MVIS

LiDAR 2.0 Strategy & Acquisition Integration

• The company completed a strategic shift from a hardware-first automotive LiDAR provider to a software-enabled LiDAR perception solutions provider serving multiple end markets, referred to as LiDAR 2.0.
• MicroVision successfully integrated the acquired Luminar LiDAR business within one quarter of closing: engineering teams were consolidated, manufacturing operations were streamlined for efficiency, customer shipments resumed, operating expenses were cut, and existing customer investments were preserved by integrating IRIS into the broader product portfolio rather than forcing platform migration.
• The consolidated product portfolio now covers all range segments: short-range Movia, long-range IRIS, next-generation long-range Halo, ultra-long-range FMCW from Scantinel, and unified perception software across all products, allowing the company to match the right sensor to each customer use case.

Commercial & Partner Progress

• Launched a global reseller/partner program across Japan, North America, Europe, Korea, and Singapore in April 2026, adding a premier partner IDI Laser for Southeast Asia in July 2026 to expand reach into industrial, defense, and mobility customers.
• Secured multiple new customer wins and engagements: a long-term development agreement with a leading construction/mining equipment OEM, new IRIS orders for defense unmanned ground and aerial vehicles, Movia sensor deliveries to a major AI hyperscaler for robotics/autonomy evaluation, and engagement with J.A. Green and Company to accelerate U.S. defense market entry.
• Total distinct customer engagements increased 30% to over 130, pushing total potential booking opportunities from 2026 to 2030 up 50% from $500 million to $750 million, with the largest growth coming from industrial and security/defense segments.

Product Launches & Roadmap

• Recently unveiled Movia Air and Movia Air Plus, purpose-built short-range lightweight LiDAR for autonomous aerial systems, with 9 pre-launch evaluation partners across industrial and defense applications already secured; the product will be demonstrated at the U.S. Navy's Joint Interagency Field Experimentation next week.
• The next-generation short-range Movia S Industrial sensor is on track for an October 26, 2026 launch, with over 25 active customer evaluations and quoting already ongoing; production capacity is being set up for 15,000 units annually in Orlando, with flexibility to scale up if needed.
• In-house MicroVision Semiconductor (formed from the acquired Black Forest Engineering team) was formalized in July 2026, bringing 30+ years of custom mixed-signal and ASIC design expertise in-house to support cost reduction and product integration for LiDAR 2.0, while also pursuing external commercial customer engagements for custom design services.
• Next-generation on-chip FMCW LiDAR samples are targeted for Q2 2027, with broader photonics technology applicable to communication infrastructure and data center end markets.

Organizational & Capital Markets Updates

• Added key new leadership: James Byam as the first Chief Commercial Officer (a newly created role) to lead global commercial efforts, and Cara Clare as Head of Marketing and Communications; the permanent CFO search is nearly complete, with an update expected soon.
• Completed a 1-for-15 reverse stock split to maintain NASDAQ listing compliance, increasing authorized shares to create more flexible capital raising options to support future growth.

• Full year 2026 revenue guidance is maintained at $10 million to $15 million, with the majority of revenue expected to come in the second half of 2026 from existing IRIS/Movia inventory and the October launch of Movia S.
• Full year 2026 gross margin guidance is raised upward from the prior 35% to 40% range to a new 40% to 45% range, driven by improved supply chain negotiations and favorable product mix from acquired IRIS inventory.
• Full year 2026 cash burn guidance (operations plus capital expenditures) is maintained at approximately $60 million, with lower cash burn expected in the second half due to revenue growth, cost reductions from operational consolidation, and improved supply terms.
• Long-term steady state gross margin is expected to land in a 40% to 50% range, with margins hitting the upper end of the range for higher software content and defense products, and the lower end for commodity hardware-only sensor sales.
• Operating expenses are expected to trend downward in the second half of 2026 after Q2 acquisition integration and restructuring costs are completed, with restructuring-related costs largely behind the company on a run-rate basis.

