Core Insights - Masayoshi Son, the billionaire investor, has made a significant investment in OpenAI, totaling $34 billion, with plans to invest an additional $30 billion in the next funding round, highlighting his belief in AI as "humanity's future" [1] Financial Performance - SoftBank reported a profit of $1.6 billion in the winter quarter, a turnaround from a loss of $2.4 billion in the same quarter the previous year, largely driven by returns from OpenAI [2] - The company made $4.3 billion from its OpenAI investment last quarter, contributing to a total of $17 billion in returns for the previous year, which significantly bolstered its second Vision Fund [3] Investment Strategy - SoftBank is increasing its investment in OpenAI while reducing stakes in other companies, such as selling Nvidia for $5.8 billion and cutting its T-Mobile investment by $12.7 billion, indicating a strategic focus on AI [3] - The company has taken on $27 billion in debt in the winter quarter to support its investments, reflecting its aggressive approach to funding [3] Market Position and Future Prospects - SoftBank's shares have nearly doubled over the past year, suggesting positive market sentiment towards its investments, particularly in AI [2] - The company has a significant portion of its assets, 60%, tied to "Artificial Superintelligence," indicating a strong commitment to future tech [5] - SoftBank is also a leading investor in initiatives aimed at building AI infrastructure in the US, including the $500 billion Stargate project and a project backed by Japan's planned $550 billion investment in AI [5]

Core Viewpoint - Arm, a company deeply embedded in the semiconductor industry, faces challenges despite its widespread design usage in smartphones and connected devices. The company is optimistic about future growth driven by artificial intelligence, even as its stock price has declined due to weak demand in consumer electronics [2][3]. Group 1: Company Overview - Arm does not sell chips but licenses its designs, allowing clients to modify and produce chips themselves, generating revenue through upfront licensing fees and royalties [2]. - The company has shipped over 300 billion chips, with more than 30 billion shipped in the last year alone [2]. Group 2: Market Dynamics - Despite the growth in the Philadelphia Semiconductor Index by 65% since early 2025, Arm's stock has decreased by 2% due to sluggish demand in smartphones and consumer electronics [2]. - The rise of artificial intelligence is expected to stimulate demand for Arm's chips, particularly in data centers, which are increasingly reliant on both GPUs and CPUs [4]. Group 3: Strategic Choices - Arm may need to evolve from merely selling design blueprints to developing its own chips to capture more value from the AI boom, which could alienate existing clients [3][6]. - The company is exploring new revenue streams through pre-assembled processor modules, which could triple income per chip compared to traditional designs [5]. Group 4: Financial Performance - Analysts project Arm's revenue for the current fiscal year to be around $5 billion, with half coming from patent royalties and the other half from licensing fees, marking a 20% growth from 2025 [4][5]. - The patent royalty per mobile chip was approximately $0.86, representing 2.5% to 5% of the chip's price [5]. Group 5: Competitive Landscape - Arm's revenue is significantly lower compared to major chip manufacturers like Nvidia and Intel, highlighting the need for strategic shifts to enhance profitability [5]. - The company faces competition from China's push for RISC-V architecture, which is seen as a domestic alternative to Arm and Intel designs [7]. Group 6: Future Outlook - Arm's CEO expresses concern over the company's ability to keep pace with the rapid evolution of AI technologies, as chip design and manufacturing can take years, while AI models can evolve in months [7]. - The company's ownership structure, with SoftBank holding over 85% of shares, may influence its strategic direction, particularly as SoftBank seeks to build a competitive chip portfolio [6].

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $20.1 million, up 16% sequentially and 30% year-over-year, exceeding guidance [20] - Full year 2025 total revenue reached $70.6 million, a 22% increase year-over-year [20] - Annual contract value plus royalties was $83.6 million, a 28% year-over-year increase, marking a new record [21] - Remaining performance obligations (RPO) totaled $117 million, representing a 32% year-over-year increase, another record high [21] - Non-GAAP gross profit for Q4 was $18.5 million, with a gross margin of 92% [22] - GAAP operating loss for Q4 was $8.5 million, compared to a loss of $7.1 million in the prior year [25] Business Line Data and Key Metrics Changes - Variable royalties increased by 50% year-over-year, with Q4 setting a new record [20] - FlexGen, an AI-driven smart NoC IP product, saw strong customer adoption, licensed for over 30 production device deployments [11] - Ncore, a cache coherent interconnect IP product, also experienced strength in licensing across various edge and server applications [12] Market Data and Key Metrics Changes - The largest impacts on revenue were seen in enterprise computing, automotive, and consumer electronics markets [7] - The number of large royalty reporters tripled in the last two years, indicating a diversified customer base [20] Company Strategy and Development Direction - The acquisition of Cycuity enhances Arteris' product portfolio, focusing on semiconductor cybersecurity assurance [8] - The company aims to address the growing need for cybersecurity in semiconductor designs, which is becoming a major issue [10] - Arteris is positioned to support semiconductor applications in the AI era across various sectors, including automotive and aerospace [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting to report a non-GAAP operating profit as early as Q4 2026 [28] - The company anticipates continued strong demand for its products driven by the proliferation of AI-driven semiconductor designs [7] Other Important Information - Free cash flow was positive $3 million for Q4 and positive $5.3 million for the full year [26] - The company ended the year with $59.5 million in cash and no financial debt [26] Q&A Session Summary Question: Cross-sell opportunities and customer segments - Management highlighted that hardware security assurance is a major issue, opening significant cross-sell opportunities across the semiconductor industry [30][31] Question: NXP's increased use of Arteris solutions - Management confirmed that deploying multiple solutions increases average selling prices significantly, especially with the addition of Cycuity [35][36] Question: Strength in royalties and market segments - Management noted that the growth in royalties was due to both customer diversification and strength in various market segments, particularly automotive [37][38] Question: Impact of security acquisition on P&L - Management indicated that approximately $7 million of the projected revenue for 2026 would come from Cycuity, with expectations of breakeven by Q4 2026 [45][46]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue reached $20.1 million, a 30% year-over-year increase and 16% sequential growth, exceeding guidance [20] - For the full year 2025, total revenue was $70.6 million, representing a 22% increase year-over-year [20] - Annual contract value plus royalties hit a record $83.6 million, up 28% year-over-year [21] - Remaining performance obligations (RPO) totaled $117 million, a 32% year-over-year increase, with approximately half expected to be recognized as revenue in 2026 [21] - Non-GAAP gross profit for Q4 was $18.5 million, with a gross margin of 92% [22] - Non-GAAP operating loss for Q4 was $2.2 million, while the full year loss was $12.5 million, an improvement over the previous year [25] Business Line Data and Key Metrics Changes - The company reported a significant increase in variable royalties, which were 50% higher year-over-year, with Q4 setting a new record [20] - The number of large royalty reporters tripled over the last two years, contributing to a balanced mix of customers across vertical markets [20] - FlexGen, an AI-driven smart NoC IP product, saw strong adoption with over 30 production device deployments [11] - Ncore, a cache coherent interconnect IP product, also experienced strength in licensing across various applications [12] Market Data and Key Metrics Changes - The company noted expanding demand for AI-driven semiconductor designs across various markets, including enterprise computing, automotive, and consumer electronics [6] - The number of chiplet projects incorporating Arteris technology has more than tripled over the past two years, indicating strong market growth [15] - The automotive segment remains the largest vertical market, with emerging strength in consumer and aerospace sectors [39] Company Strategy and Development Direction - The acquisition of Cycuity enhances the company's product portfolio by adding cybersecurity assurance products, addressing market concerns about increasing cyberattacks [8][9] - The company aims to leverage its technology to improve hardware security and vulnerability testing across all SoCs, expanding its customer base [10] - Arteris is focusing on supporting semiconductor applications in the AI era, with a strong position in various sectors including autonomous vehicles and industrial automation [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, expecting to report a non-GAAP operating profit as early as Q4 2026 [28] - The company anticipates continued strong demand for its products driven by the rise of AI and the need for efficient data movement in semiconductors [6] - Management highlighted the importance of addressing cybersecurity in semiconductor designs, which is becoming a critical issue in the industry [30] Other Important Information - The company ended the year with $59.5 million in cash and no financial debt, with positive free cash flow of $3 million for Q4 [26] - The guidance for Q1 2026 includes expected ACV plus royalties of $85 million-$89 million and revenue of $20.5 million-$21.5 million [27] Q&A Session Summary Question: Cross-sell opportunities and customer segments - Management indicated that hardware security assurance is a growing issue, and the acquisition opens significant opportunities to enhance system IP value across various semiconductor companies [30][31] Question: NXP announcement and customer interest - Management confirmed that NXP is now using four solutions, indicating increased interest in deploying a full suite of solutions, which could drive average selling prices above $1 million [36] Question: Strength in royalties and market segments - Management noted that the growth in royalties is attributed to both customer diversification and an increase in large royalty reporters across various segments, including automotive and consumer markets [38][39] Question: Impact of security on P&L - Management clarified that approximately $7 million of the projected revenue for 2026 is expected from the Cycuity acquisition, with a slight contribution to operating loss anticipated [47] Question: Equity raising efforts post-acquisition - Management stated that they are in the process of activating an ATM for equity raising, with expectations for small amounts to be raised in the first quarter [49]

Arteris 4Q 2025 Earnings Presentation Charlie Janac CEO Nick Hawkins CFO February 12, 2026 1 © 2026 Arteris, Inc. Disclaimer This presentation and the accompanying oral presentation have been prepared by Arteris, Inc. ("Arteris" or "the "Company") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Arteris or any officer, director, employee, agent or advisor of Art ...

