Overview

* Arteris Q3 2025 revenue grows 18% yr/yr, beating analyst expectations

* Adjusted operating income for Q3 beats analyst estimates

* Annual Contract Value plus royalties up 24% yr/yr to $74.9 mln

Outlook

* Arteris ( AIP ) expects Q4 revenue between $18.4 mln and $18.8 mln

* Company sees full-year 2025 revenue between $68.8 mln and $69.2 mln

* Arteris ( AIP ) projects Q4 non-GAAP operating loss of $2.3 mln to $3.3 mln

Result Drivers

* ACV GROWTH - Arteris ( AIP ) reports a 24% increase in Annual Contract Value plus royalties, driven by expanding partnerships and customer demand in AI and autonomous driving markets

* RPO INCREASE - Remaining Performance Obligations rose 34% yr/yr, surpassing $100 mln for the first time, reflecting strong future revenue commitments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $17.40 $17 mln

Revenue mln (4

Analysts

)

Q3 Miss -$3.80 -$3.58

Adjusted mln mln (3

Net Analysts

Income )

Q3 Net -$9 mln

Income

Q3 Beat -$3.50 -$3.53

Adjusted mln mln (4

Operatin Analysts

g Income )

Q3 -$8.70

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Arteris Inc ( AIP ) is $15.00, about 12.7% above its November 3 closing price of $13.09

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)