Arbe Announces Fourth Quarter and Full Year 2025 Financial Results

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

2025 Recent Highlights

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.

Net loss in 2025 was $45.2 million, compared to a net loss of $49.3 million in 2024. Net loss in 2025 included $2.8 million in financial income, compared to a financial income of $0.3 million in 2024. Financial income for 2025, reflects deposit interest and call options, the effects of changes in the warrant liability for warrants that are not treated as equity and the revaluation of the lease liability partially offset by foreign exchange rate revaluations and to a lesser extent issuance costs

Adjusted EBITDA for 2025, a non-GAAP measurement which excludes expenses for non-cash share-based compensation and for non-recurring items, was a loss of $37.6 million, compared with a loss of $33.3 million in 2024.

Balance Sheet and Liquidity Highlights

As of December 31, 2025, Arbe had $45 million in cash and cash equivalents and short-term bank deposits.

As of December 31, 2025, Arbe had $40.8 million in shareholders' equity.

The Company complies with the financial covenants as set forth under the convertible debentures and holds cash substantially above the minimum threshold.

Outlook

To broaden its commercial business potential, Arbe has decided to expand its strategic focus beyond the Western automotive OEM programs to opportunities it believes have shorter adoption cycles and more immediate commercial potential, including defense, robotaxi, robotruck, and off-road markets. Arbe's updated strategy is intended to accelerate revenue generation while maintaining engagement with global automotive OEMs as part of the Company's long-term vision.

Based on current market conditions and customer engagement visibility, the Company provides the following outlook for 2026:

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 today, February 26, 2026, at 8:30am 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/10206698/103522e5a54

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=m2nhHjMJ

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 driving a radar revolution. Its cutting-edge radar chipset delivers up to 100 times more detail than other radar systems on the market, empowering automakers and radar Tier-1s to develop 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 any changes in the audited financial statements for the year ended December 31, 2025 from the unaudited information included in this press release; 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; 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)

December 31, 2025

December 31, 2024

Current Assets:

(Unaudited)

Cash and cash equivalents

4,028

13,488

Restricted cash

280

Short term bank deposits

40,690

10,793

Trade receivable

571

153

Other assets – funds held in escrow

24,525

30,417

Prepaid expenses and other receivables

1,685

2,500

Total current assets

71,779

57,631

Non-Current Assets

Operating lease right-of-use assets

1,656

1,782

Property and equipment, net

1,176

1,374

Total non-current assets

2,832

3,156

Total assets

74,611

60,787

Current liabilities:

Trade payables

774

624

Operating lease liabilities

679

551

Employees and payroll accruals

3,706

3,283

Convertible bonds

24,757

30,614

Accrued expenses and other payables

2,582

1,334

Derivative Liabilities

Total current liabilities

32,548

36,406

Long term liabilities

Operating lease liabilities

1,233

1,457

Warrant liabilities

428

Total long-term liabilities

1,245

1,885

SHAREHOLDERS' EQUITY:

Ordinary Shares

Capital & Premium

338,947

275,453

Accumulated Deficit

(298,129)

(252,957)

Total shareholders' equity

40,818

22,496

Total liabilities and shareholders' equity

74,611

60,787

*) Represents less than $1.

CONSOLIDATED STATEMENTS OF OPERATIONS

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

3 Months Ended

12 Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(Unaudited)

Revenues

458

1,026

768

Cost of revenues

534

308

1,828

1,553

Gross loss

(76)

(209)

(802)

(785)

Operating Expenses:

Research and development, net

8,661

9,019

34,820

35,091

Sales and marketing

1,122

1,187

5,039

5,430

General and administrative

1,723

2,420

7,273

8,347

Total operating expenses

11,506

12,626

47,132

48,868

Operating loss

(11,582)

(12,835)

(47,934)

(49,653)

Financing Income net

(1,421)

(639)

(2,762)

(336)

Net loss

(10,161)

(12,196)

(45,172)

(49,317)

Basic net loss per ordinary share

(0.09)

(0.15)

(0.41)

(0.61)

