Arteris Posts Record Quarterly Revenue of $25.8 Million, Up 48%
Key Facts
Arteris reported results for the third quarter ended September 30 on November 5, 2026, posting record revenue of $25.8 million, up 48% year over year, according to a company statement. Results showed growth in contract and royalty metrics alongside an increase in the operating loss to $11.3 million, compared with $8.7 million in the same period of 2025. The CEO said the company continued to see design activity, attributing it to innovation in AI infrastructure, edge computing and physical AI. The company also announced that it had surpassed 1,000 confirmed design starts since its founding. Its shares, AIP, closed at $15.93 in the November 5 session, according to EL7 data.
Annualized contract value plus royalties reached $103.8 million in the third quarter, up 39% from the same period a year earlier, according to Arteris. The metric combines annualized contract value and royalties in one figure, while the company’s results showed variable royalties alone totaled $9.4 million in the twelve months ended with the quarter, up 71% year over year. These figures reflect an expansion in royalty revenue alongside growth in contract value, according to the metrics reported by the company. The CEO said quarterly revenue hit a record, rising 48%, while annualized contract value plus royalties increased 39%. He added that one-third of the value of licensing deals in the quarter came from global technology companies among the top 30, noting that customers are increasingly seeking multiple products.
On future obligations, remaining performance obligations stood at $135.5 million at the end of the third quarter, up 29% year over year, according to the statement. The figure indicates the value of contractual obligations remaining to be performed, and the company presented it alongside growth in contracts and royalties in its results. Arteris also said it had signed large licensing deals with a leading U.S. cloud computing company and two prominent semiconductor companies. The statement did not name the companies, but linked the licensing deals to activity in the quarter, which also saw the company surpass 1,000 confirmed design starts since its founding. The CEO said major global technology companies accounted for one-third of the value of licensing deals during the quarter.
By contrast, the operating loss widened to $11.3 million in the third quarter, compared with an operating loss of $8.7 million in the third quarter of 2025, according to Arteris. This puts a larger loss alongside growth in quarterly revenue and contract and royalty value, without changing the fact that the company recorded an operating loss during the period. The comparison indicates a year-over-year increase in the operating loss, while revenue reached $25.8 million, up 48% over the same period. The company included expected free cash flow for fiscal 2026 in its guidance, but said it no longer provides quarterly guidance for this item. It estimated a full-year free cash flow range of between $5 million and $9 million.
For the fourth quarter of 2026, the company expects revenue of between $25.7 million and $26.7 million, and annualized contract value plus royalties of between $103 million and $107 million, according to its published guidance. The revenue range is the company’s forecast for the period following its $25.8 million result in the third quarter, while the fourth-quarter range for the combined metric is around the third-quarter level of $103.8 million. For fiscal 2026, Arteris expects free cash flow of between $5 million and $9 million. The company did not provide quarterly free cash flow guidance, according to its statement. The company links continued design activity to innovation in AI infrastructure, edge computing and physical AI.