Arbe Robotics recently reported significant declines in its earnings, with fourth-quarter sales dropping to $0.1 million from $0.3 million the previous year, and a net loss increasing to $12 million. The company's losses per share rose to $0.15 from $0.12, reflecting ongoing challenges. Concurrently, the broader market faced volatility due to new tariffs announced by President Trump, which led to a sharp decline across multiple indices, including the Nasdaq, which fell 4.7%. These factors contributed to Arbe's 12% share price decline last week. Despite the broader market being flat recently, Arbe has not escaped the pressure.

We've identified 4 warning signs for Arbe Robotics (2 make us uncomfortable) that you should be aware of.

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Over the past year, Arbe Robotics shareholders have experienced a total return of 46.19% decline. This performance significantly lagged both the broader market, which gained 8.4%, and the US Electronic industry, which returned 2.6%. Several factors have contributed to this downturn. Notably, Arbe's revenue faced a substantial decline, with full-year sales for 2024 only reaching US$0.768 million, falling from US$1.47 million the previous year. The net loss also widened, impacting investor sentiment. Adding to the pressures, Arbe was dropped from the S&P Global BMI Index in September 2024, which may have influenced some institutional investment decisions.

Furthermore, the company undertook several equity offerings to raise capital, including a substantial US$28.75 million follow-on equity offering in January 2025, which could have led to shareholder dilution concerns. Despite some promising partnerships, such as the collaboration with NVIDIA to enhance radar technology, the delayed financial growth and the execution of substantial revenue only expected towards the end of 2025 affected the stock's performance over the year.

Examine Arbe Robotics' earnings growth report to understand how analysts expect it to perform.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqCM:ARBE.

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