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Arbe Robotics (ARBE)
NASDAQ:ARBE

Arbe Robotics (ARBE) AI Stock Analysis

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ARBE

Arbe Robotics

(NASDAQ:ARBE)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
$1.00
▼(-18.03% Downside)
The score is held down primarily by extremely weak fundamentals—deeply negative margins, large ongoing operating losses, and significant cash burn—despite improved leverage and some revenue rebound. Technicals are mixed but stabilizing, while valuation is unattractive due to losses and no dividend support. The earnings call adds modest support from strategic progress and a strong cash balance, but guidance still points to prolonged losses and delayed revenue realization.
Positive Factors
Major design-win (China L4) validating tech
A start-of-production selection by a state-owned Chinese OEM for Level 4 programs materially validates Arbe’s high-definition radar in a large addressable market. If SOP and subsequent volumes materialize, this deal can convert engineering wins into multi-year production revenue and OEM credibility.
Improved liquidity / cash balance
A cash balance north of $50M provides a multi-quarter runway to support NRE, design-win conversion and commercialization efforts without immediate revenue. This reduces short-term financing pressure and gives management time to execute serial-production transitions and pursue non-automotive contracts.
Diversification into non-automotive markets
Expansion into defense, maritime and AI-compute partnerships broadens end markets beyond cyclic OEM auto programs. Structural diversification can produce earlier, higher-margin revenue streams, lower correlation to passenger vehicle cycles, and create alternative volume paths to commercial scale.
Negative Factors
Deeply negative margins and persistent operating losses
Margins are structurally negative today, indicating product and operating costs far exceed revenue. Persistent large operating losses mean the business needs significant revenue scale or cost/architecture change to reach profitability; otherwise losses will continue to pressure liquidity and capital structure.
Very small revenue base and weak near-term guidance
Low absolute revenue and conservative near-term guidance signal slow commercialization despite design activity. With minimal current production sales, structural margin improvement and positive free cash flow are unlikely in the medium term, extending dependence on external funding and execution risk.
Ongoing reliance on external financing and potential dilution
Frequent capital raises and amended convertible debt show the company remains financing-dependent to fund operations. Continued reliance on equity or bond issuance risks dilution and shifts focus to cash management versus scaling production, constraining long-term strategic flexibility if revenue scaling lags.

Arbe Robotics (ARBE) vs. SPDR S&P 500 ETF (SPY)

Arbe Robotics Business Overview & Revenue Model

Company DescriptionArbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyArbe Robotics generates revenue primarily through the sale of its radar systems and accompanying software solutions to automotive manufacturers and suppliers. The company's revenue model includes direct sales of its proprietary radar units, licensing agreements for its technology, and service contracts for ongoing support and updates. Key revenue streams also come from collaborations with major automotive companies and partnerships with industry players in the autonomous vehicle ecosystem, which enhance market reach and credibility. Additionally, Arbe may explore strategic alliances for joint development projects that can lead to new revenue opportunities, positioning itself as a critical technology provider in the rapidly evolving autonomous driving market.

