Faraday Future Intelligent Electric Inc. Common Stock 2026 Q2 Earnings Call

Good evening, everyone, and thank you for joining Faraday Future's second quarter 2026 earnings call. My name is John Schilling, Global Director of Public Relations, Communications, and Government Affairs at Faraday Future. Today, I am joined by our global CEO, Yueting Jia. Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review our SEC filings for a detailed discussion of these risks. We undertake no obligation to update forward-looking statements except as required by law. Following prepared remarks, we will address a selection of stockholder questions submitted in advance. With that, I'll turn the call over to YT, our founder, and global CEO.

Thank you, John, and thank you for joining us here today. In today's call, I will provide an update on FF's second quarter 2026 results, key progress from the second quarter through today, and our outlook for the next stage of growth. The second quarter validated our core growth model, where EAI Devices serve as the entryway, real-world data as the fuel, and the EAI Brain and developer platform as the driving engine. FF made a pivotal transition, moving from strategic framework into execution, scaled delivery, and commercial scenario deployment. Centered around our core pillars, we have established an initial closed-loop flywheel. Device deployment feeds real-world scenario data, which drives EAI Brain training, leading to skills and solution upgrades, and ultimately fueling further device deployment on EAI robotics business.

As of the end of the first quarter, second quarter, and July 2026, cumulative sales and shipments totaled 22,242 and 394 units respectively, demonstrating a continued upward trend in volume. Given the strong momentum, our annual shipment target has been updated to 2,000 units. To drive broader adoption, we also launched the EAI robotics education ecosystem for both B2C consumer and B2B education markets. By integrating robot bodies, AI programming curricula, developer tools, skills ecosystems, and real interaction data, led by entry-level products like FX Navi, we are lowering the barrier to physical AI learning and empowering young learners to evolve from AI users into AI creators.

Based on this progress, the company has completed the strategic upgrade to its four-core, full-stack AI ecosystem in the second quarter, further defining its development roadmap around four core pillars: the EAI brain, EAI devices, industry productivity solutions and developer platform, and the EAI Data Factory. All four pillars are now in active implementation, with the EAI devices business already in commercial deployment and the EAI brain, Data Factory, and industry productivity solutions and developer platform establishing their initial operating foundations. At the same time, these efforts position us well to proactively prepare for potential future ICTS-related regulatory developments. Meanwhile, we continue to advance our built-in U.S.A. strategy, accelerating the development of U.S. domestic robotics manufacturing capabilities and a trusted robotics industry value chain.

Leveraging the strategic market window created by the recent FCC policy, we are accelerating the establishment of a U.S.-centered robotics ecosystem, further strengthening FFAI's strategic leadership position in the U.S. Embodied AI robotics industry. Looking ahead, we remain committed to advancing the development of America's Embodied AI robotics industry and reinforcing the United States' global leadership in Embodied AI and robotics. Let me now walk through our product technology and business update. In the second quarter of 2026, we upgraded our robotics strategy to continue establishing targeted commercial execution. Our strategy evolved from three-in-one ecosystem to the four-core, full-stack AI ecosystem by adding industry productivity solutions and developer platform as the fourth core, alongside the EAI brain, EAI devices, and EAI Data Factory. Let's dive into each of these core solutions individually. Let's begin with the EAI brain.

Under our one brain, multiple forms architecture, the EAI brain serves as the core intelligence layer. During the quarter, we made significant progress across multiple fronts. We completed the initial development of our core technology framework for the Embodied AI robot brain, establishing a comprehensive stack that encompasses AI interaction, vision, language, action, VLA models, robotic manipulation, and whole-body motion control. Leveraging NVIDIA Project GR00T, we are continuously advancing VLA model fine-tuning and training on real robot data. Following the NVIDIA SONIC roadmap, we are making steady progress in whole-body motion control R&D. In the latest phase of testing, our whole-body motion model achieved a motion tracking success rate of approximately 98% on standard simulation benchmarks, validating FFAI's ability to rapidly integrate cutting-edge global AI technologies and enable cross-platform migration and autonomous adaptation across different robot form factors.

In parallel, we completed the initial basic capabilities for our universal teleoperation swarm control platform, enabling unified management across diverse hardware configurations. On the algorithmic side, world model training on Dream Zero reached key phase milestones to improve predictive control. We also launched our official robot control app on the iOS App Store and successfully completed an automated patrol demonstration for our self-developed security software. Collectively, these efforts have preliminarily established the foundational architecture and core enablers, including teleoperation and fleet management, necessary to support large-scale robot deployment in the future. Turning to the physical touchpoint of our technology, the EAI devices. We believe FF has established an early commercial leadership position in the U.S. Embodied AI robotics market, supported by growing sales and deployments across multiple robot form factors.

