Shares of Arteris, Inc. (AIP) plunged 6.26% in late trading on Tuesday following the release of the company's third-quarter financial results. The significant drop reflects investor concerns over the company's continued losses and potentially disappointing guidance.

Arteris, a provider of system-on-chip (SoC) interconnect intellectual property and deployment technology, reported an adjusted net loss of $3.8 million for the quarter. While the company's revenue of $17.4 million slightly exceeded analyst estimates of $17 million, it wasn't enough to offset worries about profitability.

The earnings report, which included both third-quarter results and updated guidance for the fourth quarter and full year 2025, seems to have fallen short of investor expectations. Although specific details of the guidance were not immediately available, the market reaction suggests that the outlook may not have been as positive as hoped.

This sharp decline in Arteris' stock price highlights the challenges faced by technology companies in the current economic environment, where investors are increasingly focused on profitability and sustainable growth. The company's ability to turn its revenue growth into bottom-line results will likely be a key focus for investors moving forward.