Vuzix Corporation Q4 FY2025 earnings call

• 2025 was an important year for Vuzix as they strengthened financial discipline, improved the balance sheet, and sharpened focus around OEM and waveguide businesses. • Strategy is centered around engineering services, with two growth engines: OEM products and waveguides. • OEM products business is growing across enterprise defense, security agencies, and broader consumer markets. • Waveguide technology is a key long-term opportunity, with Quanta's $20 million investment providing validation. • Expanding enterprise OEM business with examples like a leading auto manufacturer and Amazon. • Defense and security agencies OEM side has growing engagement with examples like Collins Aerospace. • Geopolitics is changing how defense and security agencies think about wearable technology. • Vuzix has over 500 patents and patents pending, positioning it well in the evolving smart glasses market. • Allocating majority of resources and R&D spend toward waveguides, Quanta-related programs, DOD efforts, and funded OEM programs.

For the fourth quarter ended December 31st, 2025, total revenues were $2.2 million compared to $1.3 million in the fourth quarter of 2024, an increase of 76%. The increase was primarily due to higher unit sales of M400 smart glasses and significantly higher engineering services sales. For the full year ended December 31, 2025, total revenues were $6.3 million compared to $5.8 million in the prior year, an increase of 9%. Product sales increased by 4% year-over-year on greater unit sales of M400 products. Sales of engineering services for the year ended December 31, 2025 were $1.6 million compared to $1.3 million in 2024, an increase of 27%. Overall gross loss for 2025 was $1.1 million compared to a loss of $5.6 million in 2024. Research and development expenses for 2025 rose 31% to $12.6 million. Sales and marketing costs for 2025 fell to $5.5 million from $8.2 million in 2024. General and administrative expenses for 2025 decreased 32% to $11.6 million. The fourth quarter ended December 31st, 2025 had a net loss attributable to common shareholders of $8.7 million or $0.12 per share compared to $13.7 million or $0.16 per share in the fourth quarter of 2024. The full year ended December 31st, 2025 had a net loss attributable to common shareholders of $32.3 million or $0.42 per share compared to $73.5 million or $1.08 per share in 2024. Cash position as of December 31, 2025 was $21.2 million. Net working capital was $22.3 million. Inventory levels improved with net inventory declining to $2.2 million as of December 31st, 2025 from $4.8 million at the end of 2024. Net cash flows used in operating activities declined to $18.8 million for 2025 from $23.7 million in 2024.

• CEO Paul Travers expects OEM, alongside waveguide business, to start climbing quarter after quarter throughout 2026 and surpass revenues on the pure enterprise side before the year is up. • Anticipates seeing multiple announcements regarding orders and go-to-market with production in 2026, and some press releases announcing great business partnerships that will be the beginnings of it through engineering services work.

Q: Can you give an idea of what you expect for 2026, including range of revenue outcomes and where significant revenue will come from?

A: OEM and waveguide business should start climbing quarter after quarter throughout 2026 and surpass enterprise side revenues. Amazon has multiple areas with custom-built OEM-style devices, a large car company is expected to roll into production by end of 2026, Collins Aerospace is in production, and there are more in the queue.

Q: When can we see additional orders, with anticipation of announcements and production in 2026?

A: Would expect something like three to six announcements regarding orders and go-to-market with production in 2026, and some press releases announcing business partnerships that are beginnings through engineering services work