Earnings release
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November 17, 2025 Arbe Announces Q3 2025 Financial Results TEL AVIV, Israel , Nov. 17, 2025 /PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE) (TASE: ARBE) ("Arbe," "we," "our" and the "Company"), a global leader in perception radar solutions, today announced its financial results and provided an investor update for its third quarter, ending September 30, 2025. Recent Highlights A major European OEM is expected to announce a strategic program award in the near future, and management believes Arbe's radar chipset is in the lead to be selected as the key enabler of its eyes-off, hands-off automated-driving system for serial production retail vehicles. A top Japanese OEM ordered radar kits from Arbe for its Level 4 development activities and approved the continuation and expansion of the project initiated last year, including pre-development activities. A premium European OEM is conducting data collection for a Level 3 program using radars based on Arbe's chipset. A leader in Artificial Intelligence computing ordered radar development kits for its
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full-stack autonomous-driving software development. Three leading OEMs are in the request for information (RFI) process for eyes-off, hands-off functionality, with selections expected in 2026 and production targeted for 2028-2030. Rising non-automotive demand : Arbe is seeing increased global activity in the defense sector, supplying radar systems for pilot programs and evaluation projects. Sensrad, a Tier-1 supplier of Arbe, announced an order from WATCHIT for boat collision-prevention systems using its Hugin Radar powered by Arbe's chipset, marking another non-automotive deployment and expanding a promising new vertical. Arbe received two automotive-technology industry awards: the Just Auto Excellence Award in the Perception Systems category, and the AutoTech Breakthrough Award for Sensor Technology Solution of the Year 2025, recognizing Arbe's leadership in ADAS and autonomous-driving radar . Chris Van Dan Elzen, former Vice President of Magna International and EVP of Veoneer, joined Arbe's Board of Directors. He brings over thirty years of experience with OEMs and Tier-1s, strong business acumen, and deep technological expertise, having previously managed global P&L for the largest active-safety product area and led more than 700 engineers worldwide. Management Comment "We made strong strategic progress in the third quarter," said Kobi Marenko, Chief Executive Officer of Arbe Robotics. "Our evaluations with leading OEMs are advancing well, and we believe we are in the lead to be selected as the key enabler for an automated-driving program by a major European OEM in the near future, and we aim to secure three additional program wins in the next three quarters. We continue to support our Tier-1s as they move toward large-scale production using our chipsets. In addition, we see further momentum in non-automotive markets, including a recent win in boat-collision prevention." "As the automotive industry moves toward true Level 3 'eyes-off' autonomy, OEMs increasingly require systems capable of operating safely at highway speeds. These next- generation programs require long-range, high-resolution sensing that performs reliably in all weather and lighting conditions, capabilities only advanced radar, such as Arbe's, can provide." Marenko concluded, "We believe the growing momentum around Level 3 autonomy plays directly to our strengths and validates our technology roadmap. With multiple OEM engagements progressing, we anticipate Arbe will increasingly be recognized as the radar platform of choice for next-generation autonomy. We remain confident in our technology roadmap and look forward to meaningful revenue growth beginning in 2027." Third Quarter 2025 Financial Results Highlights Revenues for Q3 2025 were $0.3 million, compared to $0.1 million in Q3 2024. Backlog as of September 30, 2025, amounted to $0.2 million. Gross profit for Q3 2025 was negative ($0.2) million, compared to the negative gross profit of ($0.3) million in Q3 2024. Operating expenses in Q3 2025 were $11.3 million, compared to $12.2 million in Q3 2024.
