Arbe Robotics Ltd. Q4 FY2025 earnings call

Management broadened focus to markets with shorter adoption cycles and clearer near-term revenue opportunities like defense, homeland security, robotaxi, marine safety, and smart infrastructure. Announced planned leadership transition with Ram Ahnes to assume CEO role on April 1, 2026, and Koby Morenco to remain as president. 2025 highlights include new serial production design win with Chinese state-owned OEM, defense and homeland security orders, robotaxi application progress, large follow-up order in marine safety, follow-on orders in smart infrastructure, and two industry awards.

Fourth quarter of 2025 revenue totaled $0.5 million vs $0.1 million in Q4 2024. Full year 2025 total revenue was $1 million vs $0.8 million in 2024. Backlog as of today stands at $1.3 million. Gross profit for Q4 2025 was negative $0.1 million vs negative $0.2 million in same period last year. Gross annual profit for 2025 was negative $0.8 million same as 2024. Total operating expenses for Q4 2025 were $11.5 million down from $12.6 million in Q4 2024. Expenses for full year 2025 totaled $47.1 million vs $48.9 million in 2024. Operating loss for Q4 2025 was $11.6 million down from $12.8 million in Q4 2024. Operating loss for full year 2025 was $47.9 million vs $49.6 million in 2024. Adjusted EBITDA was a loss of $9.7 million in Q4 of 2025 vs loss of $9 million in Q4 2024. Adjusted EBITDA for full year 2025 was a loss of $37.6 million. Net loss in Q4 2025 was $10.2 million vs $12.2 million in Q4 2024. Net loss for full year 2025 was $45.2 million vs $49.3 million in 2024. As of December 31st, 2025, ARBE held $45 million in cash and cash equivalent and short-term bank deposits. During January 2026, raised gross proceeds of $18.5 million in an underwritten public offering.

2026 revenue in the range of $4 million to $6 million. Adjusted EBITDA for 2026 is projected to be a loss in the range of $28 million to $31 million. Broadened strategic focus beyond Western automotive OEM programs to shorter adoption cycle opportunities. Not providing guidance on timing of additional Western automotive OEM design wins.

Q: George Yanarikis asked about defense applications chips per vehicle, robotaxi market participants, robo-taxi revenue ramp, and robo-trucking.

A: In defense, some verticals need 1 radar per vehicle, others 4 per unit. Robo-taxi market leaders are non-OEM players like Remo, Nuro, etc. Robo-taxi revenue expected in 2026 with ramp in 2027-2028. Robo-trucking has a truck customer.

Q: Suji De Silva asked about non-auto sales cycle, internal deployment for non-passenger auto opportunities, and competitive landscape.

A: Sales cycle for non-auto is 6 months from first meeting to meaningful order. Have dedicated sales operation and shifted marketing efforts. In some non-auto verticals, 77 GHz radar has advantage over 24 GHz in terms of price and weather resilience.

Q: Casey Ryan asked about revenue guide composition, OpEx direction, retrofit potential in defense, other defense forces, and automotive slowdown connection.

A: $4 - $6 million guide mainly non-auto with some auto. OpEx will go down slightly. Defense can do retrofit. Looking into Western European armies. Automotive slowdown connected to EV causing OEM losses and delaying R&D for L3/L4