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Arbe Robotics (ARBE)
NASDAQ:ARBE
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Arbe Robotics
(NASDAQ:ARBE)
Rating:48Neutral
Price Target:
$2.00
▲(25.79%Upside)
Positive Factors
Financial Position
ARBE ended 1Q25 with $71.6M in cash and equivalents, up from $24.3M at yearend 2024, and is believed to be sufficiently capitalized until early 2027.
Market Opportunity
There is substantial market opportunity to be captured, as expected demand for new sensors is driven by improved safety features and regulatory demands, with ARBE's competitive position strengthening in imaging radar applications.
Partnerships and Technology
The successful launch of Arbe's LRR615 alongside HiRain, strong engagement of 15 automotive OEMs and collaboration with Nvidia for integration into its Drive AGX platform validate the technology, and highlight the differentiation of imaging radar and its potential to improve the safety and reliability of AV systems.
Negative Factors
Competition and Revenue Outlook
Automakers' sensor decision timelines are significantly delayed, which gives competitors more time to close the gap with ARBE.
Revenue Challenges
Delays in automakers' deployment of advanced driver-assistance systems have led to longer decision-making timelines, affecting revenue estimates for 2025 and 2026.
Stock Rating
Ongoing customer decision delays have led to a downgrade in the stock rating to Hold.
Arbe Robotics (ARBE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$158.80M
Dividend YieldN/A
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)2.01
Revenue Growth-46.41%
EPS Growth6.05%
CountryUS
Employees138
SectorTechnology
Sector Strength93
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.13
Shares Outstanding105,163,185
10 Day Avg. Volume1,270,677
30 Day Avg. Volume1,492,330
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)2.49
Price to Sales (P/S)0.00
P/FCF Ratio-5.17
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue42.49
Enterprise Value/Gross Profit-199.05
Enterprise Value/Ebitda-0.84
Forecast
1Y Price Target
$2.38Price Target Upside49.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 proprietary 4D imaging radar systems to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of radar units and licensing of its technology to partners engaged in developing autonomous and semi-autonomous vehicles. Additionally, Arbe may enter into strategic partnerships with automotive industry leaders to integrate its radar technology into broader vehicle systems, further expanding its market reach and revenue potential. The company's growth is supported by increasing demand for advanced safety features in vehicles and the ongoing shift towards autonomous driving technologies.
Arbe Robotics Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -2.45%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Arbe Robotics showcased significant progress in European and Chinese markets, substantial partnerships, and successful capital raising, indicating strong future potential. However, revenue decline and increased losses highlight current financial challenges, along with delays in automotive rollouts impacting short-term projections.Q1-2025 Updates
Positive Updates
Significant Progress in Europe
Arbe Robotics made meaningful progress in Europe, getting closer to design wins with leading OEMs. Increased investment from Tier 1s and OEMs developing AI-driven perception algorithms leveraging Arbe's radar data is noted. Revenues are projected to begin in 2027.
Successful Capital Raising
Arbe raised $33 million through an underwriting registered direct offering in January 2025, with an additional $21.5 million released from escrow. This capital strengthens their balance sheet and enhances financial stability.
Partnership with NVIDIA
Arbe collaborated with NVIDIA on integrating high-resolution imaging radar with NVIDIA's DRIVE AGX platform, featured at CES 2025.
HiRain Technology Milestone in China
HiRain Technology launched its LRR615 long-range imaging radar system in April 2025, showcasing scalability and market readiness in China's autonomous driving sector.
Strong Traction Beyond Automotive
Tier 1 Sensrad placed a significant order for over 1,000 imaging radar chips, indicating growing demand and versatility of Arbe's technology across multiple industries.
Positive Industry Response
Advanced radar solutions demonstrated at trade shows in China, Japan, Germany, and the U.S. received positive feedback from OEMs and Tier 1s.
Negative Updates
Decline in Revenue
Q1 2025 revenue was $0.04 million, down from $0.1 million in Q1 2024. Backlog as of March 31, 2025, was $0.25 million, with gross profit remaining negative at $0.3 million.
Increased Operating Loss
Operating loss for Q1 2025 was $13.4 million, compared to a $12.8 million loss in Q1 2024. Adjusted EBITDA was a loss of $9.7 million in Q1 2025, compared to an $8.5 million loss in Q1 2024.
Net Loss Increase
Net loss in Q1 2025 was $13.8 million, up from a $12.8 million loss in Q1 2024.
Delayed Automotive Rollouts
Economic shifts have led to delays in automaker rollouts of advanced driver-assist systems, extending decision timelines and impacting revenue expectations.
