Arbe Robotics Q2 2025 Earnings Report

Arbe Robotics EPS Results

• Actual EPS: N/A
• Consensus EPS: -$0.08
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Arbe Robotics Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $0.17 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Arbe Robotics Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, August 7, 2025
• Conference Call Time: 8:30AM ET

Arbe Robotics (NASDAQ:ARBE) is a technology company specializing in high-resolution 4D imaging radar solutions for the automotive industry. The company’s radar platform is designed to enhance advanced driver-assistance systems (ADAS) and support the development of autonomous vehicles by providing detailed object detection, precise range and velocity measurements, and accurate environmental mapping under diverse driving conditions.

Founded in 2015 and headquartered in Tel Aviv, Israel, Arbe Robotics has developed its own semiconductor chipset and accompanying software stack. Its flagship product line includes automotive-grade radar sensors and development kits that integrate seamlessly with vehicle architectures. The company’s scalable offerings aim to serve multiple vehicle tiers, from passenger cars equipped with Level 2+ ADAS features to fully autonomous platforms in testing and deployment phases.

Arbe operates globally, engaging with automotive original equipment manufacturers (OEMs), Tier 1 suppliers and mobility solution providers across North America, Europe and Asia. The company has established partnerships and joint development agreements to integrate its radar technology into next-generation vehicle programs. These collaborations are intended to accelerate the adoption of radar-based perception systems in markets with stringent safety and performance requirements.

Under the leadership of co-founders and executive chairman Kobi Marenko and chief technology officer Ilya Rozhkov, Arbe Robotics has pursued both organic growth and strategic collaborations. Since going public via a business combination in early 2021, the company has continued to invest in research and development, expanding its R&D footprint and refining its sensor architecture to meet the evolving needs of the autonomous mobility sector.

Arbe Robotics Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Arber secured a strategic order for its high-resolution radar chipsets to support data collection on over 100 vehicles with leading OEMs and has advanced to final stages in multiple selection programs.
• Positive Sentiment: The company is expanding beyond automotive, scaling deliveries to SensRUS for industrial and emerging defense applications and securing a recurring support agreement for its 4G imaging radar program.
• Negative Sentiment: Second quarter revenue fell to $300,000 from $400,000 a year ago, with a net loss of $10.2 million versus a $11.7 million loss in Q2 2024 and a backlog of $500,000 as of June 30.
• Negative Sentiment: For full-year 2025, Arber forecasts revenues of $2 million to $5 million and an adjusted EBITDA loss of $29 million to $35 million, indicating continued heavy investment ahead of volume ramp.
• Positive Sentiment: With $26.3 million in cash and equivalents and $35.7 million in long-term deposits, Arber maintains a strong balance sheet to fund planned program development through the anticipated 2027 production ramp.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by. The conference will begin shortly. Ladies and gentlemen, thank you for standing by. Welcome to the Arbat Robotics Second Quarter twenty twenty five Results Conference Call. All participants are present in listen only mode.

[Operator]

Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact our BES Investor Relations team at EK Global Investor Relations at +1 (212) 378-8040 or view it in the investor section of the company's website, arberrobotics.com. I would now like to hand over the call to mister Ehud Helft of EK Global Investor Relations. Mister Helft, would you like to begin, please?

[Ehud Helft, Co-Founder at EK Global Investor Relations]

Yeah. Thank you, operator. Good day to all of you, and welcome to our best conference call to discuss the results of the 2025. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward looking statements, and the safe harbor statement outlined in today's earnings release also pertain to this call. Today, we are joined by Corby Morengo, Harvay's cofounder and CEO, who will begin the call with a business update. Then we'll turn the call over to Karim Sinclair. Karim will open the call up to our listeners for the question and answer session. With that, I'd like to turn over the call over to Kobi.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Thank you, Ewud. Good morning to everyone, and thank you for joining us today to discuss our results and recent business development. I will begin by reviewing some of our current business highlights. We are pleased with the strategic progress we made in the in the quarter. Our main target is to win big with the large OEMs of the world.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

And as each month passes, we are making progress. Arber received a strategic order for the use of its chipset in large scale data collection projects. These chipsets were shipped and will be deployed on fleet of more than 100 vehicles operated by leading automotive manufacturers. In general, there is a growing industry wide recognition among OEMs that high end imaging radar is a requirement for a safe, hands free driving capability. It is clear that high resolution radar delivers superior performance in complex and challenging conditions, filling critical perception gap and enabling safer, more reliable autonomy.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

The market is moving forward solutions based on growth, sensor fusion, signaling a departure from the line of vision only approaches. As a result, we are now in imaging radar selection programs with several of the world's leading OEMs. Magna and Hyraq, our main tier one, are competing with our chief on all of those opportunities. Furthermore, our collaboration with NVIDIA is enabling us to move strongly forward with our customer engagement. Not less important is our solid progress in nonautomotive applications.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

