Arteris, Inc.

Good afternoon, everyone, and welcome to the Arteries' second quarter 2025 earnings call. Please note that this call is being recorded and simultaneously webcast. All material contained in the webcast is sole property and copyright of Arteries, Inc., with all rights reserved. For opening remarks and introductions, I will now turn the call over to Erica Mannion of Sapphire Investor Relations. Please go ahead.

Thank you and good afternoon. With me today from our terrace are Charlie Janik, Chief Executive Officer, and Nick Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the second quarter ended June 30, 2025. Nick will review the financial results for the second quarter, followed by the company's outlook for the third quarter and the full year of 2025. We will then open the call for questions. Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements are based on management's current expectations and assumptions and involve material risks and uncertainties that could cause actual results or events to differ materially from those anticipated, and you should not place undue reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause actual results to differ appear in the press release Arteris issued today and in the documents and reports filed by Arteris from time to time with the Securities and Exchange Commission. Please note, during this call, we will cite certain non-GAAP measures, including, among others, non-GAAP net loss, non-GAAP net loss per share, and free cash flow, which are not measures prepared in accordance with U.S. GAAP. These non-GAAP measures are presented as we believe that they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with the U.S. GAAP. A reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter ended June 30, 2025. In addition, for a definition of certain of the key performance indicators used in this presentation, such as annual contract value, confirmed design starts, and remaining performance obligations, please see the press release for the quarter ended June 30, 2025. These key performance indicators are presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP and may differ from similarly titled metrics or measures used by other companies, securities analysts, or investors. Listeners who do not have a copy of the press release for the quarter ended June 30, 2025 may obtain a copy by visiting the investor relations section of the company's website. In addition, management will be referring to Q2 2025 earnings presentation which can be found in the investor relations section of the company's website under the events and presentations tab. Now I will turn the call over to Charlie.

Thank you, Erica. And thanks to everyone for joining us on our call today. In the second quarter of 2025, we achieved record annual contract value plus royalties of 69.1 million. We exited the quarter with with 99.3 million in remaining performance obligations, or RPO, highlighting the growing demand for our system IP technology. During the second quarter, we saw increased adoption, particularly in enterprise computing and automotive applications, driven largely by proliferation of AI computing, where the speed and reliability of data movement enabled by Arteris is paramount. One of these strategic wins was AMD, a global leader in high performance and adaptive computing and a top 10 semiconductor company by revenue, which signed an agreement to utilize Arteris FlexGen smart network on chip IP, the technology we announced earlier this year. FlexGen will aim to provide high performance data transport in AMD chiplets, powering AI across AMD's broad portfolio which spans from data centers to edge and end devices. It will also be used in combination with AMD Infinity Fabric Interconnect, underscoring the increasing complexity of modern SOCs and chip-based architectures, which now require multiple highly specialized interconnects or NOCs. In addition to the AMD relationship, we now have over two dozen FlexGen installations at multiple customers, and anticipate that this product will contribute to our revenue over time. We believe FlexGen is a breakthrough technology in terms of productivity and optimization of SOC data movement. I'm proud that Arteris was recently recognized in the 8th Annual AI Breakthrough Awards, with FlexGen winning the AI Engineering Innovation Award from among the over 5,000 global nominations. FlexGen was recognized for its ability to successfully automate critical aspects of NOC IP creation, ensuring rapid, correct-by-design, interconnect fabrics that optimize performance and efficiency of AI-driven SOCs. Another recent AI-related customer win was Railchip, a fabulous semiconductor provider that specializes in developing data center ASICs and processors for high-bandwidth applications, including cloud servers. interconnect computing, and blockchain computing, among others. As the semiconductor industry accelerates efforts to increase performance and efficiency, especially driven by AI workloads, we are seeing a growing shift from traditional monolithic chips toward multi-die or chiplet architectures in the AI era. Consequently, during the second quarter, we announced an expansion of our multi-die solution which we believe delivers further foundational technology for rapid chiplet-based innovation. This includes broader standard support for the Universal Chiplet Interconnect Express, or UCIE, collaboration and extended support for ARM EMBA protocols, chiplet interface collaborations with Synopsys and Cadence, and RISC-V ecosystem support with partners such as Andes, Sci-5, and TenStore. Moreover, The Arteris expanded multi-die solution has been developed in close partnership with key customers who are increasingly designing chiplets such as Renesas. For example, Arteris technologies is used to provide underlying data transport and connectivity in a fifth generation of the Arcar automotive silicon developed by the high-performance computing SOC business unit. Arteris multi-die solutions help Renaissance deliver on the integration and scalability offered by multi-die SOCs as AI applications push the limit of performance and power efficiency. Lastly, as the number of triplets in multi-die SOCs increases, so does the underlying number of individual IP blocks. As such, it becomes increasingly important to properly and reliably package and prepare hundreds or even thousands of these IP components for effective integration and reuse across SOCs, chiplets, and complex IP subsystems. To capitalize on this trend in the second quarter, we announced Magellan Packaging, a new software product designed to automate IP packaging to simplify and speed up the process of assembling silicon chiplets and chips. Utilizing the latest version of the IEEE 1685 IP exact standard, Magilent Packaging is designed to work seamlessly with industry tools and silicon IP with the goal of helping companies meet increasing design demands while reducing costly errors and delays associated with integrating an ever-growing number of IP blocks and the associated rising system complexity. We believe the scale and scope of our opportunity remain robust, supported by our current products and strong product pipeline of new silicon system IP technologies as well as growing relationships with the largest and most advanced electronics companies in the world. Our customers continue to innovate in exciting high-growth areas, including across multiple applications of AI from data centers to the edge, autonomous driving, advanced communications, consumer, and industrial use cases. While we continue to diligently monitor the current global economic uncertainty, This did not lead to any deal cancellations or delays in the second quarter. In addition, we are seeing opportunities for customers to accelerate outsourcing of their system IP needs to our tariffs in order to accelerate their product's time to market, reduce their own costs, and increase their operating efficiencies. Nick will cover these impacts more when he discusses our guidance. With that, I'd like to turn it over to Nick to discuss our financial results in more detail.