Arteris Posts Record Revenue and ACV Plus Royalties

The Tip Desk · November 11, 2026 · 2 min read

Third-quarter sales reached $25.8 million, up 48% from a year earlier, as the semiconductor IP vendor posted a $1.2 million non-GAAP operating loss.

Arteris, Inc. (AIP), a provider of semiconductor technology for AI-era silicon, reported third-quarter revenue of $25.8 million, up 48% from a year earlier.

The company said Annual Contract Value plus royalties reached $103.8 million, up 39% from a year earlier, and remaining performance obligations were $135.5 million, up 29%. Trailing-twelve-months variable royalties were $9.4 million, up 71%.

President and Chief Executive Officer K. Charles Janac said customer design activity remained strong, driven by continued innovation in AI infrastructure, edge computing, and physical AI applications. He said one-third of license wins by dollar value came from top 30 global technology companies and that the company surpassed 1,000 confirmed design starts since inception.

Licensing, support and maintenance revenue was $22.4 million. Variable royalties were $2.3 million. Professional services and other revenue was $1.1 million. GAAP gross margin compressed to 87% from 90% a year earlier; non-GAAP gross margin was 89%.

The GAAP operating loss was $11.3 million, compared with an $8.7 million operating loss in the third quarter of 2025. Non-GAAP operating loss narrowed to $1.2 million from $3.5 million a year earlier. Net loss was $11.2 million, or $0.23 a share. Non-GAAP net loss was $1.1 million, or $0.02 a share.

The company said the quarter included major license deals with a top U.S. hyperscaler and two semiconductor companies, expanding their existing use of Arteris technology, and a major license deal with a leading automotive OEM. It also expanded FlexGen Multi-Die and Ncore Multi-Die products for chiplet architectures and announced a semiconductor cybersecurity assurance program with BAE Systems and SiFive.

Free cash flow was a use of $2.1 million in the third quarter, versus a source of $2.5 million in the year-ago quarter. Cash, cash equivalents and restricted cash ended at $71.4 million.

Arteris estimated fourth-quarter 2026 revenue of $25.7 million to $26.7 million and ACV plus royalties of $103.0 million to $107.0 million. Non-GAAP operating results for the fourth quarter are estimated at a loss of $0.9 million to income of $1.1 million. Full-year 2026 guidance is revenue of $98.5 million to $99.5 million, ACV plus royalties of $103.0 million to $107.0 million, a non-GAAP operating loss of $9.2 million to $7.2 million, and free cash flow of $5.0 million to $9.0 million. The company said it no longer provides quarterly free cash flow guidance.