Arteris Q3 Revenue Jumps 48% to $25.8M, Beating Estimates
Arteris reported Q3 2026 revenue of $25.77 million, up 48% year over year and above consensus, with non-GAAP EPS of -$0.02 beating estimates; Annual Contract Value rose to $94.4 million.
- 01THE PRINT — Arteris reported Q3 2026 revenue of $25.77 million, up 48% year over year and above consensus, with non-GAAP EPS of -$0.02 beating estimates.
- 02THE ENGINE — Annual Contract Value reached $94.4 million, licensing rose 41% and variable royalties 52%; the company also passed 1,000 cumulative customer design starts.
- 03THE WATCHPOINT — Whether ACV growth converts into royalty scale, whether the Cycuity and R&D spending narrows the loss, and whether the full-year $95-$98 million revenue range is raised.
WHAT HAPPENEDWhat Happened
Arteris reported third-quarter 2026 revenue of $25.77 million on November 5, 2026, up 48.1% year over year from $17.41 million and above the $24.57 million IBES consensus, and above the top of the $24.0-$25.0 million estimated range the company gave in August. Non-GAAP earnings were a loss of $0.02 per share, beating the $0.04 loss consensus by two cents. GAAP net loss widened to $11.15 million, or $0.23 per diluted share, from $8.99 million a year earlier, and GAAP operating income was a loss of $11.3 million.
The commercial engine kept compounding. Annual Contract Value reached $94.4 million at September 30, 2026, up from $69.4 million a year earlier, licensing, support and maintenance revenue rose 41% on new arrangements with existing customers, new customers and Cycuity hardware-security products, and variable royalties rose 52% on higher customer product sales. Arteris reported 22 confirmed design starts in the quarter, against 23 a year earlier, and separately announced on November 5 that it has now passed 1,000 cumulative customer silicon design starts. Shares fell 12.0% to $15.93 in the regular session on November 5, before the results crossed after the close, in a broad selloff across semiconductor names.
WHY IT MATTERSA beat built on design activity, not one-off deals
Revenue of $25.77 million beat both the consensus and the company's own estimated range, and the beat came from the right places: licensing up 41% and variable royalties up 52%. Royalties rising with customer product sales means Arteris is being paid more as its customers ship more silicon, which is the compounding part of the IP model.
Annual Contract Value of $94.4 million, up 36% year over year, is the forward indicator. ACV plus royalties is the metric Arteris itself steers by, and a 36% rise says the design pipeline is still converting even as the share price fell by a third in a month.
WHY IT MATTERSLosses widen while the AI chiplet bet scales
The GAAP net loss widened to $11.15 million as employee costs, R&D investment and expenses from the Cycuity acquisition rose faster than revenue. That is the cost of scaling a chiplet and system-IP portfolio aimed at AI, automotive and enterprise computing, and it is the number the market will test each quarter.
The risk is the one already visible in the session move: a 12% drop before the print was a verdict on the sector selloff, not on these numbers. But with losses still widening, Arteris needs the ACV growth to turn into royalty scale before investors lose patience with the spending.
SIGNAL JUDGMENT — ANALYSISA clean beat, still paying to scale
Tokenta Signal's judgment: $25.77 million, up 48%, beating both consensus and the company's own range, is a clean quarter, and ACV up 36% says the design pipeline is still converting. But a net loss that widened to $11.15 million on Cycuity and R&D spending means the chiplet bet is still being paid for out of the P&L. The quarter earns the beat; the spending earns the scrutiny.
WHAT REMAINS UNCERTAINWhat Remains Uncertain
EVIDENCEEvidence
Arteris' third-quarter 2026 results were filed with the SEC in its 10-Q on November 5, 2026: total revenue $25.77 million, up 48.1% year over year from $17.41 million, above the $24.57 million IBES consensus and the top of the company's own $24.0-$25.0 million estimated range; GAAP net loss $11.15 million, or $0.23 per diluted share; GAAP operating income a loss of $11.3 million; non-GAAP EPS a loss of $0.02 per share, beating the $0.04 loss consensus; Annual Contract Value $94.4 million at September 30, 2026, up from $69.4 million a year earlier; licensing, support and maintenance revenue up 41%, variable royalties up 52%; 22 confirmed design starts in the quarter, against 23 a year earlier. A second independent report confirms the headline figures, and MarketBeat's consensus was revenue $24.57 million and EPS a loss of $0.04. Shares fell 12.0% to $15.93 in the regular session on November 5, 2026, before the results were released after the close.
PRIMARY SOURCESPrimary Sources
- TradingView: Arteris 3Q 2026: Revenue $25.77M, EPS ($0.23) — 10-Q Summary
https://www.tradingview.com/news/tradingview:86442eb62172c:0-arteris-3q-2026-revenue-25-77m-eps-0-23-10-q-summary/ - MarketBeat: Arteris (AIP) Q3 2026 Earnings Results & Report
https://www.marketbeat.com/earnings/reports/2026-11-5-arteris-inc-stock/
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