Free cash flow remains highly volatile, swinging from a positive $3.0 million in 2025Q4 to a negative $7.4 million in 2026Q1, largely driven by lumpy licensing cycles and $5.5 million in quarterly stock-based compensation.
| Cash from Operations | -3.19M | 6.73M | -720K | -15.73M | -6.77M | -814K | 2.16M | 12.2M |
| Operating CF Margin % | - | 9.54% | -1.25% | -29.31% | -13.43% | -2.15% | 6.8% | 38.73% |
| Operating CF Growth % | -841.59% | 1035.14% | 95.42% | -132.44% | -731.33% | -137.63% | -82.27% | - |
| Net Income | -34.58M | -8.5M | -33.64M | -36.87M | -27.39M | -23.38M | -3.26M | 5.84M |
| Depreciation & Amortization | 3.03M | 3.38M | 3.36M | 3.07M | 2.1M | 1.49M | 935K | 756K |
| Stock-Based Compensation | 14.96M | 18.38M | 15.94M | 14.54M | 11.69M | 5.51M | 458K | 277K |
| Deferred Taxes | -4.1M | 0 | 0 | 0 | -484K | 99K | 0 | 37K |
| Other Non-Cash Items | 9.28M | -24.37M | 975K | 1.59M | -304K | -11K | -1.03M | 22K |
| Working Capital Changes | 8.22M | 17.86M | 12.64M | 1.95M | 7.62M | 15.48M | 5.06M | 5.27M |
| Change in Receivables | -3.01M | 1.43M | -8.61M | -4.86M | 7.1M | 477K | -6.32M | 2.67M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -1.61M | 0 | 404K |
| Change in Payables | -717K | -191K | 324K | -389K | -1.03M | 350K | 414K | 135K |
| Cash from Investing | -3.9M | 12.03M | 970K | -4.69M | -37.48M | -1.36M | -5.15M | -242K |
| Capital Expenditures | -1.5M | -1.39M | -324K | -1.5M | -1.05M | -808K | -654K | -242K |
| CapEx % of Revenue | 1.95% | 1.97% | 0.56% | 2.8% | 2.09% | 2.13% | 2.06% | 0.77% |
| Acquisitions | -11.18M | 0 | 0 | 0 | -1.64M | -500K | -4.5M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | -50K | 241K | -51K | 7K | 0 |
| Cash from Financing | 2.35M | 1.42M | -262K | -2.92M | -4.15M | 76.25M | 790K | -914K |
| Debt Issued (Net) | -1.61M | -1.5M | -1.75M | -1.29M | -1.14M | -1.12M | 562K | -1.09M |
| Equity Issued (Net) | 2.91M | 1.87M | 890K | 0 | 0 | 77.38M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.05M | 1.05M | 597K | -1.63M | -3.02M | 0 | 228K | 177K |
| Net Change in Cash | -4.7M | 20.18M | -12K | -23.34M | -48.4M | 74.08M | -2.19M | 11.04M |
| Free Cash Flow | -4.69M | 5.34M | -1.04M | -17.23M | -7.82M | -1.62M | 1.51M | 11.96M |
| FCF Margin % | -6.09% | 7.57% | -1.81% | -32.11% | -15.52% | -4.28% | 4.74% | 37.96% |
| FCF Growth % | -446.82% | 611.97% | 93.94% | -120.41% | -382% | -207.49% | -87.38% | - |
| FCF per Share | -0.10 | 0.13 | -0.03 | -0.48 | -0.24 | -0.07 | 0.05 | 0.54 |
| FCF Conversion (FCF/Net Income) | 0.14x | -0.19x | 0.02x | 0.43x | 0.25x | 0.03x | -0.66x | 2.09x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 19K | 65K | 73K |
| Taxes Paid | 0 | 2.82M | 1.55M | 1.29M | 790K | 489K | 1.53M | 1.94M |
Persistent Operating Cash Burn
According to recent financial disclosures, the persistent gap between net losses and operating cash flow suggests that Arteris relies heavily on non-cash adjustments, with stock-based compensation reaching $5.5 million in 2026Q1, effectively masking the underlying cash burn required to sustain its current engineering-heavy operating model.
The divergence between GAAP net income and operating cash flow indicates that the company's reported losses are partially mitigated by significant non-cash expenses. Investors should monitor whether this reliance on equity-based compensation remains sustainable as a primary tool for managing the cash burn rate without further diluting shareholders.
As reported in quarterly filings, Arteris exhibits highly inconsistent free cash flow, swinging from a positive $3.0 million in 2025Q4 to a negative $7.4 million in 2026Q1, which highlights the inherent lumpiness of its licensing-driven revenue model and the difficulty in achieving consistent cash generation.
The erratic nature of free cash flow suggests that the company's cash position is highly sensitive to the timing of large, multi-year license agreements. This volatility warrants caution, as it implies that the firm lacks the predictable cash flow profile necessary to fund its R&D requirements internally.
Based on the provided cash flow statements, working capital fluctuations appear to be the primary driver of quarterly cash variability, with a notable $4.4 million outflow in 2026Q1 reversing the positive trends observed in previous quarters, suggesting potential challenges in the timing of customer collections.
The sensitivity of operating cash flow to working capital changes implies that the company's liquidity is heavily dependent on the collection cycles of its large-scale IP licensing contracts. Investors should investigate whether these fluctuations represent structural delays in customer payments or merely the expected seasonality of the semiconductor design cycle.
Analysis of the cash flow statement reveals that the company's $11.2 million acquisition expenditure in 2026Q1, combined with ongoing stock-based compensation, obscures the true cost of maintaining its competitive position, as these items are not fully captured in the headline operating loss figures.
The significant cash outflow for acquisitions suggests that Arteris is aggressively buying growth to supplement its internal R&D efforts. This strategy may indicate that the company feels compelled to expand its technological footprint rapidly to maintain its moat, potentially at the expense of near-term cash preservation.
Quick answers to the most common questions about buying AIP stock.
Arteris, Inc. (AIP) generated $6.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arteris, Inc. (AIP) generated $5.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Arteris, Inc. (AIP) spent $1.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.