Research Notes · United States

Arteris, Inc.

Arteris, Inc. provides semiconductor system IP that manages on-chip communication and IP-block integration in system-on-chip (SoC) and chiplet-based devices. Its product portfolio includes FlexNoC, FlexGen, FlexWay and Ncore network-on-chip IP, alongside CodaCache cache IP. On January 14, 2026, Arteris acquired Cycuity, a hardware-security assurance software company, for $43.1m in total consideration: $15.1m in cash (including $1.0m to settle awards), $19.0m in stock (1.10m shares) and $9.0m in contingent consideration at fair value. The earn-out provides for up to $12.0m in additional payments tied to bookings through December 31, 2026. The acquisition generated $31.1m in goodwill and $18.1m in intangible assets. [How Arteris earns revenue] - Licence, support and maintenance fees are fixed and recognised over the agreement term. Annual contract value (ACV) represents total fixed fees divided by the contract term in years. Variable royalties are recognised in the quarter when a licensee sells a chip containing Arteris IP, calculated as either a percentage of the licensee's revenue or a per-unit fee. Because royalty information arrives after quarter-end, the company estimates royalties for the current quarter. ACV plus royalties represents ACV combined with trailing-twelve-month variable royalties and other revenue. [Management and governance] - K. Charles Janac is CEO. CFO Nick Hawkins retired, and Saurabh Sinha joined as CFO on September 8, 2026. Insider ownership is estimated at approximately 18-23%, depending on the source, while institutional ownership is approximately 64-67%. CEO Janac sold 192,686 shares through Bayview Legacy LLC at an average price of $36.32 on July 2 under a 10b5-1 trading plan. Director Saiyed Atiq Raza sold 70,000 shares at $30.01 on August 3, also under a 10b5-1 plan.