Core Viewpoint - Arbe Robotics Ltd. has successfully closed a public offering of 13,225,000 ordinary shares at a price of $1.40 per share, generating approximately $18.5 million in gross proceeds for working capital and general corporate purposes [1][2]. Group 1: Offering Details - The offering included 1,725,000 shares from the underwriters' over-allotment option [1]. - Canaccord Genuity served as the sole bookrunner, with Roth Capital Partners and WestPark Capital as co-managers [2]. - The offering was conducted under a registration statement filed with the SEC, which became effective on June 13, 2025 [3]. Group 2: Company Overview - Arbe Robotics is a leader in ultra-high-resolution radar solutions, providing technology that enhances safety in driving systems from ADAS to full vehicle autonomy [4]. - The company's radar chipset offers up to 100 times more detail than existing systems, enabling real-time, 4-dimensional imaging for various vehicle segments [4]. - Arbe operates globally with offices in the United States, Germany, and China, focusing on transforming the role of radar in next-generation mobility [5].

Group 1: Strategic Partnership - BigBear.ai has formed a strategic partnership with C Speed to enhance its presence in the defense and homeland security markets [1] - The integration of BigBear's ConductorOS AI platform with C Speed's LightWave Radar system aims to develop autonomous threat detection capabilities for military and border security applications [2] - This partnership allows for real-time AI-driven threat detection at the sensor level, addressing critical national security needs [2] Group 2: Market Access and Technology Integration - C Speed's radars are already utilized in various Department of Homeland Security and Department of Defense missions, providing BigBear with access to established government customers [3] - The integrated solution is expected to improve threat response times through AI-powered sensor fusion and autonomous mode switching across different threat environments [3] - The partnership signifies a strategic shift towards embedding AI capabilities directly into defense hardware, fostering stronger customer relationships and recurring revenue streams in government contracting [4] Group 3: Financial Performance - In Q3 of 2025, BigBear.ai reported revenue of $33.1 million, a decrease from $41.5 million in the same period last year, attributed to lower volume on Army programs [5] - Gross margins narrowed from 25.9% to 22.4% over the past year due to the absence of certain higher-margin contracts [5] - The company experienced an adjusted EBITDA loss of $9.4 million, a decline from a profit of $900,000 in the previous year, primarily due to increased selling, general, and administrative expenses [6] Group 4: Expense Management - Management indicated that the increase in expenses was due to $4.3 million in additional labor costs for growth initiatives, $2 million in nonrecurring strategic expenses, and $1.4 million in marketing investments [7] - Despite operational losses, BigBear reported a net income of $2.5 million for the quarter, driven by a $26 million gain from remeasuring the convertible features of its outstanding notes [8] - This accounting adjustment may obscure underlying operational challenges and should not be interpreted as a reflection of business performance [8]

Core Insights - Arbe Robotics reported strong strategic progress in Q3 2025, with advancements in evaluations with leading OEMs and expectations to secure key automated-driving program wins [3][5] - The company is experiencing increased demand in both automotive and non-automotive markets, including a recent win in boat-collision prevention [3][5] - Arbe's technology is positioned to support the automotive industry's shift towards Level 3 autonomy, which requires advanced radar capabilities [3][5] Financial Performance - Q3 2025 revenues were $0.3 million, up from $0.1 million in Q3 2024, with a backlog of $0.2 million as of September 30, 2025 [4] - Gross profit for Q3 2025 was negative $0.2 million, an improvement from negative $0.3 million in Q3 2024 [4] - Operating expenses decreased to $11.3 million in Q3 2025 from $12.2 million in Q3 2024, primarily due to lower share-based compensation [6] - Net loss for Q3 2025 was $11 million, compared to a net loss of $12.6 million in Q3 2024 [7] Balance Sheet and Liquidity - As of September 30, 2025, Arbe had $52.6 million in cash and cash equivalents, with shareholders' equity at $49.1 million [9] - The company complies with financial covenants and maintains cash levels above the minimum threshold [9] Strategic Outlook - Arbe aims to secure four design wins with OEMs in the next three quarters, with expected revenues for 2025 in the range of $1 to $2 million [13] - The company anticipates meaningful revenue growth beginning in 2027, supported by strong engagement with top OEMs and Tier 1 suppliers [10][11] - Arbe's leadership in high-resolution radar is recognized by major automotive decision-makers, despite some OEMs delaying new model launches due to global economic shifts [11]

Core Insights - Arbe Robotics has partnered with Sensrad to provide the Hugin D1 radar for WATCHIT's collision prevention system for recreational boats, marking a significant advancement in maritime safety technology [1][4][5] Company Overview - Arbe Robotics is a global leader in ultra-high-resolution radar solutions, offering a chipset that delivers up to 100 times more detail than traditional radar systems, enabling advanced safety features in various vehicle segments [5] - Sensrad, a Tier-1 radar supplier based in Sweden, has developed the Hugin D1 radar, which is versatile and customizable for multiple industries, including boating and robotics [3][5] Product Development - The Hugin D1 radar was selected after a six-month evaluation by WATCHIT, emphasizing its reliability and precision in diverse weather and lighting conditions [2][3] - The radar system is inspired by automotive safety technology, utilizing proximity sensing and marine AI to autonomously assess risks [3] Strategic Collaborations - The collaboration between Arbe and Sensrad is pivotal in delivering advanced imaging radar solutions to the boating industry, enhancing safety and perception for recreational boating [4][5] - Sensrad has placed a significant order for Arbe chipsets to be used in various programs, including initiatives in autonomous vehicles and defense projects [4]