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The decrease was primarily driven by lower share-based compensation expense, related to the full vesting of prior year grants. The decrease was partially offset by an unfavorable foreign exchange impact. Operating loss in Q3 2025 was $11.5 million, compared to a $12.4 million loss in Q3 2024. Net loss in Q3 2025 was $11 million, compared to a net loss of $12.6 million in Q3 2024. Net loss in Q3 2025 included $0.5 million in financial income, compared to $0.1 million in financial expenses in Q3 2024. Financial income in Q3 2025 is mainly related to interest from bank deposits and call option realized, partially offset by changes in the foreign exchange rate, and revaluation related to our convertible debentures traded in TASE. Adjusted EBITDA for Q3 2025, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $9.2 million, compared with a loss of $8.2 million in Q3 2024. We believe that this non-GAAP measurement is important in management's evaluation of our use of cash and in planning and evaluating our cash requirements for the coming period. Balance Sheet and Liquidity Highlights As of September 30, 2025, Arbe had $52.6 million in cash and cash equivalents and short- term bank deposits. As of September 30, 2025, Arbe had $49.1 million in shareholders' equity. The Company complies with the financial covenants as set forth under the coverable debentures, and holds cash substantially above the minimum threshold. Outlook Arbe's leadership in high resolution radar continues to be recognized by major automotive decision makers, with strong engagement across top OEMs and Tier 1s. The Company's balance sheet remains strong following strategic funding events that support the Company's long term growth and continued execution of its strategic plan. While global economic shifts are leading some OEMs to delay new model launches and extend decision timelines for advanced driver assistance systems, Arbe's market position continues to strengthen. Arbe is actively expanding engagements with leading OEMs, progressing through advanced RFQ stages, and building a solid foundation for large-scale adoption. The Company's goal remains to secure four design wins with OEMs in the coming three quarters. For 2025, revenues are expected to be in the $1 to $2 million range. The change reflects the timing shift of certain NRE programs. Adjusted EBITDA guidance remains unchanged at ($29 million) to ($35 million). Conference Call & Webcast Details
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Arbe will host a conference call and webcast today, November 17, 2025, at 8:30 am ET. Speakers will include Kobi Marenko, Chief Executive Officer, Co-Founder and Director, and Karine Pinto-Flomenboim, Chief Financial Officer. The live call may be accessed via: U.S. Toll Free: 1-844-481-3015 International: +1-412-317-1880 Israel: 1-809-212-373 The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10204339/1004b29d6d3 Participants may pre-register at any time, including up to and after the call start time. The live webcast will be accessible from the same link on the day of the call and can also be accessed from Arbe's Investor Relations website at: https://ir.arberobotics.com . An archived webcast of the conference call will also be made available on the website the day following the call. The day after the call, a live webcast of the call can be accessed from Arbe's Investor Relations website at https://ir.arberobotics.com/news/ir-calendar . An archived webcast of the conference call will also be made available on Arbe's website the day following the call. About Arbe Arbe (Nasdaq: ARBE) (TASE: ARBE), a global leader in ultra-high-resolution radar solutions, is driving a radar revolution. Its cutting-edge radar chipset delivers up to 100 times more detail than other radar systems, empowering automakers and radar Tier-1s to develop truly safe driving systems that scale from ADAS to hands-free, eyes-off capabilities and up to full vehicle autonomy. Arbe's technology addresses the most critical use cases by delivering real-time, 4-dimensional imaging that enables the perception stack with information such as precise mapping of drivable free space in highway and urban environments across all weather and lighting conditions. With its transformative impact across passenger, commercial, and industrial vehicle segments, as well as other advanced safety applications, Arbe is redefining the role of radar in next-generation mobility. Headquartered in Tel Aviv, Israel, the Company also operates offices in the United States, Germany, and China. For more information, visit https://arberobotics.com/ Cautionary Note Regarding Forward-Looking Statements This press release contains, and the conference call described in this press release will contain, "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions
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indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include whether and when we receive secure the orders we anticipate and the extent of any orders we receive; our ability to meet expectations with respect to our financial guidance and outlook; the timing and completion of key product and project orders and milestones; expectations regarding our collaborations and business with third parties; the effect of tariffs and trade policies of the United States, China and other countries, whether announced or implemented; the effect on the Israeli economy generally and on the Company's business resulting from the terrorism and the hostilities in Israel and with its neighboring countries including the effects of the continuing war with Hamas in Gaza and any intensification of hostilities with others, including Iran and Hezbollah, and the effect of the call-up of a significant portion of its working population, including the Company's employees; the effect of any potential boycott both of Israeli products and business and of stocks in Israeli companies; the effect of any downgrading of the Israeli economy and the effect of changes in the exchange rate between the US dollar and the Israeli shekel; and the risk and uncertainties described in "Cautionary Note Regarding Forward-Looking Statements," "Item 3. Key Information – D. Risk Factors" and "Item 5. Operating and Financial Review and Prospects" and in the Company's Annual Report on Form 20-F for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission (the "SEC") on March 28, 2025, as well as other documents filed by the Company with the SEC. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation. Information contained on, or that can be accessed through, the Company's website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release. CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) Sep 30, 2025 December 31, 2024 Current Assets: (Unaudited) Cash and cash equivalents 4,008 13,488 Restricted cash 280 280 Short term bank deposits 48,313 10,793 Trade receivable 377 153 Other assets – funds held in escrow 8,817 30,417 Prepaid expenses and other receivables 1,801 2,500 Total current assets 63,596 57,631 Non-Current Assets Operating lease right-of-use assets 1,279 1,782 Property and equipment, net 1,207 1,374 Total non-current assets 2,486 3,156 Total assets 66,082 60,787 Current liabilities:
