AIP Arteris, Inc.

Overview and Growth

In fiscal 2025, Arteris, Inc. recorded $70.58M of revenue, net loss of $34.75M, and an operating cash inflow of $6.73M. At $70.58M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 22.3% from $57.72M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were -$0.82, translating the period’s attributable earnings into the amount reported for each diluted share. At period end, total assets were $115.03M, framing the scale of the company’s operating and financing commitments. Revenue equaled 0.61x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $63.68M as gross profit before recognizing operating expenses and other items. Gross margin was 90.2%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced a $33.14M operating loss before non-operating and tax effects. The operating loss equaled 47.0% of revenue, showing the scale of the operating deficit relative to sales. After all below-operating-line items, the company recorded a net loss of $34.75M for the fiscal year. Net margin was -49.2%, reflecting a loss equal to 49.2% of reported revenue. Negative EBITDA totaled $29.76M, confirming that the earnings deficit remained before depreciation and amortization. The company reported a pretax loss of $33.27M, before the effect of income taxes. The pretax loss equaled 47.1% of revenue, measuring the pre-tax deficit against sales. The company recognized $1.48M of income tax for the period, completing the transition from pretax income to net income. The net loss equaled 30.2% of period-end assets, showing the deficit relative to the asset base. The net loss widened to $34.75M from $33.64M in fiscal 2024.

Liquidity and Capital Structure

Total assets were $115.03M, supported by $129.66M of liabilities and -$14.63M of shareholder equity. The company reported negative equity of -$14.63M, a capital deficit that reduces its ability to absorb losses through book equity. Current assets were $82.39M against $73.20M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 1.13x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $33.90M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 46.3%, excluding receivables and other current assets. The equity-to-assets relationship was -12.7%, placing book capital against the total resource base. The liabilities-to-assets relationship was 112.7%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 29.5% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 8.4% from $106.14M in fiscal 2024, leaving current total assets higher year over year. Compared with $13.68M in fiscal 2024, the current cash balance moved 147.7% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $6.73M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital expenditures used $1.39M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 20.6%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $5.34M of positive free cash flow for the period. The free-cash-flow margin was 7.6%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 4.6% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.