Arbe Robotics Ltd. Q2 FY2025 earnings call

• Strategic progress made in the quarter with progress in winning bids from large OEMs. Received a strategic order for chipsets in large-scale data collection projects, shipped and deployed on fleets of over 100 vehicles. - Growing recognition among OEMs of high-end imaging radar for safe hands-free driving. - Collaboration with NVIDIA aiding customer engagements. - Progress in non-automotive applications, including scaling chip deliveries to Sensrad for defense applications and signing a support agreement with Sensrad. - Progress in bid processes with target OEMs, now one of the final few radar technologies in bid stages. - HiRain launched LRR615 long-range imaging radar system. - China's new ADAS testing regulation creates market opportunity for Arbe's technology.

Revenue for the second quarter of 2025 totaled $0.3 million compared to $0.4 million in Q2 of 2024. Backlog as of June 30, 2025, stood at $0.5 million. Gross profit for Q2 2025 was negative $0.2 million compared to negative $0.04 million in Q2 2024. Total operating expenses for Q2 2025 were $11.3 million, down from $11.6 million in Q2 2024. Operating loss for Q2 2025 was $11.5 million compared to $11.6 million in Q2 2024. Adjusted EBITDA loss was $8.9 million in Q2 2025 compared to $7.5 million in Q2 2024. Net loss in Q2 2025 was $10.2 million compared to $11.7 million in Q2 2024. As of June 30, 2025, Arbe held $26.3 million in cash and cash equivalents and short-term bank deposits as well as $35.7 million in long-term bank deposits.

• Aim to pursue 4 design-ins with automakers in the coming year. - Annual revenue expected in 2025 to be in the range of $2 million to $5 million, weighted towards the end of the year. - Adjusted EBITDA for 2025 expected to be in the range of a $29 million to $35 million loss.

Q: Curious as to how the number of 4 design wins expected in the coming year has changed over the last few months and about the competitive set.

A: The amount of OEMs working with them didn't change, but the environment changed as OEMs understand high-end imaging radar is needed for L3 hands-free driving. Competition narrowed to two horse race for L3 solutions. Also, OEMs are looking at expanding selection to L2++ applications.

Q: Could you expand on non-automotive applications beyond defense and smart infrastructure?

A: Non-automotive includes defense (border protection, autonomous trucks, drone detection) and other verticals where traction is seen, with more to be announced in September or October after summer vacation, and non-automotive is growing faster than expected and is a strategic leg for the company.