Arteris (AIP) Investor presentation summary

Market trends and technology drivers

• AI workloads are rapidly expanding in data centers and at the edge, driving demand for advanced semiconductor solutions.

• Data movement, not just compute, is now the primary bottleneck in high-performance systems.

• Power efficiency is increasingly critical as data center electricity demand is projected to nearly double by 2030, with energy for data movement outpacing compute.

• Chiplet-based multi-die architectures are emerging to meet rising computational needs beyond traditional monolithic designs.

• Cybersecurity threats are escalating, with attacks becoming easier and regulatory requirements increasing across industries.

Product and business highlights

• Offers network-on-chip IP, SoC integration software, and cybersecurity solutions for secure and efficient data movement.

• Over 4 billion units shipped and 975+ SoC design starts, with a diversified customer base including 9 of the top 10 semiconductor companies.

• Recent product expansions include chiplet solutions, FlexGen smart NoC IP, and Magillem Registers.

• Acquisitions such as Cycuity and Semifore have strengthened the portfolio, especially in security.

• Customer retention rate is approximately 90% over the past three years.

Financial performance and outlook

• 2Q 2026 revenue reached $24.1M, above guidance, with ACV + royalties at $99.5M, also above guidance.

• Free cash flow was $8.6M, a record high and $11.4M higher year-over-year.

• Non-GAAP operating loss was $(4.6)M, below guidance due to higher payroll taxes.

• Record RPO of $135M, up 36% year-over-year, indicating strong future revenue visibility.

• FY 2026 guidance: revenue $95–98M, ACV + royalties $102–106M, free cash flow $5–9M.