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Mar 31, 2025
Arteris Q1 2025 Earnings Report
Arteris reported a Q1 net loss with record contract value and positive free cash flow.
Key Takeaways
Arteris delivered strong Q1 performance with record $66.8M in ACV + royalties and $2.7M in positive free cash flow, though it posted a net loss of $8.1M.
Achieved highest-ever ACV plus royalties of $66.8M
Posted a net loss of $8.1M with operating loss of $7.7M
Generated positive free cash flow of $2.7M
Revenue increased to $16.5M, up 28% year-over-year
Revenue by Segment
Forward Guidance
Arteris expects stable Q2 performance with strong ACV but a potential negative cash flow swing, while maintaining cautious optimism for FY25.
Positive Outlook
- ACV + royalties expected between $66.0M and $70.0M for Q2
- FY25 ACV + royalties expected to reach up to $79.0M
- Revenue guidance up to $71.0M for FY25
- Positive free cash flow potential for full year up to $8.0M
- Improving operational efficiency with narrowing non-GAAP losses
Challenges Ahead
- Free cash flow guidance for Q2 as low as -$5.0M
- Continued net and operating losses forecasted
- Persistent macroeconomic uncertainty
- Heavy reliance on large customer deals
- Uncertainty in expense levels limits precise GAAP guidance
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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