Arbe Robotics Earnings Call Summary

Earnings Call Date:Nov 17, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The call reflects a mix of strategic advancements and ongoing financial challenges. While Arbe Robotics Ltd. has made significant progress with OEM partnerships and received industry recognition, it continues to face revenue and profitability hurdles, as well as extended decision timelines due to global economic conditions.
Q3-2025 Updates
Positive Updates
Strategic Progress with OEMs
Arbe Robotics Ltd. made solid strategic progress with OEMs, including a potential selection as a key enabler for an eyes-off, hands-off automated driving program by a major European OEM. Additionally, a premium European OEM is conducting data collection for a Level 3 program using Arbe's radars.
Non-OEM Collaborations
A global leader in artificial intelligence computing ordered radar development kits from Arbe Robotics Ltd., marking strong validation from a key player in autonomous driving technology and AI.
Awards and Recognition
Arbe Robotics Ltd. won two prestigious automotive technology industry awards: the JUST Auto Excellence Award and the Auto Tech Breakthrough Award for sensor technology solution of the year 2025.
Financial Position
Arbe Robotics Ltd. held $52.6 million in cash and cash equivalents as of September 30, 2025, providing a strong balance sheet to support long-term strategic and growth plans.
Negative Updates
Revenue and Profitability Challenges
Revenue for Q3 2025 was $300,000, a modest increase from $100,000 in Q3 2024, but gross profit remained negative at $200,000. Operating loss for Q3 2025 was $11.5 million, compared to a $12.4 million loss in 2024.
Extended Decision Timelines
Global economic shifts are causing some OEMs to postpone new model launches and lengthen their decision timelines for autonomous driving solutions, impacting Arbe's market dynamics.
Adjusted EBITDA Loss
Adjusted EBITDA was a loss of $9.2 million in Q3 2025, compared to a loss of $8.2 million in 2024, reflecting ongoing financial challenges.
Revenue Guidance and Shifts
Revenue expectations for 2025 were adjusted to $1 million to $2 million due to shifts in certain NRE programs, indicating potential delays in revenue realization.
Company Guidance
In the third quarter of 2025, Arbe Robotics Ltd. provided guidance that focused on securing strategic design wins with four different OEMs over the next three quarters, despite global economic shifts causing delays in decision timelines. The company reported a revenue of $300,000 for Q3 2025, up from $100,000 in Q3 2024, with a backlog of $200,000 as of September 30, 2025. Operating expenses decreased to $11.3 million from $12.2 million in the same period last year, contributing to an operating loss of $11.5 million. The company's net loss was $11 million, with adjusted EBITDA at a loss of $9.2 million. Arbe Robotics Ltd. expects full-year 2025 revenues to range between $1 million and $2 million, with adjusted EBITDA projected to be a loss between $29 million and $35 million. The company held $52.6 million in cash and cash equivalents, providing financial stability to support ongoing strategic initiatives. Additionally, the company is experiencing a ramp-up in non-automotive sectors such as defense and maritime, which are expected to contribute significantly to revenues in 2026.

Arbe Robotics Financial Statement Overview

Summary
Financial performance is dominated by very large, persistent losses and cash burn: negative gross profit (gross margin ~-140%), extremely negative net margin, TTM EBIT around -$49M, and TTM operating/free cash flow around -$37M. Offsetting positives are a recent TTM revenue rebound and improved leverage (debt-to-equity ~0.26) with equity around $49.1M, but the business remains highly dependent on external funding.
Income Statement
12
Very Negative
ARBE’s income statement profile remains very weak. Revenue is modest and volatile, with TTM (Trailing-Twelve-Months) growth rebounding (+24.44%) after two years of steep declines, but the absolute revenue base is still small. Profitability is the key issue: TTM gross profit is negative and margins are deeply negative (gross margin -140%, net margin about -7,078%), reflecting costs far above revenue. Operating losses remain extremely large and persistent (TTM EBIT roughly -$49M), showing limited operating leverage so far.
Balance Sheet
55
Neutral
The balance sheet is mixed but improved versus last year. Leverage looks manageable in the latest period with debt-to-equity at ~0.26 and equity at ~$49.1M, a sharp improvement from 2024’s higher leverage (~1.45). However, shareholder returns are strongly negative (TTM return on equity around -0.97), consistent with ongoing heavy losses, and the capital structure could come under pressure if losses continue and additional funding is required.
Cash Flow
22
Negative
Cash flow quality is weak due to sustained cash burn. TTM operating cash flow is about -$37.3M and free cash flow is about -$37.7M, indicating the business is consuming cash rather than generating it. Free cash flow burn has improved slightly (TTM free cash flow growth +9.92%), but coverage remains unfavorable (operating cash flow is negative relative to reported earnings), meaning profitability and liquidity still depend on external financing rather than internal cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue667.00K768.00K1.47M3.52M2.25M332.00K
Gross Profit-935.00K-785.00K-38.00K2.23M809.00K-8.00K
EBITDA-48.16M-49.07M-46.33M-47.25M-32.94M-14.73M
Net Income-47.21M-49.32M-43.50M-40.49M-58.09M-15.63M
Balance Sheet
Total Assets66.08M60.79M50.48M60.83M105.35M4.41M
Cash, Cash Equivalents and Short-Term Investments61.42M24.28M43.99M54.57M100.81M3.02M
Total Debt12.85M32.62M1.74M381.00K4.92M4.57M
Total Liabilities16.98M38.29M8.39M12.08M25.52M9.12M
Stockholders Equity49.11M22.50M42.09M48.75M79.82M-4.72M
Cash Flow
Free Cash Flow-37.70M-33.12M-33.76M-41.28M-27.20M-15.44M
Operating Cash Flow-37.33M-32.50M-33.51M-40.36M-26.42M-15.29M
Investing Cash Flow-44.93M3.99M-15.25M-1.32M-684.00K9.70M
Financing Cash Flow67.17M13.53M23.20M-4.94M125.08M1.53M

