Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 9

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Licensing, support and maintenance$15,896 $13,507 $46,319 $38,799 Variable royalties1,505 1,176 4,074 2,965 Other7 30 49 471 Total$17,408 $14,713 $50,442 $42,235 Contract BalancesThe following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):As ofSeptember 30,2025December 31,2024Accounts receivable, net$16,480 $20,608 Contract assets, current portion$— $167 Deferred revenue$85,872 $75,622 The Company recognized revenue of $13.6 million and $12.3 million for the three months ended September 30, 2025 and 2024, respectively, and $35.4 million and $28.9 million for the nine months ended September 30, 2025 and 2024, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current are included in prepaid expenses and other current assets on the consolidated balance sheets.

11

As of September 30, 2025, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized were $101.1 million which include deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $50.1 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $7.2 million and $2.3 million as of September 30, 2025 and December 31, 2024, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts.Costs of Obtaining a Contract with a CustomerIncremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are capitalized and amortized over the license term. Total capitalized direct commission costs were as follows (in thousands):As ofSeptember 30,2025December 31,2024Short-term commission capitalized in prepaid