Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 33

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 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.

29

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, 2024.

Interest expense

Three Months Ended June 30,Change20252024$%(dollars in thousands)Interest expense$(42)$(68)$26 (38)%

Interest expense remained relatively flat for the three months ended June