📊 AIP Key Takeaways
Is Arteris, Inc. (AIP) a Good Investment?
Arteris exhibits severe financial distress despite strong product-level economics (85.8% gross margin and 22.3% revenue growth). The company is hemorrhaging cash with -7.1M operating cash flow and negative 40.5% operating margins, creating an unsustainable business model. Critical liquidity concerns (0.73x current ratio) combined with a razor-thin equity cushion of 2.6M relative to 137.3M liabilities present imminent solvency risk.
Arteris is showing credible top-line momentum and exceptional gross margins, with the added benefit of positive operating cash flow and free cash flow. However, the business remains deeply unprofitable at the operating and net levels, and negative stockholders' equity materially weakens the balance sheet. The fundamentals suggest a company with attractive product economics but insufficient earnings quality and financial resilience today.
Arteris, Inc. Key Strengths (AIP)
- Excellent gross margin of 85.8% demonstrates strong underlying product economics and pricing power
- Revenue growth of 22.3% YoY indicates market demand and customer adoption
- Positive cash balance of 11.7M provides near-term operational runway
- Revenue grew 22.3% YoY, indicating solid demand and commercial traction
- Gross margin of 90.2% reflects strong software/IP economics and pricing power
- Operating cash flow and free cash flow are positive, reducing near-term cash burn pressure
AIP Stock Risks: Arteris, Inc. Investment Risks
- Negative operating cash flow of -7.1M is unsustainable; company burning cash at -7.4M FCF annually with ~1.5 years of runway
- Critical liquidity crisis: current ratio of 0.73x indicates inability to cover short-term obligations with current assets
- Massive equity depletion: stockholders equity of only 2.6M against 137.3M liabilities creates extreme insolvency risk
- Operating losses of -9.3M and net margin of -34.7% demonstrate fundamental business model failure at scale
- 31 Form 4 insider filings in 90 days may signal management concern about company direction
- Operating margin of -47.0% and net margin of -49.2% show the business model is not yet sustainably profitable
- Negative stockholders' equity and liabilities exceeding assets signal balance-sheet weakness
- Cash of $33.90M with only modest liquidity cushion (current ratio 1.13x) limits flexibility if growth slows or costs rise
Key Metrics to Watch
- Operating cash flow trend and timeline to break-even operationally
- Current ratio and working capital position (currently at critical 0.73x)
- Operating margin improvement and SG&A expense reduction initiatives
- Cash burn rate and months of runway remaining
- Revenue sustainability and gross margin maintenance under scale
- Operating margin improvement relative to revenue growth
- Cash balance and free cash flow sustainability
Arteris, Inc. (AIP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AIP Profit Margin, ROE & Profitability Analysis
AIP vs Technology Sector: How Arteris, Inc. Compares
How Arteris, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arteris, Inc. Stock Overvalued? AIP Valuation Analysis 2026
Based on fundamental analysis, Arteris, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arteris, Inc. Balance Sheet: AIP Debt, Cash & Liquidity
AIP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arteris, Inc.'s revenue has grown significantly by 86% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.86 indicates the company is currently unprofitable.
AIP Revenue Growth, EPS Growth & YoY Performance
AIP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $16.5M | -$8.0M | $-0.17 |
| Q3 2025 | $14.7M | -$7.7M | $-0.20 |
| Q2 2025 | $14.6M | -$8.3M | $-0.22 |
| Q1 2025 | $12.9M | -$8.1M | $-0.20 |
| Q3 2024 | $13.3M | -$7.7M | $-0.20 |
| Q2 2024 | $14.6M | -$8.3M | $-0.22 |
| Q1 2024 | $12.9M | -$9.0M | $-0.25 |
| Q3 2023 | $12.6M | -$7.7M | $-0.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arteris, Inc. Dividends, Buybacks & Capital Allocation
AIP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arteris, Inc. (CIK: 0001667011)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AIP
What is the AI rating for AIP?
Arteris, Inc. (AIP) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AIP's key strengths?
Claude: Excellent gross margin of 85.8% demonstrates strong underlying product economics and pricing power. Revenue growth of 22.3% YoY indicates market demand and customer adoption. ChatGPT: Revenue grew 22.3% YoY, indicating solid demand and commercial traction. Gross margin of 90.2% reflects strong software/IP economics and pricing power.
What are the risks of investing in AIP?
Claude: Negative operating cash flow of -7.1M is unsustainable; company burning cash at -7.4M FCF annually with ~1.5 years of runway. Critical liquidity crisis: current ratio of 0.73x indicates inability to cover short-term obligations with current assets. ChatGPT: Operating margin of -47.0% and net margin of -49.2% show the business model is not yet sustainably profitable. Negative stockholders' equity and liabilities exceeding assets signal balance-sheet weakness.
What is AIP's revenue and growth?
Arteris, Inc. reported revenue of $22.9M.
Does AIP pay dividends?
Arteris, Inc. does not currently pay dividends.
Where can I find AIP SEC filings?
Official SEC filings for Arteris, Inc. (CIK: 0001667011) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AIP's EPS?
Arteris, Inc. has a diluted EPS of $-0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AIP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Arteris, Inc. has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AIP stock overvalued or undervalued?
Valuation metrics for AIP: ROE of -307.2% (sector avg: 22%), net margin of -34.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AIP's AI grade for 2026?
Our dual AI analysis gives Arteris, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AIP's free cash flow?
Arteris, Inc.'s operating cash flow is $-7.1M, with capital expenditures of $295.0K. FCF margin is -32.1%.
How does AIP compare to other Technology stocks?
Vs Technology sector averages: Net margin -34.7% (avg: 18%), ROE -307.2% (avg: 22%), current ratio 0.73 (avg: 2.5).