Arbe Robotics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.22
Price Trends
50DMA
1.31
Negative
100DMA
1.57
Negative
200DMA
1.52
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.68
Neutral
STOCH
14.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARBE, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.31, and below the 200-day MA of 1.52, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARBE.

Arbe Robotics Risk Analysis

Arbe Robotics disclosed 69 risk factors in its most recent earnings report. Arbe Robotics 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 3 New Risks
1.
We will be subject to risks associated with our agreements with Tier 1s and other companies. Q4, 2023
2.
Increasing attention to, and evolving expectations regarding, environmental, social and sustainability matters may impact our business and reputation. Q4, 2023
3.
Our principal customers include Tier-1 suppliers with a view to including our chipset as part of a radar system that they market to the automobile industry and which compete with other Tier 1 suppliers in marketing to the automotive industry. Q4, 2023

Arbe Robotics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
50
Neutral
$767.22M-192.35%89.90%5.13%
49
Neutral
$151.47M-2.44-114.65%11.89%34.27%
48
Neutral
$106.29M-1.84-62.56%-250.18%
47
Neutral
$133.90M-2.62-142.36%-34.35%20.88%
45
Neutral
$1.25B-12.34-42.03%30.20%35.80%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARBE
Arbe Robotics
1.22
-1.28
-51.20%
REKR
Rekor Systems
1.05
-1.15
-52.27%
AEVA
Aeva Technologies
12.76
8.76
219.00%
OUST
Ouster
20.33
10.23
101.29%
AISP
Airship AI Holdings
2.99
-1.38
-31.58%

Arbe Robotics Corporate Events

Arbe Robotics Raises $18.5 Million in Underwritten Direct Offering to Strengthen Working Capital
Jan 27, 2026

On January 26, 2026, Arbe Robotics Ltd. launched an underwritten registered direct offering of 13,225,000 ordinary shares at $1.40 per share, including 1,725,000 shares issued under a fully exercised over-allotment option, for gross proceeds of approximately $18.5 million before fees and expenses. The offering, expected to close on January 27, 2026, is led by Canaccord Genuity as sole bookrunner with Roth Capital Partners and WestPark Capital as co-managers, and the company plans to use the net proceeds for working capital and general corporate purposes. Arbe entered into an underwriting agreement that, among other customary terms, restricts it from issuing additional equity or equity-linked securities for 90 days following closing, signaling a near-term cap on equity dilution while reinforcing its capital position as it pursues growth in the automotive radar market.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

Arbe Robotics Raises $15.7 Million in Follow-On Convertible Bond Offering, Lifts Escrowed Series A Funds to $24.3 Million
Dec 30, 2025

