Arbe Announces Second Quarter 2026 Financial Results

Arbe Announces Second Quarter 2026 Financial Results TEL AVIV, Israel, Aug. 6, 2026 /PRNewswire/ -- Arbe Robotics Ltd. (NASDAQ: ARBE) (TASE: ARBE), a global leader in ultra-high-resolution radar solutions, today announced financial results for its second quarter ended June 30, 2026.

Recent Highlights

Management Comments

Kobi Marenko, President and Co-Founder of Arbe, commented, "We are pleased with our performance in the second quarter, making solid progress. In automotive, our radar systems are now installed in robotaxi vehicles that have begun on-road trials. In defense and homeland security, we have started delivering systems that have been successfully field-tested. We see strong demand, with customers and potential customers requiring our radar solutions for immediate needs."

Ram Machness, Chief Executive Officer of Arbe, commented, "Our strategy of diversifying sales into new markets with immediate needs and shorter sales cycles is paying off, reflected in a clear revenue growth trend. Growth in the quarter came from our expanding customer base across automotive, defense, and civilian programs. We believe that these sales are evidence that our transition from a chipset supplier to a complete radar technology provider is opening up new and diversified markets for us with revenue potential in both the short and long-term."

Second Quarter 2026 Financial Results Highlights

Revenues for Q2 2026 were $0.7 million, compared to $0.3 million in Q2 2025. Backlog as of June 30, 2026, amounted to $1 million.

Gross loss for Q2 2026 was around $0, compared to a gross loss of $0.2 million in Q2 2025.

Operating expenses in Q2 2026 were $9.8 million, compared to $11.3 million in Q2 2025.

The lower expenses were primarily driven by lower share-based compensation expenses, reflecting both the lower grant-date fair values of equity awards issued during the period and the ongoing vesting of previously granted awards, some of which have now fully vested. The increased expenses due to the unfavorable exchange rate impact, was offset by a decrease in headcount as part of the cost-reduction measures taken this quarter, which are expected to be fully reflected by next quarter.

Operating loss in Q2 2026 was $9.8 million, compared to an $11.5 million loss in Q2 2025.

Net loss in Q2 2026 was reduced to $9.1 million, compared to a net loss of $10.2 million in Q2 2025.

Adjusted EBITDA for Q2 2026, a non-GAAP measure that excludes expenses for non-cash share-based compensation and non-recurring items, was a loss of $8.7 million, compared with a loss of $8.9 million in Q2 2025. Management believes that this non-GAAP measurement is important in evaluating the Company's use of cash and in planning cash requirements in the coming periods.

Balance Sheet and Liquidity Highlights

As of June 30, 2026, Arbe had $41.9 million in cash, cash equivalents and short-term bank deposits.

As of June 30, 2026, Arbe had $40.5 million in shareholders' equity.

The Company is in compliance with the financial covenants set forth in the convertible debentures and holds cash substantially above the minimum threshold.

Outlook

Arbe is reaffirming its full-year 2026 outlook provided in February 2026.

Based on current market conditions and customer engagement visibility, the Company's outlook for 2026 is as follows:

This outlook reflects management's current expectations as of today and is subject to change based on market conditions, customer adoption timelines, and other factors.

Arbe expects to continue signing additional automotive OEM design wins over time, beyond the recently announced design win. However, the timing of future wins remains dependent on OEM adoption cycles, which are taking longer than previously anticipated. As a result, the Company is not providing guidance on the timing of additional automotive OEM design wins.

Conference Call and Webcast Details

Arbe will host a conference call and webcast on August 6, 2026 at 8:30 a.m. Eastern Time. Speakers will include Kobi Marenko, President and Co-Founder, Ram Machness, Chief Executive Officer, 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: +972 3-374-1008

The Company encourages participants to pre-register for the conference call using the following link:

https://dpregister.com/sreg/10210907/1048b9b7c88

Participants may pre-register at any time, including up to and after the call start time.

