Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 32

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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Revenue

Three Months Ended September 30,Change20252024$%(dollars in thousands)Licensing, support and maintenance$15,896 $13,507 $2,389 18 %Variable royalties1,505 1,176 329 28 %Other7 30 (23)(77)%Total$17,408 $14,713 $2,695 18 %

Revenue from licensing, support and maintenance increased by $2.4 million for the three months ended September 30, 2025, compared to the three months ended September 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.

Cost of revenue

Three Months Ended September 30,Change20252024$%(dollars in thousands)Cost of revenue$1,766 $1,461 $305 21 %

Cost of revenue increased by $0.3 million or 21%, to $1.8 million for the three months ended September 30, 2025 from $1.5 million for the three months ended September 30, 2024. The increase in cost of revenue during the three months ended September 30, 2025 was primarily due to higher employee-related expenses, mainly driven by increased headcount of our application engineers.

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Operating expenses

Three Months Ended September 30,Change20252024$%(dollars in thousands)Research and development$12,648 $11,923 $725 6 %Sales and marketing6,850 4,962 1,888 38 %General and administrative4,858 4,286 572 13 %Total operating expenses$24,356 $21,171 $3,185 15 %

Research and development expenses

R&D expenses increased by $0.7 million, or 6%, to $12.6 million for the three months ended September 30, 2025 from $11.9 million for the three months ended September 30, 2024. The increase in R&D expenses was due to higher employee-related costs of $0.5 million mainly driven by increased headcount to support growth of our business and higher stock-based compensation expense.

Sales and marketing expenses

S&M expenses increased by $1