Revenue growth accelerated to 38.7% in 2026Q1, yet the firm continues to struggle with profitability, maintaining an operating margin of negative 38.0% despite a robust 83.0% gross margin.
| Sales/Revenue | 76.98M | 70.58M | 57.72M | 53.67M | 50.38M | 37.86M | 31.81M | 31.5M |
| Revenue Growth % | 25.57% | 22.27% | 7.56% | 6.53% | 33.05% | 19.02% | 0.99% | - |
| Cost of Goods Sold | 9.27M | 6.89M | 5.96M | 5.08M | 4.28M | 3.73M | 1.49M | 1.86M |
| COGS % of Revenue | - | 9.77% | 10.33% | 9.46% | 8.5% | 9.85% | 4.69% | 5.91% |
| Gross Profit | 67.72M | 63.68M | 51.76M | 48.59M | 46.1M | 34.13M | 30.32M | 29.64M |
| Gross Margin % | 87.96% | 90.23% | 89.67% | 90.54% | 91.5% | 90.15% | 95.31% | 94.09% |
| Gross Profit Growth % | - | 23.03% | 6.53% | 5.41% | 35.05% | 12.57% | 2.3% | - |
| Operating Expenses | 101.86M | 96.82M | 83.36M | 83.73M | 74.95M | 55.9M | 34.1M | 22.37M |
| OpEx % of Revenue | - | 137.18% | 144.41% | 156.02% | 148.78% | 147.63% | 107.19% | 71% |
| Selling, General & Admin | 50.01M | 46.91M | 38.35M | 38.6M | 33.79M | 25.09M | 17.08M | 12.31M |
| SG&A % of Revenue | - | 66.47% | 66.44% | 71.93% | 67.06% | 66.25% | 53.68% | 39.09% |
| Research & Development | 52.5M | 49.91M | 45.01M | 45.13M | 41.17M | 30.81M | 17.02M | 10.05M |
| R&D % of Revenue | - | 70.71% | 77.97% | 84.09% | 81.72% | 81.38% | 53.5% | 31.91% |
| Other Operating Expenses | -646K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -34.15M | -33.14M | -31.6M | -35.14M | -28.86M | -21.77M | -3.78M | 7.27M |
| Operating Margin % | -44.35% | -46.95% | -54.74% | -65.48% | -57.28% | -57.48% | -11.87% | 23.09% |
| Operating Income Growth % | - | -4.88% | 10.09% | -21.78% | -32.58% | -476.25% | -151.93% | - |
| EBITDA | -30.27M | -29.76M | -28.23M | -32.07M | -26.76M | -20.27M | -2.84M | 8.03M |
| EBITDA Margin % | -39.32% | -42.17% | -48.91% | -59.76% | -53.11% | -53.54% | -8.93% | 25.49% |
| EBITDA Growth % | -12.95% | -5.41% | 11.97% | -19.87% | -31.98% | -613.59% | -135.38% | - |
| D&A (Non-Cash Add-back) | 3.88M | 3.38M | 3.36M | 3.07M | 2.1M | 1.49M | 936K | 756K |
| EBIT | -33.21M | -33.14M | -28.2M | -31.58M | -27.43M | -21.77M | -2.18M | 7.27M |
| Net Interest Income | -183K | -193K | -244K | -211K | 1.34M | -579K | -50K | -290K |
| Interest Income | 0 | 0 | 0 | 0 | 1.43M | 0 | 0 | 0 |
| Interest Expense | 183K | 193K | 244K | 211K | 89K | 579K | 50K | 290K |
| Other Income/Expense | -2.93M | -134K | 458K | -50K | 1.05M | -579K | 1.54M | -290K |
| Pretax Income | -37.08M | -33.27M | -31.14M | -35.19M | -27.8M | -22.34M | -2.23M | 6.98M |
| Pretax Margin % | -48.16% | -47.14% | -53.94% | -65.58% | -55.19% | -59.01% | -7.02% | 22.17% |
| Income Tax | -2.49M | 1.48M | 2.5M | 1.68M | -417K | 1.04M | 1.03M | 1.14M |
| Effective Tax Rate % | 6.72% | -4.43% | -8.03% | -4.77% | 1.5% | -4.65% | -45.93% | 16.38% |
| Net Income | -34.58M | -34.75M | -33.64M | -36.87M | -27.39M | -23.38M | -3.26M | 5.84M |
| Net Margin % | -44.92% | -49.23% | -58.27% | -68.7% | -54.36% | -61.76% | -10.25% | 18.54% |
| Net Income Growth % | -6.89% | -3.29% | 8.76% | -34.62% | -17.12% | -617.3% | -155.83% | - |
| Net Income (Continuing) | -34.58M | -34.75M | -33.64M | -36.87M | -27.39M | -23.38M | -3.26M | 5.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.76 | -0.82 | -0.86 | -1.03 | -0.84 | -1.06 | -0.10 | 0.21 |
| EPS Growth % | 3.66% | 4.65% | 16.5% | -22.62% | 20.75% | -960% | -147.62% | - |
| EPS (Basic) | - | -0.82 | -0.86 | -1.03 | -0.84 | -1.06 | -0.10 | 0.21 |
| Diluted Shares Outstanding | 45.54M | 42.29M | 38.91M | 35.68M | 32.58M | 21.97M | 31.53M | 22.05M |
| Basic Shares Outstanding | 45.54M | 42.29M | 38.91M | 35.68M | 32.58M | 21.97M | 31.53M | 22.05M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent Operating Cash Burn
As reported in recent financial filings, Arteris achieved a 38.7% year-over-year revenue growth in 2026Q1, marking a significant acceleration from the low-double-digit growth observed in previous quarters, suggesting that the company's strategic focus on high-complexity AI and automotive SoC design starts is beginning to yield tangible results.
