Arbe Robotics Ltd. (ARBE): Business Model Canvas [Dec-2025 Updated]

You're looking at a company deep in the pre-scale phase, where strategic design wins matter more than current sales, so let's map out their foundation. Honestly, when you see 2025 revenue guidance sitting between $1 million and $2 million while the adjusted EBITDA loss is projected to hit $29 million to $35 million, you know the story here isn't about today's profit; it's about the proprietary 4D imaging radar chipset and securing those crucial OEM design-ins. I've seen this setup before, and understanding how Arbe Robotics Ltd. is spending its $52.6 million cash position as of September 30, 2025, is key to judging their path to Level 3 autonomy. Dig into the full canvas below to see the exact partnerships and activities underwriting this high-stakes R&D bet.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships that let Arbe Robotics Ltd. move from R&D to actual product deployment. These aren't just handshake agreements; they involve real money and production commitments, which is what matters for valuation.

The company's strategy heavily relies on leveraging established Tier 1 suppliers to industrialize and distribute its core chipset technology. This approach mitigates some of the direct manufacturing and sales overhead, letting Arbe focus on the silicon and perception algorithms. For 2025, the company is guiding for annual revenue between $2 million and $5 million, which is expected to be weighted heavily toward the fourth quarter as these partnerships ramp up.

Here's a breakdown of the most important alliances:

• Tier 1 partners like HiRain Technologies and Weifu in China have already provided preliminary orders for 2025 deployment.
• The company is actively pursuing a goal of securing four design wins with automakers during 2025.
• Arbe Robotics is in the final stages of selection with some European OEMs, with anticipated revenue from these platforms beginning in 2027 for high-volume 2028 passenger vehicle platforms.
• The technology has already secured a serial production award with a global top ten automotive OEM for models launching in 2026 onwards.

The relationship with the foundry partner is absolutely defintely critical, as it controls the physical supply of the core component. Arbe Robotics is reliant upon GlobalFoundries to manufacture its semiconductor products under an agreement that started in 2022 and runs for 5 years. This relationship is managed closely, with GlobalFoundries leading the automotive-grade qualification process for the chipset.

The table below summarizes the known financial and volume commitments tied to these key relationships as of late 2025:

The collaboration with NVIDIA is strategic, focusing on software and platform integration rather than direct unit sales volume mentioned above. Arbe Robotics showcased its high-resolution radar integration with the NVIDIA DRIVE AGX in-vehicle computing platform at CES 2025. This positions Arbe's radar as the only imaging radar within the NVIDIA Omniverse partnership ecosystem, which is a big deal for simulation and AI development acceleration.

Also, note that for the HiRain/Weifu orders, approximately 25% is designated for non-passenger vehicles like trucks and robotaxis, showing diversification within the automotive segment itself.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Key Activities

You're looking at the core engine driving Arbe Robotics Ltd. (ARBE) right now-the things they absolutely must execute on to move from development to volume revenue. It's a heavy lift, balancing deep engineering with aggressive commercial targets.

Securing four OEM design wins in the coming three quarters

The focus here is converting pipeline engagement into locked-in production programs. Management is definitely pushing hard on this front.

• Management's stated goal is pursuing four design-ins with automakers in 2025.
• As of the Q3 2025 update, management is confident in securing four major OEM design wins within three quarters.
• As of September 30, 2025, three leading OEMs are in the Request for Information (RFI) process, with selections anticipated in 2026 for production targeted in the 2028-2030 timeframe.
• Arbe made progress toward design wins by securing orders for radar systems to support advanced data collection programs with leading European OEMs in Q1 2025.

Research and development (R&D) of 4D imaging radar chipset technology

This activity involves the continuous refinement of the core intellectual property. The financial outlay here is significant, as reflected in operating expenses.

Here's the quick math on the R&D investment and the technology itself:

The R&D effort includes strategic alignment, such as the collaboration launched with NVIDIA to enhance radar-based free space mapping and AI-driven capabilities, showcased at CES 2025.

Chipset qualification for auto-grade and industrial serial production

Moving the chipset from development to a production-ready state requires rigorous testing and validation, often in partnership with Tier 1s.

• The chipset is designed for Tier 1 radar system production and OEM development programs.
• HiRain Technologies, a Tier 1 in China, launched its LRR615 long-range imaging radar system powered by Arbe's chipset in April 2025, marking a pivotal step toward industrial-scale deployment.
• HiRain is preparing to ramp production capacity to deliver tens of thousands of units annually.

Providing technical support and professional services to Tier 1 partners

This activity is crucial for generating near-term revenue and embedding the technology deeper within the supply chain, especially in non-automotive sectors.

The commercial traction here is starting to show in the backlog and revenue figures, though the automotive ramp is projected for 2027.

Arbe signed a support and maintenance agreement with Sensrad, providing ongoing professional services for Sensrad's 4D Imaging Radar program, which establishes a recurring revenue stream. Also, Sensrad announced an order from WATCHIT for boat collision-prevention systems using Arbe's chipset.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Key Resources

You're looking at the core assets Arbe Robotics Ltd. (ARBE) relies on to execute its vision for perception radar. These aren't just line items; they are the proprietary technology and the financial runway supporting the long-term development cycle in automotive tech.

The most critical physical asset is the Proprietary 4D Imaging Radar Chipset. This is the engine behind their high-resolution sensing capability, designed to move radar beyond a supplementary role in Advanced Driver Assistance Systems (ADAS) and into full autonomy enablement.

Next, you have the moat built around this technology: Intellectual Property (IP) and patents for perception radar technology. This body of work protects the unique processing algorithms and hardware designs.

• Total global patents held by Arbe Robotics Ltd.
• Active patents globally
• Patents granted in the United States, Israel, and China

The numbers for the IP portfolio as of late 2025 look like this:

You need to know the fuel in the tank for this R&D-heavy operation. The company reported a strong cash position of $52.6 million as of September 30, 2025. This figure, reported alongside Q3 2025 results, is key for assessing near-term operational flexibility, even as the company manages an operating loss.

Finally, the human capital is a key resource. This is the Specialized R&D and engineering talent in Israel, the US, Germany, and China. This global footprint supports both core development and proximity to key automotive markets and partners.

The talent pool includes:

• Elite team of semiconductor engineers.
• Radar specialists and data scientists.
• Personnel located across offices in Tel Aviv, Israel (headquarters), the US, Germany, and China.

Finance: draft 13-week cash view by Friday.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Value Propositions

You're looking at the core reasons why automotive players would choose Arbe Robotics Ltd.'s perception radar over other sensor modalities, especially as they push toward higher levels of autonomy. The value proposition centers on superior technical performance at a compelling cost structure.

Ultra-high resolution 4D imaging for Level 3 autonomy.

Arbe Robotics Ltd. positions its technology as delivering imaging radar with the highest channel count available, which translates directly into superior environmental perception necessary for advanced driver assistance systems (ADAS) and Level 3 (L3) functionality. The system is designed to transform radar from a supporting sensor into a primary perception tool.

The technical specifications underpinning this high resolution include:

• Channel Array: 48 transmitting and 48 receiving channels.
• Virtual Channels: Up to 2,304 virtual channels.
• Detections: Supports more than 100,000 detections per frame.
• Detail Level: Delivers up to 100 times more detail than other radar systems.

Here are the specific resolution metrics from the Arbe Robotics Ltd. 4D Imaging Radar Specifications:

Superior performance in all weather and lighting conditions.

A key differentiator for Arbe Robotics Ltd. is the inherent robustness of radar technology, which the company claims to have maximized. This allows for reliable operation where optical sensors, like cameras and LiDAR, typically struggle. This reliability is critical for enabling safety features at higher speeds and in complex scenarios.

The technology is specifically designed to provide:

• Reliable tracking in fog, rain, and snow.
• Performance in low illumination and all weather and lighting conditions.
• Support for critical use cases such as detecting pedestrians at night.
• Ultra-low false alarm rates.

Significant price advantage over competing sensor technologies like LiDAR.

Arbe Robotics Ltd. emphasizes that its high-resolution solution is positioned as a cost-effective alternative to LiDAR, which is crucial for mass-market adoption in the price-sensitive automotive sector. The company has stated a target unit cost for its radar chip.

The cost-benefit analysis highlights:

• Arbe Radar costs around $85 per chip when moving towards higher levels of autonomy.
• The technology is noted to have a significant price advantage over LiDAR.
• It avoids higher operational costs associated with LiDAR, such as cleaning and calibration.

Enabling eyes-off, hands-off automated driving systems.

The high-resolution 4D imaging allows Arbe Robotics Ltd.'s radar to provide perception data that enables the next tier of automated driving, specifically L3 and L4 systems. The company is actively engaged with major automotive manufacturers on these next-generation programs.

Evidence of this enablement includes:

• The technology is a critical sensor for L2+ and higher autonomy.
• Arbe Robotics Ltd. is in the lead to be selected as the key enabler for an eyes-off, hands-off automated driving system for a serial production retail vehicle from a major European OEM.
• Three leading OEMs are in the Request for Information (RFI) process for eyes-off, hands-off functionality, with selections anticipated in 2026 and production targeted for 2028-2030.
• A top Japanese OEM has expanded a project using Arbe's chipset for its Level 4 development activities.

For 2025, Arbe Robotics Ltd. expects revenues in the range of $1 million to $2 million, with initial automotive production revenues projected to begin in 2027.

Finance: draft 13-week cash view by Friday.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Customer Relationships

You're looking at a business model heavily reliant on deep, technical validation from major industry players. Arbe Robotics Ltd. customer relationships are not transactional; they are built around multi-year development cycles with Original Equipment Manufacturers (OEMs) and Tier 1 suppliers.

Long-term, deep technical engagement with OEMs and Tier 1s.

The core relationship strategy involves embedding the technology early in the vehicle development process, which is why securing design-ins is paramount. Management has maintained a consistent goal to pursue four design-ins with automakers in 2025, a target they are still working toward in the final quarters of the year. This engagement is long-term; the company expects its radar technology to be a key enabler for high-volume 2028 passenger vehicle platforms, with revenue projected to start ramping in 2027. The technical depth is evidenced by the progression through the Request for Quotation (RFQ) stages, where Arbe has moved into the final stage as one of the last remaining suppliers for certain programs.

The relationships span geographies and sectors, as shown by the key partnerships:

This technical validation extends beyond just automotive; for instance, the collaboration with NVIDIA to enhance radar-based free space mapping was showcased at CES 2025.

Dedicated professional services and support for integration projects.

The relationship moves into dedicated support once a design is selected or a commercial order is placed. For example, Arbe signed a support and maintenance agreement with Sensrad to offer ongoing professional services for its 4D Imaging Radar program. This type of agreement helps establish a recurring revenue stream, which is important as the company navigates its pre-production phase. As of September 30, 2025, the company's total backlog stood at $0.2 million.

High-touch sales process focused on securing multi-year design-ins.

The sales cycle is clearly high-touch, involving close engagement with decision-makers, especially given the complexity of automotive sourcing. The company is actively expanding engagements with leading OEMs, progressing through advanced RFQ stages. The focus is squarely on securing the multi-year commitment that a design-in represents, which is the precursor to the projected revenue ramp in 2027 and beyond. The company has confirmed securing a deal with a top ten global automotive OEM for their next-generation imaging radar, with serial production preparations starting immediately.

The current state of engagement can be summarized by the pipeline focus:

• Continue to engage closely with industry leaders despite timeline extensions.
• Goal to secure four OEM design wins within the next three quarters (as of Q3 2025).
• Working with major OEMs on data collection for their Level 2++ and Level 3 solutions.

Finance: review the cash burn rate against the $52.6 million in cash and deposits as of September 30, 2025, to ensure runway through 2026.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Channels

The primary route to market for Arbe Robotics Ltd. involves deep integration with established Tier 1 Automotive Suppliers. This channel is critical for volume deployment in the automotive sector. HiRain Technologies, a Tier 1 in China, launched its LRR615 long-range imaging radar system, which is powered by Arbe's chipset, in April 2025. Serial production for this system, which incorporates Arbe's post-point cloud algorithms, was expected to start by the end of 2024. Furthermore, HiRain, along with another Chinese Tier 1, Weichu, had previously announced provisional orders totaling $60 million.

