Arteris (NASDAQ:AIP) Releases Earnings Results, Misses Expectations By $0.06 EPS

Arteris (NASDAQ:AIP) posted its earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.06), FiscalAI reports. The firm had revenue of $24.13 million for the quarter, compared to the consensus estimate of $23.48 million.

Here are the key takeaways from Arteris’ conference call:

• Record quarterly performance: Revenue reached $24.1 million, up 46% year over year, while ACV plus royalties rose 44% to a record $99.5 million and RPO reached $135 million.
• Arteris reported strong demand tied to AI and high-performance computing, including major wins with a hyperscale cloud company and a semiconductor design house developing custom ASICs and chiplets for data centers.
• The company raised its full-year 2026 revenue outlook to $95 million-$98 million and expects to achieve non-GAAP operating profitability as early as the fourth quarter; it also generated $8.6 million of free cash flow in the quarter.
• Arteris completed an ATM offering that raised approximately $72 million, increasing liquidity to $123 million with no debt, although the equity issuance may create shareholder dilution; the proceeds will fund product investment, support, and acquisitions.
• Higher French payroll taxes on RSU vesting, increased sales commissions, and lower-margin government security work pressured operating results, while royalty growth experienced a temporary sequential slowdown due to customer logistical and supply-chain issues.

Arteris Price Performance

NASDAQ AIP traded up $0.69 during midday trading on Thursday, hitting $31.62. The company had a trading volume of 1,040,491 shares, compared to its average volume of 602,251. The firm has a 50-day moving average price of $36.06 and a 200-day moving average price of $26.16. The company has a market capitalization of $1.46 billion, a PE ratio of -40.03 and a beta of 1.96. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.17. Arteris has a twelve month low of $8.42 and a twelve month high of $50.26.

Insider Activity

In other Arteris news, major shareholder Bayview Legacy, Llc sold 26,106 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $31.97, for a total transaction of $834,608.82. Following the completion of the transaction, the insider directly owned 8,329,071 shares in the company, valued at $266,280,399.87. The trade was a 0.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Saiyed Atiq Raza sold 70,000 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $30.01, for a total value of $2,100,700.00. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 1,638,949 shares of company stock worth $56,568,293. Insiders own 23.30% of the company’s stock.

Hedge Funds Weigh In On Arteris

Hedge funds and other institutional investors have recently modified their holdings of the business. Raymond James Financial Inc. bought a new stake in shares of Arteris during the 2nd quarter worth $32,000. BNP Paribas Financial Markets grew its position in Arteris by 75.0% in the third quarter. BNP Paribas Financial Markets now owns 6,053 shares of the company’s stock valued at $61,000 after acquiring an additional 2,595 shares during the last quarter. New York State Common Retirement Fund raised its stake in Arteris by 352.4% during the fourth quarter. New York State Common Retirement Fund now owns 9,500 shares of the company’s stock worth $147,000 after acquiring an additional 7,400 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new position in shares of Arteris in the fourth quarter worth about $162,000. Finally, Susquehanna Fundamental Investments LLC bought a new position in shares of Arteris in the third quarter worth about $113,000. Institutional investors own 64.36% of the company’s stock.

More Arteris News

Here are the key news stories impacting Arteris this week:

• Positive Sentiment: Arteris reported second-quarter revenue of $24.13 million, above the $23.48 million analyst consensus. More importantly, the company forecast third-quarter revenue of $24.0 million to $25.0 million and full-year 2026 revenue of $95.0 million to $98.0 million, both ahead of consensus estimates of $23.5 million and $94.2 million, respectively. The outlook suggests continued demand for Arteris’ semiconductor interconnect and system IP products. Arteris financial results and guidance
• Positive Sentiment: Roth Capital initiated coverage with a Buy rating and a $40 price target, while other analysts also maintain bullish targets. The new coverage adds support to the investment case and implies meaningful upside from recent trading levels. Roth Capital coverage
• Neutral Sentiment: Arteris appointed Saurabh Sinha as chief financial officer. The leadership change may improve investor focus on financial execution, although the announcement itself provides limited information about near-term earnings effects. Arteris CFO appointment
• Negative Sentiment: Second-quarter adjusted EPS was a loss of $0.10, missing the expected loss of $0.04 by $0.06. The larger-than-expected loss highlights ongoing profitability pressure despite the revenue beat. Arteris quarterly earnings
• Negative Sentiment: Several insiders reported sales, including CEO K. Charles Janac, Director Saiyed Atiq Raza, major shareholder Bayview Legacy, and Vice President Paul Alpern. While the sales represent relatively small portions of their remaining holdings in some cases, the concentration of insider selling could weigh on sentiment. Arteris insider selling

Analyst Upgrades and Downgrades

Several research firms have weighed in on AIP. Oppenheimer began coverage on shares of Arteris in a report on Thursday, July 16th. They issued an “outperform” rating and a $40.00 price target on the stock. Weiss Ratings cut Arteris from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday, May 13th. Wall Street Zen downgraded Arteris from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Roth Capital began coverage on Arteris in a report on Tuesday. They set a “buy” rating and a $40.00 price target for the company. Finally, TD Cowen boosted their price target on Arteris from $22.00 to $40.00 and gave the company a “buy” rating in a research note on Wednesday, May 13th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Arteris presently has a consensus rating of “Moderate Buy” and an average price target of $38.50.

About Arteris

Arteris, Inc is a fabless semiconductor intellectual property (IP) company specializing in on-chip interconnect solutions and system IP for advanced integrated circuits. The company’s core products include its FlexNoC network-on-chip (NoC) fabrics, Ncore cache coherent interconnect IP, and CodaCache memory subsystem IP. These technologies enable semiconductor and systems companies to design scalable, energy-efficient chips for applications ranging from automotive and artificial intelligence (AI) to 5G communications and high-performance computing.

Founded in 2003 and headquartered in Santa Clara, California, Arteris serves a global customer base across North America, Europe, and Asia.