Arteris Announces Financial Results for the First Quarter and Estimated Second Quarter and Updated Full Year 2025 Guidance

CAMPBELL, Calif., May 13, 2025  -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP which accelerates system-on-chip (SoC) creation, today announced financial results for the first quarter ended March 31, 2025 and provided estimated second quarter and updated full year 2025 guidance.

“In the first quarter, we delivered record annual contract value plus royalties of $66.8 million and generated $2.7 million in positive free cash flow, driven by sustained demand for commercial semiconductor System IP products across enterprise computing, communications, and automotive semiconductors,” said K. Charles Janac, President and CEO of Arteris. “Looking beyond the near-term macroeconomic uncertainty, we believe our deepening relationships with leading global innovators and our strong product offering positions us well for long-term growth. We remain encouraged by the strength of our deal pipeline and the increasing interest among major customers to expand their outsourcing to the commercial market for semiconductor System IP products, where Arteris brings deep specialization and proven expertise,” concluded Janac.

First Quarter 2025 Financial Highlights:

• Revenue of $16.5 million, up 28% year-over-year
• Annual Contract Value (ACV) plus royalties of $66.8 million, up 15% year-over-year, growing to the highest level we have ever reported
• Remaining performance obligation (RPO) of $88.9 million, up 19% year-over-year, growing to the highest level we have ever reported
• Operating loss of $7.7 million, compared to an operating loss of $9.1 million in the first quarter of 2024
• Non-GAAP operating loss of $3.2 million, compared to a Non-GAAP operating loss of $5.3 million in the first quarter of 2024
• Net loss of $8.1 million or $0.20 per share
• Non-GAAP net loss of $3.6 million or $0.09 per share
• Non-GAAP free cash flow of positive $2.7 million or 16% of revenue

First Quarter 2025 Business Highlights:

• Strong first quarter of 2025, reaching another record high ACV plus royalties of $66.8 million, and generating non-GAAP positive free cash flow of $2.7 million. Deal activity was driven by steady customer adoption in our key vertical markets: enterprise computing, communications, and automotive, with uptake fueled by growing adoption of chiplets and AI compute;
• Large customers are expanding their deployments of Arteris products, including four top 30 technology companies taking additional licenses in the quarter;
• Growing success in the automotive space as we added another top global automotive OEM to our list of customers. We now have direct license agreements with 10 automotive OEMs;
• Nextchip chose FlexNoC IP with AI and functional safety support for use in its next-generation vision based ADAS technology;
• Released the latest generation of Magillem register management automation software used for hardware and software integration, providing a single source of data for SoC development;
• Joined the Intel Foundry Accelerator program, becoming members of the IP Alliance and Chiplet Alliance, enabling a robust network of ecosystem partners to interoperate and accelerate creation of advanced multi-die silicon solutions;
• Recipient of three awards in the annual American Business Awards, including gold award for Most Innovative Tech Company of the Year, gold award for Technical Innovation of the Year, and silver award for Product Innovation; and
• Announced the opening of a new engineering and customer support center in Krakow, Poland, which will support the development of Arteris interconnect and SoC integration software.

Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP net loss, Non-GAAP net loss per share, free cash flow and free cash flow margin are Non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

Estimated Second Quarter and Updated Full Year 2025 Guidance:

The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP.

Definitions of the other business metrics used in this press release including ACV, active customers, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”

Conference Call

Arteris will host a conference call today on May 13, 2025 to review its first quarter 2025 financial results and to discuss its financial outlook.A live webcast will also be available in the Investor Relations section of Arteris’ website at: https://ir.arteris.com/events-and-presentations

A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

About Arteris

Arteris is a leading provider of system IP for the acceleration of system-on-chip (SoC) development across today’s electronic systems. Arteris networks-on-chip (NoC) interconnect IP and SoC integration automation technology enable higher product performance with lower power consumption and faster time to market, delivering better SoC economics so its customers can focus on dreaming up what comes next. Learn more at arteris.com.