Shares of Arteris, Inc. (AIP) tumbled 5.92% in after-hours trading on Tuesday following the release of the company's second-quarter 2025 financial results. The sharp decline comes as the semiconductor IP provider missed earnings estimates and provided guidance that may have disappointed investors.

For the second quarter, Arteris reported an adjusted loss per share of $0.11, which fell short of analysts' expectations of $0.10. While the company's revenue grew 13% year-over-year to $16.5 million, slightly beating the consensus estimate of $16.35 million, the earnings miss appears to have overshadowed the top-line growth.

Adding to investor concerns, Arteris provided revenue guidance for the third quarter in the range of $16.8 million to $17.2 million, and updated its full-year 2025 revenue outlook to $66 million to $70 million. While this represents continued growth, it may not have met the market's more optimistic expectations, contributing to the after-hours sell-off.

The stock's sharp decline highlights the market's sensitivity to earnings results and forward-looking guidance, especially for growth-oriented technology companies like Arteris. Investors will likely be closely watching the company's performance in the coming quarters to assess whether this after-hours plunge represents a buying opportunity or signals more significant challenges ahead for the semiconductor IP firm.