Investment Thesis
Arteris demonstrates strong revenue growth (+22.3% YoY) and exceptional gross margins (90.2%), indicating healthy core product demand. However, the company faces severe operational challenges with negative stockholders' equity of -14.6M, massive operating losses (-47% margin), and liabilities exceeding assets, creating significant solvency concerns despite positive free cash flow generation.
AIP Strengths
- Strong revenue growth at 22.3% YoY indicates market demand for semiconductor IP solutions
- Exceptional gross margin of 90.2% reflects pricing power and efficient product delivery
- Positive free cash flow of 5.3M demonstrates ability to generate cash despite operating losses
- Adequate cash position of 33.9M provides runway for operations and R&D investments
AIP Risks
- Negative stockholders' equity of -14.6M indicates technical insolvency and potential equity dilution ahead
- Operating margin of -47% and net losses of 34.7M suggest business model not yet profitable at scale
- Liabilities (129.7M) exceed total assets (115.0M) by 14.7M, creating structural financial distress
- Operating cash flow of only 6.7M barely covers CapEx, leaving minimal buffer for growth investments or debt servicing
- High insider trading activity (27 Form 4 filings in 90 days) may indicate confidence concerns or liquidity needs
Key Metrics to Watch
- Path to operating profitability and timeline to positive EBITDA
- Trend in operating expenses relative to revenue growth
- Sustainability of gross margins as customer mix evolves
- Cash burn rate and runway given current burn and cash position
- Resolution of negative equity through profitability or capital restructuring
AIP Financial Metrics
AIP Profitability Ratios
AIP Balance Sheet & Liquidity
AIP 5-Year Financial Trend
5-Year Trend Summary: Arteris, Inc.'s revenue has grown significantly by 86% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.86 indicates the company is currently unprofitable.
AIP Growth Metrics (YoY)
AIP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $14.7M | -$7.7M | $-0.20 |
| Q2 2025 | $14.6M | -$8.3M | $-0.22 |
| Q1 2025 | $12.9M | -$8.1M | $-0.20 |
| Q3 2024 | $13.3M | -$7.7M | $-0.20 |
| Q2 2024 | $14.6M | -$8.3M | $-0.22 |
| Q1 2024 | $12.9M | -$9.0M | $-0.25 |
| Q3 2023 | $12.6M | -$7.7M | $-0.23 |
| Q2 2023 | $14.7M | -$5.7M | $-0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AIP Capital Allocation
AIP SEC Filings
Access official SEC EDGAR filings for Arteris, Inc. (CIK: 0001667011)