As of the end of the second quarter, cumulative sales and shipments totaled 242 units, increasing to 394 units by the end of July. All deliveries maintained our strict standard of payment before delivery with positive product gross margins. We have also advanced the traditional cooperation with Triple I Group and Sequoia Education Center to deploy robots in educational settings. On the distribution side, RobotShop, one of the leading robotics-focused e-commerce platforms, completed procurement evaluations and confirmed drop shipping support, while channel expansion with DSMA progressed. We recently launched our three-phase built-in U.S.A. acceleration program in alignment with recent FCC guidance on robot compliance. Moving from localized AI platform to assembled in the U.S.A. and ultimately made in the U.S.A., this initiative strengthens our domestic supply chain.

To directly catalyze hardware sales, AIxCrypto Holdings Inc., an independent public listed company controlled by FF, AIXC, designated RoboShare as its top operating priority for the second half of the year. Debuted at Automate 2026, AIXC provides the protocol, identity, and settlement layers, while FFAI acts as the lead hardware and asset foundation. This model unlocks continuous utilization, extended use, and network value after the sale. We have also onboarded our previously sold and newly purchased robots onto RoboShare under custody agreements, allowing us to effectively transform our robots into income-generating assets, lowering total cost of ownership for buyers, and directly driving new FFAI terminal sales. Moving on to the EAI Data Factory, the financial engine and fuel of our four-pillar AI ecosystem. This core layer has formed a complete commercial closed loop, generating initial sample payments and positioning the segment for significant profit growth.

Our primary customer's potential order value could reach over $400,000 at the high end, and price negotiations remain ongoing with a top-tier data company. To expand operational scale, we engaged over 20 supplier partners and reached initial agreements with two partners for Southeast Asia data collection sites. On the software side, decentralized collection tools were completed and deployed on the robotics units, while centralized collection and upload software was demonstrated at Automate in June. HQ collection expanded across three scenarios using Futurist, Faber S1, and Faber T1 units, supported by self-developed remote teleoperation software optimized for Faber. Finally, turning to industry productivity solutions and the developer platform, converting our full-stack AI into tailored complete solutions. The industry productivity solutions strategy will initially focus on four major market segments: education, industrial applications, security inspection, and other existing markets.

We will accelerate the development and delivery of complete solutions tailored to the distinct real-world needs of each industry. Within education, we established California's first education innovation lab in cooperation with leading partner institutions. For the developer platform, we completed a full business closed loop Deploying our EAI Soul framework, Brain Block modular architecture, open SDK, and API interfaces in the second quarter. We officially launched the FF EAI robotics open source and open developer platform, featuring both general and use developer editions alongside four core developer tools. Redwood Education joined as a flagship ecosystem partner, generating hardware sales and establishing a benchmark organization for educational development. The developer community now covers key segments including individual developers, educational institutions, secondary development companies, youth developers, and security inspection solution providers. The platform has built a robust ecosystem pipeline with over 20 qualified developer organizations and industry partners under active engagement.

Subsequent to the quarter, the developer platform continued its expansion, and multiple developers identified clear needs for robot purchases, testing, and real-world deployment. The developer platform is progressively building an end-to-end business conversion pipeline from developer acquisition and skill solution development to robot sales and scaled deployment. On product planning, the roadmap has been refined to include general, use, and dedicated skill stores. End-to-end technical validation and system optimization have been completed across the full workflow, from onboarding and tools to skill development, publishing, deployment, and robot execution. These efforts have notably enhanced functionality, stability, and developer experience, laying a solid foundation for scaling developer onboarding, accelerating skill creation, and expanding the ecosystem. Now, let me walk through our financial results for the second quarter and the first six months of 2026.

For the second quarter of 2026, total revenue reached $836,000, representing an increase of over 1,500% compared to $54,000 in the second quarter of 2025, and a 64% increase compared to $512,000 generated in the first quarter of 2026. For the first six months of 2026, cumulative revenue grew to $1.35 million, compared to $370,000 in the prior year period. This growth was primarily driven by scaling product deliveries within our EAI robotics segment, where we continue to achieve positive product gross margins. This top-line momentum reflects accelerating commercial adoption across our robotics portfolio. By exceeding our first half shipment targets, we are demonstrating clear market traction and validating the strength of our device data brain evolutionary flywheel. Our total cost of revenue and operating expenses saw material optimization during the period.