Arteris 2025 Q3 Earnings Revenue Surges 18.3% Despite 17% Wider Net Loss

Arteris (AIP) reported fiscal 2025 Q3 earnings on November 4, 2025, delivering revenue growth that exceeded expectations while posting a wider-than-expected net loss. The company raised full-year guidance slightly but maintained caution on profitability, reflecting ongoing financial challenges.

Revenue

. Licensing and support revenue accounted for the majority of this growth, with $15.90 million generated from fixed-fee contracts. Variable royalties and other revenue also contributed significantly, totaling $1.51 million, driven by expanding AI adoption and chiplet/SoC demand. Notably, variable royalties alone reached $1.50 million, underscoring the company’s traction in high-growth markets.

Earnings/Net Income

The company’s losses deepened in Q3 2025, , . , sustained losses over five consecutive quarters highlight structural challenges. The EPS decline, though modest, reflects persistent operational inefficiencies.

Post-Earnings Price Action Review

, with a steeper 9.74% drop over the preceding week, . The post-earnings performance suggests mixed investor sentiment: while short-term volatility reflects concerns over profitability, the MTD rally indicates optimism about the company’s long-term growth prospects in AI and autonomous driving. .

CEO Commentary

CEO highlighted record ACV and RPO figures, . Key wins included Altera’s adoption of Arteris IP for FPGA/SoC designs and AMD’s incremental FlexGen licenses. Janac emphasized investments in ecosystem collaborations (e.g., Alibaba, UALink) and product innovation (FlexGen, Magillem) to address advanced node requirements.

Guidance

. , , signaling cautious optimism about liquidity management.

Additional News

Arteris secured high-profile partnerships in Q3 2025, including Altera’s licensing of its FlexGen and Ncore IP for next-generation FPGA/SoC development. The company also expanded its collaboration with Alibaba DAMO Academy to optimize RISC-V SoC designs for edge AI and automotive applications. Additionally, Arteris was recognized with a Gold Stevie® Award for Most Innovative Tech Company of the Year, underscoring its leadership in semiconductor IP innovation.

Image

Article Polishing

Transitions between sections have been refined for clarity and flow. Punctuation and spacing were standardized to enhance readability. Numerical data and factual details remain unchanged, preserving the original structure and emphasis on Arteris’ strategic and financial developments.