Earnings call transcript: Arbe Robotics Q1 2026 EPS beats, revenue misses

Arbe Robotics Ltd reported its Q1 2026 earnings, showing an EPS of -0.08, exceeding analysts’ expectations of -0.09, resulting in an 11.11% positive surprise. However, the company faced a significant revenue shortfall, reporting $461,000 compared to the forecasted $1,060,000, a 56.51% miss. Despite the revenue miss, the company’s stock saw a 4.89% increase in premarket trading, reflecting investor optimism over the EPS beat and operational improvements.

Arbe Robotics showed a mixed performance in Q1 2026, with improvements in EPS and operating expenses but a significant revenue miss. The company’s transition from a chipset supplier to a full radar systems provider is ongoing, impacting revenue growth. Despite these challenges, the company improved its operating loss and net loss compared to the previous year, reflecting better operational efficiency.

• Cash and cash equivalents: $53.6 million

According to InvestingPro analysis, Arbe holds more cash than debt on its balance sheet, though the company is quickly burning through cash. The platform identifies 11 additional ProTips for ARBE, offering investors deeper insights into the company’s financial health, which currently scores as "WEAK" on InvestingPro’s proprietary rating system.

Arbe Robotics exceeded EPS expectations with a -0.08 result versus the -0.09 forecast, while revenue significantly underperformed at $461,000 against a $1,060,000 forecast, marking a 56.51% miss. The EPS improvement reflects operational efficiencies, but the revenue shortfall underscores challenges in scaling sales.

Following the earnings announcement, Arbe Robotics’ stock rose 4.89% in premarket trading to $1.29. The stock’s movement indicates positive investor sentiment towards the EPS beat and cost management, even amid revenue concerns. Despite the recent uptick, shares remain down 25.9% over the past year, though InvestingPro data shows strong momentum with a 3.4% gain over the past week. The platform’s Fair Value analysis suggests the stock is slightly overvalued at current levels.

The company’s future guidance indicates a continued focus on transitioning to complete radar systems, with expected revenue growth in upcoming quarters. Analysts forecast revenue growth of 339% for fiscal year 2026, with price targets ranging from $1.25 to $3.50, according to InvestingPro. The management is optimistic about the potential market reset in Level 3 autonomy and its strategic shift aligning with industry trends. For investors seeking comprehensive analysis, ARBE is among the 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex financial data into actionable intelligence.

CEO Ram Machness emphasized the strategic transition, stating, "Our move towards complete radar systems positions us well to capture emerging market opportunities." President Kobi Marenko added, "We are confident in our ability to navigate this transition and achieve sustainable growth."

During the earnings call, analysts focused on the revenue miss and future growth strategies. Questions addressed the company’s plans to accelerate sales and expand its market presence, particularly in the automotive and non-automotive sectors. Management reiterated their commitment to cost reduction and strategic partnerships to drive growth.

Conference Operator, Moderator: Good day, and welcome to the Arbe Robotics first quarter 2026 results conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note, today’s event is being recorded. I would now like to turn the conference over to Kenny Green of EK Investor Relations. Mr. Green, please go ahead.

Kenny Green, Investor Relations, EK Investor Relations: Thank you. Good day to all of you, and welcome to Arbe’s conference call to discuss results for the first quarter of 2026. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today’s earnings release also pertains to this call. If you have not received a copy of the release, please view it in the investor relations section of the company’s website. Today, we are joined by Ram Machness, Arbe’s Chief Executive Officer, who will begin with a business and strategic update, Kobi Marenko, President and Co-founder, who will provide perspective on Arbe’s long-term direction, and Karine Pinto-Flomenboim, Chief Financial Officer, will review the financials. Following management’s formal remarks, we will open the call to the question and answer session.

With that, I’d like to hand the call over to Ram. Ram, please go ahead.

