Arbe Robotics Q1: Significant progress in radar system design wins with European OEMs.

• Arbe Robotics Q1 results show significant progress toward design wins with European OEMs. • Orders secured for radar systems to support data collection programs. • Radar technology to enable high-volume 2028 passenger vehicle platforms. • Revenue projected to begin in 2027. • Strong financial position to support program execution. • HiRain Technologies launches production-intent long-range imaging radar system.

Arbe Robotics Ltd. (NASDAQ: ARBE), a global leader in perception radar solutions, reported its first quarter financial results for 2025, reflecting notable progress toward design wins with leading European OEMs [1]. The company secured orders for radar systems to support advanced data collection programs, which are a crucial step in the automotive sourcing process. These orders are expected to serve as a key enabler for high-volume 2028 passenger vehicle platforms, with revenue projected to begin in 2027.

Arbe's strong financial position is anticipated to support the execution of these programs. The company's Q1 2025 revenues amounted to $0.04 million, compared to $0.1 million in Q1 2024. The backlog as of March 31, 2025, was $0.25 million. Gross profit for Q1 2025 was negative ($0.3) million, consistent with the negative gross profit of ($0.3) million in Q1 2024. Operating expenses in Q1 2025 were $13.1 million, compared to $12.5 million in Q1 2024. The increase was primarily driven by a one-time expense related to finalizing chip design toward production.

In April, HiRain Technologies, Arbe's Tier 1 in China, launched a production-intent long-range imaging radar system, the LRR615, powered by Arbe's high-performance chipset. Engineered for ultra-high resolution and reliable performance in all weather and lighting conditions, the LRR615 is tailored for the Chinese autonomous driving market and marks a pivotal step toward industrial-scale deployment. Sensrad, Arbe's Tier 1 for non-automotive sectors, placed an order for over a thousand imaging radar chips to serve multiple customers across various applications, underscoring both confidence in the platform and growing commercial traction.

Arbe also launched a collaboration with NVIDIA to enhance radar-based free space mapping and AI-driven capabilities. Arbe's high-resolution radar integration with the NVIDIA DRIVE AGX in-vehicle computing platform was showcased at CES 2025. The company successfully raised $33 million through an underwritten registered direct offering in January 2025, including the exercise of a $4 million over-allotment option by the underwriters, led by Canaccord Genuity. Additionally, $21.5 million was released to the company from the escrow account following the conversion of convertible bonds issued on the TASE in 2024.

Management commented, "We're excited by the progress we've made this quarter as we scale toward high-volume production. We secured radar systems orders for data collection from leading European OEMs, marking a key step toward a design win and reinforcing our position on the path to OEM selection. In parallel, the launch of HiRain's LRR615 system, successfully industrialized using our chipset, demonstrates our Tier 1s' ability to bring Arbe-powered products to market. Sensrad's growing demand across non-automotive applications, evidenced by chipset orders, further expands our market reach and signals their readiness for mass production" [1].

The company's outlook for 2025 includes annual revenues expected to be in the range of $2 to $5 million, weighted towards the end of the year. Adjusted EBITDA for 2025 is projected to be in the range of ($29 million) and ($35 million). Arbe continues to engage closely with industry leaders, advancing through RFQ stages and reinforcing its position for adoption.

References:
[1] https://www.prnewswire.com/il/news-releases/arbe-announces-q1-2025-financial-results-302460225.html