Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 265

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 265
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 and maintaining in-house NoC teams, which we believe has positively contributed to our market segment share growth. Artificial Intelligence (AI) and Generative AI are transforming the semiconductor industry, revolutionizing how our customers approach design and development. The rapid expansion of AI applications across various industries, combined with the increasing complexity of electronic system design, has unlocked new growth opportunities, driving a positive impact on our financial performance.

Our SoC Integration Automation software solutions, which were significantly enhanced by our acquisition of Magillem Design Services S.A. (Magillem) in 2020, complement our interconnect IP solutions by helping to automate not only the customer configuration of its NoC interconnect but also the process of integrating and assembling all of the customer’s IP blocks into an SoC. Products incorporating our IP are used to carry most of the important data inside complex SoCs for sophisticated applications, including automotive, enterprise computing, communications, consumer electronics, and industrial markets.

As of September 30, 2025, we had 285 full-time employees and offices in eleven locations in the United States, France, China, South Korea, Japan, Taiwan and Poland. For the three months ended September 30, 2025, we generated revenue of $17.4 million, net loss of $9.0 million, and net loss per share, basic and diluted of $0.21. As of September 30, 2025, we had Annual Contract Value (as defined below) and Annual Contract Value plus royalties of $69.4 million and $74.9 million, respectively. During the three months ended September 30, 2025, our customers had 23 Confirmed Design Starts (as defined below).

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Factors Affecting Our Business

We believe that the growth of our business and our future success are dependent upon many factors including those described under “Risk Factors” and elsewhere in this report, in addition to those described below. While each of these factors presents significant opportunities for us, these factors also pose challenges that we must successfully address in order to sustain the growth of our business and enhance our results of operations.

License Agreements with New and Existing Customers

Our ability to generate revenue from new license agreements, and the timing of such revenue, is subject to a number of factors, risks and contingencies. For new products, the time from initial development until we generate license revenue can be lengthy, typically between one and three years. In addition, because the selection process by our customers is typically lengthy and market