We are scaling up chip delivery to SensRUS as they grow their customer base and increase deployment volume across a broad range of applications. We are very pleased to say that for the first time, SensRUS is delivering radars for defense applications, a growing radar applications market. This demonstrates the the versatility of our technology for broader industrial and mobility markets beyond the passenger automotive markets. We also announced we've signed a new comprehensive support and maintenance agreement with Sensrad under which we will receive a recurring fee to support their four g imaging radar program based on our advanced chipset technology. We continue to move ahead with the various bid processes with our target OEMs.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Some of these have progressed, and we've successfully advanced to the final stages of the process. At this point, we are no longer competing against a large group of suppliers. We are now one of the final few radar technologies remaining in this this stage. While the timing of this selection processes is not under our control, we are pleased with the progress we have made in recent months, and it remains our goal to achieve four OEM bid win within the core the coming years. Our initiatives are aligning with the path to OEM selection, and we anticipate that our best radar technology will serve as a key enabler for twenty twenty eight passenger vehicle platform, and we expect our revenues to begin in 2027 and ramp up in '28 as our chipsets are used in high volume production.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

While 2027 may still seem some time away for us, 2027 is around the corner, and we are already preparing accordingly. Thanks to our strong balance sheet, we have the runway to support all programs as our revenues reach the ramp up stage. Other business highlights. Island Technologies, our leading tier one supplier in China, launched the LRR six one five, a long range imaging radar system powered by our chipset. Their system offers ultra high resolution and reliable performance in all weather and lighting conditions, presenting a cost effective and scalable sensor that complements cameras and offer a cost effective alternative to LIDAR, especially in China.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Hirei is preparing to ramp production capacity to deliver tens of thousands of units annually. China's state administration for market regulation proposed a new regulation that mandates highly advanced ADAS testing for all new level one and level two vehicle models. These requirements exceed the capabilities of the radar systems, which are currently generally available in the Chinese market. We believe Aave's high definition radar technology can enable OEMs to enhance ADAS performance to meet these new standards once adopted, creating a significant market opportunity for us in China even in 2026. In closing, Aave is very well positioned to take advantage of the industry transition to high resolution radar.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

The progress we've made over the past year across OEM partnerships, tier one integration, and cross sector adoption demonstrates the maturity of our execution and the strength of our ecosystem. We have a number of catalysts coming up over the next year as we expect that the OEM we are targeting concludes the radar selection processes for the twenty twenty eight car models. Today, based by a solid financial foundation, we are positioned to lead the industry in the adoption of ultra high resolution radar, and we remain focused on unlocking long term value for our shareholders. We expect our technology to be key enabler in high volume twenty twenty eight passenger vehicle platforms with revenue growth beginning in 2027. We look forward to sharing more as we continue to move forward.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Now I'd like to turn it over to our CFO, Karim, to go over the financials.

[Karine Pinto-Flomenboim, CFO at Arbe Robotics]

Thank you, Colby, and hello, everyone. Let me review our financial results for the 2025 in more detail. Revenue for the 2025 totaled $300,000 compared to $400,000 in 2024. As of 06/30/2025, backlog stood at $500,000. Gross profit for q two twenty twenty five was negative $200,000 compared to negative point zero four reflecting the impact of fixed cost components given reduced revenue year over year and revenue mix cost.

[Karine Pinto-Flomenboim, CFO at Arbe Robotics]

Turning to operating expenses. Total operating expenses for q two twenty twenty five were $11,300,000, down from $11,600,000 in q two twenty twenty four. The decrease in operating expenses was primarily attributable to lower share based compensation expenses resulting from the full vesting of prior grants and to a reduced volume of new grants. This decrease was partially offset by increased bonus liability grant approved, labor cost, and unfavorable foreign exchange effects. Operating loss for the 2025 was $11,500,000 compared to $11,600,000 loss in the 2024.

[Karine Pinto-Flomenboim, CFO at Arbe Robotics]

Adjusted EBITDA and non GAAP measurements, which exclude expenses for noncash share based compensation and for nonrecurring items, was a loss of $8,900,000 in 2025 compared to a loss of $7,500,000 in the 2024. We believe that this non GAAP measurement is important in management's evaluation of our use of cash and planning and evaluating our cash requirements for the coming period. Net loss in the 2025 was $10,200,000 compared to a net loss of $11,700,000 in the 2024. As of 06/30/2025, Arbet held $26,300,000 in cash and cash equivalents and short term bank deposits as well as $35,700,000 in long term bank deposits. Turning to our outlook.

[Karine Pinto-Flomenboim, CFO at Arbe Robotics]

We would like to reiterate what we previously said. Our best leading radar technology remains a top priority for key decision makers in the automotive industry. While broader economic shifts have led to delays in automakers rollout of advanced driver assist systems, decision timelines have been extended. Arvec continues to engage closely with industry leaders, advancing through our skewed stages and strengthening its position for adoption. We continue with our goal to pursue four design ins with automakers in the coming year.

[Karine Pinto-Flomenboim, CFO at Arbe Robotics]

Our very main change is overall financial expectations for 2025. We expect annual revenue to be weighted towards the end of the year in the range of $2,000,000 to $5,000,000 Continued expectations for adjusted EBITDA for 2025 to be in the range of $29,000,000 lost and $35,000,000 lost. Now we will be happy to take your questions. Operator?

