greeksoup/ stock research

Arteris, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 12 February 2026: press release. Guidance figures: 8 new. The quarter’s numbers.

Key takeaways

  • Record ACV plus royalties reached $83.6 million: ACV plus royalties was $83.6 million, up 28% year over year, the highest level reported by the company. Source
  • Quarterly revenue rose 30 percent: Revenue was $20.1 million, up 30% from $15.5 million a year earlier. Licensing, support and maintenance was $17.5 million, and variable royalties and other was $2.6 million. Source
  • Remaining performance obligations reached $116.8 million: RPO was $116.8 million, up 32% year over year and the highest level reported. It was $104.7 million at September 30, 2025. Source
  • FlexGen adoption reached over 30 deployments: FlexGen smart NoC IP ended the year with more than 30 production device deployments across 10 different customers. Source
  • Full year revenue rose 22 percent: Full year revenue was $70.6 million, up 22%, and variable royalties were $6.6 million, up 50%. Source
  • Results set against 2025 estimates: Full year revenue of $70.6 million compares with the $68.8 million to $69.2 million range from the November 4, 2025 update. Fourth quarter ACV plus royalties was above the $74.0 million to $78.0 million estimate.
  • NXP expanded use across AI silicon: NXP expanded its use of Arteris products, including Ncore, FlexNoC, CodaCache and Magillem, for AI-enabled silicon in vehicles, industrial systems and consumer electronics. Source
  • Quarter free cash flow was positive: Free cash flow was $3.0 million, or 15% of revenue, against negative $2.7 million a year earlier. Operating cash flow was $3.2 million; full year free cash flow was $5.3 million, or 8% of revenue. Source

“In the fourth quarter of 2025, we again delivered strong financial results, including a new record of Annual Contract Value plus royalties reaching $83.6 million, representing 28% year-over-year growth.”

K. Charles Janac, President and CEO of Arteris

Guidance

AreaPeriodFigureAgainst last quarter
ACV plus royalties Sourcefirst quarter 2026$85.0 - $89.0New
ACV plus royalties Sourcefull year 2026$100.0 - $104.0New
Revenue Sourcefirst quarter 2026$20.5 - $21.5New
Revenue Sourcefull year 2026$89.0 - $93.0New
Non-GAAP operating loss Sourcefirst quarter 2026$2.5 - $3.5New
Non-GAAP operating loss Sourcefull year 2026$5.0 - $9.0New
Free cash flow Sourcefirst quarter 2026($1.5) - $1.5New
Free cash flow Sourcefull year 2026$5.0 - $9.0New

What changed from last quarter

  • New guidance: First quarter and full year 2026 estimates were given for ACV plus royalties, revenue, non-GAAP operating loss and free cash flow. Source
  • New: The acquisition of Cycuity closed in January 2026. Source

Fourth quarter results and drivers

  • Record ACV plus royalties reached $83.6 million: ACV plus royalties was $83.6 million, up 28% year over year, the highest level reported by the company. Source
  • Quarterly revenue rose 30 percent: Revenue was $20.1 million, up 30% from $15.5 million a year earlier. Licensing, support and maintenance was $17.5 million, and variable royalties and other was $2.6 million. Source
  • Royalties grew 50% as systems passed four billion: Customers passed more than four billion systems shipped with SoCs connected by Arteris System IP, and royalties grew 50% year over year in the quarter. Source

Order book and customer adoption

  • Remaining performance obligations reached $116.8 million: RPO was $116.8 million, up 32% year over year and the highest level reported. It was $104.7 million at September 30, 2025. Source
  • FlexGen adoption reached over 30 deployments: FlexGen smart NoC IP ended the year with more than 30 production device deployments across 10 different customers. Source
  • Projection excludes flexible spending accounts: The projection of RPO recognized in 2026 excludes cancelable and non-cancelable Flexible Spending Accounts. Source

“our recent acquisition of Cycuity strengthens Arteris’ ability to help customers secure data movement in silicon through proven technology and deep domain expertise.”