A live webcast of the call can be accessed from the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=5uX9T5sU

The day after the call, an archived webcast of the call can be accessed from Arbe's Investor Relations website at: https://ir.arberobotics.com.

About Arbe

Arbe (NASDAQ: ARBE), a global leader in ultra-high-resolution radar solutions, is redefining radar as a core sensing platform for next-generation mobility and advanced sensing applications. Arbe's complete radar technology stack includes proprietary automotive-grade RF transmitter and receiver chips, a high-definition radar processing chip, the Phoenix radar system with 2,304 virtual channels, and advanced AI algorithms that transform radar data into a perception-ready layer. By delivering an exceptional level of detail, real-time processing, and scalable system performance, Arbe enables OEMs, Tier 1s, and technology partners to build more capable perception systems for passenger vehicles, robotaxis, heavy machinery, defense, and additional advanced sensing markets.

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 our ability to transition to a scaled production company, to expand our presence in Level 4 robotaxi, robotruck and autonomous commercial and off-road vehicle markets, and to advance OEM and Tier 1 programs, to successfully develop and market our products in various other markets including perimeter-security, other defense initiatives and physical AI fields; whether and when we secure the orders we anticipate and the extent of any orders we receive in the various markets we are targeting; 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 terrorism and hostilities in Israel and with its neighboring countries including the effects of the continuing conflict with Hamas in Gaza despite the ceasefire 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 action Iran or Hezbollah may take against Israel in the event the ceasefires with Iran and Hezbollah end; 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 risks 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, 2025, which was filed with the Securities and Exchange Commission (the "SEC") on March 27, 2026, 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)

June 30, 2026

December 31, 2025

Current Assets:

(Unaudited)

Cash and cash equivalents

5,037

4,028

Restricted cash

280

Short term bank deposits

36,601

40,690

Trade receivable

807

571

Other assets – funds held in escrow

25,051

24,525

Derivative assets

237

Prepaid expenses and other receivables

1,733

1,685

Total current assets

69,746

71,779

Non-Current Assets

Operating lease right-of-use assets

1,465

893

Property and equipment, net

999

1,176

Total non-current assets

2,464

2,069

Total assets

72,210

73,848

Current liabilities:

Trade payables

422

774

Operating lease liabilities

485

679

Employees and payroll accruals

4,120

3,706

Convertible bonds

24,047

24,757

Accrued expenses and other payables

1,109

2,950

Derivative Liabilities

145

Total current liabilities

30,328

32,916

Long term liabilities

Operating lease liabilities

1,375

1,351

Warrant liabilities

Total long-term liabilities

1,379

1,363

SHAREHOLDERS' EQUITY:

Ordinary Shares

Capital and Premium

358,397

338,947

Accumulated Deficit

- 317,894

- 299,378

Total shareholders' equity

40,503

39,569

Total liabilities and shareholders' equity

72,210

73,848

*) Represents less than $1.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

3 Months Ended

6 Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

(Unaudited)

Revenues

703

274

1,164

314

Cost of revenues

709

459

1,297

797

Gross loss

(6)

(185)

(133)

(483)

Operating Expenses:

Research and development, net

7,058

8,216

15,112

17,909

Sales and marketing

1,020

1,297

2,307

2,678

General and administrative

1,750

1,782

3,626

3,771

Total operating expenses

9,828

11,295

21,045

24,358

Operating loss

(9,834)

(11,480)

(21,178)

(24,841)

Financing expenses (Income) net

(740)

(1,322)

(2,662)

(865)

Net loss

(9,094)

(10,158)

(18,516)

(23,976)

Basic net loss per ordinary share

(0.07)

(0.09)

(0.15)

(0.23)

Weighted-average number of

ordinary shares used in computing

basic net loss per ordinary share

128,637,952

112,196,403

125,576,293

104,497,312

Diluted net loss per ordinary share

(0.07)

(0.09)

(0.15)

(0.23)

Weighted-average number of

ordinary shares used in computing

diluted net loss per ordinary share

128,637,952

112,196,403

125,576,293

104,497,312

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

3 Months Ended

6 Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Cash flows from operating activities:

(Unaudited)

Net Loss

(9,094)

(10,158)

(18,516)

(23,976)

Adjustments to reconcile loss to net cash used in operating activities:

Depreciation

116

132

243

267

Share-based compensation

989

2,263

2,222

5,573

Warrants to service providers

155

364

Revaluation of warrants

273

(8)

(7)

Revaluation of convertible bonds

221

586

(477)

613

Finance income

(452)

(1,856)

(1,857)

(2,063)

Change in operating assets and liabilities:

Increase in trade receivable

(296)

(224)

(236)

(131)

Decrease (increase) in prepaid expenses and other receivables

(534)

(48)

536

Operating lease ROU assets and liabilities, net

(20)

(39)

104

Increase (decrease) in trade payables

(67)

(374)

(137)

Increase (decrease) in employees and payroll accruals

(2,186)

290

414

287

Increase (decrease) in Derivative Liabilities

(682)

(1,465)

(142)

247

Increase (decrease) in accrued expenses and other payables

(683)

(1,221)

(1,841)

325

Net cash used in operating activities

(11,931)

(11,776)

(20,568)

(17,998)

Cash flows from investing activities:

Change in bank deposits

8,760

10,843

4,710

(42,337)

Purchase of property and equipment

(44)

(59)

(44)

(84)

Net cash provided by (used in) investing activities

8,716

10,784

4,666

(42,421)

Cash flows from financing activities:

Proceeds from issuance of ordinary shares, net of issuance costs

17,081

30,758

Proceeds from conversion of

convertible bonds

21,696

Proceeds from exercise of

warrants

493

Proceeds from exercise of options

440

Redemption of convertible notes upon voluntary conversion

(233)

Net cash provided by financing activities

16,904

53,387

Increase (decrease) in cash, cash equivalents and restricted cash

(3,206)

(990)

1,002

(7,032)

Effect of exchange rate fluctuations on cash and cash equivalent

(22)

690

148

Cash, cash equivalents and restricted cash at the beginning of period

8,545

7,184

4,308

13,768

Cash, cash equivalents and restricted cash at the end of period

5,317

6,884

5,317

6,884

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS

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

3 Months Ended

June 30, 2026

3 Months Ended

June 30, 2025

6 Months Ended

June 30, 2026

6 Months Ended

June 30, 2025

GAAP net loss attributable to ordinary shareholders

(9,094)

(10,158)

(18,516)

(23,976)

Add:

Share-based compensation

989

2,263

2,222

5,573

Warrants to service providers

155

364

Revaluation of warrants and accretion

273

(8)

(7)

Convertible bonds accretion

221

586

(477)

613

Non-recurring expenses related to convertible bonds

960

Non-GAAP net loss

(7,834)

(6,881)

(16,688)

(16,473)

Basic Non-GAAP net loss per ordinary share

(0.06)

(0.13)

(0.16)

Weighted-average number of shares used in

computing basic Non-GAAP net loss per ordinary share

128,637,952

112,196,403

125,576,293

104,497,312

Diluted Non-GAAP net loss per ordinary share

(0.06)

(0.13)

(0.16)

Weighted-average number of shares used in

computing diluted Non-GAAP net loss per ordinary share

128,637,952

112,196,403

125,576,293

104,497,312

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(U.S. dollars in thousands)

3 Months Ended

June 30, 2026

3 Months Ended

June 30, 2025

6 Months Ended

June 30, 2026

6 Months Ended

June 30, 2025

GAAP net loss attributable to ordinary shareholders

(9,094)

(10,158)

(18,516)

(23,976)

Add:

Financial expenses / (income), net

(740)

(1,322)

(2,662)

(865)

Depreciation

116

132

243

267

Share-based compensation

989

2,263

2,222

5,573

Warrants to service providers

155

364

Adjusted EBITDA

(8,681)

(8,930)

(18,622)

(18,637)

SOURCE Arbe