管理層發言
Ladies and gentlemen, thank you for standing by. Our call will begin shortly. Welcome to Innoviz's First Quarter 2026 Earnings Call. Our presentation today will be followed by a question-and-answer session, at which time, if you wish to ask a question, you will need to either raise your hand using your mobile or desktop application or press 9 on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded. I would now like to hand the call over to our first speaker, Ada Menaker, Head of Investor Relations. Ada, please go ahead.
Good morning. I would like to welcome you to the Innoviz Technologies First Quarter 2026 Earnings Conference Call. Joining us today are Omer David Keilaf, Chief Executive Officer, and Eldar Cegla, Chief Financial Officer. I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at ir.innoviz.tech. Before we begin, I would to remind you that our discussion today will include forward-looking statements that are subject to risks and uncertainties relating to future events and the future financial performance of Innoviz. Actual results could differ materially from those anticipated in the forward-looking statements. Forward-looking statements made today speak only to our expectations as of today, and we undertake no obligation to update those statements to reflect subsequent events or circumstances. Please see the Risk Factors section of our Form 20-F filed with the SEC on March 4, 2026.
Omer, please go ahead.
Thank you, Ada, and good morning to everyone joining us for our first quarter earnings call. In the early months of 2026, we reached critical technical milestones with our new products, made progress on existing programs, and continued to engage with new automotive and non-automotive customers. We also announced our entry into the defense and homeland security market. Some of our first quarter NRE milestones, which can be variable, shifted forward in part due to requests for additional content. As a result, we generated revenues of $7.1 million. We believe we will be able to recognize the delayed revenues, all of which have purchase orders in place, in the coming quarters. Our outlook for the full year remains unchanged, as we continue to target revenues of $67 to $73 million. Our long-term outlook likewise remains unchanged. It is driven by our view that LiDAR is the most reliable method for digitizing the physical world and is indispensable starting this year.
We believe we are on the way to becoming a meaningful player in the defense sector. In automotive, we are advancing towards SOPs with customers including Volkswagen, Mobileye, and Daimler Truck. On Wednesday, we announced an agreement with a leading autonomous driving technology company to evaluate the development of enhanced on-sensor LiDAR perception capabilities. And last week, we signed a letter of intent with LOXO to integrate the InnovizTwo long range into its Level 4 digital driver platform, subject to successful completion of testing. Global interest in both Level 4 and Level 3 automation continues to expand, and there are a number of new opportunities arising at both traditional and new automotive OEMs and in areas such as heavy equipment and agriculture. On the technology and production front, we recently launched InnovizTwo Ultra-Long Range, which delivers up to 1-kilometer sensing, unlocking new capabilities across physical AI applications.
The Fabrinet ramp is going well, and we are delighted to be able to tell you we shipped a record number of units in the first quarter. Our shipments were about half of what we shipped in all of 2025, and we expect them to further accelerate in the second half of the year. In all, our product and customer pipelines are robust, and we are continuing to execute on our 2026 plan. In 2025, NREs made up approximately 70% of our revenues. Over time, we continue to expect NRE revenues to remain a stable part of our business on a dollar basis. As our current programs reach SOPs, and we expect to win additional programs in our existing and new end markets, including security and defense, we believe we will see a significant step up in LiDAR revenues and gross margins. This will likely drive meaningful growth and a shift in our revenue mix away from NREs and toward LiDAR sales. Further, we believe that sales of LiDARs in non-automotive physical AI applications will increase from approximately 1% of revenues in 2025 to up to 10% of our revenues in 2026.
We expect this trend to further accelerate in the coming years as LiDAR plays a key role across a variety of physical AI applications. Now let's jump into the details, starting with our entry into defense and homeland security. Last month, we announced that the InnovizSMART and the newly launched InnovizTwo Ultra-Long Range are now available for defense and security applications. This is a rapidly growing market with premium pricing and higher margins. We believe that many existing sensing solutions face limitations in this space, and we see an opportunity for high-performance LiDAR to address gaps in detection range, weather resilience, and reliability. We are in active discussions with tens of potential customers and system integrators to provide a holistic solution including sensors, perception, and analytics. We have a dedicated team focused on expanding our position in this end market.
