Arbe (ARBE) Q4 2025 Earnings Call Transcript

Thursday, Feb. 26, 2026, at 8:30 a.m. ET Incoming Chief Executive Officer (as of April 1, 2026) — Ram Machness Chief Financial Officer — Karine Pinto-Flomenboim Need a quote from a Motley Fool analyst? Email pr@fool.com Jacob Marenko: Thank you, Kenny. Good morning, everyone, and thank you for joining us to review Arbe s fourth quarter and full year 2025 results as well as our strategic direction and outlook for 2026. Over the past few months, we conducted a full strategic review and made a number of refinements. We have broadened our focus to markets, which we believe have shorter adoption cycles and clearer near-term revenue opportunities, while at the same time, keeping an eye on the longer-term target of winning major OEM deals. This change in focus is because we see strong momentum in defense, homeland security and other transportation applications beyond passenger vehicles, where we are seeing growing commercial traction. We also took actions to improve efficiencies, reducing our cost base by about 15%, enhance our balance sheet with an institutional-led $18.5 million financing that we closed a few weeks ago, extending our financial runway to fully support our next phase of execution. In this call, I want to provide more color on our strategic evolution, highlight recent commercial progress and outline our expectations for 2026. Production time lines for Level 3 autonomy in Western markets remain uncertain. In contrast, Chinese OEMs, including a new win, which we recently announced, are advancing in autonomous and sensing technologies. Beyond that, we see near-term revenue opportunities that can serve as meaningful growth engine for Arbe. As a result, we decided to broaden our marketing and sales focus beyond Western automotive OEM programs. We are prioritizing Chinese OEMs as well as markets, including defense, homeland security, RoboTaxi, marine safety and smart infrastructure, where our ultra-high resolution radar provides clear differentiation. Customers from these verticals are already placing orders and the opportunities in our pipeline tend to have shorter sales cycle. I do want to point out that Western automotive OEMs remain a long-term growth engine for Arbe, and we will still compete to be designed into Western OEM sensor suit. However, our strategy to date broaden our scope and reduces our dependence on the extended time line. As part of this strategic change, we announced today a planned leadership transition to support Arbe s next phase of execution. Ram Machness, who has served as Arbe s Chief Business Officer over the past 8 years and led our strategy, sales, product and support functions will assume the role of CEO as of April 1, 2026. At the same time, I will remain fully and actively involved in the company in my new role as President of Arbe. Ram has the full confidence of our Board of Directors and me, bringing 30 years of experience across embedded systems, semiconductors and the automotive industry, including 12 years in senior leadership roles at Texas Instruments. He brings a strong execution mindset, deep product and customer understanding and proven experience scaling complex technologies from development into production and into commercialization. With Ram leading day-to-day execution as CEO, I will focus on our long-term strategy, advance new initiatives, specifically in the defense market, develop key partnerships and guide strategic investments to help accelerate what I see as the new phase of sustainable long-term growth. Now I will hand over the call to Ram to say a few words. Ram Machness: Thank you, Kobi. I deeply appreciate the trust and confidence that the Board and Arbe co-founders, Kobi Marenko and Noam Arkind had placed in me. I would like to thank Kobi for leading Arbe from its inception and for building the strong foundation that has now enabled us to transition into serial production and move towards full commercialization. I m excited about the opportunities ahead, and I m committed to leveraging our strong products. I look forward to guiding Arbe for its next phase of growth and success. Back to you, Kobi. Jacob Marenko: Thank you, Ram. Turning to recent highlights. During 2025, we made solid progress. First, on the automotive front, we announced a new serial production design win with a state-owned OEM in China. HiRain Technologies LRR610 radar powered by our ultra-high definition radar chipset was selected for a Level 4 autonomous vehicle program. Production vehicles are expected to reach the market starting in 2027, and we see meaningful long-term potential. Second, in line with our strategy to expand beyond automotive, defense and homeland security continue to gain traction. Our Tier 1 Sensrad has placed chipset orders for Forterra s autonomous vehicle program for the U.S. Department of War. Forterra equips the next generation of defense unmanned ground vehicles, shaping operations in demanding environment. Sensrad s ultra-definition imaging

Arbe (ARBE) Q4 2025 Earnings Call Transcript

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Arbe (ARBE) Q4 2025 Earnings Call Transcript

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