Aeva Technologies, Inc. 2026 Q2 Earnings Call

Welcome everyone to Aeva's second quarter 2026 earnings conference call. Joining on the call today are Soroush Salehian, Aeva's Co-founder and CEO, and Saurabh Sinha, Aeva's CFO. Ahead of this call, we issued our second quarter 2026 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.aeva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

For a further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Aeva's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for or in isolation from GAAP results. The webcast replay of this call will be available on our company website under the investor relations link. With that, let me turn the call over to Soroush.

Thanks, Andrew. Good afternoon, everyone. Q2 was another strong quarter at Aeva. We continue to build on our leadership position with more milestones delivered to our customers and partners and important expansion into new areas, leveraging our same core technology developed in the last decade. In particular, we announced today our entrance into a very exciting new market beyond sensing applications that I will talk more about in a bit. Reflecting our commercial momentum, we achieved another strong revenue quarter with continued strong sensor shipments and NRE higher than the previous year. With demand for Aeva's technology continuing to grow, we are progressing on the targets we set this year to scale our manufacturing. We are working on ramping across our supply chain from our CM partners to foundries and component suppliers to support higher volumes to meet demand.

We also strengthened our balance sheet in June with a follow-on equity offering that brought our total available liquidity to over $300 million at the end of Q2. We believe this further differentiates and positions Aeva to support our current customers to commercial deployment and expand our commercial traction across the board. I would now like to highlight recent achievements and business developments. First, we are excited to announce the launch of the Aeva Optical Connectivity Business, which is our expansion to a new market that leverages Aeva's high optical power source and silicon photonics technology to enable next-generation AI data centers. Aeva has spent the past decade developing and proving out our proprietary laser-based technology for the automotive and industrial applications.

Because our technology is built on the same foundational technology used in the telecom industry, it uniquely positions Aeva to repurpose it without significant development to pursue the massive data center market opportunity as the major AI compute companies like NVIDIA, AMD, and hyperscalers such as Amazon, Microsoft, Google, transition to optical connectivity, where we believe Aeva can provide differentiated solutions to achieve the increasing performance, power efficiency, and scalability requirements for AI data centers. Earlier this year, we published a paper detailing the industry-leading performance of Aeva's high-power optical source technology. Since then, we have moved quickly to meet growing interest from leaders in AI infrastructure in Aeva's capabilities. In just a few short months, we have been working with a number of AI chip companies and optical solution providers to hyperscalers to validate some of those capabilities, and the results so far have been very encouraging.

We have been able to demonstrate how Aeva's technology can deliver across stringent key metrics the required high optical power, low noise, reliability, and power efficiency in a scalable solution to address the rapidly growing bandwidth and power demands of multiple next-generation AI data center architectures, including Near-Package Optics and Co-Packaged Optics or CPO. I am thrilled to share today that we have just signed a key joint development agreement with a leading provider of high-speed optical engines to integrate Aeva's technology into a Near-Package Optics solution for a major hyperscaler with planned commercial deployments as soon as feasible, with the potential to start initial volumes in 2027 and ramping in 2028. This is a significant validation of the performance, maturity, and scalability of Aeva's technology. We believe it will advance the business we're launching today, including our other ongoing engagements across the industry.

The potential scale for this market is large, and we believe a deployment like with this deal, once qualified at the hyperscaler, has the potential to exceed multiple millions of units annually, with revenues in the multiple hundreds of millions of dollars per year. To support the significant potential for optical connectivity, we plan to leverage Aeva's existing manufacturing and foundry supply chain for volume production. We've also established a dedicated team with Pradeep Srinivasan, Aeva's VP of Photonics, taking an expanded role as Senior VP of Optical Connectivity. Pradeep has been instrumental in developing and industrializing Aeva's silicon photonics IP, and together with the team, will enable Aeva to accelerate the development, deployment, and adoption of optical connectivity. With our technology, team, and the growing commercial interest, we are very excited about the future of optical connectivity and plan to share more updates on this as we progress.

