Arbe Robotics Pivots to Defense, China for Faster Radar Growth

TEL AVIV, Israel – February 26, 2026 – Arbe Robotics, a global leader in ultra-high-resolution perception radar, today announced a significant strategic pivot designed to accelerate revenue growth by expanding into new markets. Alongside its fourth-quarter and full-year 2025 financial results, the company revealed a plan to aggressively target the defense, robotics, and Chinese automotive sectors, which it believes offer shorter adoption cycles than its traditional Western automotive OEM partners.

To power this new direction, Arbe is undergoing a leadership transition, with 8-year veteran and Chief Business Officer Ram Machness set to become Chief Executive Officer on April 1, 2026. Co-founder Kobi Marenko will transition to the role of President. The strategic shift is supported by a recently strengthened balance sheet, bolstered by an $18.5 million capital raise and cost-reduction measures that have trimmed expenses by 15%. The company projects this new focus will drive revenues of $4 million to $6 million in 2026, a substantial increase from the $1.0 million reported for 2025.

A New Compass: Diversifying Beyond the Automotive Horizon

For years, the holy grail for sensor companies like Arbe has been securing large-scale design wins with major global automakers for advanced driver-assistance systems (ADAS) and autonomous vehicles. However, the industry has learned that these adoption cycles are often protracted. In a decisive move to address this reality, Arbe is broadening its commercial focus to capture more immediate opportunities.

"We are expanding Arbe's business focus to accelerate adoption of our ultra-high-resolution radar in additional high-value markets," commented outgoing CEO Kobi Marenko. "While automotive OEMs remain central to our long-term strategy, we are prioritizing applications beyond passenger vehicles in the shorter-term, particularly defense and homeland security, where we believe adoption cycles are shorter and revenue opportunities are more immediate."

This strategic realignment targets several key growth areas. The company is increasing its focus on the Chinese automotive market, where it has already gained significant traction and where the pace of autonomous technology adoption is outpacing the West. Beyond passenger cars, Arbe is actively pursuing opportunities in robotaxis, robotrucks, and off-road industrial vehicles. These initiatives, expected to begin contributing to revenue this year, represent a pragmatic approach to commercialization, balancing long-term automotive ambitions with near-term growth drivers.

Securing Beachheads: Key Wins Across New Frontiers

Arbe’s strategic pivot is not merely aspirational; it is backed by a series of concrete commercial wins and partnerships that validate the potential of its new target markets. The most significant of these is a serial-production order from a state-owned Chinese automaker. Tier-1 supplier Hirain Technologies will integrate its LRR610 radar, powered by Arbe's chipset, into a Level 4 autonomous vehicle program. Thousands of these vehicles are expected to hit the market starting in early 2027, and Hirain has already placed purchase orders for chipset deliveries in 2026 to support the launch.

Progress in the defense sector is also accelerating. Throughout 2025, Arbe's Tier-1 partner Sensrad continued to place chipset orders for Forterra's autonomous vehicle programs, which are being developed for the U.S. Department of Defense. Forterra is equipping the next generation of unmanned ground vehicles (UGVs) for demanding missions like tactical logistics and reconnaissance. Arbe's radar provides crucial environmental awareness and navigation capabilities, particularly in unstructured, contested, and GPS-denied conditions where other sensors might fail.

The versatility of Arbe's 4D imaging radar is further demonstrated by its expansion into marine safety. Sensrad secured a follow-up order from WATCHIT for its AI-based collision-prevention system, the WATCHIT Eye. Powered by Arbe's chipset, the system detects obstacles like buoys, small watercraft, and other vessels, even in dense fog or complete darkness. In a major commercial endorsement, the Azimut-Benetti Group, a world-leading builder of luxury yachts, was announced as the first customer for this solution. The company is also gaining traction in smart city applications, with customer Tianyi Transportation Technology placing follow-on orders for imaging radars to be used in infrastructure projects in China.

New Leadership for a New Era

To guide the company through this critical phase of commercial scaling and market expansion, Arbe is reshuffling its executive leadership. Effective April 1, Ram Machness will assume the role of CEO. Having served as Arbe's Chief Business Officer for the past eight years, Machness brings deep institutional knowledge and over 30 years of experience in the semiconductor and automotive industries, including a 12-year tenure at Texas Instruments. His focus will be on execution, scaling production, and driving revenue growth in the newly targeted markets.

Kobi Marenko, the co-founder who has led Arbe as CEO, will become President. In this new strategic role, he will concentrate on long-term strategy, expanding key partnerships with a particular focus on the defense market, exploring strategic alternatives, and guiding investments to fuel the company's next phase of growth.

"I am very pleased to hand over the CEO reins to Ram Machness as Arbe enters its next phase of growth," Marenko stated. "Ram brings deep product expertise, strong commercial leadership, and a clear execution focus. I am confident he is the right leader to guide Arbe as we scale production and expand our market presence."

This transition reflects a common evolution in technology companies, moving from a founder-led vision phase to an operations-focused execution stage, signaling to investors a sharpened commitment to commercial delivery.

Fortifying the Foundation: Financial Discipline and Growth Outlook

Arbe's strategic pivot is underpinned by a series of financial maneuvers aimed at ensuring the company has the resources and runway to succeed. The company recently closed an underwritten registered direct offering, raising $18.5 million in gross proceeds to be used for working capital and to fund its expansion into new markets. This capital infusion, combined with cost-reduction measures that trimmed expenses by about 15%, has significantly strengthened its financial position. As of December 31, 2025, Arbe held $45 million in cash, cash equivalents, and short-term deposits.

While the company's 2025 financial results reflect its pre-commercialization stage—with $1.0 million in revenue and a net loss of $45.2 million—the outlook for 2026 paints a picture of rapid acceleration. The projected revenue of $4 million to $6 million represents a four-to-six-fold increase, directly reflecting the anticipated ramp-up from its new design wins. Furthermore, the projected Adjusted EBITDA loss for 2026 is expected to narrow to a range of ($28 million) to ($31 million), indicating improved operational efficiency.

Arbe acknowledged that the timing of future design wins from Western automotive OEMs remains difficult to predict due to adoption cycles that are taking longer than previously anticipated. This admission provides clear context for the strategic shift. By diversifying its revenue streams, Arbe is mitigating its dependence on a single, slow-moving market and building a more resilient business model. The company's ongoing integration with NVIDIA's DRIVE Hyperion platform ensures it remains at the forefront of high-end autonomous systems, even as it pursues more immediate commercial applications. The coming year will be a critical test of this new direction, as the industry watches to see if the pivot from a singular focus on passenger cars to a broader portfolio of autonomous applications can finally translate Arbe's technological edge into market-leading growth.