Blaize Holdings, Inc. Q2 FY2025 earnings call

• Hybrid AI strategy moved from pilot validation to early-stage deployment with $176 million in contracts secured in last six weeks, including $120 million with Starshine and $56 million purchase order in South Asia. - Launched Blaize AI platform, a plug-and-play software and hardware stack for faster and easier deployment. - Pipeline of over $725 million in active opportunities through 2027, with $300 million in advanced discussions. - Focus on cost discipline, investing where demand is strongest and having capital formation strategies in place.

Revenue for the second quarter was $2 million, net of around $200,000 in related party sales commissions, almost double the previous quarter's revenue. South Asia purchase order includes around 15% perpetual software licenses with each server and $300,000 in AI studio license revenue from another customer. Underlying blended gross margin for the second quarter was 64%, expected to dip for next two or three quarters due to ramping up Starshine contract with third-party hardware. R&D expense was $9.6 million, SG&A expenses excluding certain items grew slightly. Net loss for the quarter was $29.6 million, over $118 million lower than prior quarter. Cash ended the quarter at $29.1 million.

• Secured $176 million in contracts with deliveries planned, Starshine shipments to begin in third quarter. - Revenue in second quarter was above high end of guidance range. - Pipeline growth robust with over $725 million, conversion expected to accelerate in 2026. - Gross margins expected to dip for next two or three quarters due to Starshine contract with third-party hardware. - Cash runway supports commercialization of contracts and development of next-generation silicon.

Q: Checked math on $176 million contracts and asked about architecture and market opportunity related to Starshine.

A: $176 million will be delivered by 2026 with $140 million going into 2026, and Blaize's hybrid architecture complements GPU systems in data centers and edges for ROI.

Q: Asked about gross margin dip, Starshine and South Asia contract sales, and MOU with UAE entity.

A: Gross margin dip depends on mix of contracts with third-party hardware, more of Starshine revenue this year, and MOU project delivery targets 2026.

Q: Asked about pipeline increase, late-stage deals, and supply chain.

A: Pipeline has around 20-40 customer engagements, 300 million in late-stage expected to begin scale in 2026, no supply chain issues with 14nm chip at Samsung Foundry.

Q: Asked about guidance, supply chain, and hybridization.

A: Guidance tightened due to working with customers on deployment needs, outlook for 2026 remains, no supply chain issues with foundry, and hybridization driven by ROI and programmability.

Q: Asked about hybridization evolution, data center timeline, and pipeline split.

A: Customers care about ROI, Blaize's architecture provides TC advantage, pipeline has blend of edge and data center applications with majority inference demands.