In the defense and security space, we will focus on a broad variety of use cases. We think our LiDARs are ideally suited to applications such as perimeter intrusion and border surveillance, where they can offer reliable around-the-clock monitoring in all weather conditions. Traditional radar and camera systems can be easily evaded, especially in challenging or busy terrain, and their weaknesses are well known, leaving them ripe for exploitation. Our LiDARs deliver a combination of long-range 3D detection, weather resilience, and ease of deployment. In applications such as mapping and situational awareness, our dense point cloud provides rich 3D environmental data for mission planning and terrain mapping in complex environments. Our LiDAR's fine angular resolution at long range is designed to support the detection and tracking of small, fast, low-reflectivity targets that are difficult for radar and cameras to detect, adding a new layer of security when applied to drone detection.
Small drones are increasingly being flown at low altitudes, where radar cannot detect them—literally under the radar. LiDAR adds a level of protection that is now just starting to be understood as crucial. Finally, the InnovizSMART and the InnovizTwo Ultra-Long Range can be deployed in autonomous and defense systems providing the perception, accuracy, and reliability required for safe navigation and obstacle avoidance. We believe that our automotive-grade products' performance, reliability, and resilience can offer game-changing capabilities to these applications. Our efforts in defense and security are already starting to pay off. We are seeing robust early traction. Yesterday, Kela, a fast-growing Israeli defense company, announced its intent to use our LiDARs in deployments across its unified situational operations platform, including applications such as drone detection and perimeter security.
Kela anticipates that the cooperation may scale in the coming years. In addition to Kela, we recently signed an agreement with a large holding group to incorporate Innoviz LiDARs into their defense and homeland security offerings. We look forward to their upcoming announcement that we will serve as their LiDAR partner. We have already received a prepayment, completed an installation, and are excited about the opportunity to continue to work with this customer in the future. The intent in both of these collaborations is that our clients will utilize a combination of our long range, short- to mid-range, and ultra-long range across a variety of applications. I am tremendously encouraged by these partnerships, which we believe demonstrate the market's need for a high-performance, reliable LiDAR solution and our product suitability for these important use cases. Let me update you on our automotive business.
Our programs with our existing customers are progressing well. For our Daimler Truck program in collaboration with Torc, we are delivering units to support milestones through SOP. MOIA has announced that they will deploy the VW ID.Buzz on the Uber platform in Los Angeles by the end of the year, as well as with Beep in Orlando. Each of these vehicles is planned to have nine InnovizTwo LiDARs—three long-range and six short- to mid-range—delivering meaningful content per vehicle. We expect the vehicle to be in multiple cities around the world by the end of the year, and we were happy to hear Mobileye say a few weeks ago that the robotaxi ecosystem had progressed significantly during the first quarter through the Mobileye Drive Level 4 platform. We are supporting HOLON and other customers on this platform. We are seeing strong momentum for this platform with potential for faster expansion than we expected initially.
Additionally, the feedback from our customers on our sensor performance has been very positive. On Level 3, we are advancing on our SOPs with Mobileye Chauffeur programs such as with Audi. In addition to the advances on our existing programs, we recently entered into a development program with a leading autonomous driving technology company to evaluate combining our LiDAR with on-sensor perception software for future autonomous vehicle programs. As autonomous vehicle programs advance towards series production, OEMs require that perception capabilities extend beyond the central compute stack and execute directly on the sensor. The on-sensor approach is designed to deliver standardized safety-critical outputs that operate independently of the vehicle's broader architecture. Finally, we just announced an LOI with LOXO, a Swiss pioneer in autonomous last-mile delivery. LOXO and Innoviz are currently in advanced stages of testing and evaluation of InnovizTwo long-range LiDAR for LOXO's autonomous vehicle platform.
