PANL

• Strategic Update & Market Diversification • Management shifted to a diversification strategy focused on higher-demand, near-term revenue markets beyond traditional automotive, which is already delivering results • The transition to end-market diversification is gaining traction, with near-term system sales positioning the company to capture larger future revenue as partners win end projects, compared to the prior model of long lead times between automotive design wins and production
• Defense & Homeland Security Progress • A leading global defense integrator selected Arbe's technology for three projects, with a signed framework agreement expected to add additional projects over time • Arbe shipped complete radar systems from its in-house production line for immediate operational needs; its high-definition imaging radar is integrated into FORTERRA's autonomous drive perception suite for unstructured, GPS-denied environments • Multiple additional defense opportunities are in evaluation, with customers accelerating procurement and deployment cycle times to meet urgent operational needs
• Non-Automotive Commercial Progress • Partner SENSRAD is integrating Arbe chipset-powered radar into automated service vehicles for underground tunnel construction via a new collaboration with VirtuRAID; Arbe continues supplying chipsets to SENSRAD for multiple end customers • Arbe is engaged in evaluation for multiple unmanned ground vehicle programs, where its high-resolution radar output is sufficient to enable fully autonomous navigation without additional sensors
• Automotive Segment Progress • Phoenix 360-degree radar systems ordered by a global robotics player in the prior quarter have been integrated into the customer's vehicles, which have now begun on-board trials • Active bidding processes are ongoing with additional robo-taxi players, with positive early feedback • In China, top partner Hiren continues to receive Arbe chipsets for its level 4 autonomous vehicle program with a large Chinese automaker, with production scheduled to start in the next few months; Hiren is also developing a lower-cost 24x12 channel platform based on Arbe chipsets to target a broader range of vehicles • Global OEMs continue testing Arbe's ultra-high resolution radar for higher-level autonomy, and Arbe is positioned as a leading low-cost provider for level 3 and above autonomy programs
• Operational & Leadership Changes • Cost reduction efforts have cut the company's cost base by 15% from Q1 2026 levels, with full impact expected in Q3 2026; AI automation was leveraged to reduce expenses • Outgoing CFO Corinne Pinter-Flomenbaum departs after five years building the company's finance, governance, and fundraising infrastructure; incoming CFO Asaf Pereg will join on August 30, 2026, bringing nearly 20 years of financial leadership experience with public and private tech companies
• Cash Position • Ending cash is ~$42 million, with targeted quarterly cash burn expected to fall below $7 million per quarter starting in Q3 2026, providing sufficient runway to execute the company's strategy

• Management reaffirms its original full-year 2026 guidance issued in February 2026, with no upward or downward revision • Full-year 2026 revenue is projected to be in the range of $4 million to $6 million • Full-year 2026 adjusted EBITDA loss is projected to be in the range of $28 million to $31 million • Management expects meaningful revenue growth in the second half of 2026, with growth continuing into 2027 as the company's diversification strategy gains traction • Quarterly cash burn is targeted to fall below $7 million per quarter starting in Q3 2026, driven by completed cost reduction measures and expected revenue growth

Arbe Robotics reports consolidated financial results for Q2 2026 without breaking out separate segment revenue figures. Total company revenue was $0.7 million, up 133% from $0.3 million in Q2 2025, marking the third consecutive quarter of revenue growth. Total backlog as of June 30, 2026 was $1 million. Gross loss was near break-even, an improvement from a $0.2 million gross loss in Q2 2025. Total operating expenses were $9.8 million, down from $11.3 million in Q2 2025. Operating loss was $9.8 million, down from an operating loss of $11.5 million in Q2 2025. Non-GAAP adjusted EBITDA loss was $8.7 million. Net loss included $0.7 million in financial income, down from $1.3 million in financial income in Q2 2025. As of quarter-end, the company held $41.9 million in cash, cash equivalents, and short-term deposits, with shareholders' equity of $40.5 million.

No explicit risks or operational failures were discussed by management during the earnings call.

Q: Analyst Matthew Pacquely asked for additional detail on the volume potential of the three new defense projects and how the new framework partnership with the leading defense integrator could expand over time. / A: CEO Ron Marfness confirmed the agreement is a long-term framework that currently includes three defined projects, and will be extended to additional applications over time. He noted the company cannot disclose specific project details per partner request, but outlined common relevant defense use cases for Arbe's imaging radar, including unmanned ground vehicles and perimeter security. Arbe's radar is well-suited for defense applications because it performs reliably in dust, low light, and bad weather where cameras fail, creating strong demand across multiple use cases.

Q: Pacquely followed up by asking for detail on the robo-taxi selection process, remaining milestones, and expected timing for commercial progress. / A: Marfness explained that multiple robo-taxi vehicles are already equipped with Arbe's 360-degree Phoenix radar systems. Development of the perception AI stack based on Arbe's radar data is just beginning, with rollout expected between the end of 2026 and early 2027 for the first lead robo-taxi customer. Additional robo-taxi programs are currently in earlier stages of evaluation and engagement.