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

CAMPBELL, Calif. -- August 5, 2025 -- Arteris, Inc. (Nasdaq: AIP), a leading provider of semiconductor system IP for accelerating system-on-chip (SoC) creation, today announced financial results for the second quarter ended June 30, 2025 and provided estimated third quarter and updated full year 2025 guidance.

“In the second quarter of 2025, we achieved record Annual Contract Value plus royalties of $69.1 million and exited the quarter with $99.3 million in Remaining Performance Obligations, with the latter representing a year-over-year increase of 28%,” said K. Charles Janac, President and CEO of Arteris. “Looking ahead, we remain confident in Arteris’ long-term growth opportunity, supported by our strong product portfolio and pipeline, deepening relationships with leading electronics companies, and continued customer innovation across high-growth markets including AI, autonomous driving, advanced communications, and industrial and consumer applications.”

Second Quarter 2025 Financial Highlights:

• Revenue of $16.5 million, up 13% year-over-year
• Annual Contract Value (ACV) plus royalties of $69.1 million, up 15% year-over-year, growing to the highest level we have ever reported
• Remaining performance obligation (RPO) of $99.3 million, up 28% year-over-year, growing to the highest level we have ever reported
• Operating loss of $8.2 million, compared to an operating loss of $7.4 million in the second quarter of 2024
• Non-GAAP operating loss of $3.5 million, flat compared to a Non-GAAP operating loss of $3.5 million in the second quarter of 2024
• Net loss of $9.1 million or $0.22 per share
• Non-GAAP net loss of $4.4 million or $0.11 per share

Second Quarter 2025 Business Highlights:

• AMD licensed FlexGen smart network-on-chip IP to provide high-performance data transport for its chiplets powering AI, targeting a broad array of products;
• Announced a key customer AI win, Whalechip, that is licensing FlexNoC 5 for its high-performance AI computing at the data center;
• Expanded Arteris' multi-die solution, broadening the support for the Universal Chiplet Interconnect Express (UCIe), extended support for Arm AMBA protocols, collaborating with Synopsys and Cadence for chiplet interface, and supporting RISC-V ecosystems with partners such as Andes, SiFive, and Tenstorrent;
• Announced Magillem Packaging, a new software product designed to automate IP packaging, thereby simplifying and accelerating chiplet and SoC assembly; and
• Arteris was recognized in the 8th annual AI Breakthrough Awards, with FlexGen winning the “AI Engineering Innovation Award”.

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, and free cash flow 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 Third 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, confirmed design starts and RPO are included below under the heading “Other Business Metrics.”

Financial Tables

Financial Tables are available here.

Conference Call

Arteris will host a conference call on August 5, 2025 to review its second 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 global leader in system IP used in semiconductors to accelerate the creation of high-performance, power-efficient silicon. Arteris network-on-chip (NoC) interconnect IP and system-on-chip (SoC) integration automation software are used by the world's top semiconductor and technology companies to improve overall performance, engineering productivity, reduce risk, lower costs, and bring complex designs to market faster. Learn more at arteris.com.