Arteris' Q3 revenue beats expectations on ACV growth

Reuters
2025/11/05
Arteris' Q3 revenue beats expectations on ACV growth

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 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 projects Q4 non-GAAP operating loss of $2.3 mln to $3.3 mln

Result Drivers

  • ACV GROWTH - Arteris 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/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$17.40 mln

$17 mln (4 Analysts)

Q3 Adjusted Net Income

Miss

-$3.80 mln

-$3.58 mln (3 Analysts)

Q3 Net Income

-$9 mln

Q3 Adjusted Operating Income

Beat

-$3.50 mln

-$3.53 mln (4 Analysts)

Q3 Operating Income

-$8.70 mln

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 is $15.00, about 12.7% above its November 3 closing price of $13.09

Press Release: ID:nGNX8gx7m0

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)

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