Innoviz Technologies Ltd. Q4 FY2025 earnings call

• 2025 was pivotal for customer engagements, production readiness, and end market expansion. Achieved financial and operational goals, grew market presence. • Announced Daimler Truck and Torc Robotics as the major commercial vehicle OEM for series production of Level 4 trucks. • Introduced InnovizThree with smaller form factor, lower power consumption, and lower cost for behind-the-windshield integration. • InnovizSMART available for shipment with excellent traction in nonautomotive applications like security. • InnovizSMARTer integrated with NVIDIA Jetson Orin Nano for edge compute deployments. • Continued to ramp capacity at Fabrinet with production expected 3x to 4x higher in 2026. • VW ID. Buzz production line showcased with Innoviz LiDARs, expecting fleets in 6 cities in US and Europe in 2026. • Transition to physical AI is underway with LiDAR critical for perception in building world models.

In 2025, Innoviz grew revenue to $55.1 million, more than double the previous year. Gross margin was 23% versus approximately minus 5% in 2024. OpEx was $80.6 million, a 20% decrease from $100.8 million in 2024. Revenue for 2026 is expected to grow by approximately 27% to $67 million to $73 million, with up to 10% of revenues coming from nonautomotive physical AI applications up from 1% in 2025. Production at Fabrinet is expected to be 3x to 4x higher in 2026 than 2025.

• Expect revenue growth in 2026 by approximately 27% to $67 million to $73 million. • Nonautomotive physical AI applications expected to contribute up to 10% of revenues in 2026, up from 1% in 2025. • Expect to recognize almost all existing NREs in 2026 and 2027, and sign additional NRE payment plans in 2026. • Expect to add 2 to 3 new programs in 2026. • Production at Fabrinet expected to be 3x to 4x higher in 2026 than 2025.

• Many players driven out of the LiDAR market as technical requirements become more stringent, with market consolidating around a few players. • Automotive OEMs need behind-the-windshield solutions with lower power and smaller form factors. • Nonautomotive applications demand enhanced reliability and safety, which must be met to stay competitive.

Q: Give more color on the guidance for 2 to 3 new wins in 2026?

A: There are several programs active on Level 4 and some Level 3, with InnovizTwo for earlier launching programs and InnovizThree for behind-the-windshield needs.

Q: Speak specifically to where Innoviz stands at converting on the SoDW with a top 5 auto OEM?

A: Completed SoDW and in discussion with OEM about next steps, unclear on conversion and timing.

Q: Guidance for revenue for 2026 with 10% from nonauto market, how well covered?

A: Part of it booked through security market with high demand, and working on ultra-long-range LiDAR for further market expansion.

Q: Perspective on how LiDAR technology might be insulated from or benefit from AI advancements?

A: LiDAR connects to world models and digital twins, bringing life to them and enabling AI development on real world.

Q: Why Innoviz was selected as preferred short-range solution for Daimler Truck?

A: Only in short-range opportunity when Daimler became aware of Innoviz solution, and relationship is strong with discussion on further expansions.

Q: Talk about need to invest in incremental sensor fusion capabilities as well as functional safety?

A: Requirements aligned with automotive market, Innoviz sensor resilient to weather and dirt, and InnovizSMARTer embeds processing power for edge solutions.

Q: Scope and scale of customer engagement?

A: In automotive, weekly engagement with most customers; in nonautomotive, growing leads with events resulting in many opportunities.

Q: Comments on increased L3 activity?

A: Third phase of LiDAR requirements with behind-the-windshield being a key factor, Innoviz positioned to serve this market.

Q: Impact to gross margins and ASPs for non-auto LiDAR and physical AI?

A: Nonauto markets have higher ASPs due to better technology meeting safety needs.

Q: OpEx run rate?

A: Expected to continue with efficient operation.

Q: Drivetrain matter for LiDAR?

A: No correlation between EV or ICE and LiDAR, can operate autonomous driving on any vehicle.

Q: Count on NRE contributors?

A: Supporting 4 or 5 programs in parallel including Volkswagen, Mobileye, and Daimler Truck.

Q: New NRE opportunities outside automotive?

A: Assumption is still from automotive market.