MicroVision reports Q2 2026 total revenue of $1.5 million, a $1.3 million increase year-over-year. Product sales drove the majority of revenue: 85% from long-range IRIS and short-range Movia L sensors, and 15% from engineering services for the newly formed MicroVision Semiconductor segment. The industrial, security, and defense segments were the top contributors to Q2 revenue, accounting for nearly all product revenue, with the automotive segment contributing a smaller share. For the first half of 2026, total revenue was $2.4 million, a $1.7 million YoY increase, with ~75% of first half revenue coming from product lines added via 2026 strategic acquisitions. Again, the majority of first half revenue came from the industrial, security, and defense segments. Gross margin for Q2 2026 was 44%, up from a gross margin loss in Q2 2025, and year-to-date gross margin is 42%, also up from a year-to-date gross margin loss in 2025. Cash used in operations plus capital expenditures totaled $19.5 million in Q2 2026 and $36 million for the first half; after adjusting for acquisition-related and restructuring costs, cash burn was $17.4 million in Q2 and $33.8 million for the first half.

• The timing of revenue recognition for 2026 depends on the ability to restart and scale the IRIS supply chain, which had been suspended prior to the Luminar acquisition; any delays in supplier re-engagement could push revenue into early 2027 rather than the second half of 2026.
• Commercial customer engagements and evaluations take time to mature, and there is no guarantee that current pre-launch and development activities will convert to large, recurring production orders.
• The company requires additional capital to fund ongoing operations and product expansion, and depends on market conditions to access capital via its existing ATM facility to meet its liquidity needs.

Q: What is the long-term steady state target for gross margin, and how will operating expenses trend after Q2 2026 acquisition integration? / A: Management expects long-term gross margin to land between 40% and 50%, with higher margins for higher software content and defense products, and lower margins for commodity hardware-only sensors. The improvement to gross margin so far comes from design-to-cost engineering and successful supply chain negotiations that reduced BOM costs, and the company will continue pushing for further cost reductions. Operating expenses will decline (referred to as "deteriorating" as a joke about cost cutting) in the second half of 2026, as most one-time acquisition and restructuring costs were already incurred in the first half of the year, with only minimal remaining restructuring costs expected in Q3.\n\nQ: What end markets and use cases are the primary focus for the new Movia Air aerial LiDAR product, and is the opportunity focused on onboard airborne applications or ground-based detection? / A: The largest near-term opportunity for Movia Air is onboard airborne applications, covering both defense and commercial use cases. For defense, there is strong immediate demand for lightweight, low-power wide-field LiDAR for payloads on Group 1, 2, and 3 drones, which the company is uniquely positioned to serve as a U.S./German-based supplier. Commercially, the product is targeted at use cases including power line inspection, wind turbine inspection, and terrain mapping. Longer-range ground-based detection is also a secondary opportunity, where the company's ultra-long-range Scantinel FMCW technology will be used.\n\nQ: Why is management confident in the 2026 $10 to $15 million revenue guidance, and when will revenue from new security and defense partnerships start contributing to the top line? / A: Management is confident because half of the 30 inherited Luminar IRIS customer accounts have already been reactivated, and the team has successfully restarted suspended supplier relationships to fulfill orders. Guidance reflects the remaining work to scale supply, with any delayed shipments simply pushed into early 2027 rather than lost. Security and defense revenue is already growing today, with current shipments to defense customers contributing revenue in Q3 2026. New partnerships will generate small evaluation sales by Q4 2026, with meaningful production revenue expected in 2027, and larger long-term development programs contributing revenue in 2028.\n\nQ: How does software fit into MicroVision's strategy, and how does MicroVision Semiconductor support the company's goals? / A: Software reduces costs in two key ways: first, it enables sensor cost reduction by using AI and software to solve signal processing challenges instead of more expensive hardware components, working alongside in-house silicon integration to cut BOM costs. Second, the open software framework lets customers customize and optimize the sensor for their own systems, reducing development complexity, shortening time to market, and lowering total system cost for customers. MicroVision Semiconductor supports internal LiDAR cost reduction by bringing custom chip design in-house, and also generates incremental revenue from external custom design projects for third-party customers, which already contributed 15% of Q2 2026 revenue.