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    ARBE
    Earnings call· Jun 2026(Q2 FY26)

    Arbe Robotics Q2 FY26 earnings call ARBE

    Aug 6, 2026 Source

    Executive summary

    Arbe Robotics Q2 FY26 — Revenue Growth and Defense Market Expansion

    Arbe Robotics delivered its third consecutive quarter of revenue growth, driven by a strategic diversification into defense and other non-automotive applications, which offer shorter revenue cycles. The company also made significant progress in cost reduction, lowering its operating expenses and targeting a reduced cash burn, which is expected to extend its financial runway. While automotive programs continue to advance, the immediate focus on broader markets is yielding tangible results.

    Highlights

    5

    • Revenue grew to $0.7 million in Q2 2026 from $0.3 million in Q2 2025, marking the third consecutive quarter of growth.

    • A leading global defense and homeland security integrator selected Arbe's technology for 3 projects, signing a framework agreement.

    • Operating expenses decreased to $9.8 million in Q2 2026 from $11.3 million in Q2 2025, driven by a 15% reduction in the cost base.

    • Cash burn is targeted to fall below $7 million per quarter, with $41.9 million in cash and equivalents providing sufficient runway.

    • HiRain is progressing towards start of production for a Level 4 program with a large Chinese automaker, planned in the next few months.

    Concerns

    3

    • Adjusted EBITDA was a loss of $8.7 million in Q2 2026.

    • Net loss for Q2 2026 was $9.1 million.

    • Backlog as of June 30, 2026, was $1 million, which is relatively small.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year revenue
    $4 million to $6 million
    high materiality
    High
    Full-year Adjusted EBITDA
    $28 million loss to $31 million loss
    high materiality
    High
    Quarterly cash burn
    below $7 million per quarter
    medium materiality
    High

    Operational metrics

    9
    Revenue
    $0.7 millionup from $0.3 million in Q2 2025
    Q2 2026
    Gross loss
    around breakevencompared to $0.2 million loss in Q2 2025
    Q2 2026
    Total operating expenses
    $9.8 milliondown from $11.3 million in Q2 2025
    Q2 2026

    Primarily driven by lower share-based compensation expenses, offset by increased expenses due to unfavorable exchange rate impact.

    Operating loss
    $9.8 millioncompared to $11.5 million in Q2 2025
    Q2 2026
    Adjusted EBITDA
    $8.7 million losscompared to $8.9 million loss in Q2 2025
    Q2 2026

    Non-GAAP measurement, excludes share-based compensation and nonrecurring items.

    Net loss
    $9.1 millionreduced from $10.2 million in Q2 2025
    Q2 2026

    Included $0.7 million of financial income in Q2 2026, compared to $1.3 million in Q2 2025.

    Cash and investments balance
    $41.9 million
    as of June 30, 2026

    Includes cash, cash equivalents and short-term bank deposits.

    Shareholders' equity
    $40.5 million
    as of June 30, 2026
    Cost base reduction
    15%
    from Q1 level

    Full effect expected by Q3.

    Industry KPIs

    3
    MetricValueDetails
    Orders book to bill$1 millionUSD
    Long term agreements—
    Design wins product cycle ramps3 projects

    Orderbook & backlog

    1
    Backlog$1 millionJune 30, 2026

    Product announcements

    1
    ProductTypeDetails
    Lower spec platform (24x12 panels)roadmap

    Deals & partnerships

    5
    Leading global defense and homeland security integratorSelection of Arbe's technology for 3 projects under a framework agreement. Shipped complete radar systems for immediate operational needs.long-term

    Radars used in fixed installations and vehicle-mounted systems at short and long ranges, supporting various defense and homeland security applications.

    Proterra (via Tier 1 Sense)Tier 1 Sense supplies Proterra with high-definition imaging radar based on Arbe's chipset, integrated into Proterra's protection suite.

    Arbe's radar chipset is integrated into Proterra's autonomous systems for the U.S. Department of War.

    VirtuRail (via Sensrad)Sensrad, a Tier 1 supplying imaging radar based on Arbe's chipsets, announced a new collaboration with VirtuRail to integrate the radar into its automated service vehicles for underground tunnel construction.

    Radar integration into automated service vehicles for underground tunnel construction.

