Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 364

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 364
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 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.

Cost of revenue

Three Months Ended June 30,Change20252024$%(dollars in thousands)Cost of revenue$1,742 $1,458 $284 19 %

Cost of revenue increased by $0.3 million or 19%, to $1.7 million for the three months ended June 30, 2025 from $1.5 million for the three months ended June 30, 2024. The increase in cost of revenue during the three months ended June 30, 2025 was primarily due to higher FAE employee-related expenses.

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Operating expenses

Three Months Ended June 30,Change20252024$%(dollars in thousands)Research and development$12,171 $10,717 $1,454 14 %Sales and marketing6,335 5,013 1,322 26 %General and administrative4,502 4,828 (326)(7)%Total operating expenses$23,008 $20,558 $2,450 12 %

Research and development expenses

R&D expenses increased by $1.5 million, or 14%, to $12.2 million for the three months ended June 30, 2025 from $10.7 million for the three months ended June 30, 2024. The increase in R&D expenses was due to higher employee-related costs of $1.1 million, mainly driven by increased headcount to support growth of our business, including stock-based compensation expense and higher professional fees of $0.3 million.

Sales and marketing expenses

S&M expenses increased by $1.3 million, or 26%, to $6.3 million for the three months ended June 30, 2025 from $5.0 million for the three months ended June 30, 2024. The increase in S&M expenses was primarily due to higher employee-related costs of $1.2 million mainly driven by increased headcount to support growth of our business, including stock-based compensation expense.

General and administrative expenses

G&A expenses remained relatively flat for the three months ended June 30, 2025 compared to three months ended June 30