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Arteris
(NASDAQ:AIP)
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Rating:52Neutral
Price Target:
$35.00
▲(58.16% Upside)
Action:Reiterated
Date:06/30/26
The score is held back primarily by weak financial performance (persistent losses, negative TTM operating/free cash flow, and a thin equity cushion), with valuation also constrained by a negative P/E. These are partially offset by a constructive earnings-call outlook featuring raised guidance, strong ACV/royalty and backlog momentum, and a stated path to non-GAAP profitability, while technicals are neutral due to missing indicator data.
Positive Factors
High gross margins / scalable IP model
Arteris's software/IP business delivers exceptionally high gross margins (~87–92%), reflecting low incremental costs on additional licenses and royalties. That cost structure supports margin scalability as revenue grows, enabling operating leverage and durable profitability potential as license and royalty volumes scale.
Negative Factors
Sustained GAAP unprofitability
Arteris remains structurally unprofitable on a GAAP basis with sizable operating losses. Until operating expenses are consistently below revenue or non-GAAP gains convert to GAAP profitability, sustained losses increase dilution or financing risk and limit reinvestment capacity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins / scalable IP model
Arteris's software/IP business delivers exceptionally high gross margins (~87–92%), reflecting low incremental costs on additional licenses and royalties. That cost structure supports margin scalability as revenue grows, enabling operating leverage and durable profitability potential as license and royalty volumes scale.
Read all positive factors
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 (AIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.62B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth25.57%
EPS Growth2.16%
CountryUS
Employees299
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.79
Shares Outstanding46,171,980
10 Day Avg. Volume999,745
30 Day Avg. Volume1,189,380
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 Cap1.20
Enterprise Value/Revenue25.19
Enterprise Value/Gross Profit28.64
Enterprise Value/Ebitda-60.17
Forecast
1Y Price Target
$37.75Price Target Upside70.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.17
Revenue Forecast (FY)$91.01M
Arteris Business Overview & Revenue Model
Company Description
Arteris, Inc., together with its subsidiaries, provides semiconductor system intellectual property (IP) solutions in the United States, rest of the Americas, China, Korea, the rest of the Asia Pacific, Europe, and the Middle East. It manages on-ch...
How the Company Makes Money
Arteris makes money primarily by licensing its semiconductor IP and collecting associated fees over the life of customers’ chip programs. Key revenue streams typically include: (1) License revenue: upfront fees paid by customers for the right to u...
Arteris Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
Overall the call conveyed strong commercial momentum and clear operational progress: record ACV, revenue, accelerated royalties, raised guidance, strategic M&A, and awards. Financially the company remains in transition to profitability with GAAP losses, a negative Q1 free cash flow impacted by acquisition costs, and an early-stage security acquisition integration. Management emphasized discipline on OpEx and provided positive full-year guidance and a path to non-GAAP profitability, leading to a favorable outlook despite near-term variability and leadership transition risk.Positive Updates
Record ACV + Royalties and Revenue Growth
ACV plus royalties reached a record $92.8M, up 39% year-over-year; total Q1 revenue was a record $22.9M, also up 39% year-over-year.
Negative Updates
GAAP Losses and Year-over-Year Worsening
GAAP operating loss was $9.3M in Q1 versus $7.7M in the prior-year period; GAAP net loss was $8.0M (diluted net loss per share $0.17), reflecting ongoing GAAP-level unprofitability.
Read all updates
Q1-2026 Updates
Positive
Negative
Record ACV + Royalties and Revenue Growth
ACV plus royalties reached a record $92.8M, up 39% year-over-year; total Q1 revenue was a record $22.9M, also up 39% year-over-year.
