Arbe (ARBE) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, June 12, 2026 astatine 11:12 AM CDT 21 min read

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Date

Thursday, Feb. 26, 2026, astatine 8:30 a.m. ET

Call participants

• Chief Executive Officer — Jacob Marenko

• Incoming Chief Executive Officer (as of April 1, 2026) — Ram Machness

• Chief Financial Officer — Karine Pinto-Flomenboim

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Full Conference Call Transcript

Jacob Marenko: Thank you, Kenny. Good morning, everyone, and convey you for joining america to reappraisal Arbe's 4th fourth and afloat twelvemonth 2025 results arsenic good arsenic our strategical absorption and outlook for 2026. Over the past fewer months, we conducted a afloat strategical reappraisal and made a fig of refinements. We person broadened our absorption to markets, which we judge person shorter adoption cycles and clearer near-term gross opportunities, portion astatine the aforesaid time, keeping an oculus connected the longer-term people of winning large OEM deals. This alteration successful absorption is due to the fact that we spot beardown momentum successful defense, homeland information and different proscription applications beyond rider vehicles, wherever we are seeing increasing commercialized traction.

We besides took actions to amended efficiencies, reducing our outgo basal by astir 15%, heighten our equilibrium expanse with an institutional-led $18.5 cardinal financing that we closed a fewer weeks ago, extending our fiscal runway to afloat enactment our adjacent signifier of execution. In this call, I privation to supply much colour connected our strategical evolution, item caller commercialized advancement and outline our expectations for 2026. Production clip lines for Level 3 autonomy successful Western markets stay uncertain. In contrast, Chinese OEMs, including a caller win, which we precocious announced, are advancing successful autonomous and sensing technologies. Beyond that, we spot near-term gross opportunities that tin service arsenic meaningful maturation motor for Arbe.

As a result, we decided to broaden our selling and income absorption beyond Western automotive OEM programs. We are prioritizing Chinese OEMs arsenic good arsenic markets, including defense, homeland security, RoboTaxi, marine information and astute infrastructure, wherever our ultra-high solution radar provides wide differentiation. Customers from these verticals are already placing orders and the opportunities successful our pipeline thin to person shorter income cycle. I bash privation to constituent retired that Western automotive OEMs stay a semipermanent maturation motor for Arbe, and we volition inactive vie to beryllium designed into Western OEM sensor suit. However, our strategy to day broaden our scope and reduces our dependence connected the extended clip line.

As portion of this strategical change, we announced contiguous a planned enactment modulation to enactment Arbe's adjacent signifier of execution. Ram Machness, who has served arsenic Arbe's Chief Business Officer implicit the past 8 years and led our strategy, sales, merchandise and enactment functions volition presume the relation of CEO arsenic of April 1, 2026. At the aforesaid time, I volition stay afloat and actively progressive successful the institution successful my caller relation arsenic President of Arbe. Ram has the afloat assurance of our Board of Directors and me, bringing 30 years of acquisition crossed embedded systems, semiconductors and the automotive industry, including 12 years successful elder enactment roles astatine Texas Instruments.