Arteris, Inc. Reports Strong Q1 2025 Financial Results

Arteris, Inc. ( (AIP) ) has released its Q1 earnings. Here is a breakdown of the information Arteris, Inc. presented to its investors.

Arteris, Inc. is a prominent provider of system IP solutions that accelerate system-on-chip (SoC) development, primarily serving the enterprise computing, communications, and automotive semiconductor sectors. The company is known for its specialized expertise in networks-on-chip (NoC) interconnect IP and SoC integration automation technology.

In its latest earnings report for the first quarter of 2025, Arteris, Inc. announced a record annual contract value plus royalties of $66.8 million, alongside a positive free cash flow of $2.7 million. The company attributes these achievements to strong demand for its semiconductor System IP products across its key markets.

Key financial highlights from the first quarter include a 28% year-over-year increase in revenue to $16.5 million, and a reduction in operating loss from $9.1 million in the previous year to $7.7 million. Non-GAAP measures showed an operating loss of $3.2 million and a net loss of $3.6 million. The company also reported a significant increase in remaining performance obligations, reaching $88.9 million, up 19% year-over-year.

Strategically, Arteris expanded its presence in the automotive sector by securing a new global automotive OEM customer and joined the Intel Foundry Accelerator program to enhance its ecosystem partnerships. The company also opened a new engineering and customer support center in Krakow, Poland, to bolster its development capabilities.

Looking forward, Arteris maintains an optimistic outlook for 2025, with estimated second-quarter ACV plus royalties projected between $66.0 million and $70.0 million, and full-year guidance ranging from $71.0 million to $79.0 million. The company remains focused on strengthening relationships with global innovators and expanding its market presence.