On December 23–29, 2025, Arbe Robotics Ltd. completed a NIS 57.6 million (approximately $15.7 million) private placement follow‑on offering of its Series A Convertible Bonds to Israeli accredited investors, increasing the aggregate par value of the series to about NIS 89.1 million and bringing the amount held in escrow under this bond program to roughly $24.3 million. The additional Series A Convertible Bonds, which began trading on the Tel Aviv Stock Exchange on December 29, 2025 as part of a single series with the existing bonds, carry the same amended terms approved by bondholders earlier in December, including an extended maturity to December 31, 2026 and a reduced interest rate from 6.5% to 4.35%, changes that collectively lower Arbe’s financing costs, improve its financial flexibility and signal continued investor confidence in the company’s technology and long‑term growth strategy.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

Arbe Robotics Wins China State-Owned Automaker L4 Radar Deal, SOP Set for 2026
Dec 29, 2025

On December 29, 2025, Arbe Robotics announced that a China-based state-owned automaker has selected Beijing JingWei Hirain Technologies’ LRR610 radar, powered by Arbe’s Ultra High-Definition radar chipset, for the carmaker’s Level 4 autonomous vehicle program, with start of production targeted for December 2026 and thousands of vehicles expected to reach the market in 2027. The deal strengthens Arbe’s position in the strategically important Chinese autonomous driving market, showcasing the industry-leading channel count and high-resolution sensing of its chipset for front-facing radar applications in complex urban and high-speed highway environments, and underlining the significance of its partnership with Hirain as global automakers race to commercialize higher levels of vehicle automation.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

Arbe Robotics Wins Bondholder Approval for Extended Deadline and New Early Redemption Option
Dec 22, 2025

On December 16, 2025, Arbe Robotics’ Series A bondholders approved a package of changes to the company’s convertible debt, including extending to December 31, 2026 the deadline for meeting conditions required to release bond proceeds held in trust, and cutting the interest rate on the bonds from 6.5% to 4.35% from January 1, 2026, while keeping the conversion price unchanged at ILS 9.53 per share. Bondholders also endorsed the introduction of a voluntary early redemption mechanism taking effect January 16, 2026, and, following the vote, the company is weighing an increase in the outstanding principal of the same bond series from about $8.5 million to as much as $25 million, a step that could materially bolster its funding capacity and financial flexibility while slightly easing its interest burden.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

Arbe Robotics Proposes Extension of Convertible Bond Milestones
Dec 8, 2025

On December 8, 2025, Arbe Robotics Ltd. announced a proposal to extend the deadline for meeting conditions under its series A convertible bonds to December 31, 2026, subject to bondholder approval. This proposal includes reducing the bond interest rate from 6.5% to 4.35% effective January 1, 2026, while maintaining the conversion price at ILS 9.53 per share. The decision follows recent developments where Arbe does not anticipate securing a strategic program award with a European OEM soon. If approved, the company may issue additional bonds, increasing the principal amount to up to $20 million, impacting its financial strategy and market positioning.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

Arbe Robotics Reports Q3 2025 Financial Results and Strategic Progress
Nov 17, 2025

On November 17, 2025, Arbe Robotics announced its financial results for the third quarter ending September 30, 2025, highlighting strategic progress and industry recognition. The company reported a revenue increase to $0.3 million from $0.1 million in the previous year, despite a net loss of $11 million. Arbe’s radar technology has gained traction with several OEMs, including a major European OEM potentially selecting its chipset for an automated-driving system. The company also expanded its non-automotive market presence, notably in the defense sector and boat collision-prevention systems. Arbe’s leadership in high-resolution radar is recognized with industry awards and strategic board appointments, positioning it for future growth as it aims for significant revenue increases by 2027.

The most recent analyst rating on (ARBE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Arbe Robotics stock, see the ARBE Stock Forecast page.

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.Date of analysis: Jan 27, 2026