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
- Defense and homeland security deliveries: Arbe's technology was selected by a leading global defense and homeland security system integrator, and the parties signed a framework collaboration agreement covering three joint projects, with plans to expand cooperation into additional initiatives. Arbe has begun deliveries of radar systems directly from its production line, with additional shipments expected as production ramps.
- Robotaxi systems with Arbe on the road: Building on the previously reported robotaxi engagements, Arbe's radar systems have been integrated into vehicles that have commenced on-road trials. Arbe continues to be engaged in active bid processes with additional robotaxi players.
- Progress in China with HiRain: Arbe's Tier 1 HiRain, a leading supplier offering a portfolio of radar systems based on Arbe's chipset, has advised Arbe that it is progressing toward production, currently planned for the beginning of 2027, delivering on the previously announced order from its L4 OEM customer. HiRain is also competing in meaningful RFIs and RFQs.
- Progress with OEMs actively testing advanced radar solutions: Arbe is actively participating in evaluations together with its Tier 1s to replace the OEMs' existing radar technologies. Arbe is regarded as the leading ultra-high-resolution radar provider for L3 and higher autonomy.
- Broader radar applications: Sensrad, a Tier 1 supplying imaging radar based on Arbe's chipset for defense and commercial applications, announced a new collaboration with VirtuRail, which is integrating the radar into its automated service vehicles for underground tunnel construction. Arbe continues to supply chipsets to Sensrad, supporting Sensrad's customers Watchit, Forterra, and Tianyi. Arbe is also directly engaged in additional non-automotive programs at various stages of evaluation.
- Continued revenue growth: Arbe's new strategy of focusing on broader markets with more immediate revenue potential delivered results. Revenue growth in the quarter was due to increased chipset sales to automotive Tier 1s, radar system sales for defense and civilian programs, and ongoing engineering and development services.
- Efficiency measures: At the same time, Arbe is focused on maintaining a low expense footprint and more efficient operations. The full impact of the approximately 15% expense reduction initiated in the first quarter of 2026 is expected to be reflected in the third quarter of 2026. Management believes that the current balance sheet, with around $42 million in cash, cash equivalents and short-term bank deposits, combined with ongoing revenue growth and a targeted reduction in cash burn to below $7 million per quarter, extends the Company's cash runway to execute on its growth plans.
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:
- Revenue in the range of $4 million to $6 million.
- Adjusted EBITDA for 2026 is projected to be a loss in the range of $28 million to $31 million, reflecting the Company's strengthened balance sheet and cost-reduction measures.
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 | 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 | 50 | ||
Total current liabilities | 30,328 | 32,916 | ||
Long term liabilities | ||||
Operating lease liabilities | 1,375 | 1,351 | ||
Warrant liabilities | 4 | 12 | ||
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 | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||
(Unaudited) | (Unaudited) | (Unaudited) | (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 | 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) | |||||
| 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 | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||
Cash flows from operating activities: | (Unaudited) | (Unaudited) | (Unaudited) | (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 | 48 | 155 | 91 | 364 | |||||
Revaluation of warrants | 2 | 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 | 58 | (534) | (48) | 536 | |||||
Operating lease ROU assets and liabilities, net | (20) | 50 | (39) | 104 | |||||
Increase (decrease) in trade payables | 48 | (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 | - | - | - | 21,696 | |||||
Proceeds from exercise of | - | - | - | 493 | |||||
Proceeds from exercise of options | 9 | 2 | 56 | 440 | |||||
Redemption of convertible notes upon voluntary conversion | - | - | (233) | - | |||||
Net cash provided by financing activities | 9 | 2 | 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 | 7 | 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 | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||
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 | 48 | 155 | 91 | 364 | |||||
Revaluation of warrants and accretion | 2 | 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) | (0.06) | (0.13) | (0.16) | |||||
Weighted-average number of shares used in | 128,637,952 | 112,196,403 | 125,576,293 | 104,497,312 | |||||
Diluted Non-GAAP net loss per ordinary share | (0.06) | (0.06) | (0.13) | (0.16) | |||||
Weighted-average number of shares used in | 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 | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||||||
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 | 48 | 155 | 91 | 364 | |||||
Adjusted EBITDA | (8,681) | (8,930) | (18,622) | (18,637) | |||||
SOURCE Arbe
