Arteris Inc (NASDAQ:AIP) Reports Q2 2025 Earnings Miss with Wider-Than-Expected Loss, Shares Drop 6.5%

Arteris Inc (NASDAQ:AIP) reported its second-quarter 2025 financial results, delivering revenue slightly below analyst expectations while posting a wider-than-expected loss per share. The semiconductor interconnect IP provider generated $16.5 million in revenue for the quarter, narrowly missing the consensus estimate of $16.51 million. Meanwhile, the company reported a loss per share of $0.11, worse than the anticipated loss of $0.0972.

Key Financial Takeaways

• Revenue: $16.5M (vs. $16.51M estimated) – a slight miss but largely in line.
• EPS: -$0.11 (vs. -$0.0972 estimated) – a deeper loss than expected.
• After-Hours Reaction: Shares fell 6.5% in extended trading, reflecting investor disappointment over the earnings miss.
• Recent Performance: Despite the post-earnings dip, the stock has gained 22.6% over the past week and 36.1% over the past month, suggesting prior optimism ahead of the report.

Market Reaction & Context

The immediate sell-off following the earnings release indicates that investors were hoping for a stronger performance, particularly on profitability. While revenue was nearly in line with expectations, the wider loss per share appears to have weighed on sentiment. This mirrors broader semiconductor sector trends, where even in-line results—such as those recently reported by Advanced Micro Devices (AMD)—have been met with selling pressure.

Forward Guidance & Analyst Estimates

Arteris provided updated full-year 2025 guidance alongside its Q2 results, though specific figures were not detailed in the press release. Analysts currently expect:

• Q3 2025 Revenue Estimate: $17.48M
• Q3 2025 EPS Estimate: -$0.063
• Full-Year 2025 Revenue Estimate: $69.17M
• Full-Year 2025 EPS Estimate: -$0.29

The company’s outlook will be critical in determining whether the post-earnings decline is a short-term reaction or part of a longer-term trend. Given the stock’s recent rally, some profit-taking was likely inevitable, especially with the EPS miss.

Press Release Highlights

• Arteris emphasized its role in accelerating system-on-chip (SoC) development, particularly in automotive, enterprise computing, and consumer electronics.
• The company continues to invest in its interconnect IP and SoC integration automation software, positioning itself for long-term growth in semiconductor design efficiency.

For a deeper dive into Arteris’ earnings and future estimates, review the full details here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.