Arteris(US:AIP)2025-11-04 21:18Financial Performance - Revenue for Q3 2025 was $17.4 million, an increase of 18% year-over-year[6] - Annual Contract Value (ACV) plus royalties reached $74.9 million, up 24% year-over-year[6] - Remaining Performance Obligations (RPO) totaled $104.7 million, a 34% increase year-over-year[6] - Non-GAAP operating loss for Q3 2025 was $3.5 million, compared to a loss of $3.3 million in Q3 2024[6] - Net loss for Q3 2025 was $9.0 million, or $0.21 per share[6] - Non-GAAP free cash flow was positive at $2.5 million, representing 14% of revenue[6] - Estimated revenue for Q4 2025 is projected to be between $18.4 million and $18.8 million[7] - Full year 2025 revenue guidance is updated to between $68.8 million and $69.2 million[7] - Net loss for the nine months ended September 30, 2025, was $26,242 million, slightly higher than the $25,434 million loss in the same period of 2024[20] - Free cash flow for Q3 2025 was $2,471 million, compared to $1,093 million in Q3 2024, indicating a growth of 126%[32] - Net loss for Q3 2025 was $8,991 million, compared to a net loss of $7,687 million in Q3 2024, representing an increase in losses of 17%[30] - Non-GAAP net loss for the nine months ended September 30, 2025, was $11,826 million, down from $13,026 million in the same period of 2024, a decrease of 9%[30] Assets and Liabilities - Total assets increased to $107,737 million as of September 30, 2025, compared to $106,135 million on December 31, 2024, reflecting a growth of 1.51%[18] - Current liabilities rose to $66,772 million, up from $59,282 million, marking an increase of 12.56%[18] - Stockholders' deficit increased to $(11,449) million as of September 30, 2025, compared to $(1,188) million at the end of 2024, indicating a deterioration in equity position[18] Profitability Metrics - Gross profit for Q3 2025 was $15,642 million, up from $13,252 million in Q3 2024, representing a growth of 18%[30] - Non-GAAP gross profit for the nine months ended September 30, 2025, reached $46,223 million, compared to $38,594 million for the same period in 2024, an increase of 20%[30] - The company reported a gross margin of 90% for both Q3 2025 and Q3 2024, indicating stable profitability[30] Expenses - Research and development expenses for Q3 2025 were $12,648 million, compared to $11,923 million in Q3 2024, reflecting a rise of 6%[30] - Sales and marketing expenses increased to $6,850 million in Q3 2025 from $4,962 million in Q3 2024, marking a significant increase of 38%[30] - Non-GAAP research and development expenses for the nine months ended September 30, 2025, were $30,357 million, up from $27,645 million in 2024, an increase of 10%[30] Strategic Initiatives - Arteris expanded partnerships with companies like Altera and AMD, enhancing its product offerings[6] - The company joined the Ultra Accelerator Link Consortium (UALink) to support AI data movement in chiplets and SoCs[6] Performance Indicators - Annual Contract Value (ACV) metrics are used to assess the total fixed fees under customer agreements, indicating future revenue potential[26] - Confirmed Design Starts are tracked to evaluate customer activity in new semiconductor designs, serving as a growth indicator for future royalty revenues[27] - Remaining Performance Obligations (RPO) reached a significant level, representing contracted future revenue not yet recognized[28] - Non-GAAP net loss for the period provides a clearer view of operational performance, excluding stock-based compensation and amortization of acquired intangible assets[22] - The weighted-average shares used in computing net loss per share increased to 42,743,518 in Q3 2025 from 39,295,743 in Q3 2024, reflecting a growth of 6%[30]