TEL AVIV, Israel, Feb. 26, 2026 /PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE) (TASE: ARBE), a global leader in perception radar solutions, today announced its financial results and provided an investor update for its fourth quarter and full year ending December 31, 2025.
2026 Strategy & Leadership Update
-- Advancing the company's market reach: Arbe is expanding its focus beyond
automotive OEMs into related markets such as defense, robotaxi, robotruck,
and off-road, and increasing its focus on the Chinese automotive market,
where it has demonstrated traction and where it believes market timing is
more immediate. These initiatives are expected to begin contributing to
revenue in 2026, alongside the Company's ongoing long-term initiatives to
expand engagement with Western automotive OEMs.
-- Appointment of new CEO: To support concurrent expansion across multiple
end markets and the Company's transition to serial production and
commercial scale, Arbe is strengthening its management
team. Effective April 1, 2026, Ram Machness, Arbe's Chief Business
Officer for the past 8 years, will become Chief Executive Officer, and
the current CEO and co-founder Kobi Marenko will serve as President. Mr.
Machness brings more than 30 years of experience across embedded systems,
semiconductors, and the automotive industry, including 12 years with
Texas Instruments. As President, Mr. Marenko will drive Arbe's long-term
strategy, expand key partnerships with a focus on the defense market,
explore strategic alternatives, guide investments, and help accelerate
the Company's next phase of growth.
-- Strengthened balance sheet: Arbe closed an underwritten registered direct
offering, raising $18.5 million in gross proceeds, with funds allocated
to working capital and general corporate purposes. This financing was led
by institutional investors, including AWM Investment Company, Inc., the
investment adviser of the Special Situations Funds. This enhanced
financial position enables Arbe to enter new markets, leverage its
automotive opportunities and further advance its product capabilities.
-- Improved operational efficiency: The Company implemented cost-reduction
measures resulting in about a 15% decrease in expenses, extending its
financial runway and better aligning its workforce with strategic
priorities.
2025 Recent Highlights
-- A serial-production order from a Chinese OEM: A state-owned Chinese
automaker selected Hirain Technologies' LRR610 radar, powered by Arbe's
ultra-high-definition radar chipset, for its Level 4 autonomous vehicle
program. Thousands of vehicles incorporating Arbe's radar chipset are
expected to reach the market starting in early 2027. To support early
2027 launch, Hirain already placed chipset purchase orders with delivery
dates in 2026.
-- Strategic progress in the defense sector: During 2025, Sensrad continued
to place chipset orders for Forterra's autonomous vehicle programs for
DoW. Forterra equips the next generation of defense UGVs, reshaping
unmanned ground vehicle operations in demanding environments, from
tactical logistics to forward reconnaissance. Sensrad's HD imaging radar
has been integrated into the Forterra AutoDrive perception suite to
improve environmental awareness, obstacle detection, and navigation,
which are crucial for autonomous vehicle mission-critical operations, in
unstructured, contested, and GPS-denied conditions.
-- Homeland security collaboration: Arbe is integrating its chipset into
leading homeland security suppliers' systems to deliver joint,
system-level solutions for defense forces, law enforcement, perimeter
security, and other homeland security applications.
-- Expansion into marine safety: Arbe Tier-1, Sensrad, secured a follow-up
order from WATCHIT for collision-prevention systems powered by Arbe's
high-resolution radar chipset. The technology powers WATCHIT Eye, an
AI-based system that detects nearby obstacles such as buoys, personal
watercrafts, and other vessels, even in fog or darkness. The system is
now commercially available. The first announced customer for this
solution is the Azimut-Benetti Group, a world-leading builder of luxury
yachts.
-- Infrastructure and smart city traction: Tianyi Transportation Technology,
Sensrad's smart city customer in China, placed follow-on orders for 4D
imaging radars, with deliveries completed in December 2025.
-- Robotaxi momentum: Arbe is supporting the development of radar systems
for multiple robotaxi projects across several countries, laying the
groundwork for future large-scale deployments.
