Arteris Inc. Common Stock (AIP)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and trade at a sensible price. Arteris is not that today. It provides network-on-chip and related semiconductor IP, a niche with real engineering content, but the financial record shows a company still searching for profitability. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $24.1M, up from $16.5M in fiscal Q2 2025, yet net income worsened to -$14.1M from -$9.1M. For FY2025, filed results show revenue of $70.6M, net income of -$34.7M, and diluted EPS of -$0.82; FY2024 was $57.7M revenue, -$33.6M net income, and -$0.86 EPS; FY2023 was $53.7M revenue and -$36.9M net income. Growth is present, but it has not produced profits. At the 2026-10-13 close of $21.16, FairStock's calculations show a negative P/E of -24.32, P/B of 15.33, ROE of -131.41%, ROCE of -14.17%, and FCF yield of 0.7%. The Piotroski F-Score is 4/9 and Altman Z-Score is 2.99. Positive trailing free cash flow of $6.8M is encouraging, but tiny relative to the $1.0B market cap. Debt is modest at D/E 0.13, but the Lynch category is 'none' because filed annual results show losses in each of the last four years. Without a durable moat or earnings, the price offers little margin of safety.

In plain English: Arteris sells specialized chip-design technology that helps parts inside semiconductors talk to each other. Revenue is growing, but the company has kept losing money, and recent losses have been large. At the October 13, 2026 close, the price looks expensive compared with its current profits and cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer