Arteris Inc. has reported its financial results for the second quarter of 2025, showing a notable increase in revenue and annual contract value $(ACV.SI)$ plus royalties. The company's revenue for the quarter amounted to $16.5 million, representing a 13% increase compared to the same period last year. Additionally, the ACV plus royalties reached $69.1 million, marking a 15% year-over-year growth and achieving the highest level the company has ever reported. The remaining performance obligation (RPO) also saw a significant rise, reaching $99.3 million, a 28% increase compared to the previous year. However, Arteris reported an operating loss of $8.2 million for the quarter, which is higher than the $7.4 million operating loss recorded in the second quarter of 2024. Looking ahead, Arteris has provided guidance for the third quarter and the full year of 2025. The company expects revenue for the third quarter to be between $16.8 million and $17.2 million, while the full-year revenue is projected to range from $66 million to $70 million. Arteris anticipates a non-GAAP operating loss of $3 million to $4 million for the third quarter and $10.5 million to $15.5 million for the full year. Free cash flow is expected to be in the range of $0.5 million to $3.5 million for the third quarter and $1 million to $7 million for the full year. The company's leadership remains optimistic about its long-term growth potential, supported by a strong product portfolio and pipeline, as well as deepening relationships with leading electronics companies. Arteris continues to focus on high-growth markets, including AI, autonomous driving, advanced communications, and industrial and consumer applications.
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