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Core Insights - SoftBank Group returned to profitability in Q4 2025, reporting a profit of 248.6 billion yen ($1.62 billion), a significant turnaround from a loss of 369 billion yen in the same quarter the previous year [1] - Quarterly sales increased by 8% to 1.98 trillion yen ($12.9 billion) [1] Investment Focus - SoftBank sold its stake in Nvidia for $5.8 billion in October, aligning with its strategy focused on artificial intelligence [2] - The company has invested nearly $35 billion in OpenAI, acquiring an 11% ownership interest, which has generated investment gains [2] Acquisitions and Ventures - SoftBank acquired Ampere, a U.S.-based semiconductor design company, for $6.5 billion, making it a wholly owned subsidiary [3] - The company reached an agreement to acquire ABB's robotics business for $5.375 billion, pending regulatory approval in multiple regions [3] Financial Performance - For the nine months ending December, SoftBank reported a profit of 3.17 trillion yen ($20.7 billion), approximately five times higher than the previous year [4] - Nine-month sales increased nearly 8% to 5.7 trillion yen ($37 billion) [4] - The CFO noted that investments are beginning to yield returns [4] Diverse Investment Gains - Gains are attributed not only to OpenAI but also to investments in Arm, an AI semiconductor company [5] - SoftBank's financial performance is characterized by volatility due to its aggressive investment strategy in innovative technologies [5] - Shares of SoftBank Group rose by 2.4% following the announcement [5]

Core Insights - Arm reported Q3 FY26 revenue of $1.24 billion, a 26% year-over-year increase, slightly above market expectations of $1.23 billion [4] - Despite a high gross margin of 97.4%, GAAP operating profit was low at $185 million, below the expected $246 million, primarily due to high R&D expenses [3][4] - Management indicated that the growth in data center revenue is expected to surpass mobile revenue in 2-3 years, driven by custom chips for large cloud service providers [10][12] Financial Performance - Revenue: $1.24 billion, up 26% YoY, exceeding the guidance of $1.23 billion [4] - GAAP Gross Margin: 97.4%, a slight increase of 0.4 percentage points YoY, but below the expected 97.7% [4] - GAAP Operating Profit: $185 million, a 6% increase YoY, but below the expected $246 million; GAAP operating margin at 15%, down 3 percentage points YoY [4] - Non-GAAP Net Profit: $457 million, up 10% YoY, exceeding expectations of $438 million; Non-GAAP net margin at 37%, down 5 percentage points YoY [4] Business Segments - License & Other Revenue: $505 million, a 25% YoY increase; 50 Arm Total Access contracts signed, with a 7% annual fee increase [7] - Royalty Revenue: $737 million, a 26% YoY increase, driven by growth in data centers and mobile; data center royalty revenue has doubled YoY [10] Market Outlook - Management expects Q4 revenue of $1.47 billion, an 18% YoY increase, with Non-GAAP net profit projected at $620 million, a 6% increase [12] - Anticipated growth in Royalty revenue in Q4 is expected to be in the low double digits, while License revenue is expected to grow in the high double digits [12] - Management's guidance for FY27 indicates a reasonable expectation of 20% revenue growth [12] Strategic Insights - The demand for server CPUs is being driven by Agentic AI, which aligns with Arm's strengths in energy efficiency [12] - The first generation of CSS royalty fees is significantly higher than previous generations, indicating a potential for increased revenue from new mobile devices [12] - Management expressed concerns about the impact of a potential 20% decrease in mobile shipments on royalty revenue, estimating a 4-6% impact on mobile royalty income [12]

Group 1 - The majority of AI-related stocks in the US market experienced an increase, with Supermicro Computer (SMCI.O) and Arm (ARM.O) rising by 10% [1] - AMD (AMD.O) saw an increase of over 8% [1] - NVIDIA (NVDA.O) rose by more than 7% [1]

Group 1 - The core viewpoint of the report is that Arm, a UK chip designer under SoftBank, has slightly exceeded revenue and profit expectations for the third quarter of the fiscal year ending December 2026, indicating strong growth momentum and characteristics of a growth stock [1] - Arm's revenue and earnings per share are projected to have a compound annual growth rate (CAGR) of over 20% and 25% respectively, which supports its premium valuation [1] - The report highlights two short-term concerns for the market: the impact of memory price/supply fluctuations on Arm's patent fees in the mobile segment, and the investment scale required for Arm's entry into the physical chip market [1] Group 2 - Regarding the memory risk, Arm assesses that the impact on patent fees for the fiscal year 2027 will be a low single-digit percentage, which can be offset by its data center business [1] - Based on the growth of the overall potential market for cloud AI (TAM) and the proliferation of CSS technology, the revenue forecasts for Arm for the fiscal years 2026 and 2027 have been raised by 1%, expecting strong growth of 23% and 21% respectively [1] - The target price for Arm has been adjusted from $200 to $190, maintaining a "buy" rating [1]