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1. Company Snapshot

1.a. Company Description

Arteris, Inc.provides semiconductor interconnect intellectual property (IP) and IP deployment solutions in the Americas, the Asia Pacific, Europe, and the Middle East.The company develops, licenses, and supports the on-chip interconnect fabric technology used in System-on-Chip (Soc) designs and Network-on-Chip (NoC) interconnect IP.


Its products include FlexNoC, a silicon-proven interconnect IP product; FlexNoC Resilience Package, which provides on-chip data protection; Ncore, a silicon-proven and cache coherent interconnect IP product that provides scalable, configurable, and area efficient characteristics; CodaCache, a last-level cache semiconductor IP product; and Physical interconnect aware NoC optimizer, a software tool that estimates physical layout effects during the architecture and logic development stages of an SoC interconnect design; The company also offers FlexWay for IP subsystem interconnect; FlexPSI for All-digital inter chip link; and FlexNoC Physical for linking physical placement and routing tools.In addition, it provides IP deployment software solutions, including specification, design, documentation, artificial intelligence (AI) package, design data intelligence, and harmony trace.The company serves customers in the automotive, AI/machine learning, 5G and wireless communications, data centers, consumer electronics, and other markets.


Arteris, Inc.was founded in 2003 and is headquartered in Campbell, California.

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1.b. Last Insights on AIP

Arteris Inc.'s recent performance was negatively impacted by the company's Q4 loss of $0.10 per share, despite topping revenue estimates. The lack of profitability overshadowed the long growth runway ahead, as highlighted in the Q4 earnings release. The company's guidance for Q1 and full-year 2025 also suggests continued investment, potentially hindering short-term profitability.

1.c. Company Highlights

2. Arteris, Inc. Delivers Strong 2025 Results with Record Revenue and ACV

Arteris, Inc. reported impressive financial results for the fourth quarter and full year 2025, driven by robust demand for its cache-coherent interconnect IP product, Ncore, and AI-driven smart NoC IP product, FlexNoC. Total revenue for Q4 2025 was $20.1 million, up 16% sequentially and 30% year over year, while non-GAAP gross profit was $18.5 million, representing a gross margin of 92%. For the full year 2025, total revenue was $70.6 million, 22% higher year over year, and non-GAAP net loss was $14.1 million, or diluted net loss per share of $0.33. The actual EPS loss was $0.05, beating estimates of $0.08 loss.

Publication Date: Feb -15

📋 Highlights
  • Record ACV Plus Royalties:: Annual contract value plus royalties reached $83.6 million in 2025, reflecting a 28% year-on-year increase.
  • Cycuity Acquisition Impact:: Closed in January 2026, contributing $7 million to 2026 revenue guidance and enhancing cybersecurity capabilities for IP blocks and SoCs.
  • Q4 2025 Financial Performance:: Revenue hit $20.1 million, up 30% year-over-year, with a 92% non-GAAP gross margin ($18.5 million gross profit).
  • 2025 Full-Year Revenue Growth:: Total revenue grew 22% to $70.6 million, driven by a 50% increase in variable royalties.
  • 2026 Guidance:: Projects $89–$93 million in revenue for 2026, with non-GAAP operating loss narrowing to $9–$5 million, signaling potential profitability by 2026.

Strong Growth Across Major Vertical Markets

The company's growth was driven across major vertical markets, including enterprise computing, automotive, and consumer electronics. Annual contract value plus royalties reached a record $83.6 million, up 28% year over year. Notable customers include AMD, DreamChip, and NanoXplore, with NXP using four Arteris, Inc. solutions to accelerate edge AI efforts.

Acquisition of Cycuity Strengthens Product Portfolio

The acquisition of Cycuity, a semiconductor cybersecurity assurance products provider, closed on January 14, 2026, and is expected to contribute $7 million to revenue in 2026. Cycuity's technology and expertise strengthen Arteris' product portfolio, enabling chip designers to analyze and improve security in IP blocks, chiplets, and SoCs. The company expects Cycuity to be a slight contributor to the loss for the year, with a loss of about $1 million, and to be roughly at breakeven by the fourth quarter.

Guidance and Valuation

For the first quarter and full year 2026, Arteris expects ACV plus royalties of $85 million to $89 million and $100 million to $104 million, respectively. Revenue is expected to be $20.5 million to $21.5 million in the first quarter and $89 million to $93 million for the full year 2026. With a P/S Ratio of 9.42 and EV/EBITDA of -21.94, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 19.5%. The company's ability to provide a suite of solutions to its customers, as demonstrated by NXP's use of four Arteris, Inc. solutions, is expected to drive licensing ASPs above $1,000,000.