    Global robotaxi playerFollow-on orders for Phoenix radar systems for 360-degree sensing to support Level 4 autonomy. Systems integrated into vehicles, which have started on-road trials.

    Phoenix radar systems provide full 360-degree sensing for Level 4 autonomy in robotaxi vehicles.

    Large Chinese automaker (via HiRain)HiRain radar with Arbe's chipset selected for a Level 4 program. Continued chipset shipments to support this customer.

    HiRain is a leading Tier 1 supplier in the Chinese market, offering a portfolio of radar systems built on Arbe's chipset.

    Risks & headwinds

    2
    Unfavorable exchange rate impactQ2 2026

    Increased expenses due to the unfavorable exchange rate impact

    Mitigation: Fully offset by the decrease in headcount as part of cost reduction measures taken this quarter.

    Long cycle times for automotive programsLong-term

    many years between a design win and a program maturing to full production

    Mitigation: Diversifying into defense and civilian programs with much shorter cycles to generate revenue in the near and medium term.

    What to watch in Q3 FY26

    4

    HiRain Level 4 program start of production

    Next few months
    CurrentProgressing towards start of production
    TargetStart of production

    Why it matters

    Indicates significant revenue potential from the largest and fastest-moving market for Level 2+ and Level 3 vehicles.

    HiRain advised us that they are now progressing towards the start of production, which is planned in the next few months⏳.

    Q&A highlights

    2

    Inquired about the volume potential and expansion of the recently announced defense selection, specifically regarding the 3 projects and the framework agreement.

    Ram Machness stated that the partnership is a long-term framework agreement with 3 specific projects defined initially, but it's expected to extend to several applications. He mentioned common defense applications like unmanned ground vehicles and perimeter security, highlighting the radar's advantages over cameras in challenging environments.

    “The partnership agreement is a long-term agreement. And right now, to begin with 3 specific projects were defined. But the agreement is a framework agreement that will be extended to several applications as well.”

    asked by Matthew Galinko · answered by Ram Machness

    2 min read5 chapters

    Detailed Narrative

    01

    Defense and Homeland Security Expansion

    Arbe secured a framework agreement with a leading global defense and homeland security integrator for three initial projects, shipping complete radar systems for immediate operational needs. The technology supports various applications, including fixed installations, vehicle-mounted systems, unmanned ground vehicles, and perimeter security, demonstrating its versatility and addressing urgent operational needs. Management highlighted that many opportunities in this sector have significant business potential and customers are actively working to reduce cycle times for integration and deployment.

    02

    Automotive Market Progress

    The company reported progress with a global robotaxi player, whose vehicles have now started on-road trials with Arbe's Phoenix radar systems providing 360-degree sensing for Level 4 autonomy. In China, Tier 1 HiRain is progressing towards start of production for a Level 4 program with a large Chinese automaker, with a second lower-spec platform also under development for wider market penetration. Arbe continues to engage with additional robotaxi players and global OEMs for advanced radar solutions.

    03

    Strategic Diversification and Revenue Mix

    Arbe's strategy of diversifying beyond passenger automotive into broader markets like defense and unmanned ground vehicles is gaining traction. Revenue growth is now driven by chip sales to Tier 1s, direct radar system sales for defense and civilian programs, and engineering/development work, leading to shorter revenue cycles compared to traditional automotive programs. This approach aims to generate near and medium-term revenue while still competing for long-term, significant automotive OEM programs.

    04

    Cost Reduction and Financial Runway

    The company successfully reduced its cost base by approximately 15% from Q1 levels, with the full effect expected by Q3. This is projected to lower the quarterly cash burn to below $7 million, extending the financial runway given the $41.9 million cash balance at quarter-end. These operational efficiencies were achieved through measures like leveraging AI to automate processes and headcount reduction, offsetting increased expenses from unfavorable exchange rates.

    05

    CFO Transition

    Karine Pinto-Flomenboim concluded her nearly five-year tenure as Chief Financial Officer, having played a crucial role in strengthening the company's balance sheet, leading fundraising efforts, and building the reporting and governance infrastructure for a public company. Assaf Pereg will join as the new CFO on August 30, 2026, bringing close to two decades of financial leadership experience from both public and private technology companies.

    AI-generated summary of the company’s earnings call. Not investment advice.