AIP · Arteris, Inc.

Cash Flow Quality

Cash Flow Quality — CFO vs Net Income, Capex Intensity, FCF Coverage

In Q1 2026, Arteris reported a net loss of $(8.0) million, which widened to an operating cash outflow of $(7.1) million after adjusting for non-cash items and working capital changes. The primary drag was a $6.3 million reduction in accrued expenses and other liabilities, as well as a $2.4 million decline in deferred revenue. These working capital outflows reversed the positive swing from receivables ($5.9 million collected). Stock-based compensation ($5.5 million) and depreciation/amortization ($1.3 million) were the main non-cash add-backs.

Capital expenditures were only $0.3 million, representing a 4% capex intensity relative to operating cash flow (on an absolute basis). The company did not explicitly state free cash flow, but combining CFO and capex yields an approximate FCF of $(7.4) million. There were no share repurchases or dividends. Investing activities also included $11.2 million in cash paid for the Cycuity acquisition. Overall, cash generation remains pressured by net losses and working capital volatility, with significant capital allocation directed toward strategic M&A rather than shareholder returns.