Weighted-average number of

ordinary shares used in computing

basic net loss per ordinary share

112,908,851

81,946,370

111,382,369

80,949,032

Diluted net loss per ordinary share

(0.09)

(0.15)

(0.41)

(0.61)

Weighted-average number of

ordinary shares used in computing

diluted net loss per ordinary share

112,908,851

81,946,370

111,382,369

80,949,032

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

3 Months Ended

12 Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Cash flows from operating activities:

(Unaudited)

Net Loss

(10,161)

(12,196)

(45,172)

(49,317)

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

Depreciation

134

148

538

585

Share-based compensation

1,567

3,143

9,142

14,542

Warrants to service providers

146

547

664

1,186

Revaluation of warrants

(205)

(112)

(297)

(447)

Revaluation of convertible bonds

(254)

(221)

308

(81)

Issuance costs related to convertible bonds

737

Finance income

(1,363)

190

(5,260)

(258)

Change in operating assets and liabilities:

Decrease (increase) in trade receivable

(194)

465

(418)

1,105

Decrease (increase) in prepaid expenses and other receivables

116

(386)

815

(474)

Operating lease ROU assets and liabilities, net

(624)

(277)

224

Increase (decrease) in trade payables

304

(346)

113

(553)

Increase in employees and payroll accruals

1,128

187

423

367

Increase (decrease) in Derivative Liabilities

(7)

Increase (decrease) in accrued expenses and other payables

398

463

1,248

(376)

Net cash used in operating activities

(9,015)

(8,059)

(38,123)

(32,760)

Cash flows from investing activities:

Change in bank deposits

9,426

(10,773)

(24,368)

4,609

Purchase of property and equipment

(29)

(65)

(303)

(622)

Net cash provided by (used in) investing activities

9,397

(10,838)

(24,671)

3,987

Cash flows from financing activities:

Proceeds from issuance of ordinary shares, net of issuance costs

13,787

30,758

13,787

Issuance costs related to convertible bonds

(459)

Proceeds from conversion of

convertible debentures

21,696

Proceeds from exercise of

warrants

493

Proceeds from exercise of options

482

205

Net cash provided by financing activities

13,787

53,429

13,533

Effect of exchange rate fluctuations on cash and cash equivalent

(404)

(190)

(95)

258

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

424

(5,110)

(9,365)

(15,240)

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

4,288

19,068

13,768

28,750

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

4,308

13,768

4,308

13,768

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS

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

3 Months Ended

12 Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP net loss attributable to ordinary shareholders

(10,161)

(12,196)

(45,172)

(49,317)

Add:

Share-based compensation

1,567

3,143

9,142

14,542

Warrants to service providers

146

547

664

1,186

Revaluation of warrants and accretion

(205)

(112)

(297)

(447)

Convertible bonds accretion

(254)

(221)

308

(81)

Non-recurring expenses related to convertible bonds and ATM

960

805

Non-GAAP net loss

(8,907)

(8,839)

(34,395)

(33,312)

Basic Non-GAAP net loss per ordinary share

(0.08)

(0.11)

(0.31)

(0.41)

Weighted-average number of shares used in computing basic Non-GAAP net loss per ordinary share

112,908,851

81,946,370

111,382,369

80,949,032

Diluted Non-GAAP net loss per ordinary share

(0.08)

(0.11)

(0.31)

(0.41)

Weighted-average number of shares used in computing diluted Non-GAAP net loss per ordinary share

112,908,851

81,946,370

111,382,369

80,949,032

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(U.S. dollars in thousands)

3 Months Ended

12 Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP net loss attributable to ordinary shareholders

(10,161)

(12,196)

(45,172)

(49,317)

Add:

Financial expenses / (income) , net

(1,421)

(639)

(2,762)

(336)

Depreciation

134

148

538

585

Share-based compensation

1,567

3,143

9,142

14,542

Warrants to service providers

146

547

664

1,186

Non-recurring expenses related to ATM

Adjusted EBITDA

(9,735)

(8,997)

(37,590)

(33,272)

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SOURCE Arbe