Arteris Reports Q2 Earnings: Record Contract Value, 13% YoY Revenue Growth, and Net Loss of $9.1 Million

Arteris reported a record $69.1mln annual contract value plus royalties for Q2 2025, with a 13% YoY increase in revenue to $16.5mln. The company also announced a net loss of $9.1mln due to investments in R&D and marketing. Arteris has formed strategic partnerships and introduced new products, such as the FlexGen smart network-on-chip IP and Magillem Packaging software. The company remains optimistic about its growth prospects in high-growth markets like AI and autonomous driving.

Arteris Inc. (ARTRS) reported its second-quarter (Q2) 2025 earnings, showcasing robust financial performance and strategic initiatives that drove significant growth. The company achieved a record annual contract value (ACV) plus royalties of $69.1 million, representing a 15% year-over-year (YoY) increase [1]. Revenue for the quarter reached $16.5 million, marking a 13% YoY growth, despite a net loss of $3.5 million, primarily due to investments in research and development (R&D) and marketing [1].

The company's stock price surged by 37.57% in aftermarket trading following the earnings announcement, closing at $14.2, reflecting positive investor sentiment [1]. Arteris attributed its strong performance to increased demand in enterprise computing and automotive applications, driven by the proliferation of AI computing [1]. The company's strategic partnerships with industry leaders like AMD and Synopsys have bolstered its competitive position in the semiconductor market [1].

Arteris introduced several new products during the quarter, including the FlexGen smart network-on-chip (NOC) IP and Magillem Packaging software. FlexGen was recognized for its ability to optimize SOC data movement and was a key factor in Arteris winning the AI Engineering Innovation Award [1]. The company also announced an expansion of its multi-die solution, which supports broader standard support for Universal Chiplet Interconnect Express (UCIE) and collaboration with key industry players [1].

Looking ahead, Arteris projects revenue between $16.8 million and $17.2 million for Q3 2025, with a non-GAAP operating loss of $3 million to $4 million. For the full year 2025, the company expects revenue of $66 million to $70 million and a non-GAAP operating loss of $10.5 million to $15.5 million [1].

Executives expressed optimism about the company's growth prospects, particularly in high-growth markets like AI and autonomous driving. CEO Charlie Janik highlighted the potential of FlexGen technology in optimizing SOC data movement, while CFO Nick Hawkins noted the company's strong cash position and deal execution despite foreign exchange fluctuations [1].

Risks and challenges include economic uncertainty, foreign exchange fluctuations, increasing competition in the semiconductor market, dependency on strategic partnerships for growth, and potential supply chain disruptions [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-arteris-q2-2025-sees-stock-surge-on-revenue-beat-93CH-4171567