Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 277

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 277
---
Net loss(55)%(57)%(52)%(64)%

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

Revenue

Three Months Ended June 30,Change20252024$%(dollars in thousands)Licensing, support and maintenance$15,088 $13,553 $1,535 11 %Variable royalties1,402 971 431 44 %Other12 51 (39)(76)%Total$16,502 $14,575 $1,927 13 %

Revenue from licensing, support and maintenance increased by $1.5 million for the three months ended June 30, 2025, compared to the three 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.

Cost of revenue

Three Months Ended June 30,Change20252024$%(dollars in thousands)Cost of revenue$1,742 $1,458 $284 19 %

Cost of revenue increased by $0.3 million or 19%, to $1.7 million for the three months ended June 30, 2025 from $1.5 million for the three months ended June 30, 2024. The increase in cost of revenue during the three months ended June 30, 2025 was primarily due to higher FAE employee-related expenses.

29

Operating expenses

Three Months Ended June 30,Change20252024$%(dollars in thousands)Research and development$12,171 $10,717 $1,454 14 %Sales and marketing6,335 5,013 1,322 26 %General and administrative4,502 4,828 (326)(7)%Total operating expenses$23,008 $20,558 $2,450 12 %

Research and development expenses

R&D expenses increased by $1.5 million, or 14%, to $12.2 million for the three months ended June 30, 2025 from $10.7 million for the three months ended June 30, 2024. The increase in R&D expenses was due to higher employee-related costs of $1.1 million, mainly