Arteris (AIP) Q2 2026 Earnings Report

The call emphasized multiple record highs (ACV + royalties, royalties, RPO, revenue), strong top‑line growth (46% revenue YoY) and improving cash strength (positive FCF and $123M cash), alongside clear product and ecosystem momentum (Arm partnership, large FlexGen deals, diversified wins). Near‑term challenges include elevated payroll tax and commission driven OpEx, acquisition‑related charges, some royalty cadence variability, and continued GAAP losses. Management raised revenue guidance and reiterated a path to non‑GAAP profitability, while also disclosing one‑time and timing headwinds that modestly tempered profitability expectations.

Management guided Q3 2026 to ACV plus royalties of $99M–$103M, revenue of $24M–$25M, and a non‑GAAP operating loss of $3M–$1M (noting this reflects a higher run‑rate of French employer payroll taxes on RSU vesting). For full‑year 2026 they raised revenue guidance to $95M–$98M (up $3.5M from prior guidance, ~37% YoY at the midpoint), expect ACV plus royalties to exit at $102M–$106M, project a non‑GAAP operating loss of $10M–$7M and non‑GAAP free cash flow of +$5M–+$9M (unchanged). They also reported RPO of $135M at quarter end with just over half expected to convert to revenue starting July 1, 2026, and reiterated that Arteris could reach non‑GAAP operating profitability as early as Q4 2026.