Arteris (AIP)
NASDAQ:AIP
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Arteris
(NASDAQ:AIP)
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Rating:58Neutral
Price Target:
$20.00
▲(5.10% Upside)
Action:ReiteratedDate:04/09/26
The score is held back primarily by weak financial fundamentals (large ongoing GAAP losses and negative equity) and limited valuation support (negative P/E). These are partially offset by solid technical momentum and a relatively constructive earnings-call outlook, including strong ACV/RPO trends and guidance implying improving non-GAAP profitability and cash flow into 2026.
Positive Factors
Very High Gross Margins
Exceptional ~90%+ gross margins reflect highly scalable IP licensing economics with very low incremental cost. That structural profitability potential gives operating leverage as revenue grows, enabling durable margin expansion and a credible path to sustained non‑GAAP profitability if opex growth remains controlled.
Negative Factors
Negative Stockholders' Equity
Negative equity is a durable capital‑structure constraint that can limit financing options and increase reliance on dilutive or costly funding. It weakens balance‑sheet resilience against shocks and may complicate long‑term investment or M&A financing without corrective earnings or capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Very High Gross Margins
Exceptional ~90%+ gross margins reflect highly scalable IP licensing economics with very low incremental cost. That structural profitability potential gives operating leverage as revenue grows, enabling durable margin expansion and a credible path to sustained non‑GAAP profitability if opex growth remains controlled.
Read all positive factors
Arteris (AIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$865.24M
Dividend YieldN/A
Average Volume (3M)457.06K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth20.45%
EPS Growth12.28%
CountryUS
Employees267
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.05
Shares Outstanding45,467,262
10 Day Avg. Volume454,656
30 Day Avg. Volume457,062
Financial Highlights & Ratios
PEG Ratio4.06
Price to Book (P/B)-44.80
Price to Sales (P/S)9.29
P/FCF Ratio122.64
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue11.91
Enterprise Value/Gross Profit13.20
Enterprise Value/Ebitda-29.90
Forecast
1Y Price Target
$21.67Price Target Upside13.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$91.01M
Arteris Business Overview & Revenue Model
Company Description
Arteris, Inc. provides semiconductor interconnect intellectual property (IP) and IP deployment solutions in the Americas, the Asia Pacific, Europe, and the Middle East. The company develops, licenses, and supports the on-chip interconnect fabric t...
How the Company Makes Money
null...
Arteris Key Performance Indicators (KPIs)
Any
Annual Contract Value
Measures the total value of recurring contracts over a year, indicating the company's ability to secure long-term revenue streams and customer commitment.
Measures the total value of recurring contracts over a year, indicating the company's ability to secure long-term revenue streams and customer commitment.
Data provided by:
The Fly
The FlyArteris Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call delivered a broadly positive operating and commercial update: strong revenue growth (Q4 +30% YoY), record ACV+royalties (+28% YoY), material royalty momentum (+50% YoY), high gross margins (92%), expanding product adoption (FlexNoC, Ncore) and strategic acquisition (Cycuity) that expands addressable market. Offsetting these positives are persistent GAAP losses, continuing non-GAAP losses (albeit improved), a partially one-time royalty boost in Q4, and near-term drag and margin nuance from Cycuity along with some revenue timing risk from RPO recognition and an equity raise that has not fully executed. On balance, the highlights materially outweigh the lowlights given strong top-line momentum, cash generation, improving non-GAAP metrics, and a credible path to profitability guided for 2026.Positive Updates
Revenue Growth and Beat
Q4 revenue of $20.1M, up 16% sequentially and 30% year-over-year, beating the top end of guidance; full-year 2025 revenue $70.6M, up 22% YoY.
Negative Updates
Persistent GAAP Losses
GAAP operating loss was $8.5M in Q4 and $33.1M for full-year 2025; GAAP net loss for 2025 was $34.7M (diluted EPS -$0.82), indicating significant GAAP-level losses remain despite non-GAAP improvements.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Beat
Q4 revenue of $20.1M, up 16% sequentially and 30% year-over-year, beating the top end of guidance; full-year 2025 revenue $70.6M, up 22% YoY.
Read all positive updates
Company Guidance
For Q1 2026 Arteris guided ACV plus royalties of $85–89M, revenue of $20.5–21.5M, a non‑GAAP operating loss of $3.5–2.5M, and non‑GAAP free cash flow of −$1.5–+$1.5M; for full‑year 2026 it guided ACV plus royalties to exit at $100–104M, revenue of $89–93M (including approximately $7M from the Cycuity acquisition), a non‑GAAP operating loss of $9–5M (about $1M related to Cycuity), and non‑GAAP free cash flow of +$5–+ $9M, noting that roughly half of the $117M RPO exiting Q4 is expected to convert to 2026 revenue and that most Cycuity revenue will be ratable as the company pursues a path to non‑GAAP operating profitability as early as 2026.Arteris Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
33
Negative
Cash Flow
47
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.58M | 57.72M | 53.67M | 50.38M | 37.86M |
| Gross Profit | 63.68M | 51.76M | 48.59M | 46.10M | 34.13M |
| EBITDA | -29.76M | -24.83M | -28.52M | -25.33M | -20.27M |
| Net Income | -34.75M | -33.64M | -36.87M | -27.39M | -23.38M |
Balance Sheet | |||||
| Total Assets | 115.03M | 106.14M | 102.80M | 115.52M | 120.44M |
| Cash, Cash Equivalents and Short-Term Investments | 54.60M | 43.84M | 41.17M | 68.15M | 85.83M |
| Total Debt | 9.08M | 5.99M | 7.75M | 3.62M | 3.91M |
| Total Liabilities | 129.66M | 107.32M | 87.70M | 77.98M | 67.54M |
| Stockholders Equity | -14.63M | -1.19M | 15.10M | 37.53M | 52.90M |
Cash Flow | |||||
| Free Cash Flow | 5.34M | -1.04M | -17.23M | -7.82M | -1.62M |
| Operating Cash Flow | 6.73M | -720.00K | -15.73M | -6.77M | -814.00K |
| Investing Cash Flow | 12.03M | 970.00K | -4.69M | -37.48M | -1.36M |
| Financing Cash Flow | 1.42M | -262.00K | -2.92M | -4.15M | 76.25M |
Arteris Technical Analysis
Positive
19.03
Price Trends
15.76
Positive
15.82
Positive
13.25
Positive
Market Momentum
0.72
Negative
63.91
Neutral
88.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIP, the sentiment is Positive. The current price of 19.03 is above the 20-day moving average (MA) of 16.46, above the 50-day MA of 15.76, and above the 200-day MA of 13.25, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 88.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIP.
Arteris Risk Analysis
Arteris disclosed 65 risk factors in its most recent earnings report. Arteris reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arteris Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $357.90M | 21.20 | 23.47% | 6.28% | -9.48% | -14.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $865.24M | -19.92 | 361.65% | ― | 20.45% | 12.28% | |
52 Neutral | $573.68M | -49.15 | -3.73% | ― | 5.55% | -239.94% | |
52 Neutral | $251.63M | -0.98 | -970.62% | ― | ― | -1827.24% | |
47 Neutral | $492.78M | -14.93 | -11.80% | ― | -44.30% | 16.42% | |
45 Neutral | $137.93M | -4.64 | -27.53% | ― | 7.53% | -15.00% |
* Technology Sector Average
AIP
Arteris
19.03
12.47
190.09%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.