Mobileye Global Inc. Q3 FY2025 earnings call

• Q3 revenue of $504 million was up 4% YOY, driven by 8% EyeQ volume growth. Operating cash flow was $167 million in Q3, YTD ~$500 million up 150% YOY.
• Core ADAS business volumes have been healthy for the last 5 quarters and expected to continue in Q4. Full-year outlook midpoint raised by 2% in revenue and 11% in adjusted operating income.
• EyeQ6 light is generating ADAS program wins, new customer Volvo added, India adoption trends strengthening, and REM traction in front-facing camera programs.
• Advanced products share common building blocks like EyeQ6 high inference chip, perception policy AI stacks, etc. EyeQ6 high-based surround ADAS systems developing, with meaningful traction with OEMs.
• Pursuing SuperVision and Chauffeur opportunities, with near-term software drops in AI. Received first silicon sample of EyeQ7 high, designed for eyes-off to minds-off autonomy.
• Robotaxi engagements expanding with VW and Holon, planning to remove safety drivers in US in 2026, and working on Europe homologation with VW and German government support.

Q3 revenue was $504 million, up 4% year-over-year. The driving force was 8% EyeQ volume growth. Operating cash flow in Q3 was $167 million, with YTD operating cash flow near $500 million, up ~150% YOY. Core ADAS business volumes have been healthy for the last 5 quarters and expected to remain so in Q4. EyeQ volumes for the full year are expected to be 35 million to 35.5 million, with SuperVision volumes tracking to low 50,000 units at midpoint.

• Increased full-year revenue midpoint by 2% and adjusted operating income midpoint by 11%.
• EyeQ volumes expected to be 35 million to 35.5 million, up from prior range. SuperVision volumes to low 50,000 units at midpoint.
• Full-year gross margin expected to be around 68%, slightly uptick in Q4 vs Q3. Operating expenses expected to be up 7% YOY to just below $1 billion.

• Macro uncertainties affecting business performance.
• Potential OEM production constraints that could impact volume and revenue.
• Regulatory challenges in different regions (e.g., Europe vs US homologation processes) that may delay robotaxi commercialization.

Q: You mentioned a Western OEM design win. Can you remind us about it and timing of volume contributions?

A: The confirmation is for a second surround ADAS program from a leading Western OEM with significant volumes, details to be disclosed in next few weeks.

Q: Talk about gross margin with EyeQ5 volumes. How does gross margin inflect with EyeQ6 ramp?

A: EyeQ5 volume has no new programs, EyeQ6 Lite has similar profitability to EyeQ4, EyeQ6 new programs have higher gross margin than EyeQ5 and similar to EyeQ4.

Q: Any factors affecting 4Q expectations? Talk about Lyft demo program.

A: Q4 volume should be viewed in full-year context, no material impact from chip issues expected. Lyft robotaxi program in advanced testing stages, launch date to be disclosed soon.

Q: About normalized unit growth and timelines for Chauffeur/SuperVision wins?

A: Focus on execution, expect to be close to production ready with SuperVision and Chauffeur platforms in first half of 2026, showing mature production platforms with latest AI technologies.

Q: Surround ADAS and technology path?

A: Surround ADAS is important for OEMs to adhere to regulations and cost-optimization. Mobileye has first-mover advantage with cost-efficient chips, and execution is key for eyes-off systems, with an inflection point expected in 2027 with Audi launch.

Q: Lyft OEM partner and VW Drive Out timeline?

A: OEM partner for Lyft program is on track but not finalized yet. For VW Drive Out, milestones include vehicle readiness and MTBF KPIs, aiming for first half of 2026 in US.

Q: Surround ADAS color and competitive landscape?

A: Surround ADAS design wins are from OEMs with high volumes, focusing on cost and performance. Mobileye has first-mover advantage with efficient chips and passive cooling, competing well in cost-optimized product category.

Q: Robotaxi Driver Out in Europe?

A: Different from US self-certification, Europe involves homologation and engaging with regulatory bodies. Working with VW and German government, planning to launch first in Germany with good support.