Arteris, Inc., together with its subsidiaries, provides semiconductor system intellectual property (IP) solutions in the United States, rest of the Americas, China, ...
Arteris, Inc. is a fabless semiconductor technology company focused on system IP rather than manufacturing physical chips. Founded in 2003 and headquartered at 900 E. Hamilton Avenue in Campbell, California, the company sells reusable intellectual property and software that help semiconductor designers connect, configure, verify, and integrate the many processing, ...Arteris, Inc. is a fabless semiconductor technology company focused on system IP rather than manufacturing physical chips. Founded in 2003 and headquartered at 900 E. Hamilton Avenue in Campbell, California, the company sells reusable intellectual property and software that help semiconductor designers connect, configure, verify, and integrate the many processing, memory, security, and peripheral blocks found in modern systems-on-chip (SoCs) and multi-die chiplet architectures. K. Charles Janac serves as chairman, president, and chief executive officer and has led the company since 2005.
The company’s principal product category is Network-on-Chip (NoC) IP. FlexGen, FlexNoC, and FlexWay are designed to manage on-chip communications and data movement among IP blocks. Ncore provides cache-coherent interconnect capabilities for systems containing multiple processing elements, while CodaCache provides last-level cache functionality. These products are intended to improve scalability, performance, power efficiency, and design productivity as semiconductor architectures become more heterogeneous and incorporate CPUs, GPUs, AI accelerators, networking engines, memory controllers, and other specialized components.
Arteris also offers the Cycuity Radix family of hardware-security verification products. Radix-S is intended to detect and help remediate security issues in IP blocks and SoC subsystems, Radix-M supports system-level SoC and firmware verification through emulation, and Radix-ST performs static security analysis early in the design lifecycle. Its SoC integration automation portfolio includes Magillem Connectivity and Registers and CSRCompiler, which help automate connectivity, register-map, and configuration-related integration work.
Revenue is generated primarily through software and IP licensing, royalties, support and maintenance, professional services, training, design assistance, consulting, and on-site engineering support. As an IP vendor, Arteris generally does not incur the capital-intensive wafer fabrication, packaging, inventory, and physical bill-of-materials costs associated with semiconductor manufacturers. Its cost structure is therefore concentrated in research and development, engineering, sales and marketing, customer support, licensing operations, and corporate administration. The supplied trailing-twelve-month data shows a high gross margin of approximately 86.8%, consistent with a software and semiconductor-IP business, but also reports substantial operating losses, negative free cash flow, and significant research-and-development and selling, general, and administrative expense relative to revenue.
Arteris serves automotive, communications, enterprise computing, consumer electronics, and industrial customers across North America, China, Korea, the broader Asia-Pacific region, Europe, and the Middle East. Its technology is particularly relevant to advanced driver-assistance systems, autonomous and software-defined vehicles, artificial intelligence, high-performance computing, 5G and networking equipment, and other applications requiring complex, high-bandwidth chip architectures. The company became publicly traded on Nasdaq under the symbol AIP on October 27, 2021. The supplied data lists approximately 299 full-time employees, a market capitalization of about $1.38 billion, no dividend, and a Nasdaq Global Market listing. Key strategic opportunities include greater adoption of chiplets, increasing SoC complexity, demand for functional and hardware-security verification, and growth in automotive and AI semiconductor design. Key risks include customer concentration, long semiconductor design cycles, competition, reliance on technology licensing, execution risk, and the need to improve profitability and cash generation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$70.6M
+22.3%
+5.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-34.7M
-3.3%
-76.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+90.2%
+0.6%
+2.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-47.0%
+14.2%
-51.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-49.2%
+15.5%
-67.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$5.3M
+612.0%
+217.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.6%
+518.7%
+211.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-62.1%
+87.7%
-93.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.13x
-3.4%
+115.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, everyone, and welcome to the Arteris Second Quarter 2026 Earnings Call. Please note this call is being recorded and simultaneously webcast. All material contained in the webcast is the sole property and copyright of Arteris with all rights reserved. For opening remarks and introductions, I would now like to turn the call over to Erica Mannion, at Sapphire Investor Relations. Please go ahead.
Erica Mannion: Thank you, and good afternoon. With me today from Arteris are Karel Charles Janac, Chief Executive Officer, and Nicholas Bryan Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the second quarter ended 06/30/2026. Nick will review the financial results for the second quarter 2026 followed by the company's outlook for the third quarter and the full year of 2026. We will then open the call for questions. Before we begin, I would like to remind you that management will make statements during this call that are forward looking statements within the meaning of federal securities laws. These statements are based on management's current expectations and assumptions and involve material risks and uncertainties that could cause actual results to differ materially from those anticipated, and you should not place undue reliance on forward looking statements. Additional information regarding these risks, uncertainties and factors that could cause results to differ appear in the press release Arteris issued today and then in the documents and reports filed by Arteris from time to time with the Securities and Exchange Commission. Please note, during this call, we will cite certain non GAAP measures, including, among others, non-GAAP net loss, non-GAAP net loss per share and free cash flow, Which are not measures prepared in accordance with U.S. GAAP. The non GAAP measures are presented as we believe that they provide investors with the means of evaluating and understanding how the company, management, evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. A reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter ended 06/30/2020. In addition, for a definition of certain of the key performance indicators used in this presentation, such as annual contract value, and remaining performance obligations, please see the press release for the quarter ended 06/30/2026. These key performance indicators are presented for supplemental informational purposes only should not be considered a substitute for financial information presented in accordance with GAAP and may differ from similarly titled metrics or measures used by other companies securities analysts, investors. Listeners who do not have a copy of the press release for the quarter ended 06/30/2026, may obtain a copy by …