Subject to the successful completion of this process, LOXO intends to nominate Innoviz as its LiDAR supplier with multiple LiDARs per vehicle. LOXO had previously evaluated other LiDARs and we would potentially be replacing an FMCW LiDAR in this platform. LOXO's feedback thus far has been very positive and we are excited to be working with them on the next generation of driverless delivery vehicles. Currently, there are several RFQs open for both Level 3 and Level 4 around the world, and we see robust interest in Level 4 from traditional and new automotive OEMs as well as industrial and agricultural customers. We are actively participating in multiple processes with a few decisions expected to be made in the second half of the year. For programs prior to 2028 SOP, we are offering our suite of InnovizTwo products. For programs with later SOPs, we are also offering the Innoviz3, which we unveiled earlier this year and which includes an option for a color image along with the 3D data.
The holy grail for automotive LiDARs is behind-the-windshield installation that does not compromise vehicle design or the in-cabin environment. The Innoviz3, with its robust performance, smaller form factor, lower power consumption, and reduced costs, meets the OEMs' most stringent requirements. Reception has been outstanding, and we believe that the Innoviz3 is well positioned to win a number of these upcoming programs. To support our customers' needs, we have recently launched the InnovizTwo Ultra-Long Range (ULR) LiDAR. This device delivers up to 1-kilometer sensing and higher point cloud density resolution. It is designed to set a new standard for wide-area sensing covering terrain, borders, runways, and large installations with the precision and reliability of our automotive-grade LiDAR technology. The ULR addresses critical gaps in several applications by detecting and classifying small hazards at long ranges.
It lets autonomous vehicles drive faster while maintaining safety, even for heavy trucks with longer stopping distances. It can also enable perimeter security systems to identify humans, vehicles, and animals over vast areas while reducing false alarms. Additionally, its long range and high resolution can support drone detection and tracking. In all, the ULR will give customers in a wide range of industries a tool that did not exist before and that can perform reliably in harsh conditions. The first samples of the ULR have been delivered to key customers. Now let's talk about our outlook for 2026. We are reiterating the 2026 targets we set earlier this year, driven by the ramp of LiDAR shipments and ongoing NRE payments. We expect to grow revenues year over year approximately 27% to $67 to $73 million. In 2026, we expect up to 10% of our revenues to come from non-automotive physical AI applications, up from approximately 1% in 2025.
We expect new NRE payments planned of $20 to $30 million in addition to our existing plans, and we expect to add two to three new programs this year. And now I will turn it over to Eldar Cegla to discuss our financials.
Thank you, Omer, and good morning, everybody. In the first quarter, revenues were $7.1 million. Some of our revenues were pushed into the coming quarters due to NRE milestone variability. As Omer stated earlier, purchase orders are in place for the delayed revenues, and we are already closing the gap. A significant contribution to revenues came from unit shipments in the quarter, which were a record high. We ended the quarter with approximately $60.1 million in cash, cash equivalents, short-term deposits, and marketable securities on the balance sheet. And we continue to have no long-term debt. For the quarter, cash used in operations and capital expenditures was approximately $15.8 million. The quarter-over-quarter increase in cash used was influenced by higher working capital needs due to our ongoing production ramp at Fabrinet, as well as the shift in NRE payments. Gross margin in the quarter was approximately -22% due to the revenue mix as well as lower absorption of fixed costs associated with unit production.
Fixed cost absorption is expected to significantly improve later this year as volumes ramp, driving uplift in gross margins. For the full details of our operating expenses and stock-based compensation, please see the tables in our press release. Despite lower revenues than expected, our full-year and long-term outlook remains unchanged due to the existing customer demand as well as orders from new customers. We view LiDAR as indispensable to the rise of physical AI and we believe the new end markets we entered into will further expand our reach in this area. With that, I will turn the call back to Omer for his closing remarks.
Thank you, Ada. Before I wrap up the call and open for Q&A, I want to recap our recent developments. We are very excited about our entry into the fast-growing and high-margin defense and homeland security space where our performance and reliability offer significant advantages. This end market is undergoing rapid expansion, and there is an enormous demand for new sensing technologies. We stand ready to address this demand. We are seeing strong traction with our offerings, and in addition to our engagement with Kela, we expect another large customer to make an announcement naming us soon. Our automotive business is progressing well, and we have products launching this year to support programs set for SOPs across Level 3 and Level 4. These include programs with Volkswagen and other customers on the Mobileye Drive and Chauffeur platforms as well as with Daimler Truck and Torc. We announced a new development program to evaluate combining our LiDAR with on-sensor perception software.
We also announced an LOI with LOXO where we are in advanced stages of evaluation for inclusion in their autonomous vehicle program, potentially replacing an FMCW LiDAR. Recently we launched our InnovizTwo ULR LiDAR, which offers up to 1-kilometer range for a variety of applications. Our production capabilities continue to grow, and after record levels in the first quarter, we expect shipments to accelerate further. Outlook for the full year remains unchanged, and we are pleased with the operational business momentum we have seen so far this year. And with that, operator, let's begin the Q&A.
分析師問答
To ask a question, please raise your hand using your mobile or desktop application or press 9 on your telephone keypad and wait for your name to be announced. Our first question will be for Mark Delaney with Goldman Sachs. Mark, please go ahead.
Yes. Thank you very much for taking the questions. For the non-automotive program Innoviz has won, I am hoping you can help us better understand how much revenue those programs will represent when they are fully ramped and how long that might take. And then could you also talk about the profitability in the non-automotive applications?
Yeah. Sure. Gladly. So this is based on the Innoviz Smart solutions. Obviously, the ASPs are significantly higher than the ones that we are offering in the automotive space. In terms of the ramp up, part of the applications that we are offering today are solutions for drone detection, so based on the application there is, I would say, a high sense of urgency in some of those topics; those could actually grow quite fast. As far as we understand, today there is no viable solution for defense solutions for drones. We are working very strongly with the different teams to offer the solution to solve this very difficult problem. And, of course, we are also very proud to be able to provide a solution for this topic. Over the last month or two, I do not think there was a day I did not get a call or three calls a day on this topic. This is a very important element, and I think that the sense of urgency related to that could drive fast adoption. In terms of the volume, as you can understand, there is high demand and the ASPs are relevant to the non-automotive space, which are high.
Understood. Thanks for that color. Secondly, I was hoping you could give more of an update on the competitive environment that Innoviz has seen in the vehicle market. It sounds from your comments like the LOXO engagement would potentially be a competitive win from a competitor. But can you speak more broadly on what Innoviz has seen in the competitive landscape including with the top five auto OEM program where you have had the SODW that was complete? I think we were waiting for feedback as of the last report. And just more broadly, what have you seen from the competitive standpoint?
Sure. So I believe that the competitive landscape has not changed materially. Today, there are fewer solutions offered by different companies, and there is also the geopolitical discussion related to that. When it comes to a solution that can be set well within the design of the vehicle behind the windshield, I am not familiar with a solution that is optimized like Innoviz3. I believe that on that front, we are definitely in the lead. When it comes to robotaxis, we see the desire of some of the platforms to move away from spinners to directional sensors, and InnovizTwo is a very strong offer in terms of our performance, our readiness, and our full portfolio of short- to mid-range, long-range, and now the ultra-long range. So I think that on that matter, we are also in a very strong position. There are several programs that we are competing on. I think that in all of those, we are in a very strong position, and we are waiting to see how they progress.
And just specifically to that top five auto OEM where you'd had the SODW, any more color you can share on when you hear back and if you think you are going to ultimately get a series production award?
No, there is no update to that specific program. There are many other programs where we are making good progress. I think that, generally, Level 4 programs are moving faster than Level 3. But even on Level 3 opportunities, we see that when programs are designed behind the windshield, this is where we are seeing a lot of interest and good feedback from customers.