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Trade payables 396 624 Operating lease liabilities 658 551 Employees and payroll accruals 2,578 3,283 Convertible bonds 9,339 30,614 Accrued expenses and other payables 2,184 1,334 Derivative Liabilities 57 - Total current liabilities 15,212 36,406 Long term liabilities Operating lease liabilities 1,428 1,457 Warrant liabilities 336 428 Total long-term liabilities 1,764 1,885 SHAREHOLDERS' EQUITY: Ordinary Shares *) *) Capital & Premium 337,074 275,453 Accumulated Deficit (287,968) (252,957) Total shareholders' equity 49,106 22,496 Total liabilities and shareholders' equity 66,082 60,787 *) Represents less than $1. CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share data) 3 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues 254 123 568 669 Cost of revenues 497 394 1,294 1,245 Gross loss (243) (271) (726) (576) Operating Expenses: Research and development, net 8,250 8,762 26,159 26,072 Sales and marketing 1,239 1,426 3,917 4,243 General and administrative 1,779 1,988 5,550 5,927 Total operating expenses 11,268 12,176 35,626 36,242 Operating loss (11,511) (12,447) (36,352) (36,818) Financing expenses (Income ) net (476) 127 (1,341) 303 Net loss (11,035) (12,574) (35,011) (37,121) Basic net loss per ordinary share (0.10) (0.16) (0.32) 0.46 Weighted-average number of ordinary shares used in computing basic net loss per ordinary share 112,641,907 80,957,931 110,783,504 79,914,649 Diluted net loss per ordinary share (0.10) (0.19) (0.32) (0.58) Weighted-average number of ordinary shares used in computing diluted net loss per ordinary share 112,641,907 66,586,095 110,783,504 64,503,654
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CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) 3 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Cash flows from operating activities: (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net Loss (11,035) (12,574) (35,011) (37,121) Adjustments to reconcile loss to net cash used in operating activities: Depreciation 137 148 404 437 Share-based compensation 2,002 3,800 7,575 11,399 Warrants to service providers 154 291 518 639 Revaluation of warrants (85) (67) (92) (335) Revaluation of convertible bonds (51) 117 562 140 Finance income (1,834) 18 (3,897) (197) Change in operating assets and liabilities: Decrease (increase) in trade receivable (93) 76 (224) 640 Decrease (increase) in prepaid expenses and other receivables 163 (160) 699 (88) Increase in other assets - 128 - - Issuance costs related to convertible bonds - 737 - 737 Operating lease ROU assets and liabilities, net 243 31 347 165 Increase (decrease) in trade payables (91) 85 (191) (231) Increase in employees and payroll accruals (992) (169) (705) 180 Increase (decrease) in Derivative Liabilities (190) - 57 - Increase (decrease) in accrued expenses and other payables 525 (225) 850 (839) Net cash used in operating activities (11,147) (7,764) (29,108) (24,474) Cash flows from investing activities: Change in bank deposits 8,543 17,663 (33,794) 15,382 Purchase of property and equipment (153) (119) (274) (533) Net cash provided by (used in) investing activities 8,390 17,544 (34,068) 14,849 Cash flows from financing activities: Proceeds from issuance of ordinary shares, net of issuance costs - - 30,758 - Issuance costs related to convertible bonds - - 21,696 (459) Warrants - - 493 - Proceeds from exercise of options - 185 440 205 Net cash provided by financing activities - 185 53,387 (254) Effect of exchange rate fluctuations on cash and cash equivalent 161 (17) 309 197 Increase (decrease) in cash, cash equivalents and restricted cash (2,757) 9,965 (9,789) (9,879) Cash, cash equivalents and restricted cash at the beginning of period 6,884 9,120 13,768 28,750 Cash, cash equivalents and restricted cash at the end of period 4,288 19,068 4,288 19,068
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RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS (U.S. dollars in thousands, except share and per share data) 3 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 GAAP net loss attributable to ordinary shareholders (11,035) (12,574) (35,011) (37,121) Add: Share-based compensation 2,002 3,800 7,575 11,399 Warrants to service providers 154 291 518 639 Revaluation of warrants and accretion (85) (67) (92) (335) Convertible bonds accretion (51) 117 562 140 Non-recurring expenses related to convertible bonds and ATM - - 960 805 Non-GAAP net loss (9,015) (8,433) (25,488) (24,473) Basic Non-GAAP net loss per ordinary share (0.08) (0.10) (0.23) (0.31) Weighted-average number of shares used in computing basic Non- GAAP net loss per ordinary share 112,641,907 80,957,931 110,783,504 79,914,649 Diluted Non-GAAP net loss per ordinary share (0.08) (0.13) (0.23) (0.38) Weighted-average number of shares used in computing diluted Non- GAAP net loss per ordinary share 112,641,907 66,586,095 110,783,504 64,503,654 RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (U.S. dollars in thousands) 3 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 GAAP net loss attributable to ordinary shareholders (11,035) (12,574) (35,011) (37,121) Add: Financial expenses / (income) , net (476) 127 (1,341) 303 Depreciation 137 148 404 437 Share-based compensation 2,002 3,800 7,575 11,399 Warrants to service providers 154 291 518 639 Non-recurring expenses related to ATM - - - 68 Adjusted EBITDA (9,218) (8,208) (27,855) (24,275) Logo - https://mma.prnewswire.com/media/803813/Arbe_Robotics_Logo.jpg View original content: https://www.prnewswire.com/news-releases/arbe-announces-q3- 2025-financial-results-302616932.html SOURCE Arbe