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
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(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.)