Okay. And just lastly for me, you mentioned some timing elements of NRE revenue that affected Q1. Any more color you can share around how the scope of those programs changed? It sounds like you have to do more work, and the timing of when you are going to be able to recognize revenue is a little bit more extended. If you could share a little bit more about what is going on there, that would be helpful. And just confirming, do you expect to get all of that back this year or would some of that be beyond 2026?
First, I will address the second question: we expect to be able to meet all of our targets for milestones this year. This specific milestone is actually related to an ask from the OEM to pull in some of the activities that were planned for later because of the sense of urgency of the specific program we are working on. That led to additional tasks that were added that went beyond the quarter. We have already made deliveries on that milestone, and we are working on other milestones for the rest of the year. I believe that we will be able to complete all of them within the year.
Thanks. I will pass it on.
To ask a question, please raise your hand using your mobile or desktop application or press 9 on your telephone keypad and wait for your name to be announced. Our next question is from Ryan Casey from WestPark Capital. Casey, please go ahead.
Yeah. Thank you. Good morning, gentlemen. Great update. So I just wanted to ask a question about what we consider programs because it feels like you are announcing quite a few customer wins and opportunities. But what should we think about in terms of a program? Is that something that is very long-ranging and maybe tied to automotive specifically? Can we dig into what 'program' means in terms of your goals?
Sure. So we are referring to programs where we have an agreement and yearly planning of ramp-up, primarily in the automotive space. We also have programs where we are working on trucks and vehicles that will operate in other sectors such as agriculture and construction. Those are mostly related to the automotive space broadly defined.
Okay. So automotive and possibly mining and agriculture tied to vehicle counts. Great. There has been a lot of discussion about the addition of color into solutions. Tell me how important color is or if color is really a specific market like smart cities or some other vertical in your view?
Sure. Sensor fusion has been used for a very long time. We introduced color in Innoviz3 earlier this year, as you probably recall from our last earnings when we actually showed the video live from Innoviz3 with the color point cloud. From our perspective, the decision to integrate color into Innoviz3 comes from our desire to optimize the solution for behind-the-windshield integration. Currently, behind the windshield there are cameras, and there is a packaging problem. From that regard, we decided to include color within the LiDAR so the solution would be more integrated. In non-automotive solutions, that level of packaging is probably less of a concern, but of course we can offer color within the LiDAR for other applications as well.
Terrific. And then just one final question about autonomous trucking. It sounds like in talking to people in the industry that there may be two types of trucks, like a lead truck and follow trucks, and that maybe their LiDAR configurations would be separate. Do you view the market as having two primary form factors, or do you think most trucks will be equipped with the same LiDAR counts and technical specs?
Well, the truck programs we are involved with are related to long-haul autonomous driving. The count of LiDARs is related to the geometry of the vehicle in terms of providing a zero-blind-spot configuration. Usually, there is a mix between short- to mid-range, long-range, and ultra-long range in some cases. I don't think they vary that much between different players.
Okay. Alright. Thank you. It was a great quarter with a lot of exciting updates, so thank you. We look forward to more in the coming quarters.
Thank you.
Our next question is from Colin Rusch from Oppenheimer. Colin, please go ahead.
Hey, guys. How are you? Could you talk a little bit about the evolution of the competitive landscape? Obviously, there's a lot happening right now, and you guys have done a lot as well. I'm curious about consolidation in the market, some of the functionality that is being rolled out, your ability to start looking at LiDAR with color integration capabilities, and how you see that kind of segmentation starting to happen among some of the leaders in the space?
Sure. Again, as I said earlier, the LiDAR space is still evolving. Over the course of the last 10 years, LiDAR ranges have gone from tens of meters to a kilometer, resolution has improved by several orders of magnitude, costs have been reduced, and new features have been introduced. LiDARs are going to serve many sectors—automotive, defense, smart cities, ITS—and physical AI is overlapping everything now. LiDARs will continue to evolve: smaller form factors, cost reduction, and integration of compute into the sensor, such as we are working on with this new program where we are adding our perception capability into the LiDAR. I think there are many directions where LiDARs can evolve and it depends on the market you're focusing on and understanding customer needs in each. Recently we saw a big gap in the defense market, which is why we believe we can fill that gap. In the automotive space, we saw an opportunity to improve our offering by including color in the LiDAR to solve behind-the-windshield integration.
