"Arteris delivered a strong first quarter to start the year, achieving a record Annual Contract Value plus royalties of $92.8 million, up 39% year-over-year, and new highs in revenues, royalties and remaining performance obligation," said K. Charles Janac, President and Chief Executive Officer of Arteris. "Our customers continue to innovate across high-growth areas, including AI-enabled chips and chiplet architectures spanning data centers, edge devices and emerging physical AI systems. As these increasingly complex systems require a combination of high performance, energy efficiency, functional safety and cybersecurity, we believe we are well positioned to enable efficient and secure data movement across a broad range of end-markets including enterprise computing, automotive, communications, industrial automation and aerospace and defense," concluded Janac.
First Quarter 2026 Financial Highlights:
Revenue of $22.9 million, up 39% year-over-year
Trailing-twelve-months variable royalties of $7.9 million, up 67% year-over-year
Annual Contract Value (ACV) plus royalties of $92.8 million, up 39% year-over-year
Remaining Performance Obligation (RPO) of $118.3 million, up 33% year-over-year
Operating loss of $9.3 million, partially attributable to one-time acquisition related deal consideration elements and fees, compared to an operating loss of $7.7 million in the first quarter of 2025
Non-GAAP operating loss of $2.5 million, compared to a Non-GAAP operating loss of $3.2 million in the first quarter of 2025
Net loss of $8.0 million or $0.17 per share
Non-GAAP net loss of $1.2 million or $0.03 per share
First Quarter 2026 Business Highlights:
First quarter deal activity was driven by growing customer engagement in enterprise computing, automotive, communications, consumer electronics, and aerospace and defense sectors, with increasing AI integration from data center to edge and physical AI systems;
Key wins include a leading global hyperscaler expanding its use of Arteris technology, and a leading global memory supplier accelerating chip development for high bandwidth memory (HBM) solutions;
Arteris technology is finding further adoption in space-exploration related innovation, with a leading U.S. space infrastructure company expanding its use of Arteris, and with Arteris IP used in the Artemis lunar missions through AMD chips;
We announced Renesas deployed Arteris System IP for its most advanced R-Car Gen 5 SoC series for ADAS and autonomous driving systems;
We announced a collaboration with MIPS to accelerate development of physical AI solutions, licensing FlexGen smart NoC IP and Magillem SoC integration automation software;
A leading US-based hyperscaler, an existing Arteris customer, licensed Arteris security technology to help reduce cybersecurity risks;
Arteris was named to Fast Company's list of the World's Most Innovative Companies of 2026 in North America, joining companies such as Google, Nvidia, Anthropic, and more; and
Arteris Radix technology has been named the winner of a Stevie award in the 2026 America Business Awards for Technology Innovation of the Year in the Software category.
Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP net loss, Non-GAAP net loss per share, and free cash flow are Non-GAAP financial measures. Additional information on Arteris' historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.
Estimated Second Quarter and Updated Full Year 2026 Guidance:
Q2 2026
FY 2026
(in millions)
ACV + royalties
$95.0 - $99.0
$102.0 - $106.0
Revenue
$23.0 - $24.0
$91.0 - $95.0
Non-GAAP operating loss
$2.0 - $3.0
$4.5 - $8.5
Free cash flow
$2.0 - $8.0
$5.0 - $9.0
The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.
A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Arteris' results computed in accordance with GAAP.
Definitions of the other business metrics used in this press release including ACV, confirmed design starts and RPO are included below under the heading "Other Business Metrics."
Chief Financial Officer Retirement
On May 8, 2026, Nicholas B. Hawkins, Chief Financial Officer of Arteris, notified Arteris he will retire effective August 31, 2026. Mr. Hawkins will continue to serve as an advisor to the Company after his retirement date to facilitate an orderly transition.
"Nick has been an invaluable partner during a transformative period for Arteris" said Mr. Janac. "Nick played a key role in Arteris' growth and development, including transitioning the Company into the public market. We appreciate his contributions, leadership and partnership. We thank him for his dedication to the Company and wish him all the best."
"It has been a rewarding and enjoyable experience to help lead Arteris through an important stage in its development," said Mr. Hawkins. "I am proud of the exceptional finance team we have built and what the Company has accomplished. During my seven years at Arteris, in addition to leading the company through its IPO, I have also led our M&A processes, including the important recent acquisition of the cybersecurity company, Cycuity. Arteris has grown substantially in revenue and market capitalization, is now cash positive and is transitioning to Non-GAAP profitability this year. It has been a privilege to serve under Charlie and our excellent board, and alongside our industry-leading leadership team and all our people. Arteris is well positioned for the future, and I look forward to following the Company's continued progress in the years ahead."
Mr. Hawkins' decision to retire is due to an illness in his family and is not the result of any disagreement with the Company or its independent registered public accountants on any matter relating to the Company's financial statements, operations, policies or practices.
