Arteris (NASDAQ:AIP) Issues Earnings Results, Beats Estimates By $0.02 EPS

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

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 Stock Down 12.0%

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

Insider Activity

In other news, CEO K Janac sold 100,000 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $23.82, for a total value of $2,382,000.00. Following the sale, the chief executive officer 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Laurent R. Moll sold 12,219 shares of the company’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $24.29, for a total value of $296,799.51. Following the completion of the sale, the chief operating officer owned 194,659 shares of the company’s stock, valued at approximately $4,728,267.11. This trade represents a 5.91% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 478,631 shares of company stock worth $10,823,565 in the last quarter. 23.30% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages have recently issued reports on AIP. Oppenheimer began coverage on shares of Arteris in a report on Thursday, July 16th. They set an “outperform” rating and a $40.00 price target for the company. TD Cowen cut their price objective on shares of Arteris from $40.00 to $25.00 and set a “buy” rating on the stock in a research report on Monday, October 19th. Weiss Ratings raised shares of Arteris from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, August 21st. Jefferies Financial Group upgraded shares of Arteris from a “hold” rating to a “buy” rating and upped their target price for the stock from $35.00 to $50.00 in a research report on Friday, August 7th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $38.00 target price on shares of Arteris in a research report on Friday, August 7th. Six analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat, Arteris currently has an average rating of “Moderate Buy” and an average target price of $37.29.

Arteris Company Profile

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.