Arteris (NASDAQ:AIP) Issues Earnings Results

Arteris (NASDAQ:AIP) posted its earnings results on Thursday. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.02, FiscalAI reports. The firm had revenue of $25.77 million for the quarter, compared to analyst estimates of $24.57 million. Arteris had a negative net margin of 46.70% and a negative return on equity of 295.96%.

Here are the key takeaways from Arteris’ conference call:

• Arteris reported record Q3 revenue of $25.8 million, up 48% year over year, and record ACV plus royalties of $104 million, up 39%; both exceeded the top end of guidance. Trailing 12-month royalties rose 71% to a record $9.4 million, while RPO reached a record $135 million.
• The company raised its full-year 2026 guidance for revenue to $98.5 million–$99.5 million, ACV plus royalties to $103 million–$107 million, and non-GAAP operating results to a loss of $7.2 million–$9.2 million. Q4 guidance includes a non-GAAP operating result ranging from a $0.9 million loss to $1.1 million in income.
• Management cited strong demand across AI infrastructure, automotive, and physical AI, including expanded business with a hyperscaler, two large semiconductor companies, and an automotive OEM. Chiplet designs are about 10% of design starts today, and management expects that share to reach roughly 30%–35% over the next two to three years, though that outlook is forward-looking.
• Arteris remains loss-making: Q3 non-GAAP operating loss was $1.2 million and GAAP operating loss was $11.3 million. Free cash flow was negative $2.1 million, which management attributed mainly to the timing of customer payments; the company ended the quarter with $120 million in cash and investments and no financial debt.

Arteris Trading Down 12.0%

Shares of AIP stock traded down $2.17 during trading hours on Thursday, hitting $15.93. 1,141,362 shares of the company were exchanged, compared to its average volume of 590,614. The company has a 50 day simple moving average of $21.51 and a two-hundred day simple moving average of $24.94. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.57 and a current ratio of 1.57. Arteris has a fifty-two week low of $12.06 and a fifty-two week high of $50.26.

Insider Activity at Arteris

In other Arteris news, major shareholder Bayview Legacy, Llc sold 100,000 shares of Arteris stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $23.82, for a total value of $2,382,000.00. Following the completion of the sale, the insider directly owned 8,129,071 shares of the company’s stock, valued at approximately $193,634,471.22. The trade was a 1.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO K Janac sold 100,000 shares of Arteris stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $23.82, for a total transaction of $2,382,000.00. Following the completion of the sale, the chief executive officer directly owned 8,129,071 shares of the company’s stock, valued at approximately $193,634,471.22. This trade represents a 1.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 478,631 shares of company stock worth $10,823,565 over the last ninety days. 23.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

AIP has been the topic of several analyst reports. Roth Capital initiated coverage on shares of Arteris in a research note on Tuesday, August 4th. They issued a “buy” rating and a $40.00 price objective on the stock. Rosenblatt Securities reaffirmed a “buy” rating and set a $38.00 target price on shares of Arteris in a report on Friday, August 7th. Weiss Ratings upgraded Arteris from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, August 21st. Craig Hallum initiated coverage on Arteris in a research report on Monday, September 21st. They set a “buy” rating and a $30.00 price objective for the company. Finally, Oppenheimer assumed coverage on Arteris in a research note on Thursday, July 16th. They issued an “outperform” rating and a $40.00 price objective on the stock. Six research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $37.29.

About Arteris

Arteris, Inc is a semiconductor intellectual property (IP) company that provides technology used to design and integrate complex systems-on-chip (SoCs). Its products help semiconductor and system developers connect, manage and verify the various processing, memory and specialized functional components incorporated into modern chips.

The company’s portfolio includes network-on-chip (NoC) interconnect and semiconductor IP solutions, including its FlexNoC interconnect technology, Ncore cache-coherent interconnect IP and CodaCache products.