[Operator]

Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press 1. If you wish to cancel your request, please press 2. If you're using speaker appointment, kindly lift a handset before pressing the number.

[Operator]

Please stand by while we poll for your questions. The first question is from George Guianarcas. Please go ahead.

[George Gianarikas, Sustainability Research at Canaccord Genuity Group]

Hi, everyone. Thank you for taking my questions. I'd like to ask first about the the four design wins that you expect in the in the coming year. Curious as to, you know, how that number is has changed at all over the last few months since we last spoke and and what the competitive set looks like. It sounds like you feel like that that has tightened a little bit, and and if you could share any details around and how you feel that that set has has changed as well. Thank you.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Yeah. So I think that the overall, the amount of OEMs that we are working towards the with them towards winning didn't change. What really changed is the is the environment and the understanding of every OEM that's basically starting to develop a real let's call it l three, hands free eyes of driving that they understand that current imaging radar low end imaging radar cannot solve the problem. And the the multi high level of channels radar that has at least more than a thousand channels, which basically is our shifted support and the the shifted of of Mobilize support are the only candidates that can really solve the problem for l three. And, basically, what we saw is that even in program that they were considering to take an official imaging radar as an option, they decided to focus and narrow the competition to this, I would say, two whole place between between the two companies.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

The only two companies today that has a real imaging radar, high end imaging radar that can solve the problem for l three, as I mentioned, is both. The the other things that we are seeing is that when OEMs beginning the data collection with our radar, scope with stone, with magnet radar based on our chipset or with high end radar based on our chipset, they see that for a bit of a lower end application, what will what is called l two plus, l two plus plus, which is only entry driving, imaging radar can actually solve the problem, and they are looking to expand the selection also to do to to those kinds of applications. So I think, overall, I don't see today a customer in the market that will say that imaging rate high end imaging radar is not marked for from entry ISO application. The fact that there is a very few amount of competitors in this market, I think, put us in a in a very good position to be the leading in this market.

[George Gianarikas, Sustainability Research at Canaccord Genuity Group]

Is it possible for one OEM to pick multiple vendors for their imaging radar?

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Really. Not really. Not really. I think that, first of all, the data collection, because we are today in a world of full AI stuff, you need to to train to to have a data collection.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

In order to have an effective data collection, we are talking about millions, not not even millions, millions of kilometers of driving, even miles, not just kilometers. So you need 10 or even 100 cars that are driving towards for a year to collect the data and to train the algorithm. So to to go with two radars on the same application makes no sense. It's possible to select a different rad radar for a three stack and a different rate of four and two plus plus stack. But I don't see an OEM selecting two rate of four and three.

[George Gianarikas, Sustainability Research at Canaccord Genuity Group]

Got it. And maybe just as as a final follow-up. You mentioned in your release potential for nonautomotive growth. You list a couple of applications, including defense sector and smart infrastructure. Can you sort of expand upon that a little bit if possible? What other nonautomotive applications are you seeing potential traction with over the next few years? Thank you.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Yeah. So first of all, defense, I think, is a growing sector in the last two, three years. It's of course, it comes from the different side of it from detection from border protection to autonomous trucks that move the supply to the to to the troops or so on. So detection of drones that are attacking and so on. So there is, I think, a a strong demand on the defense side for a low price radar.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

It's not, you know, the month of the of the big industries of general are building today. Radar just cost millions of dollars. There is an need for radar in a thousand, 2,000, $3,000. Of course, it's not in the volume of automotive, but the margins are are better. Smart infrastructure, as you mentioned, is is is good.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

I think there is a few other verticals that we already seen the traction that we cannot yet announce. We believe that we will have also, we will be able to announce things that of the growing in September or October after the summer vacation. But we feel that the nonautomotive market is growing right now better than we expected, and we will be able to see their nice revenues shorter than in automotive. Of course, it's not in the volume of automotive, but it's still we see it now as a a strategic leg to the company.

[George Gianarikas, Sustainability Research at Canaccord Genuity Group]

Thank you.

[Operator]

If there are any additional questions, please press 1. If you wish to cancel the request, please press 2. Please stand by while we poll for more questions. This concludes the question and answer session. Before I ask Mr. Kobi Morenco to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available by tomorrow on our website, arbeirobotics.com. Mister Morenko, would you like to make your concluding statement?

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Yes.

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

On behalf of the management of Arbez, I would like to thank you, our shareholders, for your continued interest and long term support of our business. To our employees and partners, your continued dedication is deeply appreciated. In the coming months, we will be meeting with investors and

[Operator]

You got cut off in the last sentence. Kobe?

[Kobi Marenko, CEO, Co-Founder & Director at Arbe Robotics]

Contact us at investors@aubairrobotics.com to schedule a meeting. And with that, we end our call. Have a good day.

[Operator]

Thank you. This concludes our best second quarter twenty twenty five results conference call. Thank you for your participation. You may go ahead and

Participants

Executives

• Kobi Marenko, CEO, Co-Founder & Director
• Karine Pinto-Flomenboim, CFO

Analysts

• Ehud Helft, Co-Founder at EK Global Investor Relations
• George Gianarikas, Sustainability Research at Canaccord Genuity Group