Ram Machness, Chief Executive Officer, Arbe Robotics: Thank you, Kenny. Good morning, everyone. Thank you for joining us to review Arbe’s first quarter 2026 results. I stepped into the CEO role in April, and I see significant potential ahead for Arbe. During the first quarter, we made strong progress and accelerated on the strategy we set out at the start of the year. Today, I will focus on the main areas where we are making progress. Arbe is growing from a chipset-focused automotive company into a supplier of complete radar solutions across automotive and increasingly into adjacent markets. This quarter, we hit several commercial milestones that reflect this transition. We began shipping chips into China through our Tier 1, HiRain. We received orders from robotaxi customers. We also received orders for data collection programs with global automakers and leading mobility players. I will now go deeper into each of these areas, starting with automotive.

Let’s start with China, the fastest-moving automotive market in the world. During this quarter, we shipped the initial batch of chipsets to HiRain. These chipsets supported production of 48 by 48 channel radar, a project that we announced in December, in which HiRain is developing a Level 4 autonomous vehicle solution for a Chinese automaker. In parallel, HiRain is developing new radar also based on our chipset, with 24 by 12 channels designed as a lower-cost system that can be used by a wider range of vehicles. This configuration complements its existing high-end 48 by 48 radar system based on our chipset. With our technology, HiRain is becoming a key radar platform player in China. It can offer OEMs a path from high-end radar systems that are available today in China to full 2K ultra-high-resolution performance. China sold 34.4 million vehicles in 2025.

Through a local Tier 1, Arbe gains direct access to one of the world’s largest and fastest-moving markets for Level 2+ and Level 3 deployments. Turning to robotaxis. We received orders for our Phoenix radar system from global robotaxi companies. These systems support Level 4 autonomy and full 360-degree sensing. This clearly shows that our high-resolution radar delivers the performance and coverage required for Level 4. This is strong and growing interest for our automotive chipsets. We are taking part in data collection programs with global automakers and leading mobility players. We have progressed into advanced selection processes with specific Chinese and European automakers. These evaluations focus more and more on the specific use cases where cameras and lidars fall short and where imaging radar becomes the key sensor.

This strengthens our industry interest in our radar technology as a core sensing platform for autonomous driving programs. This interest comes alongside an important shift in the automotive market. Recently, several leading OEMs have revisited their Level 3 programs. We don’t see this as a rejection of eyes-off autonomy. We see it as a reset, going back to the right basics of autonomy. The first-generation Level 3 systems had clear limitations. They were geofenced, some were limited in speed, some limited to good weather only, and many never reached commercial deployment. Besides the maturity of the algorithm, we believe that one other main reason for that is related to the performance of the sensor, and specifically, imaging radar not providing the needed performance.

Based on our discussions with many OEMs, automakers are now actively looking at the next generation eyes-off platforms and looking for sensing that can support Level 3 use cases. This is exactly the gap our high-resolution radar is designed to fill. We also wanted to understand what drivers want from the eyes-off autonomy. A survey of 1,000 people across U.S., Europe and Asia came with a clear message showing that drivers are willing to pay, willing to switch their car, and even their brand, for fully operational Level 3, Level 4 autonomous driving. Consumers are ready for eyes-off autonomy, but only when it is safe, smooth and reliable. That is exactly the capability that Arbe’s ultra-high-resolution radar enables. You are invited to our website to learn more about this survey. Before moving beyond automotive, let me briefly touch on Physical AI, because it’s becoming central to where our technology plays.

We are seeing how the revolution in AI and machine learning is introducing a new generation of algorithms. Those algorithms, and specifically vision-language-action models, are transforming how intelligent systems sense, understand and interact with the physical world. In automotive, it drives nothing but a breakthrough progress for Level 3 and Level 4 capabilities. Beyond automotive, it opens a wider opportunity across robotics, logistics and other autonomous systems. These Physical AI systems are only as good as the real-world data they receive, especially in safety-critical environments such as vehicles. This is where Arbe fits. Ou