Sensrad serves as the Tier 1 partner for Arbe Robotics Ltd.'s non-automotive and specific automotive applications. Sensrad placed an order for over a thousand imaging radar chips to support its initial radar series rollout. This rollout includes varied end-uses, such as an autonomous off-road vehicle for a defense sector US customer and a smart infrastructure project managed by Tianyi Transportation in China. Arbe also secured a support and maintenance agreement with Sensrad, establishing a recurring revenue stream from the 4D Imaging Radar program.

Direct sales channels are active for data collection and non-automotive use cases. Arbe Robotics Ltd. received a strategic order for its chipsets to be used in large-scale data collection projects. These chipsets are being deployed on fleets exceeding 100 vehicles operated by several leading European automotive manufacturers. The CEO has also mentioned that use cases currently being evaluated include drone and small boat detection.

Technology integration through major platforms acts as a significant channel for validation and future volume. Arbe Robotics Ltd. is collaborating with NVIDIA to enhance AI-driven capabilities and free space mapping. Arbe's high-resolution radar integrates directly with the NVIDIA DRIVE AGX in-vehicle computing platform, a demonstration that took place at CES 2025. Arbe's radar technology is noted as the only imaging radar in the NVIDIA Omniverse partnership.

The financial performance related to these channels as of late 2025 shows the early stage of revenue realization from these deployments. You can see the recent revenue snapshot here:

The overall revenue expectation for the full fiscal year 2025 reflects the ramp-up timing of these channel partners:

• 2025 Annual revenues are projected to be in the $1 to $2 million range.
• Revenue growth at scale is anticipated to begin in 2027.
• The company is in the final stages of selection for several OEM programs, maintaining a goal to secure four OEM wins within the year.
• Arbe Robotics Ltd. is working with 16 OEMs, with 8 OEMs in the advanced perception project base, indicating commitment through algorithm development investment.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Customer Segments

You're looking at how Arbe Robotics Ltd. is positioning its high-resolution radar technology across different high-value markets as of late 2025. The focus is clearly on securing design wins that translate into future volume revenue, which management projects to start ramping in 2027 and 2028.

The current revenue profile for 2025 is lean, with projected annual revenue between $1 million and $2 million, reflecting the pre-production/design phase of the business. However, the pipeline shows significant activity across the board.

Global Automotive OEMs targeting Level 3 and higher autonomy

This segment is the primary long-term revenue driver, with the company actively working to convert ongoing evaluations into firm production commitments. Arbe Robotics is targeting 4 OEM design wins within the next 3 quarters (as of November 2025). The near-term focus is on securing the key enablers for eyes-off, hands-off systems, with selections anticipated in 2026 for production targeted between 2028-2030.

Here's a snapshot of the current engagement level with major automotive players:

Tier 1 Automotive Suppliers (system integrators)

Tier 1s are crucial as they integrate the chipset into complete radar modules for the OEMs. Progress here shows the technology is moving from evaluation to industrial deployment via these partners. For instance, HiRain Technologies, a Tier 1 in China, was set to begin mass production of LRR610 Imaging Radars powered by the Arbe chipset by the end of 2024.

• HiRain Technologies is conducting a data collection phase covering 1 million kilometers using vehicles equipped with the LRR610.
• HiRain launched the LRR615 long-range imaging radar system powered by Arbe's chipset.
• Sensrad, a Tier 1 supplier for non-automotive, placed an order for over 1,000 imaging radar chips.

Non-Automotive Verticals: Defense, Maritime, and Smart Infrastructure

Arbe Robotics Ltd. is actively diversifying revenue through non-automotive clients, which management projects will drive growth in 2026. This segment has seen new contract announcements recently, including a new defense client last quarter (as of Q3 2025).

• Defense sector demand is increasing globally, with supply for pilot programs and evaluations.
• Maritime application includes a radar system order from Sensrad for boat collision-prevention systems.
• Smart Infrastructure involves a project led by Tianyi Transportation in China.

Robotaxi and autonomous fleet operators (especially in China)

China remains a key strategic area, evidenced by Arbe opening an office in Shanghai in March 2024 to better support local partners. The success of robotaxi operations in China, with Baidu's Apollo Go reporting per-car breakeven, validates the market for the underlying perception technology.

