Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 279

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 279
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 2024. The decrease in our income tax expense was due to a change in the forecasted geographic mix of worldwide earnings which are taxed at different statutory tax rates, the impact of losses in jurisdictions which have full valuation allowances, and changes in current year foreign withholding taxes. Foreign withholding taxes are generally assessed on gross revenue generated, rather than pre-tax income, in certain countries in which the Company does not file an income tax return.

On July 4, 2025, the U.S. enacted a budget reconciliation package commonly referred to as the One Big Beautiful Bill Act of 2025 (OBBBA), which contains a broad range of tax reform provisions affecting businesses, including the permanent reinstatement of bonus depreciation on qualified property and full expensing of domestic research and experimental expenditures. We are currently evaluating the full effects of the legislation on our consolidated financial statements. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for the three months ended June 30, 2025.

31

Comparison of the Six Months Ended June 30, 2025 and 2024

Revenue

Six Months Ended June 30,Change20252024$%(dollars in thousands)Licensing, support and maintenance$30,423 $25,292 $5,131 20 %Variable royalties2,569 1,789 780 44 %Other42 441 (399)(90)%Total$33,034 $27,522 $5,512 20 %

Revenue from licensing, support and maintenance increased by $5.1 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase in revenue from licensing, support and maintenance was primarily due to new license arrangements with existing customers, and the addition of new customers. Growth in our variable royalty revenue was primarily due to an increase in product sales of certain existing customers, and the addition of new customers. Other revenue decreased primarily due to revenue from professional services that was recognized during the six months ended June 30, 2024, which did not repeat during the six months ended June 30, 2025.

Cost of revenue

Six Months Ended June 30,Change20252024$%(dollars in thousands)Cost of revenue$3,268 $2,926 $342 12 %

Cost of revenue increased by $0.3 million, or 12