Does Arbe Robotics (NASDAQ:ARBE) Have A Healthy Balance Sheet?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Arbe Robotics Ltd. (NASDAQ:ARBE) does carry debt. But is this debt a concern to shareholders?
What Risk Does Debt Bring?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we think about a company's use of debt, we first look at cash and debt together.
How Much Debt Does Arbe Robotics Carry?
You can click the graphic below for the historical numbers, but it shows that Arbe Robotics had US$9.34m of debt in September 2025, down from US$30.8m, one year before. But on the other hand it also has US$52.3m in cash, leading to a US$43.0m net cash position.
A Look At Arbe Robotics' Liabilities
The latest balance sheet data shows that Arbe Robotics had liabilities of US$15.2m due within a year, and liabilities of US$1.76m falling due after that. On the other hand, it had cash of US$52.3m and US$377.0k worth of receivables due within a year. So it actually has US$35.7m more liquid assets than total liabilities.
This excess liquidity suggests that Arbe Robotics is taking a careful approach to debt. Due to its strong net asset position, it is not likely to face issues with its lenders. Simply put, the fact that Arbe Robotics has more cash than debt is arguably a good indication that it can manage its debt safely. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Arbe Robotics's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
See our latest analysis for Arbe Robotics
In the last year Arbe Robotics had a loss before interest and tax, and actually shrunk its revenue by 34%, to US$667k. That makes us nervous, to say the least.
So How Risky Is Arbe Robotics?
Statistically speaking companies that lose money are riskier than those that make money. And in the last year Arbe Robotics had an earnings before interest and tax (EBIT) loss, truth be told. And over the same period it saw negative free cash outflow of US$37m and booked a US$47m accounting loss. However, it has net cash of US$43.0m, so it has a bit of time before it will need more capital. Overall, its balance sheet doesn't seem overly risky, at the moment, but we're always cautious until we see the positive free cash flow. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example, we've discovered 4 warning signs for Arbe Robotics (1 is concerning!) that you should be aware of before investing here.
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
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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.