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Arbe Robotics (ARBE)
NASDAQ:ARBE
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Arbe Robotics
(NASDAQ:ARBE)
Rating:46Neutral
Price Target:
$1.50
▼( -3.23% Downside)
Positive Factors
Market Opportunity
There is substantial market opportunity to be captured, as expected demand for new sensors is driven by improved safety features and regulatory demands, with ARBE's competitive position strengthening in imaging radar applications.
Non-Automotive Applications
Importantly, the company is showing momentum in its non-automotive applications.
Technological Validation
The successful launch of Arbe's LRR615 alongside HiRain, strong engagement of 15 automotive OEMs and collaboration with Nvidia for integration into its Drive AGX platform validate the technology, and highlight the differentiation of imaging radar and its potential to improve the safety and reliability of AV systems.
Negative Factors
Disappointing Revenue Guidance
ARBE's 2025 guidance for revenue is between $2M-$5M, which is below previous estimates and reflects a disappointing outlook.
Revenue Delays
Delays in automakers' deployment of advanced driver-assistance systems have led to longer decision-making times, affecting revenue estimates for 2025 and 2026.
Stock Rating Downgrade
Ongoing customer decision delays have led to a downgrade in the stock rating to Hold.
Arbe Robotics (ARBE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.00M
Dividend YieldN/A
Average Volume (3M)1.54M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth-46.41%
EPS Growth6.05%
CountryUS
Employees138
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.13
Shares Outstanding105,163,185
10 Day Avg. Volume2,332,531
30 Day Avg. Volume1,544,718
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)5.35
Price to Sales (P/S)0.00
P/FCF Ratio-4.67
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue39.41
Enterprise Value/Gross Profit-221.30
Enterprise Value/Ebitda-0.90
Forecast
1Y Price Target
$2.38Price Target Upside53.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Arbe Robotics Business Overview & Revenue Model
Company DescriptionArbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
How the Company Makes MoneyArbe Robotics generates revenue primarily through the sale of its advanced radar systems to automotive manufacturers and suppliers. The company's key revenue streams include direct sales of radar units, licensing of its proprietary radar technology, and potential service agreements related to system integration and support. Arbe Robotics may also engage in strategic partnerships with automotive and technology companies to further integrate its solutions into broader autonomous vehicle platforms, contributing to its revenue. Additionally, the company might leverage research and development grants or government funding initiatives aimed at advancing autonomous and driver-assistance technologies.
Arbe Robotics Financial Statement Overview
Summary
Arbe Robotics faces significant financial challenges across its income statement, balance sheet, and cash flow. The company is struggling with revenue declines, high operational losses, and cash flow constraints. Combined with high leverage and low equity levels, these factors pose risks to financial stability and future growth.Income Statement
Arbe Robotics has been experiencing significant challenges in its income statement. The company has faced declining revenues over recent years, with a notable decrease from $3.5 million in 2022 to $768,000 in 2024. The gross profit has been negative, indicating cost of goods sold exceeds sales revenue. The EBIT and net income margins are also negative, highlighting ongoing operational inefficiencies and high expenses relative to revenue. These factors suggest a difficult path to profitability.32
Negative
Balance Sheet
Arbe Robotics' balance sheet shows significant leverage with a debt-to-equity ratio that has increased due to a decrease in equity and an increase in debt. The equity ratio is low, indicating a smaller proportion of assets financed by equity. However, the company has maintained a reasonable level of cash and short-term investments, which could provide some financial flexibility. Overall, the balance sheet reflects high financial risk with limited equity buffer.45
Neutral
Cash Flow
The cash flow statement reveals persistent negative operating cash flows, indicating the company is not generating sufficient cash from operations to cover its expenses. Free cash flow is also negative, suggesting cash outflows exceed inflows. The free cash flow to net income ratio is unfavorable, reinforcing the strain on liquidity. These metrics highlight cash management challenges that may hinder growth and stability.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 768.00K | 1.47M | 3.52M | 2.25M | 332.00K | Gross Profit |
| -785.00K | -38.00K | 2.23M | 809.00K | -8.00K | EBIT |
| -49.65M | -46.88M | -47.73M | -33.28M | -14.96M | EBITDA |
| -49.07M | -46.33M | -47.25M | -32.94M | -14.73M | Net Income Common Stockholders |
| -49.32M | -43.50M | -33.26M | -82.91M | -16.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.28M | 44.06M | 54.57M | 100.81M | 2.96M | Total Assets |
| 60.79M | 50.48M | 60.83M | 105.35M | 4.41M | Total Debt |
| 32.62M | 1.74M | 381.00K | 4.92M | 4.20M | Net Debt |
| 19.13M | -26.84M | -53.79M | -95.89M | 1.34M | Total Liabilities |
| 38.29M | 8.39M | 12.08M | 25.52M | 64.56M | Stockholders Equity |
| 22.50M | 42.09M | 48.75M | 79.82M | -60.16M |
| Cash Flow | Free Cash Flow | |||
| -33.12M | -33.76M | -41.28M | -27.20M | -15.44M | Operating Cash Flow |
| -32.50M | -33.51M | -40.36M | -26.42M | -15.29M | Investing Cash Flow |
| 3.99M | -15.25M | -1.32M | -684.00K | 9.70M | Financing Cash Flow |
| 13.53M | 23.20M | -4.94M | 125.08M | 1.53M |
Arbe Robotics Technical Analysis
Neutral
1.55
Price Trends
1.27
Positive
1.85
Negative
1.86
Negative
Market Momentum
0.08
Negative
56.50
Neutral
30.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARBE, the sentiment is Neutral. The current price of 1.55 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.27, and below the 200-day MA of 1.86, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARBE.
