ARBE Plunges 10.34% as Q3 Losses and Strategic Shifts Spur Investor Doubt

Arbe Robotics (ARBE) plunged 10.34% in pre-market trading on Nov. 18, 2025, following its Q3 earnings report and strategic updates. The stock’s sharp decline reflected mixed signals from its business performance and market dynamics.

Despite strategic progress with OEMs, including an advanced collaboration with a major European automaker for autonomous driving programs and expansion into the maritime sector, the company reported a Q3 net loss of $11 million. Revenue for the quarter was $0.3 million, up from $0.1 million in the prior year but far below expectations. Elevated operating expenses of $11.3 million and a widened adjusted EBITDA loss of $9.2 million underscored ongoing financial pressures. Management highlighted cash reserves of $52.6 million as a buffer, but investors appeared unconvinced, with global economic headwinds delaying OEM decisions and weighing on sentiment.

The sell-off suggests market skepticism about Arbe’s ability to translate strategic wins into near-term revenue growth. While the company secured awards for technological leadership and a maritime order, the lack of material revenue acceleration and persistent losses created a bearish backdrop. Analysts noted that the stock’s volatility could persist as investors balance long-term potential against short-term financial hurdles.

Backtest Assumption

A hypothetical strategy based on Arbe’s recent performance might focus on short-term volatility trading, given its history of sharp price swings. A 50-day moving average crossover could serve as a technical filter, while key support/resistance levels from the earnings-driven drop (e.g., $0.50) might anchor entry points. However, the stock’s high beta and sector-specific risks necessitate strict stop-loss parameters to mitigate exposure to broader market shifts or OEM-related uncertainties.