Financial Performance - Q2 2025 revenue was $0.3 million, compared to $0.4 million in Q2 2024[8] - Q2 2025 gross margin loss was $0.2 million, compared to $0.04 million in Q2 2024[8] - Q2 2025 R&D expenses were $8.2 million, compared to $7.9 million in Q2 2024[10] - Q2 2025 net loss was $10.2 million, compared to $11.7 million in Q2 2024[10] - Q2 2025 adjusted EBITDA was $(8.5) million, compared to $(7.5) million in Q2 2024[10] Balance Sheet - As of June 30, 2025, cash and cash equivalents & bank deposits were $62 million[13, 14] 2025 Guidance - Expected revenue for 2025 is $2 million to $5 million[18] - Adjusted EBITDA for 2025 is expected to be $(29) million to $(35) million[19]

Financial Performance - Revenue for Q1 2025 was $0.04 million, compared to $0.1 million in Q1 2024[7] - Gross Margin Loss remained constant at $(0.3) million in both Q1 2024 and Q1 2025[7] - Total Expenses increased from $9.4 million in Q1 2024 to $9.7 million in Q1 2025[10] - Net Loss increased from $(12.8) million in Q1 2024 to $(13.8) million in Q1 2025, which includes $45K and $457K financial expenses respectively[10] - Adjusted EBITDA improved from $(8.2) million in Q1 2024 to $(7.5) million in Q1 2025[10] Balance Sheet - Cash and cash equivalents & bank deposits totaled $71.9 million as of March 31, 2025[13] 2025 Guidance - The company anticipates 4 OEM Design-ins in 2025[17] - Adjusted EBITDA is projected to be between $(29) million and $(35) million for 2025[18]

Financial Performance (Q4 2024 vs Q4 2023) - Q4 Revenue increased from $0.35 million to $0.1 million[5] - Q4 Gross Margin Loss remained at ($0.2) million[8] - Q4 Operating Expenses increased from $8.4 million to $9 million[11] - Q4 Net Loss increased from ($9.3) million to ($12.2) million[14] Financial Performance (FY 2024 vs FY 2023) - Yearly Revenue increased from $0.8 million to $1.5 million[5] - Yearly Gross Margin Loss decreased from ($0.8) million to ($0.0) million[8] - Operating Expenses increased from $34.1 million to $35.1 million[11] - Operating Loss increased from ($46.9) million to ($49.6) million[11] - Net Loss increased from ($43.5) million to ($49.3) million[14] Balance Sheet & Guidance - Cash and cash equivalents & bank deposits stand at $24.6 million as of December 31, 2024[17] - The company projects Adjusted EBITDA between ($29) million and ($35) million for 2025[22]

Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was $0.1 million, a decrease from $0.35 million in Q4 2023. For the full year 2024, total revenue was $0.8 million compared to $1.5 million in 2023 [17] - Gross margin loss for Q4 2024 was $0.2 million, consistent with Q4 2023. The full year gross margin loss for 2024 was $0.8 million compared to a break-even gross margin in 2023 [18] - Operating loss for Q4 2024 was $12.8 million, compared to a loss of $12.1 million in Q4 2023. The full year operating loss totaled $49.7 million, up from $46.9 million in 2023 [21] - Net loss in Q4 2024 was $12.2 million, compared to a net loss of $9.3 million in Q4 2023. The full year net loss for 2024 was $49.3 million, compared to a loss of $43.5 million in 2023 [21] Business Line Data and Key Metrics Changes - The company reported a backlog of $0.3 million as of December 31, 2024 [18] - R&D expenses for Q4 2024 were $9 million, up from $8.4 million in Q4 2023. For the full year, R&D expenses totaled $35.1 million compared to $34.1 million in 2023 [20] Market Data and Key Metrics Changes - The company highlighted significant opportunities for growth in the non-automotive market, particularly through collaborations with key partners [12] - The company expects to ship around 5 million imaging radar chipsets to customers by 2030 based on current engagements [13] Company Strategy and Development Direction - The company is focused on driving radar technology evolution and enhancing customer relationships, with a commitment to innovation [5][6] - Collaborations with major players like NVIDIA and partnerships with top global auto OEMs are central to the company's strategy [7][8] - The company aims to pursue four design-ins with automakers in 2025, with projected annual revenue between $2 million to $5 million [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while broader economic shifts have led to delays in automakers' rollout of advanced driver assist systems, the total addressable market continues to expand [24] - The company remains optimistic about its market potential, supported by recent fundraising initiatives totaling nearly $17 million [15][23] Other Important Information - The company raised gross proceeds of $54.5 million in January 2025, enhancing its financial stability [23] - The company maintains a strong focus on R&D to ensure continuous innovation and technological advancements [20] Q&A Session Summary Question: What programs are expected to drive $1 million-plus revenue quarters towards the end of 2025? - Management identified three leading projects in final stages: Tianyi (non-automotive), trucks in Europe, and a collaboration with HiRain for a Chinese car manufacturer [31] Question: What is the current cash balance and share count post-fundraising? - The current cash balance is approximately $73 million, with a share count of 85.7 million [35][38] Question: Can you provide an update on the China EV market opportunity? - The company noted that Chinese car manufacturers are focusing on launching self-driving services and are looking for radar solutions to enhance their offerings [39] Question: What is the status of discussions with OEMs? - Management indicated that evaluations with OEMs are in final stages, with the company shortlisted against one or two competitors [44] Question: What is the expected operating expense trajectory over the next few years? - The company expects operating expenses to remain similar over the next few years, with additional investments in next-generation technologies [47]