable foreign exchange impact and to a lesser extent
by labor-based provisions and a merit increase.
Operating
loss in Q1 2026 was $11.3 million, compared to a $13.4 million loss in Q1 2025.
Net
loss in Q1 2026 was $9.4 million, compared to a net loss of $13.8 million in Q1 2025. Net loss in Q1 2026 included $1.9 million of financial
income, compared to $0.5 million of financial expenses in Q1 2025. Financial income for Q1 2026 reflects the revaluation of the lease
liability and convertible bond liability, and deposit interest, partially offset by the foreign exchange rate revaluations impact.

Adjusted
EBITDA for Q1 2026, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and non-recurring items, was
a loss of $9.9 million, compared with a loss of $9.7 million in Q1 2025.
Management
believes that this non-GAAP measurement is important in management’s evaluation of our use of cash and in planning and evaluating our
cash requirements for the coming period.
During
the first quarter, as planned and previously indicated, management implemented cost-reduction measures expected to result in an approximate
15% decrease in ongoing expenses. This reduction impact is expected to take effect from mid-Q2.
Balance
Sheet and Liquidity Highlights
As
of March 31, 2026, Arbe had $53.6 million in cash and cash equivalents and short-term bank deposits.
As
of March 31, 2026, Arbe had $48.6 million in shareholders’ equity.
The
Company complies with the financial covenants as set forth under the convertible debentures and holds cash substantially above the minimum
threshold.
Outlook
Arbe
is reaffirming its full year 2026 outlook provided in February 2026.
Based
on current market conditions and customer engagement visibility, the Company’s outlook for 2026 is as follows:
| ● | Revenue
in the range of $4 million to $6 million. |
| ● | Adjusted
EBITDA for 2026 is projected to be a loss in the range of ($28 million) to ($31 million), reflecting the Company’s strengthened balance
sheet and cost-reduction measures. |
This
outlook reflects management’s current expectations as of today and is subject to change based on market conditions, customer adoption
timelines, and other factors.
Arbe
expects to continue signing additional automotive OEM design wins over time, beyond the recently announced design win. However, the timing
of future wins remains dependent on OEM adoption cycles, which are taking longer than previously anticipated. As a result, the Company
is not providing guidance on the timing of additional automotive OEM design wins.

Conference
Call and Webcast Details
Arbe
will host a conference call and webcast today, May 28, 2026, at 8:30 a.m. ET. Speakers will include Kobi Marenko, President and Co-Founder,
Ram Machness, Chief Executive Officer, and Karine Pinto-Flomenboim, Chief Financial Officer.
The
live call may be accessed via:
U.S.
Toll Free: 1-844-481-3015
International: +1-412-317-1880
Israel:
1-809-212-373
The
Company encourages participants to pre-register for the conference call using the following link:
https://dpregister.com/sreg/10208504/103de50d058
Participants
may pre-register at any time, including up to and after the call start time.
A
live webcast of the call can be accessed from the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ywDGGTq9
The
day after the call, an archived webcast of the call can be accessed from Arbe’s Investor Relations website at: https://ir.arberobotics.com.
About
Arbe
Arbe
(Nasdaq: ARBE), a global leader in ultra-high-resolution radar solutions, is driving a radar revolution. Its cutting-edge radar chipset
delivers up to 100 times more detail than other radar systems on the market, empowering automakers and radar Tier-1s to develop safe
driving systems that scale from ADAS to hands-free, eyes-off capabilities and up to full vehicle autonomy. Arbe’s technology addresses
the most critical use cases by delivering real-time, 4-dimensional imaging that enables the perception stack with information such as
precise mapping of drivable free space in highway and urban environments across all weather and lighting conditions. With its transformative
impact across passenger, commercial, and industrial vehicle segments, as well as other advanced safety applications, Arbe is redefining
the role of radar in next-generation mobility.
Headquartered
in Tel Aviv, Israel, the Company also operates offices in the United States, Germany, and China. For more information, visit https://arberobotics.com/

