Arbe Robotics Ltd. reported third‑quarter 2025 results that showed revenue of $0.30 million, a backlog of $0.20 million, and a negative gross profit of $0.20 million. Operating expenses were $11.30 million, leading to an operating loss of $11.50 million and a net loss of $11.00 million. The company’s revenue grew from $0.10 million in Q3 2024, but the operating loss narrowed only slightly from $12.40 million in the same period, reflecting the high‑investment nature of the business.
The revenue miss was the most significant driver of the quarter’s results. Consensus estimates for the quarter ranged from $0.63 million to $0.70 million, so the $0.30 million reported represented a shortfall of roughly 60 %. The shortfall was largely due to slower demand in the automotive segment, where the company’s high‑resolution radar has yet to secure a commercial contract, and to broader macro‑economic headwinds that have delayed OEM launch schedules. The company’s non‑automotive revenue, which includes a recent boat‑collision‑prevention win, was insufficient to offset the automotive shortfall.
Gross profit remained negative because the company’s research, development, and sales costs outpaced the modest revenue. While operating expenses fell slightly from the prior quarter—primarily because of a reduction in share‑based compensation—the overall expense load remains high relative to the revenue base. The negative gross margin underscores the company’s current pre‑revenue phase, where capital expenditures and talent acquisition dominate the cost structure.
Chief Executive Officer Kobi Marenko highlighted “strong strategic progress” in the quarter, noting that evaluations with leading OEMs are advancing and that the company is positioned to secure a major Level 3 autonomy program with a major European OEM in the near future. He also emphasized momentum in non‑automotive markets, citing the boat‑collision‑prevention win as evidence of expanding commercial opportunities. Marenko reiterated confidence that meaningful revenue generation will begin in 2027, aligning with the company’s long‑term commercialization roadmap.
The company reiterated its outlook for the next quarter, maintaining confidence in its revenue trajectory toward 2027. Arbe’s balance sheet remains robust, with $52.60 million in net cash as of September 30 2025, providing a runway to fund ongoing R&D and operational expenses while the company scales its technology. The guidance remains unchanged, reflecting a cautious but optimistic view of the near‑term market environment.
Investors reacted negatively to the earnings release, with the primary driver being the significant revenue miss. The market’s focus on the shortfall highlights concerns about the company’s ability to translate its strategic progress into commercial traction in the near term.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.