There are many applications where sensor fusion is helpful—for example, perimeter security for drones where you see sensor fusion between LiDAR and radar, and sometimes LiDAR and camera. We are still in the early days where 3D sensing will be incorporated into physical AI. You will see different companies optimizing different areas. So far, Innoviz has demonstrated strong optimization in the automotive space. We are starting to do so in defense and homeland security, and we will continue to evaluate other markets where we can provide the most value.
Excellent. And then on the cost side, as you start to see some scale and more maturity in the space, I'm wondering about the opportunity to start driving device costs to more optimal levels. Obviously you guys are getting a lot of performance out of the same materials and performance improvements. I'm curious about actual device cost reduction and the cadence of that—if there is an opportunity to accelerate it at all.
Yeah. Between the first generation and InnovizOne, and subsequent generations, every generation delivered significant cost reduction. Between InnovizOne and InnovizTwo, we saw roughly a 70% cost reduction. Between InnovizTwo and Innoviz3, there was another step of roughly 35%. There is still much room to go. Fundamentally, there's nothing inherently expensive in a LiDAR: an emitter diode, a receiver—we use silicon-based receivers because we're using 905 nm—and a processor. We developed our own ASIC. We're still in the early days: volumes will increase, industrialization will help production, and LiDARs will continue to get cheaper while bringing more value.
Awesome. Thanks, guys.
Our next question is from Jash Patwa from JPMorgan. Jash, please go ahead.
Hi. Good morning, and thank you for taking my questions. Congratulations on all the progress. I was wondering if you would be able to share some early learnings from the initial ID.Buzz test runs in LA. Any insights you can provide on the role LiDAR is playing in driving decisions, specifically whether it is being used as a primary sensor or more as a backup? That would be great. I have a follow-up. Thanks.
Sure. What I can say is that the progress has been very positive. The feedback we hear is that it is going very well, and we are hearing good indications on growth from this platform. There are many tests in many areas, including in Oslo for tough weather conditions such as snow. We have conducted winter testing with the group. From my understanding at Volkswagen, they see the ID.Buzz as a very important asset for their future. It has been discussed extensively at events and appears to be a centerpiece of VW's plans. We are already talking about the next platform extension. Regarding the LiDAR, it is a critical component in the sensor suite. Mobileye handles the platform software and their architecture integrates camera and LiDAR, which provide redundancy to each other. So the LiDAR is a very critical component, both the long range and the short range.
Understood. That is very helpful color. I appreciate all the discussion on InnovizSMART and the end markets. I was curious if you were currently working with any humanoid robotics developers. It seems like that could represent another long-term volume growth opportunity. Can you share any additional color on the technical or specific requirements needed to gain traction in this market, and whether there are any unique nuances compared to your core automotive use cases today? Thank you.
I would say any device with machine vision would benefit from a 3D sensor. As a company, we are trying to find markets that are at the growth stage where our mature product can provide value. Of course, we are always in discussions with next-generation markets to understand needs and how our technology could provide value. As I said earlier on the call, we have over 100 open opportunities—maybe 150—with a focus on applications that are already in ramp and where there is a sense of urgency. The humanoid market is interesting but still in a very early stage. Whenever that market grows, we will keep an eye on its needs and believe we will be able to provide a strong solution.
Great. Thanks so much, and congratulations. Good luck.
Thank you.
There are no further questions at this time. I will hand the call back to Omer for closing remarks.
Thank you very much for attending our earnings call. I believe that our entry into the defense and homeland security market will allow the company to share more updates with you going forward. Also, on the automotive side, we are making good progress, especially when it comes to the Innoviz3, and we hope that we will be able to share some of that news soon. So thank you very much, and see you next time.