Arteris, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $17.4 million, an increase of 18% from $14.7 million in the same period last year. The growth was primarily driven by a rise in licensing, support, and maintenance revenue, which reached $15.9 million, up from $13.5 million, and variable royalties that increased to $1.5 million from $1.2 million. Despite the revenue growth, the company recorded a net loss of $9.0 million, compared to a loss of $7.7 million in the prior year, resulting in a net loss per share of $0.21, slightly higher than the $0.20 loss per share reported in Q3 2024.
In terms of operational metrics, Arteris experienced a notable increase in its Annual Contract Value (ACV), which rose to $69.4 million from $56.4 million year-over-year. The company also reported 23 Confirmed Design Starts during the quarter, up from 14 in the same period last year, indicating a growing engagement with its semiconductor interconnect technology. The total number of employees as of September 30, 2025, was 285, reflecting the company's ongoing investment in talent to support its growth strategy.
The company's operating expenses for the third quarter totaled $24.4 million, a 15% increase from $21.2 million in Q3 2024. This rise was attributed to higher research and development costs, which increased by 6% to $12.6 million, and a significant 38% jump in sales and marketing expenses to $6.9 million, driven by increased headcount and related costs. General and administrative expenses also rose by 13% to $4.9 million, reflecting the company's expansion efforts.
Arteris's balance sheet showed total assets of $107.7 million as of September 30, 2025, a slight increase from $106.1 million at the end of 2024. However, the company reported a stockholders' deficit of $11.4 million, compared to a deficit of $1.2 million at the end of the previous fiscal year. This change was primarily due to the accumulated deficit growing to $163.1 million from $136.9 million, reflecting ongoing operational losses.
Looking ahead, Arteris remains optimistic about its growth prospects, driven by increasing demand for complex System-on-Chip (SoC) designs and the expansion of its product offerings. The company plans to continue investing in research and development to enhance its technology and maintain its competitive edge in the semiconductor industry. However, management acknowledged the cyclical nature of the semiconductor market and the potential impact of global economic conditions on future performance.
About Arteris, Inc.
Arteris, Inc. provides semiconductor system intellectual property (IP) solutions, specializing in Network-on-Chip (NoC) interconnect IP and SoC Integration Automation (SIA) software. Its products enable efficient on-chip communication and integration of IP blocks in complex System-on-Chip (SoC) designs across automotive, enterprise computing, communications, consumer electronics, and industrial markets. Arteris licenses configurable IP and software under a fee and royalty model, offering performance, cost, and development time advantages to semiconductor and system companies worldwide.
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