XVARY Composite Score
55
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Arteris sells the digital traffic system that helps chip designers move data around complex chips without creating a silicon traffic jam.
How it gets paid
Last year Arteris made $70.6M in revenue. FlexNoC interconnect IP was the main engine at $31M, or 44% of sales.
Why it's growing
Revenue grew 22% last year. 90.0% gross margin is the number to watch because it says the product is strong.
What just happened
Q4 2025 revenue $20.1M; GAAP diluted EPS $ ).
At a Glance
B balance sheet — gets the job done, barely
FY2025 GAAP net loss $(0.82)/share (actual)
FY2025 revenue $70.6M (+22% YoY)
GAAP operating margin still negative—elite gross margin, heavy opex
1.65 beta
XVARY composite: 55/100 — below average
What They Do
Arteris sells the digital traffic system that helps chip designers move data around complex chips without creating a silicon traffic jam.
Arteris sells design IP, which means prebuilt chip blueprints your customers plug into their own designs. Plain English: once your chip team builds around Arteris, ripping it out is painful and slow. That helps a 270-employee company win slots at Bosch, Samsung, NXP, Mobileye, and Toshiba.
How They Make Money
$70.6M
FY2025 revenue · +22% YoY
FlexNoC interconnect IP
$31M
Ncore coherent IP
$18M
CodaCache and resilience packages
$9M
IP deployment automation
$13M
The Products That Matter
Non-coherent interconnect IP
FlexNoC
deployed in 4B+ units
It is the core data-movement fabric inside the portfolio already deployed in over 4 billion units. That is the quiet part of the moat. Customers do not casually rip out chip plumbing once it works.
scale matters
Cache-coherent interconnect IP
Ncore
part of $58M license revenue
It sits inside the licensing engine that produced $58M of license and royalty revenue. If compute and AI demand keep feeding customer chip budgets, this is where more of the mix has room to show up.
compute exposure
Standalone last level cache
CodaCache
supports up to $93M sales guide
Management is guiding to as much as $93M in 2026 sales, and products like this need to help close that gap. The page does not give a product-level breakout, so you are still underwriting platform adoption more than any single product line.
thin disclosure
Key Numbers
90.0%
gross margin
Jargon → gross margin → sales left after direct costs → so what: the product economics are elite if management can control the rest of the expense stack.
negative
GAAP operating margin
Do not flip the sign: ~90% GAAP gross margin can still pair with a deeply negative GAAP operating margin while R&D and S&M scale—verify the exact % in the 10-K income statement.
$70.6M
FY2025 revenue
Still a small revenue base vs. semiconductor-cycle timing—RPO and ACV trends in the release matter as much as one quarter’s revenue.
1%
debt share
Only 1% of capital is long-term debt, or $4M. That means leverage is low and the main risk is execution, not creditors.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 5 / 100
- long-term debt $4M (1% of capital)
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
beat estimates
Q4 2025 revenue $20.1M (+30% YoY); GAAP diluted EPS $(0.19) (non-GAAP $(0.05)).
FY2025 revenue $70.6M (+22% YoY); GAAP net loss $(0.82) /share for the year; non-GAAP net loss $(0.33) /share. Company also cited RPO $116.8M (+32% YoY) and ACV plus royalties $83.6M (+28% YoY) in the same release.
$20.1M
Q4 revenue
$(0.19)
Q4 GAAP EPS
~90%
FY GAAP GM
the number that mattered
90.0% gross margin is the number to watch because it says the product is strong. The fight is whether management can keep enough of it.
sources: Arteris IR (Q4/FY2025)
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What Could Go Wrong
The risk that actually matters here is a delayed or failed customer product launch. In a business with ~$70M of FY revenue, a single slip on a large SoC program is not background noise—it is thesis-level risk.
Med
One customer problem can become a company problem fast
Management has disclosed that a single customer product launch failure could put $11M–$18M of revenue at risk. Against roughly $71M of revenue shown here, that is about 15%–25% of the business.
If that revenue slips, the growth case changes quickly because the company is still loss-making on an EPS basis.
Med
Cycuity adds product breadth and execution risk at the same time
The December 2025 Cycuity acquisition may strengthen the security IP offering, but integration can also slow the core sales motion. That matters when the company is trying to move from record $83.6M ACV to up to $93M in 2026 sales.
If integration drags, the broader-platform story arrives later than investors expect.
Med
Elite gross margins do not help if contract value converts slowly
90% gross margins are exceptional. They also make investors expect future scale. The business still needs to turn signed demand into recognized revenue and then into durable free cash flow.
A miss versus the up-to-$93M sales guide would pressure the idea that operating leverage is close.
The company can survive with $4M of long-term debt. The stock story is what gets hurt if $11M–$18M of revenue slips out of a business this size.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Calendar
Next earnings report
Estimated for 2026-04-30. You want to see whether the Q4 beat turns into a trend rather than a one-quarter cameo.
Metric
ACV conversion into 2026 sales
Record $83.6M annual contract value is the setup. Up to $93M in 2026 sales is the promise. The gap between those two numbers is the whole plot.
Risk
Customer concentration
A single delayed or failed product launch could still jeopardize $11M–$18M of revenue. For a company this size, that is not a footnote.
Trend
Free cash flow guide
Management is guiding to $5M–$9M in free cash flow. If that starts showing up while gross margin stays near 90%, the model gets easier to believe.
Analyst Rankings
risk profile
above average
risk rank 2 — safer than roughly 80% of stocks.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
Source: institutional data
Institutional Activity
institutional ownership data for AIP is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$15
Current price
Target midpoint · from current
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