Arbe Robotics (ARBE) Q2 2026 earnings summary

Executive summary

• Revenue growth in Q2 2026 was driven by diversification into defense, homeland security, automotive, and non-automotive markets, with significant new projects and framework agreements signed in defense and homeland security.

• Radar systems shipped for immediate operational needs in defense, integrated into robotaxi vehicles for on-road trials, and supported by ongoing bids and collaborations in automotive and commercial sectors.

• Progress in China through HiRain partnerships, advancing toward production for L4 OEM customers and competing in new RFIs and RFQs.

• Cost reduction initiatives, including AI-driven automation, resulted in a 15% expense reduction from Q1 2026 levels, with full impact expected in Q3 2026.

• Leadership transition with Assaf Pereg appointed as CFO effective August 30, 2026, succeeding Karine Pinto-Flomenboim.

Financial highlights

• Q2 2026 revenue was $0.7 million, up from $0.3 million in Q2 2025, marking the third consecutive quarter of growth.

• Gross loss for Q2 2026 was approximately $0, compared to a $0.2 million loss in Q2 2025.

• Operating expenses fell to $9.8 million from $11.3 million year-over-year, mainly due to lower share-based compensation and headcount reductions.

• Adjusted EBITDA loss was $8.7 million, slightly improved from $8.9 million in Q2 2025.

• Net loss narrowed to $9.1 million from $10.2 million year-over-year, with financial income rising to $2.7 million.

• Cash, cash equivalents, and bank deposits totaled $41.9 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance is set at $4 million to $6 million, with adjusted EBITDA loss projected between $28 million and $31 million.

• Cash burn targeted to fall below $7 million per quarter by Q3 2026.

• Management expects meaningful growth in the second half of 2026 into 2027, but timing of automotive OEM design wins remains uncertain due to long adoption cycles.