Arteris, Inc. reported fourth‑quarter 2025 results that exceeded analyst expectations, with revenue of $20.1 million and earnings per share of $‑0.05, beating the consensus estimate of $‑0.08. Annual contract value plus royalties climbed to $83.6 million, a 28 % year‑over‑year increase, while variable royalty revenue grew 50 % from the prior year, driven by higher production volumes of system‑on‑chip designs that embed Arteris interconnect IP. Management highlighted that the company’s customers have shipped more than four billion systems powered by Arteris technology, underscoring expanding market penetration in AI‑enabled and chiplet architectures.
The earnings beat can be attributed to a combination of disciplined cost management and a favorable product mix. Revenue rose 30 % from $15.5 million in Q4 2024, reflecting strong demand for Arteris IP in high‑growth AI and edge markets. The 28 % increase in ACV plus royalties is largely a result of higher contract volumes and the 50 % jump in variable royalties, which are tied directly to the number of SoCs shipped. Despite a net loss of $33.6 million for the year, the company maintained a non‑GAAP gross margin of 92 %, indicating robust pricing power and efficient cost structure.
Guidance for the coming year signals confidence in continued growth. Arteris projected first‑quarter 2026 revenue of $20.5 million to $21.5 million, above the consensus of $18.9 million, and full‑year 2026 revenue of $89 million to $93 million, up 26‑32 % from 2025. The company also expects to report a non‑GAAP operating profit as early as Q4 2026, a milestone that would mark the transition to profitability. In addition, the acquisition of Cycuity in January 2026 expands Arteris’ hardware‑security portfolio, positioning it to capture new opportunities in secure silicon for AI and edge devices.
"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. During the quarter, our customers surpassed the milestone of more than four billion systems shipped with SoCs connected by Arteris System IP, and we enjoyed royalty growth of 50 % year‑over‑year," said K. Charles Janac, President and CEO. "As cybersecurity threats intensify not just in software but the underlying hardware used across data centers, edge devices, and mission‑critical systems, our recent acquisition of Cycuity strengthens Arteris' ability to help customers secure data movement in silicon through proven technology and deep domain expertise. Combined with the acceleration of AI use in semiconductors and the ever‑increasing SoC complexities created by the proliferation of chiplet‑based, multi‑die architectures, Arteris is well positioned to deliver on these transformative opportunities," he added.
Investors responded positively to the results, citing the strong earnings beat and optimistic guidance. The combination of a robust revenue increase, a significant rise in ACV plus royalties, and a clear path to profitability in 2026 reinforces confidence in Arteris’ strategy to capitalize on AI, chiplet, and hardware‑security trends.
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