Arbe has direct engagement with entities in this space:

• Signed a strategic cooperation agreement with Weifu High-Technology Group and KargoBot (DiDi's autonomous freight company) to provide 4D Imaging Radars.
• The Senserad - Tianyi Transportation framework suggests potential utilization of Arbe's chipset in China's IoT intelligent traffic systems.

Finance: draft 13-week cash view by Friday.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Cost Structure

You're looking at the expense side of Arbe Robotics Ltd.'s (ARBE) operations as of late 2025. The cost structure is heavily weighted toward maintaining their technological edge, which is typical for a company in this pre-mass-production phase.

The most significant component is the high fixed cost associated with Research and Development (R&D) to keep their perception radar technology ahead. For instance, in Q1 2025, R&D expenses, net, were reported at $9.693 million, illustrating the sustained investment required to push chip design toward final production, including tape-outs.

Overall spending is tracked through operating expenses. Total operating expenses for Q3 2025 were $11.3 million, which was a reduction from the $12.2 million reported in Q3 2024. This decrease was primarily due to lower share-based compensation expenses following the vesting of prior grants.

The cost structure also includes Sales, General, and Administrative (SG&A) expenses necessary for supporting global expansion and engaging with Original Equipment Manufacturers (OEMs) and Tier 1 suppliers across different geographies.

The current low-volume sales environment means Costs of Revenue are relatively small compared to operating costs, resulting in negative gross margins. For Q3 2025, the gross profit was negative ($0.2) million, which is an improvement from the negative ($0.3) million gross profit in Q3 2024, driven by the revenue mix.

The company's overall cash burn is reflected in the full-year outlook. Arbe Robotics Ltd. maintains a cautious Adjusted EBITDA loss guidance for the full year 2025, projected to be between $29 million and $35 million.

Here is a quick look at the key financial metrics related to costs and losses from the third quarter of 2025:

The cost structure is characterized by these ongoing investments, which the company plans to fund with its balance sheet strength. As of September 30, 2025, Arbe Robotics Ltd. held $52.6 million in cash and cash equivalents and short-term bank deposits.

• High fixed costs for Research and Development (R&D) to maintain tech lead.
• Operating expenses were $11.3 million in Q3 2025.
• Sales, General, and Administrative (SG&A) expenses for global expansion.
• Adjusted EBITDA loss guidance for 2025 is between $29 million and $35 million.
• Costs of revenue for low-volume chipset and radar system sales.

Finance: review the Q4 2025 operating expense forecast against the Q3 actuals by next Tuesday.

Arbe Robotics Ltd. (ARBE) - Canvas Business Model: Revenue Streams

You're looking at the sources of cash flow for Arbe Robotics Ltd. as of late 2025, which is heavily weighted toward development fees and future production commitments rather than current high-volume sales. The near-term revenue picture is modest, reflecting the long cycle of automotive validation.

The 2025 Annual Revenue Guidance is set between $1 million and $2 million, a figure management adjusted downward due to timing shifts in development programs. For context, the revenue for the third quarter ending September 30, 2025, was $0.3 million, and the trailing twelve-month revenue as of September 30, 2025, was $667K.

The revenue streams are categorized as follows:

• Sales of chipset units to Tier 1 suppliers (expected ramp in 2027).
• Non-Recurring Engineering (NRE) fees from development programs.
• Sales of radar systems for OEM data collection and evaluation.
• Recurring fees from support and maintenance agreements (e.g., Sensrad).

Here's a breakdown of the components driving the current and near-term revenue expectations:

The Non-Recurring Engineering (NRE) fees are the lifeblood cash flow before mass production starts, and delays in these payments directly impact the current top line. Management is preparing for a significant shift, as they anticipate securing four OEM design wins within the next three quarters. The company is managing expenses tightly, with the 2025 Adjusted EBITDA loss guidance reiterated at a range of $29 million to $35 million, despite the lower revenue expectation. Operating expenses for Q3 2025 were $11.3 million.

The company is also seeing increased global activity in the defense sector, supplying radar systems for pilot programs and evaluation projects, which contributes to non-automotive revenue streams.