K. Charles Janac, President and CEO of Arteris

Full year 2025 results

  • Full year revenue rose 22 percent: Full year revenue was $70.6 million, up 22%, and variable royalties were $6.6 million, up 50%. Source
  • Full year net loss was $34.7 million: Net loss was $34.7 million, or $0.82 per share, compared with $33.6 million, or $0.86 per share, in 2024. Source
  • Non-GAAP net loss narrowed to $14.1 million: Non-GAAP net loss was $14.1 million, or $0.33 per share, against $16.9 million, or $0.43 per share, in 2024. Source
  • Results set against 2025 estimates: Full year revenue of $70.6 million compares with the $68.8 million to $69.2 million range from the November 4, 2025 update. Fourth quarter ACV plus royalties was above the $74.0 million to $78.0 million estimate.

Products and customer wins

  • NXP expanded use across AI silicon: NXP expanded its use of Arteris products, including Ncore, FlexNoC, CodaCache and Magillem, for AI-enabled silicon in vehicles, industrial systems and consumer electronics. Source
  • Black Sesame licenses Ncore and FlexNoC: Black Sesame is licensing Ncore and FlexNoC IP for its next-generation advanced automotive semiconductors. Source
  • Blaize deployed FlexNoC for AI platform: Blaize deployed FlexNoC IP for its Blaize AI platform, which spans edge and cloud-based AI. Source
  • Founding member of CHASSIS program: Arteris is a founding member of the CHASSIS program, led by Bosch, which aims to create an open automotive chiplet platform. Source

Cycuity acquisition and positioning

  • Cycuity scope covers IP blocks to firmware: Management said the Cycuity acquisition enables customers to improve security in IP blocks, chiplets, SoCs and firmware. Source
  • Cycuity acquisition costs excluded from non-GAAP: Acquisition-related costs of $1.4 million for Cycuity were recorded in general and administrative and excluded from non-GAAP measures. Source
  • Chiplet and AI complexity cited for positioning: Management said AI use in semiconductors and the rise of chiplet-based, multi-die architectures leave the company well positioned. Source

Operating costs and profit measures

  • Non-GAAP operating expenses rose: Non-GAAP operating expenses were $20.8 million in the quarter, against $16.9 million a year earlier. GAAP operating expenses were $26.7 million. Source
  • GAAP operating loss widened, non-GAAP narrowed: GAAP operating loss was $8.5 million, against $7.1 million. Non-GAAP operating loss was $2.2 million, against $2.8 million, and the net loss was $8.5 million, or $0.19 per share. Source
  • Stock-based compensation rose year over year: Stock-based compensation was $4.6 million in the quarter, against $4.1 million a year earlier, and $18.4 million for the year. Source

Cash flow, balance sheet and shares

  • Quarter free cash flow was positive: Free cash flow was $3.0 million, or 15% of revenue, against negative $2.7 million a year earlier. Operating cash flow was $3.2 million; full year free cash flow was $5.3 million, or 8% of revenue. Source
  • Cash and investments held at year end: Cash and cash equivalents were $33.9 million and short-term investments were $20.7 million at December 31, 2025, with $4.9 million in long-term investments. Source
  • Stockholders' deficit widened to $14.6M: Total stockholders’ deficit was $14.6 million at December 31, 2025, against $1.2 million a year earlier. Source
  • Deferred revenue rose in both categories: Current deferred revenue was $51.4 million and noncurrent deferred revenue was $44.0 million at December 31, 2025, against $40.4 million and $35.2 million a year earlier. Source
  • Shares outstanding rose to 44.3 million: Shares outstanding were 44,268,816 at December 31, 2025, against 40,724,936 a year earlier. Source

Figures management reported

FigureReported
Gross margin (GAAP), fourth quarter 2025 Source91%
Non-GAAP gross margin, fourth quarter 2025 Source92%
Backlog (RPO) Source$116.8 million

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.