Read all positive updates
Company Guidance
Management raised and detailed its near‑ and full‑year targets: for the next quarter they expect ACV plus royalties of $95–$99M, revenue of $23–$24M, a non‑GAAP operating loss of $3–$2M and free cash flow of +$2–$8M (and said they will no longer guide quarterly free cash flow); for full‑year 2026 they raised guidance to exit ACV plus royalties of $102–$106M (up $2M), revenue of $91–$95M (up $2M; ~32% YoY at the midpoint), non‑GAAP operating loss of $8.5–$4.5M (improved $0.5M) and non‑GAAP free cash flow of +$5–$9M; management also noted Q1 RPO of $118M with just over half expected to convert to revenue in the next 12 months and reiterated a path to non‑GAAP operating profitability as early as Q4 2026.Arteris Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
41
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 76.98M | 70.58M | 57.72M | 53.67M | 50.38M | 37.86M |
| Gross Profit | 67.72M | 63.68M | 51.76M | 48.59M | 46.10M | 34.13M |
| EBITDA | -32.23M | -29.70M | -24.83M | -28.52M | -25.33M | -20.27M |
| Net Income | -34.58M | -34.75M | -33.64M | -36.87M | -27.39M | -23.38M |
Balance Sheet | ||||||
| Total Assets | 139.88M | 115.03M | 106.14M | 102.80M | 115.52M | 120.44M |
| Cash, Cash Equivalents and Short-Term Investments | 38.10M | 54.60M | 43.84M | 41.17M | 68.15M | 85.83M |
| Total Debt | 5.46M | 9.08M | 5.99M | 7.75M | 3.62M | 3.91M |
| Total Liabilities | 137.28M | 129.66M | 107.32M | 87.70M | 77.98M | 67.54M |
| Stockholders Equity | 2.59M | -14.63M | -1.19M | 15.10M | 37.53M | 52.90M |
Cash Flow | ||||||
| Free Cash Flow | -4.69M | 5.34M | -1.04M | -17.23M | -7.82M | -1.62M |
| Operating Cash Flow | -3.19M | 6.73M | -720.00K | -15.73M | -6.77M | -814.00K |
| Investing Cash Flow | -3.90M | 12.03M | 970.00K | -4.69M | -37.48M | -1.36M |
| Financing Cash Flow | 2.35M | 1.42M | -262.00K | -2.92M | -4.15M | 76.25M |
Arteris Technical Analysis
Negative
22.13
Price Trends
35.66
Negative
26.24
Positive
20.33
Positive
Market Momentum
2.22
Positive
42.42
Neutral
42.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIP, the sentiment is Negative. The current price of 22.13 is below the 20-day moving average (MA) of 40.61, below the 50-day MA of 35.66, and above the 200-day MA of 20.33, indicating a neutral trend. The MACD of 2.22 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIP.
Arteris Risk Analysis
Arteris disclosed 67 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 | $475.11M | 31.28 | 25.61% | 6.28% | 1.76% | 0.85% | |
64 Neutral | $1.13B | -89.23 | -3.89% | ― | 2.99% | -64.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $697.73M | -10.48 | -11.80% | ― | 79.31% | 57.71% | |
52 Neutral | $1.62B | -44.38 | 445.97% | ― | 25.57% | 2.16% | |
48 Neutral | $224.12M | -6.76 | -29.33% | ― | 11.92% | 7.07% | |
48 Neutral | $190.68M | -1.79 | -536.89% | ― | 3908.24% | 60.14% |
* Technology Sector Average
AIP
Arteris
35.06
25.77
277.40%
CEVA
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83.89%
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98.22
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39.43%
VLN
Valens
2.07
-0.61
-22.76%
BZAI
Blaize Holdings
1.34
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LAES
SEALSQ Corp
3.03
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-22.51%
Arteris Corporate Events
Executive/Board ChangesShareholder Meetings
Arteris Shareholders Approve Directors and Auditor at Meeting
Positive
Jun 4, 2026
On June 2, 2026, Arteris, Inc. held its Annual Meeting of Stockholders, where investors voted on the election of three Class II directors and the ratification of the company’s independent auditor. Stockholders elected Antonio J. Viana, Wayne...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Arteris Announces CFO Retirement Amid Strong Growth Momentum
Positive
May 12, 2026
Arteris, Inc. is a semiconductor technology company specializing in network-on-chip interconnect IP, system-on-chip integration automation software and hardware security assurance solutions. Its products are designed to optimize data movement, pow...
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.