Financial Performance - Revenue for 1Q 2025 reached $16.5 million, a 28% year-over-year increase[11] - ACV (Annual Contract Value) plus Royalties hit a record high of $66.8 million in 1Q 2025, up 15% year-over-year[9, 11] - Remaining Performance Obligation (RPO) increased to $88.9 million, a 19% year-over-year growth[11] - Non-GAAP gross profit was $15.3 million with a gross margin of 92%[11] - Non-GAAP operating expenses were $18.4 million, an 8% year-over-year increase[12] - Non-GAAP operating loss was $3.2 million, a 40% year-over-year improvement[12] - Free cash flow was $2.7 million, a $2.4 million year-over-year increase[9, 13] - Cash, cash equivalents, and investments totaled $55.1 million[13] Guidance - The company projects 2Q 2025 ACV plus Royalties to be between $66 million and $70 million, and revenue to be between $16.1 million and $16.5 million[15] - The company projects FY 2025 ACV plus Royalties to be between $71 million and $79 million, and revenue to be between $65 million and $71 million[15]

Core Insights - Arteris, Inc. reported strong financial results for Q1 2025, achieving record annual contract value plus royalties of $66.8 million, a 15% increase year-over-year, and positive free cash flow of $2.7 million [2][6]. Financial Highlights - Revenue for Q1 2025 was $16.5 million, representing a 28% increase year-over-year [6]. - Non-GAAP operating loss decreased to $3.2 million from $5.3 million in Q1 2024 [6]. - Net loss for the quarter was $8.1 million, or $0.20 per share, compared to a net loss of $9.4 million, or $0.25 per share, in Q1 2024 [6][16]. - Remaining performance obligations (RPO) reached $88.9 million, up 19% year-over-year [6]. Business Highlights - The company experienced strong demand across key verticals: enterprise computing, communications, and automotive semiconductors, driven by the adoption of chiplets and AI compute [2][6]. - Arteris expanded its customer base, adding another top global automotive OEM, bringing the total to 10 automotive OEMs [6]. - The company joined the Intel Foundry Accelerator program, enhancing its network of ecosystem partners [6]. - Arteris received three awards at the annual American Business Awards, including gold for Most Innovative Tech Company of the Year [6]. Guidance - For Q2 2025, Arteris expects annual contract value plus royalties to be between $66.0 million and $70.0 million, with revenue projected between $16.1 million and $16.5 million [7]. - Full-year 2025 guidance for annual contract value plus royalties is set at $71.0 million to $79.0 million, with revenue expected between $65.0 million and $71.0 million [7].