Company Guidance
During the Arbe Robotics First Quarter 2025 Earnings Results Conference Call, several key metrics were highlighted in the company's guidance. Arbe anticipates annual revenues for 2025 to be in the range of $2 million to $5 million, weighted toward the end of the year. Adjusted EBITDA for the year is projected to be a loss ranging from $29 million to $35 million. The company has emphasized its engagement in ongoing negotiations with OEMs, particularly in Europe, and is optimistic about securing four design-ins with automakers in 2025. Arbe's financial position was strengthened with a recent cash infusion totaling $70 million, including $33 million raised through an underwriting registered direct offering and an additional $21.5 million from convertible bonds. This capital will support the company's scaling operations and productization efforts. The company also noted continued traction in the Chinese market, with HiRain technology reaching a critical milestone with the launch of the LRR615 radar system, and expects to see a revenue ramp-up in China by the end of the year.Arbe Robotics Financial Statement Overview
Summary
Arbe Robotics is facing severe financial challenges, with declining revenues, negative gross profit, and high operational losses. The balance sheet shows significant leverage and low equity ratios, while cash flow is strained with persistent negative operating cash flows. These factors highlight substantial financial risks and a challenging path to sustainability.Income Statement
Arbe Robotics has been experiencing significant challenges in its income statement. The company has faced declining revenues over recent years, with a notable decrease from $3.5 million in 2022 to $768,000 in 2024. The gross profit has been negative, indicating cost of goods sold exceeds sales revenue. The EBIT and net income margins are also negative, highlighting ongoing operational inefficiencies and high expenses relative to revenue. These factors suggest a difficult path to profitability.32
Negative
Balance Sheet
Arbe Robotics' balance sheet shows significant leverage with a debt-to-equity ratio that has increased due to a decrease in equity and an increase in debt. The equity ratio is low, indicating a smaller proportion of assets financed by equity. However, the company has maintained a reasonable level of cash and short-term investments, which could provide some financial flexibility. Overall, the balance sheet reflects high financial risk with limited equity buffer.45
Neutral
Cash Flow
The cash flow statement reveals persistent negative operating cash flows, indicating the company is not generating sufficient cash from operations to cover its expenses. Free cash flow is also negative, suggesting cash outflows exceed inflows. The free cash flow to net income ratio is unfavorable, reinforcing the strain on liquidity. These metrics highlight cash management challenges that may hinder growth and stability.38
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 768.00K | 1.47M | 3.52M | 2.25M | 332.00K |
| Gross Profit | -785.00K | -38.00K | 2.23M | 809.00K | -8.00K |
| EBITDA | -49.07M | -46.33M | -47.25M | -32.94M | -14.73M |
| Net Income | -49.32M | -43.50M | -33.26M | -82.91M | -16.29M |
Balance Sheet | |||||
| Total Assets | 60.79M | 50.48M | 60.83M | 105.35M | 4.41M |
| Cash, Cash Equivalents and Short-Term Investments | 24.28M | 44.06M | 54.57M | 100.81M | 2.96M |
| Total Debt | 32.62M | 1.74M | 381.00K | 4.92M | 4.20M |
| Total Liabilities | 38.29M | 8.39M | 12.08M | 25.52M | 64.56M |
| Stockholders Equity | 22.50M | 42.09M | 48.75M | 79.82M | -60.16M |
Cash Flow | |||||
| Free Cash Flow | -33.12M | -33.76M | -41.28M | -27.20M | -15.44M |
| Operating Cash Flow | -32.50M | -33.51M | -40.36M | -26.42M | -15.29M |
| Investing Cash Flow | 3.99M | -15.25M | -1.32M | -684.00K | 9.70M |
| Financing Cash Flow | 13.53M | 23.20M | -4.94M | 125.08M | 1.53M |
Arbe Robotics Technical Analysis
Negative
1.59
Price Trends
1.61
Negative
1.44
Positive
1.80
Negative
Market Momentum
-0.02
Positive
43.92
Neutral
32.90
Neutral
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 1.59 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.61, and below the 200-day MA of 1.80, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.90 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $177.31M | 19.36 | 56.45% | ― | ― | ― | |
63 Neutral | $34.26B | 5.42 | -11.67% | 1.85% | 5.30% | -18.55% | |
61 Neutral | $344.64M | ― | -136.41% | ― | -16.95% | 54.71% | |
57 Neutral | $302.71M | ― | -60.94% | ― | 128.83% | 73.67% | |
48 Neutral | $158.80M | ― | -101.60% | ― | -46.41% | 6.05% | |
47 Neutral | $621.70M | ― | -160.52% | ― | -67.43% | 87.17% | |
35 Underperform | $177.37M | ― | -98.67% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
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Arbe Robotics
1.51
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HPAI
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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.