Now moving to automotive. We also made really good progress across our key automotive programs this past quarter. On Daimler Truck, we continue to scale shipments of production-intent Aeva Atlas sensors to the OEM for their AV stack validation ahead of series production. Importantly, we've begun manufacturing at our fully automated assembly line at Jabil in North America, a major milestone towards Aeva's readiness and ability to scale up manufacturing for automotive and others, including Daimler Truck's production program. In passenger vehicles, we've also progressed on milestones with the delivery of our Aeva Atlas Ultra systems and continued integration work for joint stack development with a top 10 European passenger OEM production program, as well as with NVIDIA on the NVIDIA DRIVE Hyperion platform. Our collaboration with Bendix has also progressed to a critical next stage.

Bendix has selected to use Aeva's 4D LiDAR and perception software and integrate them into its next-generation ADAS series production system for key added safety functionality for trucks, such as collision mitigation across a broader range of scenarios and nighttime driving. Bendix is the leader in commercial vehicle ADAS. Its current Bendix Fusion, which is a vision and radar-based system, is the market-leading collision mitigation and active safety solution in North America. It is available on most of the 300,000 Class 8 trucks that are sold annually in North America alone.

With Bendix having the goal to make its next-generation ADAS system standard feature for the flagship OEMs of their major OEMs, names like Paccar or International, this selection not only highlights how the industry continues to adopt LiDAR to improve performance, but it's also a strong validation of the manufacturability and the cost effectiveness of Aeva's solutions in Level 2+ ADAS applications, where LiDAR has traditionally not penetrated yet. Now turning to factory automation, we reached an important milestone with another customer launch of Aeva product, our Eve sensor. This quarter, SICK AG, one of the largest industrial sensor providers globally, commercially launched its first industrial sensor using Aeva's Eve precision sensing system.

This is part of our long-term strategic collaboration with SICK to leverage Aeva's advantages, such as immunity to ambient light and sensor-to-sensor interference, to deliver more precise and reliable measurements across a broader range of environments at scale. In addition to SICK, we continue to see strong interest for our precision technology from leaders in manufacturing and factory automation and are working towards converting these engagements to commercial awards in the near term. Separately, in defense, we continue to support Forterra's autonomous ground vehicle, or AGV, programs as they transition from Time-of-Flight to Aeva's 4D LiDAR for long range and velocity detection, as well as for vehicle positioning and stealth operational capability in GPS-denied environments. This quarter, we also progressed on other opportunities with major defense companies and organizations beyond ground applications, including, for example, on aerial autonomy. We look forward to sharing more on these in the coming months.

Last but not least, in smart infrastructure, we continue to see good traction with the recently introduced Aeva CityOS, our AI-powered platform for real-time intelligent traffic management. Following our first large-scale deployment in the Atlanta, Georgia area, the city of Fargo in North Dakota selected us to deploy CityOS to improve roadway safety and traffic management, leveraging 4D LiDAR's ability to operate in inclement weather such as snow, fog, and rain, and in all lighting conditions. Aeva's ITS team is also active with other DOTs and municipalities, and we believe that our differentiated solution will continue to penetrate for additional deployments. In summary, we achieved a lot this past quarter, and our differentiated technology and balance sheet positioned us to further solidify a leadership position in the industry as we execute on our commercial momentum.

Before I turn the call to Saurabh to walk through our Q2 financial results, I want to say a few words on the CFO transition we announced today. Saurabh, who joined Aeva 6 years ago as our CFO, will be moving on in September to pursue a new opportunity outside the sensing industry. I want to personally thank him for his many contributions to Aeva, including his role in helping to take the company from early public stage to where we are today. We wish him all the best on his next role. We have already initiated a search for a permanent successor, which will be announced separately once complete. In the interim, Rupesh Maheshwari, our VP Corporate Controller, will step in as Interim CFO.