Cautionary
Note Regarding Forward-Looking Statements
This
press release contains, and the conference call described in this press release will contain, “forward-looking statements”
within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation
Reform Act of 1995. The words “expect,” “believe,” “estimate,” “intend,” “plan,” “anticipate,”
“may,” “should,” “strategy,” “future,” “will,” “project,” “potential”
and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements
about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.
These risks and uncertainties include our ability to transition to a scaled production company, to expand our presence in Level 4 robotaxi,
robotruck and autonomous commercial and off-road vehicle markets, and to advance OEM and Tier 1 programs, to successfully develop and
market our products in various other markets including perimeter-security, and physical AI fields; whether and when we
receive secure the orders we anticipate and the extent of any orders in the various markets we are targeting we receive; our ability
to meet expectations with respect to our financial guidance and outlook; the timing and completion of key product and project orders
and milestones; expectations regarding our collaborations and business with third parties; the effect of tariffs and trade policies of
the United States, China and other countries, whether announced or implemented; the effect on the Israeli economy generally and on the
Company’s business resulting from the terrorism and the hostilities in Israel and with its neighboring countries including the effects
of the continuing conflict with Hamas in Gaza despite the cease fire and any intensification of hostilities with others, including Iran
and Hezbollah, and the effect of the call-up of a significant portion of its working population, including the Company’s employees; the
effect of any potential boycott both of Israeli products and business and of stocks in Israeli companies; the effect of any action Iran
or Hezbollah make take against Israel in the event the cease fire with Iran ends; the effect of any downgrading of the Israeli economy
and the effect of changes in the exchange rate between the US dollar and the Israeli shekel; and the risk and uncertainties described
in “Cautionary Note Regarding Forward-Looking Statements,” “Item 3. Key Information – D. Risk Factors” and
“Item 5. Operating and Financial Review and Prospects” and in the Company’s Annual Report on Form 20-F for the year ended December
31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on March 27, 2026, as well as other documents
filed by the Company with the SEC. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking
statements relate only to the date they were made, and the Company does not undertake any obligation to update forward-looking statements
to reflect events or circumstances after the date they were made except as required by law or applicable regulation.
Information
contained on, or that can be accessed through, the Company’s website or any other website or any social media is expressly not incorporated
by reference into and is not a part of this press release.

CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
| | |
March 31,
2026 | | |
December 31,
2025 | |
| Current Assets: | |
(Unaudited) | | |
| |
| Cash and cash equivalents | |
| 8,265 | | |
| 4,028 | |
| Restricted cash | |
| 280 | | |
| 280 | |
| Short term bank deposits | |
| 45,035 | | |
| 40,690 | |
| Trade receivable | |
| 511 | | |
| 571 | |
| Other assets – funds held in escrow | |
| 24,787 | | |
| 24,525 | |
| Prepaid expenses and other receivables | |
| 1,791 | | |
| 1,685 | |
| Total current assets | |
| 80,669 | | |
| 71,779 | |
| | |
| | | |
| | |
| Non-Current Assets | |
| | | |
| | |
| Operating lease right-of-use assets | |
| 1,542 | | |
| 893 | |
| Property and equipment, net | |
| 1,049 | | |
| 1,176 | |
| Total non-current assets | |
| 2,591 | | |
| 2,069 | |
| | |
| | | |
| | |
| Total assets | |
| 83,260 | | |
| 73,848 | |
| | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Trade payables | |
| 352 | | |
| 774 | |
| Operating lease liabilities | |
| 501 | | |
| 679 | |
| Employees and payroll accruals | |
| 6,306 | | |
| 3,706 | |
| Convertible bonds | |
| 23,826 | | |
| 24,757 | |
| Accrued expenses and other payables | |
| 1,792 | | |
| 2,950 | |
| Derivative Liabilities | |
| 590 | | |
| 50 | |
| Total current liabilities | |
| 33,367 | | |
| 32,916 | |
| | |
| | | |
| | |
| Long term liabilities | |
| | | |
| | |
| Operating lease liabilities | |
| 1,340 | | |
| 1,351 | |
| Warrant Liability - ITAC | |
| 2 | | |
| 12 | |
| Total long-term liabilities | |
| 1,342 | | |
| 1,363 | |
| | |
| | | |
| | |
| SHAREHOLDERS’ EQUITY: | |
| | | |
| | |
| Ordinary Shares | |
| *) | | |
| *) | |
| Capital & Premium | |
| 357,351 | | |
| 338,947 | |
| Accumulated Deficit | |
| (308,800 | ) | |
| (299,378 | ) |
| Total shareholders’ equity | |
| 48,551 | | |
| 39,569 | |
| | |
| | | |
| | |
| Total liabilities and shareholders’ equity | |
| 83,260 | | |
| 73,848 | |

CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share
data)
| | |
3 Months
Ended
March 31,
2026 | | |
3 Months
Ended
March 31,
2025 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Revenues | |
| 461 | | |
| 40 | |
| Cost of revenues | |
| 588 | | |
| 338 | |
| Gross loss | |
| (127 | ) | |
| (298 | ) |
| | |
| | | |
| | |
| Operating Expenses: | |
| | | |
| | |
| Research and development, net | |
| 8,054 | | |
| 9,693 | |
| Sales and marketing | |
| 1,287 | | |
| 1,381 | |
| General and administrative | |
| 1,876 | | |
| 1,989 | |
| Total operating expenses | |
| 11,217 | | |
| 13,063 | |
| | |
| | | |
| | |
| Operating loss | |
| (11,344 | ) | |
| (13,361 | ) |
| | |
| | | |
| | |
| Financing expenses (Income ) net | |
| (1,922 | ) | |
| 457 | |
| | |
| | | |
| | |
| Net loss | |
| (9,422 | ) | |
| (13,818 | ) |
| | |
| | | |
| | |
| Basic net loss per ordinary share | |
| (0.08 | ) | |
| (0.13 | ) |
| | |
| | | |
| | |
| Weighted-average number of ordinary shares used in computing basic net loss per ordinary share | |
| 122,618,751 | | |
| 107,617,231 | |
| | |
| | | |
| | |
| Diluted net loss per ordinary share | |
| (0.08 | ) | |
| (0.13 | ) |
| | |
| | | |
| | |
| Weighted-average number of ordinary shares used in computing diluted net loss per ordinary share | |
| 122,618,751 | | |
| 107,617,231 | |

CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
| | |
3 Months
Ended
March 31,
2026 | | |
3 Months
Ended
March 31,
2025 | |
| Cash flows from operating activities: | |
(Unaudited) | | |
(Unaudited) | |
| Net Loss | |
| (9,422 | ) | |
| (13,818 | ) |
| | |
| | | |
| | |
| Adjustments to reconcile loss to net cash used in operating activities: | |
| | | |
| | |
| Depreciation | |
| 127 | | |
| 135 | |
| Share-based compensation | |
| 1,233 | | |
| 3,310 | |
| Warrants to service providers | |
| 43 | | |
| 209 | |
| Revaluation of warrants | |
| (10 | ) | |
| (280 | ) |
| Revaluation of convertible bonds | |
| (698 | ) | |
| 27 | |
| Finance income | |
| (1,405 | ) | |
| (207 | ) |
| | |
| | | |
| | |
| Change in operating assets and liabilities: | |
| | | |
| | |
| Decrease in trade receivable | |
| 60 | | |
| 93 | |
| Decrease (increase) in prepaid expenses and other
receivables | |
| (106 | ) | |
| 1,070 | |
| Operating lease ROU assets and liabilities, net | |
| (19 | ) | |
| 54 | |
| Increase (decrease) in trade payables | |
| (422 | ) | |
| (70 | ) |
| Increase (decrease) in employees and payroll accruals | |
| 2,600 | | |
| (3 | ) |
| Increase in Derivative Liabilities | |
| 540 | | |
| 1,712 | |
| Increase (decrease) in accrued expenses and other payables | |
| (1,158 | ) | |
| 1,546 | |
| | |
| | | |
| | |
| Net cash used in operating activities | |
| (8,637 | ) | |
| (6,222 | ) |
| | |
| | | |
| | |
| Cash flows from investing activities: | |
| | | |
| | |
| Change in bank deposits | |
| (4,050 | ) | |
| (53,180 | ) |
| Purchase of property and equipment | |
| - | | |
| (25 | ) |
| | |
| | | |
| | |
| Net cash provided by (used in) investing activities | |
| (4,050 | ) | |
| (53,205 | ) |
| | |
| | | |
| | |
| Cash flows from financing activities: | |
| | | |
| | |
| Proceeds from issuance of ordinary shares, net of issuance costs | |
| 17,081 | | |
| 30,758 | |
| Issuance costs related to convertible bonds | |
| - | | |
| 21,696 | |
| Proceeds from exercise of warrants | |
| - | | |
| 493 | |
| Proceeds from exercise of options | |
| 47 | | |
| 438 | |
| Redemption of convertible notes upon voluntary conversion | |
| (233 | ) | |
| - | |
| | |
| | | |
| | |
| Net cash provided by financing activities | |
| 16,895 | | |
| 53,385 | |
| | |
| | | |
| | |
| Increase (decrease) in cash, cash equivalents and restricted cash | |
| 4,208 | | |
| (6,042 | ) |
| Effect of exchange rate fluctuations on cash and cash equivalent | |
| 29 | | |
| (542 | ) |
| Cash, cash equivalents and restricted cash at the beginning of period | |
| 4,308 | | |
| 13,768 | |
| | |
| | | |
| | |
| Cash, cash equivalents and restricted cash at the end of period | |
| 8,545 | | |
| 7,184 | |

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(U.S. dollars in thousands, except share and per share
data)
| | |
3 Months Ended March 31, 2026 | | |
3 Months Ended March 31, 2025 | |
| GAAP net loss attributable to ordinary shareholders | |
| (9,422 | ) | |
| (13,818 | ) |
| | |
| | | |
| | |
| Add: | |
| | | |
| | |
| Share-based compensation | |
| 1,233 | | |
| 3,310 | |
| Warrants to service providers | |
| 43 | | |
| 209 | |
| Revaluation of warrants and accretion | |
| (10 | ) | |
| (280 | ) |
| Convertible bonds accretion | |
| (698 | ) | |
| 27 | |
| Non-recurring expenses related to convertible bonds | |
| - | | |
| 960 | |
| | |
| | | |
| | |
| Non-GAAP net loss | |
| (8,854 | ) | |
| (9,592 | ) |
| | |
| | | |
| | |
| Basic Non-GAAP net loss per ordinary share | |
| (0.07 | ) | |
| (0.09 | ) |
| | |
| | | |
| | |
| Weighted-average number of shares used in computing basic Non-GAAP net loss per ordinary share | |
| 122,618,751 | | |
| 107,617,231 | |
| | |
| | | |
| | |
| Diluted Non-GAAP net loss per ordinary share | |
| (0.08 | ) | |
| (0.09 | ) |
| | |
| | | |
| | |
| Weighted-average number of shares used in computing diluted Non-GAAP net loss per ordinary share | |
| 122,618,751 | | |
| 107,617,231 | |
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(U.S. dollars in thousands)
| | |
3 Months
Ended
March 31,
2026 | | |
3 Months
Ended
March 31,
2025 | |
| GAAP net loss attributable to ordinary shareholders | |
| (9,422 | ) | |
| (13,818 | ) |
| | |
| | | |
| | |
| Add: | |
| | | |
| | |
| Financial expenses / (income), net | |
| (1,922 | ) | |
| 457 | |
| Depreciation | |
| 127 | | |
| 135 | |
| Share-based compensation | |
| 1,233 | | |
| 3,310 | |
| Warrants to service providers | |
| 43 | | |
| 209 | |
| Non-recurring expenses related to ATM | |
| - | | |
| - | |
| Adjusted EBITDA | |
| (9,941 | ) | |
| (9,707 | ) |
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