Arbe Robotics Risk Analysis
Arbe Robotics disclosed 69 risk factors in its most recent earnings report. Arbe Robotics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We will be subject to risks associated with our agreements with Tier 1s and other companies. Q4, 2023
2.
Increasing attention to, and evolving expectations regarding, environmental, social and sustainability matters may impact our business and reputation. Q4, 2023
3.
Our principal customers include Tier-1 suppliers with a view to including our chipset as part of a radar system that they market to the automobile industry and which compete with other Tier 1 suppliers in marketing to the automotive industry. Q4, 2023
Arbe Robotics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $191.23M | 19.36 | 56.45% | ― | ― | ― | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
51 Neutral | $164.29M | ― | -60.94% | ― | 128.83% | 73.67% | |
46 Neutral | $163.00M | ― | -101.60% | ― | -46.41% | 6.05% | |
45 Neutral | $320.07M | ― | -160.52% | ― | -67.43% | 87.17% | |
40 Underperform | $265.35M | ― | -136.41% | ― | -16.95% | 54.71% | |
35 Underperform | $163.04M | ― | -98.67% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
ARBE
Arbe Robotics
1.55
-0.40
-20.51%
BKKT
Bakkt Holdings, Inc. Class A
10.66
-5.39
-33.58%
PDYN
Palladyne AI Corp
7.43
5.58
301.62%
ARQQ
Arqit Quantum
25.11
15.08
150.35%
AISP
Airship AI Holdings
5.12
1.27
32.99%
HPAI
Helport AI Limited
5.15
-5.94
-53.56%
Arbe Robotics Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: -4.91%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
Arbe Robotics showcased significant progress in European and Chinese markets, substantial partnerships, and successful capital raising, indicating strong future potential. However, revenue decline and increased losses highlight current financial challenges, along with delays in automotive rollouts impacting short-term projections.Q1-2025 Updates
Positive Updates
Significant Progress in Europe
Arbe Robotics made meaningful progress in Europe, getting closer to design wins with leading OEMs. Increased investment from Tier 1s and OEMs developing AI-driven perception algorithms leveraging Arbe's radar data is noted. Revenues are projected to begin in 2027.
Successful Capital Raising
Arbe raised $33 million through an underwriting registered direct offering in January 2025, with an additional $21.5 million released from escrow. This capital strengthens their balance sheet and enhances financial stability.
Partnership with NVIDIA
Arbe collaborated with NVIDIA on integrating high-resolution imaging radar with NVIDIA's DRIVE AGX platform, featured at CES 2025.
HiRain Technology Milestone in China
HiRain Technology launched its LRR615 long-range imaging radar system in April 2025, showcasing scalability and market readiness in China's autonomous driving sector.
Strong Traction Beyond Automotive
Tier 1 Sensrad placed a significant order for over 1,000 imaging radar chips, indicating growing demand and versatility of Arbe's technology across multiple industries.
Positive Industry Response
Advanced radar solutions demonstrated at trade shows in China, Japan, Germany, and the U.S. received positive feedback from OEMs and Tier 1s.
Negative Updates
Decline in Revenue
Q1 2025 revenue was $0.04 million, down from $0.1 million in Q1 2024. Backlog as of March 31, 2025, was $0.25 million, with gross profit remaining negative at $0.3 million.
Increased Operating Loss
Operating loss for Q1 2025 was $13.4 million, compared to a $12.8 million loss in Q1 2024. Adjusted EBITDA was a loss of $9.7 million in Q1 2025, compared to an $8.5 million loss in Q1 2024.
Net Loss Increase
Net loss in Q1 2025 was $13.8 million, up from a $12.8 million loss in Q1 2024.
Delayed Automotive Rollouts
Economic shifts have led to delays in automaker rollouts of advanced driver-assist systems, extending decision timelines and impacting revenue expectations.
Company Guidance
During the Arbe Robotics First Quarter 2025 Earnings Results Conference Call, several key metrics were highlighted in the company's guidance. Arbe anticipates annual revenues for 2025 to be in the range of $2 million to $5 million, weighted toward the end of the year. Adjusted EBITDA for the year is projected to be a loss ranging from $29 million to $35 million. The company has emphasized its engagement in ongoing negotiations with OEMs, particularly in Europe, and is optimistic about securing four design-ins with automakers in 2025. Arbe's financial position was strengthened with a recent cash infusion totaling $70 million, including $33 million raised through an underwriting registered direct offering and an additional $21.5 million from convertible bonds. This capital will support the company's scaling operations and productization efforts. The company also noted continued traction in the Chinese market, with HiRain technology reaching a critical milestone with the launch of the LRR615 radar system, and expects to see a revenue ramp-up in China by the end of the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.