Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 277

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 277
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1,109 37 %Other49 471 (422)(90)%Total$50,442 $42,235 $8,207 19 %

Revenue from licensing, support and maintenance increased by $7.5 million for the nine months ended September 30, 2025, compared to the nine 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, and the addition of new customers. Other revenue decreased primarily due to revenue from professional services that was recognized during the nine months ended September 30, 2024, which did not repeat during the nine months ended September 30, 2025.

Cost of revenue

Nine Months Ended September 30,Change20252024$%(dollars in thousands)Cost of revenue$5,034 $4,387 $647 15 %

Cost of revenue increased by $0.6 million, or 15%, to $5.0 million for the nine months ended September 30, 2025 from $4.4 million for the nine months ended September 30, 2024. The increase in cost of revenue was primarily due to higher employee-related expenses, mainly driven by increased headcount of our application engineers.

Operating expenses

Nine Months Ended September 30,Change20252024$%(dollars in thousands)Research and development$36,681 $33,475 $3,206 10 %Sales and marketing19,714 15,431 4,283 28 %General and administrative13,683 13,436 247 2 %Total operating expenses$70,078 $62,342 $7,736 12 %

Research and development expenses

R&D expenses increased by $3.2 million, or 10%, to $36.7 million for the nine months ended September 30, 2025 from $33.5 million for the nine months ended September 30, 2024. The increase in R&D expenses was due to higher employee-related costs of $2.3 million mainly driven by increased headcount to support growth of our business, including stock-based compensation expense. We also incurred higher professional fees of $0.4 million and received lower grants of $0.2 million by our subsidiary in