Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 366

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 366
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 experimental expenditures. We are currently evaluating the full effects of the legislation on our consolidated financial statements. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for the three months ended June 30, 2025.

31

Comparison of the Six Months Ended June 30, 2025 and 2024

Revenue

Six Months Ended June 30,Change20252024$%(dollars in thousands)Licensing, support and maintenance$30,423 $25,292 $5,131 20 %Variable royalties2,569 1,789 780 44 %Other42 441 (399)(90)%Total$33,034 $27,522 $5,512 20 %

Revenue from licensing, support and maintenance increased by $5.1 million for the six months ended June 30, 2025, compared to the six months ended June 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 six months ended June 30, 2024, which did not repeat during the six months ended June 30, 2025.

Cost of revenue

Six Months Ended June 30,Change20252024$%(dollars in thousands)Cost of revenue$3,268 $2,926 $342 12 %

Cost of revenue increased by $0.3 million, or 12%, to $3.3 million for the six months ended June 30, 2025 from $2.9 million for the six months ended June 30, 2024. The increase in cost of revenue was primarily due to higher FAE employee-related expenses. 

Operating expenses

Six Months Ended June 30,Change20252024$%(dollars in thousands)Research and development$24,033 $21,552 $2,481 12 %Sales and marketing12,864 10,469 2,395 23 %General and administrative8,825 9,150 (325)(4)%Total operating expenses$45,722 $41,171 $4,551 11 %

Research and