3. NewsRoom

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Palantir Surges on Rare Analyst Upgrade, AI Threat Concerns Eased

Feb -16

Source: gurufocus.com

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Arteris, Inc. (AIP) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Arteris, Inc. (AIP) Reports Q4 Loss, Beats Revenue Estimates

Feb -12

Source: zacks.com

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Arteris Network-on-Chip Technology Achieves Deployment Milestone of 4 Billion Chips and Chiplets

Feb -12

Source: globenewswire.com

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Arteris Announces Financial Results for the Fourth Quarter and Full Year 2025 and Estimated First Quarter and Full Year 2026 Guidance

Feb -12

Source: globenewswire.com

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Arteris Technology Deployed More Broadly by NXP to Accelerate Edge AI Leadership

Feb -11

Source: globenewswire.com

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Arteris, Inc. (NASDAQ:AIP) Receives Average Recommendation of “Hold” from Analysts

Feb -07

Source: defenseworld.net

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Palantir Technologies Surges on Record Q4 Earnings and Revenue Growth

Feb -03

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.11%)

6. Segments

Licensing, Support and Maintenance

Expected Growth: 15.4%

Growing demand for autonomous vehicles, AI, and 5G technologies drives the need for advanced IP and interconnect products, fueling Arteris' growth. The company's flexible licensing models, 24/7 support, and maintenance services further enhance its market position.

Variable Royalties

Expected Growth: 12.3%

Growing demand for autonomous vehicles, AI, and 5G technologies drives the need for advanced semiconductor IP, increasing royalties for Arteris, Inc. The company's leading position in the market, coupled with the rising adoption of its IP in customer designs, fuels revenue growth.

Other

Expected Growth: 10.2%

Growing demand for semiconductor interconnect IP products, increasing adoption of autonomous vehicles and AI-driven applications, and rising need for efficient data transfer drive the 'Other' segment growth.

7. Detailed Products

Ncore Cache Coherent Interconnect

A highly scalable and configurable cache coherent interconnect IP that enables the design of large, complex systems-on-chip (SoCs) with multiple heterogeneous processors and accelerators.

FlexNoC Interconnect IP

A highly scalable and configurable network-on-chip (NoC) interconnect IP that enables the design of complex SoCs with multiple processors, accelerators, and peripherals.

CodaCache Last-Level Cache (LLC) IP

A highly scalable and configurable last-level cache (LLC) IP that enables the design of high-performance and power-efficient SoCs.

Arteris IP Deployment Kits (DKs)

Pre-integrated and validated IP deployment kits that enable rapid integration of Arteris IP into SoC designs.

Arteris Harmony Trace

A system-level tracing and analysis tool that enables SoC designers to visualize and analyze the behavior of complex SoCs.

8. Arteris, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Arteris, Inc. has a moderate threat of substitutes due to the availability of alternative semiconductor intellectual property (IP) solutions.

Bargaining Power Of Customers

Arteris, Inc. has a low bargaining power of customers due to its strong relationships with leading semiconductor companies and its dominant market position.

Bargaining Power Of Suppliers

Arteris, Inc. has a moderate bargaining power of suppliers due to its dependence on a few key suppliers for its IP solutions.

Threat Of New Entrants

Arteris, Inc. has a low threat of new entrants due to the high barriers to entry in the semiconductor IP market, including significant R&D investments and established relationships with leading semiconductor companies.

Intensity Of Rivalry

Arteris, Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.53%
Debt Cost 3.95%
Equity Weight 78.47%
Equity Cost 9.17%
WACC 8.04%
Leverage 27.43%

11. Quality Control: Arteris, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Arteris

A-Score: 4.3/10

Value: 8.0

Growth: 2.1

Quality: 5.4

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Aehr Test

A-Score: 4.0/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
WiSA Technologies

A-Score: 3.8/10

Value: 7.3

Growth: 4.7

Quality: 3.3

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
MaxLinear

A-Score: 3.2/10

Value: 7.3

Growth: 0.6

Quality: 4.7

Yield: 0.0

Momentum: 4.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
CEVA

A-Score: 3.1/10

Value: 7.5

Growth: 1.6

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Semtech

A-Score: 2.7/10

Value: 0.2

Growth: 2.0

Quality: 4.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.31$

Current Price

14.31$

Potential

-0.00%

Expected Cash-Flows