Arteris 2025 Q3 Earnings Revenue Surpasses Estimates Amid Widening Losses

Arteris (AIP) reported fiscal 2025 Q3 earnings on Nov 4, 2025, with revenue rising 18.3% to $17.41 million, exceeding expectations. The company’s losses deepened slightly, with a $0.21 per share loss, and guidance for Q4 and FY 2025 reflects cautious optimism despite ongoing operating challenges.

Revenue

Arteris’s total revenue surged to $17.41 million in Q3 2025, driven by robust performance in licensing, support, and maintenance, which contributed $15.90 million. Variable royalties and other segments added $1.51 million, with variable royalties accounting for $1.50 million and other revenue at $7,000. This 18.3% year-over-year growth underscores strong demand for the company’s semiconductor IP solutions.

Earnings/Net Income

The company’s net loss widened to $8.99 million ($0.21 per share) in Q3 2025, a 17.0% increase from the prior-year period. While losses remained consistent with guidance, the 5.0% wider loss per share highlights ongoing operational pressures. The EPS result was marginally better than the Zacks Consensus Estimate of $0.11, though profitability remains elusive.

Post-Earnings Price Action Review

Following the earnings release, Arteris’s stock price declined 1.20% in the latest trading day, reflecting investor caution amid persistent losses. Over the past week, shares tumbled 9.74%, but the month-to-date rally of 12.20% suggests underlying momentum. Analysts remain divided, with a Zacks Rank #3 (Hold) assigned due to mixed estimate revisions. While the stock has outperformed the S&P 500 this year, its near-term trajectory hinges on management’s ability to convert a $104.7 million backlog into revenue and narrow operating losses.

CEO Commentary

CEO Karel Janac emphasized Arteris’s record $74.9 million ACV plus royalties, driven by 24% YoY growth and AI adoption. Strategic partnerships with Altera, AMD, and Alibaba Damo Academy, along with expansion into automotive and industrial markets, were highlighted. Janac expressed confidence in scaling demand with AI-driven design complexity and underscored the company’s silicon-proven reliability as a competitive edge.

Guidance

Arteris provided Q4 2025 revenue guidance of $18.4–$18.8 million and full-year revenue of $68.8–$69.2 million. Non-GAAP operating losses are expected to range between $2.3–$3.3 million for Q4 and $12.5–$13.5 million for FY 2025, while free cash flow is projected at $0.2–$3.2 million for Q4 and $2.5–$5.5 million for the full year.

Additional News

Arteris announced a significant partnership with Altera to advance intelligent computing across cloud-to-edge applications, leveraging its Ncore and FlexGen IP. Additionally, the company expanded its collaboration with Alibaba Damo Academy to accelerate high-performance RISC-V SoC designs and joined the UALink consortium to scale AI infrastructure standards. These moves position Arteris to capitalize on growing demand for advanced semiconductor solutions in AI and autonomous systems.

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