Arteris (AIP) Q4 2025 earnings summary

Executive summary

• Achieved record annual contract value plus royalties of $83.6 million in Q4 2025, up 28% year-over-year, driven by growth across enterprise computing, automotive, and consumer electronics.

• Customers shipped over 4 billion chips and chiplets using the company's Network-on-Chip IP, fueling royalty revenue.

• Closed the acquisition of Cycuity in January 2026, enhancing the product portfolio with semiconductor cybersecurity assurance and verification solutions.

• Strong customer adoption of FlexGen and Ncore IP, with FlexGen licensed for over 30 production device deployments across all major verticals.

• Expanded partnerships and collaborations, including with NXP, Black Sesame, Altera, and participation in industry initiatives like the TRISTAN Project and CHASSIS automotive chiplet platform.

Financial highlights

• Q4 2025 revenue was $20.1 million, up 16–30% year-over-year; full year 2025 revenue reached $70.6 million, up 22% year-over-year.

• Non-GAAP gross margin was 92% for both Q4 and the full year; GAAP gross margin was 91% for Q4 and 90% for the year.

• Non-GAAP operating loss for 2025 was $12.5 million, a 16% improvement year-over-year.

• Free cash flow was $3 million in Q4 and $5.3 million for the year, both up significantly year-over-year.

• Ended 2025 with $59.5 million in cash, cash equivalents, and investments, and no financial debt.

Outlook and guidance

• Q1 2026 guidance: ACV plus royalties of $85–$89 million, revenue of $20.5–$21.5 million, non-GAAP operating loss of $2.5–$3.5 million, and free cash flow between -$1.5 million and $1.5 million.

• Full year 2026 guidance: ACV plus royalties to exit at $100–$104 million, revenue of $89–$93 million (including ~$7 million from Cycuity), non-GAAP operating loss of $5–$9 million, and free cash flow of $5–$9 million.

• Expect to achieve non-GAAP operating profit for a period as early as Q4 2026.