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

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. 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.

Conference Call & Webcast Details

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 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

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:

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

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

9 Months Ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

(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

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

3 Months Ended

9 Months Ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Cash flows from operating activities:

(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)

(3,897)

(197)

Change in operating assets and liabilities:

Decrease (increase) in trade receivable

(93)

(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

Operating lease ROU assets and liabilities, net

243

347

165

Increase (decrease) in trade payables

(91)

(191)

(231)

Increase in employees and payroll accruals

(992)

(169)

(705)

180

Increase (decrease) in Derivative Liabilities

(190)

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

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS

(U.S. dollars in thousands, except share and per share data)

3 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

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

Adjusted EBITDA

(9,218)

(8,208)

(27,855)

(24,275)

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SOURCE Arbe