Financial Performance - Q2 2025 - Revenue reached $16.5 million, a 13% year-over-year increase[11] - ACV (Annual Contract Value) plus Royalties hit $69.1 million, up 15% year-over-year[9, 11] - Remaining Performance Obligation (RPO) reached $99.3 million, a 28% year-over-year increase[9, 11] - Non-GAAP Gross Profit was $15.0 million, with a 91% margin[11] - Non-GAAP Operating Expenses were $18.6 million, a 10% year-over-year increase[12] - Non-GAAP Operating Loss was $3.5 million, flat year-over-year[12] - Free Cash Flow was negative $2.8 million[13] - Cash, Cash Equivalents & Investments remained at $53.9 million[13] Guidance - Q3 2025 ACV plus Royalties guidance is $69.5 million to $72.5 million[15] - Q3 2025 Revenue guidance is $16.8 million to $17.2 million[15] - FY 2025 ACV plus Royalties guidance is $72 million to $78 million[15] - FY 2025 Revenue guidance is $66 million to $70 million[15]

Core Insights - Arteris, Inc. reported record Annual Contract Value (ACV) plus royalties of $69.1 million for Q2 2025, marking a 15% year-over-year increase, and a Remaining Performance Obligation (RPO) of $99.3 million, up 28% year-over-year [2][7] - The company anticipates Q3 2025 ACV plus royalties in the range of $69.5 million to $72.5 million and full-year 2025 revenue guidance of $66.0 million to $70.0 million [6] Financial Highlights - Revenue for Q2 2025 was $16.5 million, reflecting a 13% increase year-over-year [7] - Non-GAAP operating loss for Q2 2025 was $3.5 million, unchanged from Q2 2024 [7] - Net loss for Q2 2025 was $9.1 million, or $0.22 per share, compared to a net loss of $8.3 million in Q2 2024 [7][18] Business Highlights - The company secured a licensing agreement with AMD for its FlexGen smart network-on-chip IP, aimed at enhancing data transport for AI chiplets [7] - Arteris announced a significant customer win with Whalechip, which is licensing FlexNoC 5 for high-performance AI computing [7] - The company expanded its multi-die solution to support Universal Chiplet Interconnect Express (UCIe) and collaborated with major partners for chiplet interface support [7] Guidance - Estimated Q3 2025 revenue is projected between $16.8 million and $17.2 million, with a full-year revenue forecast of $66.0 million to $70.0 million [6] - Non-GAAP operating loss for Q3 2025 is expected to be between $3.0 million and $4.0 million, with a full-year estimate of $10.5 million to $15.5 million [6] Cash Flow and Liquidity - Free cash flow for Q2 2025 was negative at $2.8 million, compared to positive free cash flow of $0.3 million in Q2 2024 [34] - The company ended Q2 2025 with cash and cash equivalents of $16.1 million, an increase from $13.7 million at the end of Q4 2024 [20]

Core Insights - Arteris, Inc. has launched Magillem Packaging, a software product aimed at simplifying and accelerating the chip design process for advanced applications such as AI data centers and edge devices [1][2] Company Overview - Arteris is a leader in system IP for semiconductors, focusing on enhancing the creation of high-performance and power-efficient silicon [6] - The company provides network-on-chip (NoC) interconnect IP and SoC integration automation software, utilized by top semiconductor and technology firms to improve performance and reduce costs [6] Product Features - Magillem Packaging automates the assembly and reuse of existing technology, addressing the complexities of modern chip design, which includes a growing number of silicon IP blocks and tighter timelines [2][3] - The software is based on the IEEE 1685 (IP-XACT) standard, ensuring compatibility with industry tools and silicon IP, which helps in reducing errors and delays during the design process [3][7] - It allows IP teams to package and prepare hundreds or thousands of components for integration into chiplets or SoCs, enhancing productivity and speeding up technology delivery [3] Industry Impact - The introduction of Magillem Packaging is expected to address integration challenges in semiconductor design, driven by the increasing complexity of chip designs and the rapid growth of chiplets [3] - Companies like Andes Technology and MIPS have recognized the value of Magillem Packaging in optimizing IP packaging and integration, which aligns with the industry's need for faster and more reliable SoC development [5]