Arbe Robotics Q1 Earnings Call Highlights

Arbe Robotics (NASDAQ:ARBE) reported first-quarter 2026 revenue of $0.5 million and said it is broadening its business from automotive radar chipsets into complete radar systems for automotive, defense, security, infrastructure and other perception-focused markets.

On the company’s earnings call, newly appointed Chief Executive Officer Ram Machness said Arbe made “strong progress” during the quarter and accelerated its strategy to become “a supplier of complete radar solutions across automotive and increasingly into adjacent markets.” Machness stepped into the CEO role in April.

The company reported a backlog of $1 million as of March 31, 2026. Chief Financial Officer Karine Pinto-Flomenboim said during the Q that the backlog covers a 12-month period and that she assumes all of it will be realized in 2026.

China and Robotaxi Activity Highlight Automotive Update

Machness said Arbe shipped an initial batch of chipsets to HiRain, its Tier 1 partner in China. The shipment supports production of a 48-by-48 channel radar system for a Level 4 autonomous vehicle project with a Chinese automaker, which Arbe had announced in December.

HiRain is also developing a lower-cost radar system based on Arbe’s chipset with 24-by-12 channels. Machness said that configuration is intended for a broader range of vehicles and complements HiRain’s higher-end 48-by-48 radar system.

Machness described China as “the fastest-moving automotive market in the world” and noted that the country sold 34.4 million vehicles in 2025. He said Arbe’s relationship with a local Tier 1 supplier gives the company access to a major market for Level 2-plus and Level 3 deployments.

Arbe also received orders for its Phoenix radar system from global robotaxi companies. Machness said those systems support Level 4 autonomy and full 360-degree sensing. In response to an analyst question, he said the robotaxi opportunities the company is seeing are mainly in North America and China.

Management Points to Reset in Level 3 Autonomy

Machness said Arbe is participating in data collection programs with global automakers and mobility companies and has advanced into selection processes with specific Chinese and European automakers. He said those evaluations increasingly focus on situations where cameras and lidar are limited and where imaging radar can act as a key sensor.

He also addressed recent moves by automakers to revisit Level 3 programs, saying Arbe views the trend as “a reset” rather than a rejection of eyes-off autonomy. He said first-generation Level 3 systems were limited by factors such as geofencing, speed restrictions, weather constraints and lack of commercial deployment.

“Automakers are now actively looking at the next generation eyes-off platforms and looking for sensing that can support Level three use cases,” Machness said. “This is exactly the gap our high-resolution radar is designed to fill.”

Machness also said Arbe conducted a survey of 1,000 people across the U.S., Europe and Asia that found drivers are willing to pay, switch cars and even switch brands for fully operational Level 3 and Level 4 autonomous driving. He directed listeners to the company’s website for more information about the survey.

Expansion Into Complete Radar Systems

Beyond automotive, Arbe said it has begun selling complete end-to-end radar systems in addition to chipsets. Machness said the approach allows Arbe to address markets with shorter sales cycles and customers that want a full radar solution.

The company has started shipping systems to customers in defense, homeland security, transportation, perimeter security, Physical AI and other applications, he said. Arbe has also set up a dedicated production line to scale radar system manufacturing.

In the Q, President and Co-Founder Kobi Marenko said defense applications include autonomous vehicles such as supply trucks and armored vehicles that need to operate in dust, rain, fog and off-road conditions. Marenko said Arbe already has a customer in the U.S. Army, which bought “hundreds of units,” and said the company believes it will receive another order.

Marenko also cited perimeter defense as an application, including detection of people or drones. He said Arbe is pursuing business development with established defense companies as well as newer industry participants.

Machness said the company’s production line is designed to supply “hundreds of systems per month” and “thousands of systems per year.” He said the investment to establish the line was on the low side of hundreds of thousands of dollars, and Arbe has begun discussions with contract manufacturers for potential future expansion.

Financial Results and Guidance

Arbe reported first-quarter 2026 revenue of $0.5 million, up from $0.4 million in the first quarter of 2025. Gross profit was negative $0.1 million, compared with negative $0.3 million a year earlier.

Total operating expenses were $11.2 million, down from $13.1 million in the prior-year quarter. Pinto-Flomenboim said the decline was driven primarily by lower share-based compensation expenses and reduced tape-out expenses as the company advances toward productization. The decrease was partially offset by the weakening of the U.S. dollar, mainly against the Israeli shekel, as well as labor-related provisions and merit increases.

Operating loss was $11.3 million, compared with an operating loss of $13.4 million in the first quarter of 2025. Adjusted EBITDA loss was $9.9 million, compared with a loss of $9.7 million a year earlier.

Net loss narrowed to $9.4 million from $13.8 million in the prior-year quarter. The first-quarter 2026 result included $1.9 million in financial income, compared with $0.5 million of financial expenses in the first quarter of 2025.

As of March 31, 2026, Arbe held $53.6 million in cash and cash equivalents and short-term bank deposits. The company reaffirmed its 2026 guidance for full-year revenue of $4 million to $6 million and an adjusted EBITDA loss of $28 million to $31 million.

Capital Raise and Strategic Positioning

Marenko said Arbe strengthened its balance sheet during the quarter through an underwritten registered direct offering that raised $18.5 million in gross proceeds. He said the capital provides financial flexibility to invest during what he called the company’s “current phase of fast growth.”

Management also emphasized the company’s positioning around Physical AI. Machness said AI and machine-learning advances are creating demand for dense, long-range, low-latency sensing in real-world environments. He noted that NVIDIA cited Arbe as part of its expanded DRIVE Hyperion ecosystem and said Arbe’s work with NVIDIA on radar-based Free Space Mapping is one example of the company’s role in that market shift.

In closing remarks, Machness said the quarter marks “the start of a new chapter” focused on turning Arbe’s technology into commercial scale across multiple markets.

About Arbe Robotics (NASDAQ:ARBE)

Arbe Robotics Ltd. is a technology company specializing in high-resolution 4D imaging radar solutions for the automotive industry. The company's radar platform is designed to enhance advanced driver-assistance systems (ADAS) and support the development of autonomous vehicles by providing detailed object detection, precise range and velocity measurements, and accurate environmental mapping under diverse driving conditions.

Founded in 2015 and headquartered in Tel Aviv, Israel, Arbe Robotics has developed its own semiconductor chipset and accompanying software stack.

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