Arbe Robotics Ltd. reported its third‑quarter 2025 financial results, posting revenue of $0.3 million—an increase of roughly 200 % from the $0.1 million earned in the same quarter of 2024—but falling well below the consensus estimate of $0.61 million to $0.64 million. The company’s operating loss widened to $11.5 million, compared with a $12.4 million loss in Q3 2024, while the net loss narrowed to $11 million from $12.6 million year‑over‑year.
Revenue growth was driven by a modest improvement in the company’s revenue mix, yet the absolute dollar amount remained low because the business is still in a pre‑commercial phase. Operating expenses fell to $11.3 million, down from $12.2 million in Q3 2024, largely due to lower share‑based compensation after the full vesting of prior grants and a reduction in new grant issuances. The company also reported a slight decline in foreign‑exchange impact and a modest increase in labor costs, which partially offset the compensation savings.
CEO Jacob Marenko highlighted that the quarter marked “strong strategic progress” with leading automotive original equipment manufacturers. He noted that discussions with a major European OEM are advancing toward a Level 3 “eyes‑off” autonomous‑driving program and that the company aims to secure three additional program wins in the next three quarters. Marenko also emphasized the firm’s robust cash position—$52.6 million in net cash as of September 30, 2025—which supports continued investment in technology development and market expansion.
For 2025, Arbe maintains its revenue guidance of $1 million to $2 million, reflecting timing shifts in non‑recurring engineering (NRE) programs. Adjusted EBITDA guidance remains a loss of $29 million to $35 million, unchanged from prior guidance, indicating that the company expects to continue investing heavily in research and development and in securing design wins before production revenue materializes in 2027 and 2028.
Investors reacted negatively to the earnings release, primarily because the revenue miss was significant relative to analyst expectations. The company’s strategic milestones and strong cash position were noted, but the short‑term revenue shortfall and continued operating losses weighed heavily on market sentiment.
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