The recent revenue surge indicates that the company's interconnect IP is gaining traction in high-growth compute segments where architectural complexity necessitates specialized data pathways. Investors should monitor whether this growth is driven by a broader customer base or if it remains concentrated in a few large-scale design wins that could introduce future volatility.
According to the provided income statement data, Arteris maintains a robust gross margin profile, consistently hovering near 90%, which reflects the inherent scalability of its intellectual property licensing model and the minimal incremental cost associated with delivering its software-defined interconnect solutions to new semiconductor design projects.
This high-margin structure is a hallmark of pure-play IP providers, yet it remains disconnected from the company's bottom-line performance due to heavy R&D investment. While the gross margin is impressive, it highlights that the primary challenge is not product profitability but rather the massive operating expense burden required to maintain competitive technical relevance.
Based on the quarterly income statement figures, Arteris continues to struggle with operating leverage, as operating expenses—specifically R&D and SG&A—have largely tracked with revenue growth, resulting in persistent operating losses that have not yet shown a clear path to a sustainable break-even point for the firm.
The company's inability to scale operating income faster than gross profit suggests that the business remains in a heavy investment phase, prioritizing market share and engineering headcount over immediate profitability. Analysts should watch for a potential divergence where revenue growth begins to outpace the growth of operating expenses, which would signal a transition toward operational maturity.
Analysis of the reported financials reveals that stock-based compensation, which reached $5.5 million in 2026Q1, represents a significant portion of the operating loss, suggesting that the company's GAAP net income figures may understate the actual cash burn required to retain the specialized engineering talent necessary for its operations.
The reliance on equity-based incentives is common in high-growth technology firms, but it creates a persistent dilution risk for shareholders that must be weighed against the company's long-term growth prospects. Investors should adjust for these non-cash expenses to better understand the underlying cash runway and the true cost of maintaining the current R&D trajectory.
While the recent revenue acceleration is notable, the company's reliance on lumpy licensing deals and the potential for increased competition from hyperscalers developing internal interconnect technologies warrant caution, as these factors could lead to significant margin compression if the royalty-based revenue stream fails to materialize as expected.
Short-term growth may be masking structural risks, particularly the company's vulnerability to geopolitical export controls and the potential for a slowdown in semiconductor R&D spending. If the anticipated royalty tail from current design wins does not scale, the company may face a difficult choice between further dilutive financing or a reduction in the R&D spending that currently fuels its competitive moat.
Quick answers to the most common questions about buying AIP stock.
For fiscal year 2025, Arteris, Inc. (AIP) reported total revenue of $70.6M. This represents a 124.1% increase compared to $31.5M in 2019.
Arteris, Inc. (AIP) reported a net loss of $34.7M for the fiscal year ending 2025.
Arteris, Inc. (AIP) reported an operating income of $-33.1M, resulting in an operating profit margin of -47.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Arteris, Inc. (AIP) generated $63.7M in gross profit for the year, representing a gross profit margin of 90.2%. This demonstrates the company's core pricing power and production efficiency.