Arteris (NASDAQ:AIP) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Arteris reported quarterly EPS of -$0.02, beating the consensus estimate of -$0.04, while revenue of $25.77 million topped expectations of $24.57 million.
• Revenue reached a record $25.8 million, up 48% year over year, and the company raised its full-year 2026 revenue guidance to $98.5 million–$99.5 million.
• Despite the growth, Arteris remained loss-making, with a $11.3 million GAAP operating loss; its shares fell 12% on Thursday.

Arteris (NASDAQ:AIP - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02, FiscalAI reports. Arteris had a negative return on equity of 295.96% and a negative net margin of 46.70%. The business had revenue of $25.77 million during the quarter, compared to the consensus estimate of $24.57 million.

Here are the key takeaways from Arteris' conference call:

• Arteris reported record Q3 revenue of $25.8 million, up 48% year over year, and record ACV plus royalties of $104 million, up 39%; both exceeded the top end of guidance. Trailing 12-month royalties rose 71% to a record $9.4 million, while RPO reached a record $135 million.
• The company raised its full-year 2026 guidance for revenue to $98.5 million–$99.5 million, ACV plus royalties to $103 million–$107 million, and non-GAAP operating results to a loss of $7.2 million–$9.2 million. Q4 guidance includes a non-GAAP operating result ranging from a $0.9 million loss to $1.1 million in income.
• Management cited strong demand across AI infrastructure, automotive, and physical AI, including expanded business with a hyperscaler, two large semiconductor companies, and an automotive OEM. Chiplet designs are about 10% of design starts today, and management expects that share to reach roughly 30%–35% over the next two to three years, though that outlook is forward-looking.
• Arteris remains loss-making: Q3 non-GAAP operating loss was $1.2 million and GAAP operating loss was $11.3 million. Free cash flow was negative $2.1 million, which management attributed mainly to the timing of customer payments; the company ended the quarter with $120 million in cash and investments and no financial debt.

Arteris Stock Down 12.0%

AIP traded down $2.17 during trading hours on Thursday, hitting $15.93. 1,141,362 shares of the stock were exchanged, compared to its average volume of 590,614. The stock has a 50-day simple moving average of $21.51 and a 200-day simple moving average of $24.94. Arteris has a 12 month low of $12.06 and a 12 month high of $50.26. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.57 and a current ratio of 1.57.

Analyst Ratings Changes

Several analysts have recently weighed in on AIP shares. TD Cowen lowered their target price on Arteris from $40.00 to $25.00 and set a "buy" rating for the company in a research note on Monday, October 19th. Oppenheimer initiated coverage on shares of Arteris in a research report on Thursday, July 16th. They issued an "outperform" rating and a $40.00 target price for the company. Rosenblatt Securities restated a "buy" rating and issued a $38.00 target price on shares of Arteris in a research note on Friday, August 7th. Craig Hallum began coverage on shares of Arteris in a research report on Monday, September 21st. They set a "buy" rating and a $30.00 price target on the stock. Finally, Jefferies Financial Group raised shares of Arteris from a "hold" rating to a "buy" rating and increased their price target for the stock from $35.00 to $50.00 in a research report on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Arteris currently has an average rating of "Moderate Buy" and a consensus target price of $37.29.

Insider Transactions at Arteris

In other news, COO Laurent R. Moll sold 12,219 shares of Arteris stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $24.29, for a total value of $296,799.51. Following the completion of the transaction, the chief operating officer directly owned 194,659 shares of the company's stock, valued at approximately $4,728,267.11. The trade was a 5.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Nicholas B. Hawkins sold 10,431 shares of Arteris stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $28.26, for a total transaction of $294,780.06. Following the completion of the transaction, the chief financial officer directly owned 95,666 shares of the company's stock, valued at $2,703,521.16. This trade represents a 9.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 478,631 shares of company stock valued at $10,823,565 over the last quarter. Insiders own 23.30% of the company's stock.

About Arteris

Arteris, Inc is a semiconductor intellectual property (IP) company that provides technology used to design and integrate complex systems-on-chip (SoCs). Its products help semiconductor and system developers connect, manage and verify the various processing, memory and specialized functional components incorporated into modern chips.

The company's portfolio includes network-on-chip (NoC) interconnect and semiconductor IP solutions, including its FlexNoC interconnect technology, Ncore cache-coherent interconnect IP and CodaCache products.

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