-- NVIDIA ecosystem integration: Arbe is working with NVIDIA to integrate
Arbe's ultra-high-resolution radar into NVIDIA's DRIVE Hyperion
autonomous driving platform, combining dense long-range sensing with
powerful AI compute to enable advanced perception and production-ready
Level 3 autonomy, while accelerating OEM time-to-market.
-- Industry recognition: Arbe received two automotive technology awards,
the Just Auto Excellence Award for Perception Systems and the AutoTech
Breakthrough Award for Sensor Technology Solution of the Year 2025,
recognizing its leadership in ADAS and autonomous-driving radar.
Management Comment
Kobi Marenko, CEO of Arbe, commented, "We are expanding Arbe's business focus to accelerate adoption of our ultra-high-resolution radar in additional high-value markets. While automotive OEMs remain central to our long-term strategy, we are prioritizing applications beyond passenger vehicles in the shorter-term, particularly defense and homeland security, where we believe adoption cycles are shorter and revenue opportunities are more immediate. We're also seeing strong momentum in additional applications, including robotaxi, marine safety, and smart infrastructure, where our Tier-1s are increasingly placing orders and moving toward deployment. China is advancing rapidly in autonomous technologies, and during the quarter we announced a new design win with a state-owned Chinese OEM."
Continued Mr. Marenko, "To better support this execution-driven strategy, we recently strengthened our balance sheet through a capital raise and implemented targeted cost reductions to improve efficiency. We believe this combination of focused market expansion, growing commercial traction, and financial discipline, positions Arbe to deliver sustainable long-term growth and reinforces our leadership in next-generation sensing solutions."
Mr. Marenko concluded, "I am very pleased to hand over the CEO reins to Ram Machness as Arbe enters its next phase of growth. Ram brings deep product expertise, strong commercial leadership, and a clear execution focus. I am confident he is the right leader to guide Arbe as we scale production and expand our market presence. I look forward to continuing to work closely with Ram in my new role as President and wish him every success as he leads the Company forward."
Fourth Quarter 2025 Financial Results Highlights
Revenues for Q4 2025 were $0.5 million, compared to $0.1 million in Q4 2024. Backlog as of today amounted to $1.3 million.
Gross profit for Q4 2025 was negative ($0.1) million, compared to the negative gross profit as ($0.2) million in Q4 2024.
Operating expenses in Q4 2025 were $11.5 million, compared to $12.6 million in Q4 2024. The decrease was primarily driven by lower share-based compensation expenses, reflecting earlier grants that are now fully vested, along with latest award being structured half in cash and half in equity. Additional decrease year over year relates to the doubtful debt provisions performed in Q4 2024. All decreases were partially offset by the unfavorable foreign exchange impact.
Operating loss in Q4 2025 was $11.6 million, compared to a $12.8 million loss in Q4 2024.
Net loss in Q4 2025 was $10.2 million, compared to a net loss of $12.2 million in Q4 2024. Net loss in Q4 2025 included $1.4 million in financial income, compared to a financial income of $0.6 million in Q4 2024. Financial income for Q4 2025 reflects deposit interest and call options, the effects of changes in the warrant liability for warrants that are not treated as equity, the revaluation of the lease liability, all partially offset by the foreign exchange rate revaluations impact
Adjusted EBITDA for Q4 2025, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $9.7 million, compared with a loss of $9.0 million in Q4 2024.
Management believes 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.
Full Year 2025 Financial Results Highlights
Revenues for 2025 were $1.0 million, compared to $0.8 million in 2024.
Gross profit for 2025 was negative ($0.8) million, at the same level as 2024.
Operating expenses in 2025 were $47.1 million, compared to $48.9 million in 2024. The decrease was primarily driven by lower share-based compensation expenses, reflecting earlier grants that are now fully vested, along with latest award being structured half in cash and half in equity. This decrease was partially offset by the unfavorable foreign exchange impact and to a lesser extent by merit-based salary increases.
Operating loss in 2025 was $47.9 million, compared to a $49.6 million loss in 2024.
(MORE TO FOLLOW) Dow Jones Newswires
February 26, 2026 07:00 ET (12:00 GMT)
Comments