Arteris, Inc. (AIP)

Price$21.20Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares price in years of exceptional growth before proven, durable profits.

At the observed close, 49.1 million shares imply a market value near $1.11 billion. Subtracting reported net cash gives an enterprise value—market value after net cash—of roughly $1.03 billion. That equals about 12.1 times trailing revenue and 10.6 times the midpoint of management’s 2026 revenue forecast. Arteris still reports substantial losses, and cash earnings remain small. This valuation leaves little protection if growth slows, supporting an Overvalued verdict despite strong recent demand.

Big pictureRapid sales growth and stronger orders now compete with wider accounting losses.

Second-quarter revenue rose 46% to $24.1 million, while contracted annual value plus royalties grew 44% and committed future revenue reached $135 million. However, the quarterly operating loss widened to $13.9 million from $8.2 million. Trailing free cash flow—cash left after running and investing in the business—was about $6.8 million, but it was volatile and benefited from working-capital timing. Stock compensation totaled roughly $21.4 million over that period, far exceeding free cash flow and weakening its durability for shareholders.

Business strengthLong contracts, rising royalties, and a cash cushion support the growth case.

Licensing arrangements usually run two to three years, while successful customer chips can generate royalties for as long as seven years after production begins. Trailing royalties increased 65% to $8.6 million, and the $135 million contracted backlog improves visibility. The balance sheet held $93.3 million of cash, about $30.0 million of investments and only $5.2 million of reported debt. Still, 23.2% of first-half revenue came from China, where export restrictions could delay designs or block sales.

What could change the storyProfit conversion could justify optimism, while missed targets or more dilution would not.

The strongest bull evidence would be delivery of management’s $95 million to $98 million revenue forecast, $5 million to $9 million of free cash flow, and sustained growth in design starts and royalties. The bear case strengthens if the $135 million backlog converts slowly, China-related restrictions reduce licensing, or operating losses remain large. Shares outstanding rose about 20% from year-end 2024 through June 2026, reflecting an acquisition, employee awards and fundraising. Falling stock compensation and genuine operating profitability are therefore essential to justify the current multiple.

AI: News

Record growth, wider lossArteris raised its sales outlook, but rising costs showed that growth has not secured profitability.

On August 6, Arteris reported 46% second-quarter revenue growth and raised full-year revenue guidance to $95 million–$98 million. Yet the quarterly operating loss widened by $5.7 million, and management’s adjusted full-year loss forecast worsened to $7 million–$10 million from $4.5 million–$8.5 million previously. Shares fell 5.8% in the following session. The timing suggests investors weighed the wider losses heavily, although it does not prove the report alone caused the decline.

Cash raised through sharesA large share sale strengthened liquidity while spreading future results across more owners.

The August quarterly filing disclosed that Arteris sold 2.11 million shares through its market-sale program during the first half, raising $72.5 million after costs. This explains most of the increase in cash to $93.3 million and materially reduces near-term financing pressure. The trade-off is dilution: each existing share represents a smaller ownership claim. Additional employee awards and acquisition shares helped lift total shares outstanding to 49.1 million from 44.3 million at year-end.

Cycuity acquisition completedThe Cycuity purchase added chip-security tools, but introduced integration costs and further dilution.

Arteris completed the acquisition on January 14 for approximately $43.1 million: $15.1 million in cash, $19.0 million of shares and contingent consideration initially valued at $9.0 million. Former owners may receive up to $12 million more if 2026 booking targets are met. The deal expands Arteris into hardware-security testing and already supported new security licenses, including an expanded Arm relationship. Its value remains uncertain because much of the purchase price became goodwill and acquired intangible assets.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$70.6M	$57.7M	$53.7M	$50.4M	$37.9M	$31.8M
Gross profit	$63.7M	$51.8M	$48.6M	$46.1M	$34.1M	$30.3M
Gross margin	90.23%	89.67%	90.54%	91.50%	90.15%	95.31%
Research & development	$49.9M	$45.0M	$45.1M	$41.2M	$30.8M	$17.0M
Operating expenses	$96.8M	$83.4M	$83.7M	$75.0M	$55.9M	$34.1M
Operating income	−$33.1M	−$31.6M	−$35.1M	−$28.9M	−$21.8M	−$3.8M
Operating margin	−46.95%	−54.74%	−65.48%	−57.28%	−57.48%	−11.87%
EBITDA	−$29.8M	−$28.2M	−$32.1M	−$26.8M	−$20.3M	−$2.8M
EBITDA margin	−42.17%	−48.91%	−59.76%	−53.11%	−53.54%	−8.93%
Net income	−$34.7M	−$33.6M	−$36.9M	−$27.4M	−$23.4M	−$3.3M
Net profit margin	−49.23%	−58.27%	−68.70%	−54.36%	−61.76%	−10.25%
Basic EPSper basic share	-$0.82	-$0.86	-$1.03	-$0.84	-$1.06	-$0.19
Diluted EPSper diluted share	-$0.82	-$0.86	-$1.03	-$0.84	-$1.06	-$0.19

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈18.72%of listed shares

JANAC K CHARLES9.18M shares · Jun 8, 2026

View holders

Top 20 reported holders of AIP
Holder	% owned
JANAC K CHARLES	≈18.72%9.18M shares
Bayview Legacy, LLC	≈18.20%8.93M shares
NEEDHAM INVESTMENT MANAGEMENT LLC	8.01%3.93M shares
BlackRock, Inc.	6.72%3.3M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.09%1.51M shares
FRANKLIN RESOURCES INC	3.06%1.5M shares
FEDERATED HERMES, INC.	2.88%1.41M shares
ACADIAN ASSET MANAGEMENT LLC	2.55%1.25M shares
Nuveen, LLC	2.17%1.07M shares
GOLDMAN SACHS GROUP INC	2.06%1.01M shares
JACOBS LEVY EQUITY MANAGEMENT, INC	2.00%981.8K shares
GEODE CAPITAL MANAGEMENT, LLC	1.81%885.75K shares
STATE STREET CORP	1.77%867.22K shares
AQR CAPITAL MANAGEMENT LLC	1.67%818.72K shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.22%600.61K shares
LOOMIS SAYLES & CO L P	1.07%525.71K shares
WELLINGTON MANAGEMENT GROUP LLP	1.02%500.2K shares
Invesco Ltd.	0.93%457.78K shares
MACKENZIE FINANCIAL CORP	0.92%453.4K shares
PRICE T ROWE ASSOCIATES INC /MD/	0.90%443.48K shares

Percentages use 49.05M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)334$77.91M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 16, 2026Form 4	Moll Laurent RChief Operating Officer	SellCommon Stock	39.5K	$43.15	$1.71M	227.3K
Jun 8, 2026Form 4 · 10b5-1	Bayview Legacy, LLCTenPercentOwner	SellCommon Stock · indirect	27.6K	$35.16	$968.7K	8.93M
Jun 8, 2026Form 4 · 10b5-1	Bayview Legacy, LLCTenPercentOwner	SellCommon Stock · indirect	42.4K	$34.74	$1.47M	8.96M
Jun 8, 2026Form 4 · 10b5-1	JANAC K CHARLESPresident and CEO	SellCommon Stock · indirect	27.6K	$35.16	$968.7K	8.93M
Jun 8, 2026Form 4 · 10b5-1	JANAC K CHARLESPresident and CEO	SellCommon Stock · indirect	42.4K	$34.74	$1.47M	8.96M