MicroVision, Inc. Q3 FY2025 earnings call

Glen DeVos started by explaining his reason for joining MicroVision, which is to transform the lidar industry. He highlighted three developments needed for mass adoption of lidar: moving from electromechanical systems to solid state, system architecture and moving to satellite sensors, and simplifying and reducing hardware cost through software. At IAA in Munich, MicroVision introduced MOVIA S and Tri - Lidar architecture. MOVIA S is an ultra - wide field of view solid - state sensor with a breakthrough cost level. The Tri - Lidar architecture enables the satellite sensor architecture. MicroVision also announced the asset purchase agreement of Scantinel Photonics, which gives access to 1550 nanometer FMCW ultra - long - range lidar technology. The aerial systems team for drone - based lidar developments is on track, with initial proof - of - concept phase for drones to be completed by the end of the year. There is strong interest in MOVIA S, LCAS, and the open software framework of MOVIA S. Glen also mentioned the strengthening of the leadership team with Fraser McMahon joining as Vice President of Global Sales and Greg Scharnbrock joining as Vice President of Global Engineering. Anubhav Verma welcomed Glen, discussed the financial performance, cash burn, balance sheet status (with $99.5 million in cash and cash equivalents), and plans to increase spending on strategic initiatives such as onboarding teams and the Scantinel acquisition.

For the third quarter of 2025, MicroVision reported revenues of $0.2 million. This quarter's revenue was driven by sales in industrial and automotive verticals. In terms of expenses, R&D and SG&A expenses totaled $12 million in the third quarter of 2025. This included $1.2 million of severance payments related to CEO transition, $1.6 million of noncash income related to a stock - based compensation expense reversal, and $1.4 million in noncash charges related to D&A. Excluding these items, core R&D and SG&A expenses were approximately $11 million for the quarter, flat with the second quarter. The cash burn for the quarter was $16.5 million, which included a one - time $3.2 million payment related to the inventory buildup of MOVIA L. Q4 CapEx was $0.1 million.

MOVIA S is planned to be launched in Q4 of 2026. LCAS is planned to launch in Q2 of 2026 with the MOVIA L platform. MicroVision anticipates an increase in current spending levels to support strategic initiatives, with annual spending expected to increase by approximately $1.5 million to $2 million per quarter. The company plans to provide further updates on the Scantinel transaction and associated funding during the next call once the closing occurs later this year.

Challenges in converting from showing technology to commercial contracts, potential delays in customer sourcing processes, cost management concerns related to achieving target ASPs, and competition from Chinese lidar makers are among the risks.

Q: Casey Ryan asked about the FMCW technology acquisition, including whether it can get to the target cost and revenue potential.

A: Glen DeVos and Anubhav Verma discussed that FMCW can drive cost down through wafer - level and chip - scale packaging, and Scantinel is pre - revenue with plans to industrialize the technology.

Q: Another question was about the status of RFQs and competing with Chinese lidar makers.

A: Glen DeVos said RFQs are ongoing, following OEM pace, and competing with Chinese suppliers through innovation like the open software framework.

Q: Concerns about the $200 ASP being unprofitable.

A: Glen DeVos stated they are confident in the cost model to avoid unprofitable deals.

Q: Status of predevelopment contracts.

A: Glen DeVos explained predevelopment and qualification phases with positive feedback.

Q: Impact of Luminar's upheaval on Volvo opportunities.

A: Glen DeVos said OEM issues can create opportunities.

Q: Timing of revenue for industrial, auto, and defense.

A: Glen DeVos provided timelines for each sector, with industrial having revenue in 2026, auto with a potential launch in 2029, and defense with more uncertainty but good timing ahead.

Q: Inventory of MOVIA L and plan.

A: Anubhav Verma explained inventory built for industrial demand and plans for revenue next year.

Q: Scantinel acquisition comparison and FMCW vs TOF.

A: Glen DeVos said Scantinel is complementary, and FMCW and TOF have different pros.

Q: AR vertical plans.

A: Glen DeVos said there are no active AR pursuits.

Q: Glen's plan to succeed where others failed.

A: Glen DeVos talked about product milestones, commercial conversion, and team capabilities.

Q: Dilution and company sustainability.

A: Anubhav Verma discussed dilution as necessary for runway and institutional investor confidence