AIP

EX-99.1

2 exhibit991q3fy268-k.htm

EX-99.1

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Arteris Announces Financial Results for the Third Quarter and Estimated Fourth Quarter and Updated Full Year 2026 Guidance

CAMPBELL, Calif. - November 5, 2026 - Arteris, Inc. (Nasdaq: AIP), a leading provider of semiconductor technology for accelerating innovation in the AI era, today announced financial results for the third quarter ended September 30, 2026 and provided estimated fourth quarter and updated full year 2026 guidance.

“In the third quarter, Arteris delivered another set of record results, including Annual Contract Value plus royalties of $103.8 million, up 39% year-over-year, and record revenue of $25.8 million, representing an increase of 48%, along with new highs in royalties and Remaining Performance Obligations,” said K. Charles Janac, President and Chief Executive Officer of Arteris. “Customer design activity remained strong, driven by continued innovation in AI infrastructure, edge computing, and physical AI applications. Notably, one-third of our license wins by dollar value came from top 30 global technology companies, while increasing adoption of multiple products across our portfolio reflects the growing complexity of semiconductor designs and the expanding value of our solutions. During the quarter, we also surpassed the milestone of 1,000 confirmed design starts since inception, underscoring the confidence customers place in our technology and global support capabilities. As the demand for increasingly sophisticated, high-performance, power-efficient, safe, and secure silicon continues to grow, we believe Arteris remains well positioned to help customers accelerate innovation and bring their next-generation products to market,” concluded Janac.

Third Quarter 2026 Financial Highlights:

•Revenue of $25.8 million, up 48% year-over-year

•Trailing-twelve-months variable royalties of $9.4 million, up 71% year-over-year

•Annual Contract Value (ACV) plus royalties of $103.8 million, up 39% year-over-year

•Remaining Performance Obligation (RPO) of $135.5 million, up 29% year-over-year

•Operating loss of $11.3 million, compared to an operating loss of $8.7 million in the third quarter of 2025

•Non-GAAP operating loss of $1.2 million, compared to a Non-GAAP operating loss of $3.5 million in the third quarter of 2025

•Net loss of $11.2 million or $0.23 per share

•Non-GAAP net loss of $1.1 million or $0.02 per share

Third Quarter 2026 Business Highlights:

•Strong license activity in the third quarter, supported by integration of data center, edge, and physical AI computing across all market verticals. Increases in customers shifting to multi-product orders, supporting the ever-growing complexity of semiconductor innovation;

•Surpassed 1,000 confirmed design starts since inception. Arteris has supported innovation from the smartphone inflection to today’s deployments in sophisticated infrastructure AI, intelligent edge devices, and physical AI;

•Expanded our chiplet and multi-die solution. FlexGen Multi-Die and Ncore Multi-Die products support chiplet architectures for agentic AI workflows, HPC, data center, cloud infrastructure, physical AI, and more;

•Major license deals with a top US hyperscaler and two market-leading semiconductor companies, expanding their existing use of Arteris technology to accelerate development of chips and chiplets;

•Major license deal with a leading automotive OEM, expanding its use of Arteris technology for successive generations of their in-house advanced chip designs; and

•Announced the expansion of semiconductor cybersecurity third-party IP security assurance through the Trusted and Assured Microelectronics program, in collaboration with BAE Systems and SiFive.

Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP net loss, Non-GAAP net loss per share, and free cash flow are Non-GAAP financial measures. Additional information on Arteris’ historic reported results, including a reconciliation of these Non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below.

Estimated Fourth Quarter and Updated Full Year 2026 Guidance:

Q4 2026

FY 2026

(in millions)

ACV + royalties

$103.0 - $107.0

$103.0 - $107.0

Revenue

$25.7 - $26.7

$98.5 - $99.5

Non-GAAP operating (loss) income

$(0.9) - $1.1

$(9.2) - $(7.2)

Free cash flow

*

$5.0 - $9.0

*As previously mentioned during the first quarter 2026 earnings call, we no longer provide quarterly free cash flow guidance.

The guidance provided above are forward-looking statements and reflects Arteris' expectations as of today's date. Actual results may differ materially. Refer to the section titled "Forward-Looking Statements" below for information on the factors, among others, that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of Non-GAAP guidance measures reported above to corresponding GAAP measures is not avail

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