The Board of Directors of Arteris has initiated a comprehensive search for a new CFO.Conference Call
Arteris will host a conference call today on May 12, 2026 to review its first quarter 2026 financial results and to discuss its financial outlook.
Time:
4:30PM ET
United States/Canada Toll Free:
1-800-717-1738
International Toll:
1-646-307-1865
A live webcast will also be available in the Investor Relations section of Arteris' website at: https://ir.arteris.com/events-and-presentations
A replay of the webcast will be available in the Investor Relations section of Arteris' website approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.
About Arteris
Arteris is a leading provider of semiconductor technology that accelerates the creation of high-performance, power-efficient silicon with built-in safety, reliability, and security. Innovative Arteris products are designed to optimize data movement and help ease complexity in the modern AI era with network-on-chip (NoC) interconnect intellectual property (IP), system-on-chip (SoC) software for integration automation and hardware security assurance. All are used by the world's top technology companies to improve overall performance and engineering productivity, reduce risk, lower costs, and bring cutting-edge designs to market faster. Learn more at arteris.com.
© 2004-2026 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
Investor Contacts:ArterisNick HawkinsChief Financial Officer[email protected]
Sapphire Investor Relations, LLCErica Mannion and Michael Funari+1 617 542 6180[email protected]
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including but not limited to, statements regarding market trends and whether we are well positioned to capture these opportunities, our long-term growth opportunity and future financial and operating performance, including our GAAP and Non-GAAP estimated second quarter and updated full year 2026 guidance. The words such as "may," "will," "could," "expect," "approximately," "believe," "estimate," "future," "guidance," "outlook," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements contained herein are based on our historical performance and our current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent our expectations as of the date of this press release. Subsequent events may cause these expectations to change, and we disclaim any obligation to update the forward-looking statements in the future, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from our current expectations. Important factors that could cause actual results to differ materially from those anticipated in our forward-looking statements include, but are not limited to, the significant competition we face from larger companies and third-party providers; our history of net losses; the amount of our future revenue recognition as it relates to our RPO as of March 31, 2026; whether semiconductor companies in the aerospace and defense market, automotive market, communications market, consumer electronics market, enterprise computing market, and industrial market incorporate our solutions into their end products and the growth and economic stability of these end markets; our ability to attract new customers and the extent to which our customers renew their subscriptions for our solutions; the ability of our customers' end products achieving market acceptance or growth; our ability to sustain or grow our licensing revenue; our ability, and the cost, to successfully execute on research and development efforts; the occurrence of product errors or defects in our solutions; if we fail to offer high-quality support; the occurrence of macro-economic conditions that adversely impact us, our customers and their end product markets including, but not limited to, the imposition of tariffs in markets where we operate; the effects of geopolitical conflicts, such as the military conflict between Russia and Ukraine as well as the ongoing conflict in the Middle East; the range of regulatory, operational, financial and political risks we are exposed to as a result of our dependence on international customers and operations; our ability to protect our proprietary technology and inventions through patents and other IP rights; whether we are subject to any liabilities or fines as a result of government regulation, including import, export and economic sanctions laws and regulations; the occurrence of a disruption in our networks or a security breach; risks associated with doing business in China, including as a result of changes to trade relations between the United States and China; and the other factors described under the heading "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 to be filed with the Securities and Exchange Commission (SEC) on May 12, 2026. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended March 31, 2026 are not necessarily indicative of our operating results for any future periods.
Arteris, Inc.Condensed Consolidated Statements of Operations(In thousands, except share and per share data)(Unaudited)
Three Months EndedMarch 31,
2026
2025
Revenue
Licensing, support and maintenance
$
19,272
$
15,335
Variable royalties
2,503
1,167
Professional services and other
1,161
30
Total revenue
22,936
16,532
Cost of revenue
3,250
1,526
Gross profit
19,686
15,006
Operating expenses:
Research and development
14,457
11,862
Sales and marketing
8,530
6,529
General and administrative
5,415
4,323
Acquisition related costs
584
—
Total operating expenses
28,986
22,714
Loss from operations
(9,300
)
(7,708
)
Interest expense
(38
)
(48
)
Other income (expense), net
670
718
Loss before income taxes and loss from equity method investment
(8,668
)
(7,038
)
Loss from equity method investment, net of tax
2,989
815
Loss before income taxes
(11,657
)
(7,853
)
Provision for (benefit from) income taxes
(3,698
)
268
Net loss
$
(7,959
)
$
(8,121
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.17
)
$
(0.20
)
Weighted-average shares used in computing per share amounts, basic and diluted
45,544,682
40,853,048
Arteris, Inc.Condensed Consolidated Balance Sheets(In thousands, except share and per share data)
As of
March 31,2026
December 31,2025
ASSETS
Current assets:
Cash and cash equivalents
$
11,674
$
33,901
Short-term investments
26,429
20,698
Accounts receivable, net of allowance of $73 as of both March 31, 2026 and December 31, 2025
14,694
19,183
Prepaid expenses and other current assets
8,740
8,608
Total current assets
