Microvision Inc 2026 Q2 Earnings Call

Good afternoon. I'm here today with our Chief Executive Officer, Glen DeVos, and our interim Chief Financial Officer, Steve Hrynewich. Following their prepared remarks, we will open the call to questions. Please note that some of the information you will hear in today's discussion will include forward-looking statements, including, but not limited to, strategic plans and execution progress, expectations regarding customer engagement and product delivery, product applications and use cases, market opportunities, cash flow forecasts, liquidity and financing activities, availability of funds and access to capital, expected near-term and future revenue, operating expenses and cash usage, as well as statements containing words like believe, expect, plan, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements.

We encourage you to review our SEC filings, including our most recently filed Form 10-K and quarterly reports on Form 10-Q. These filings describe risk factors that could cause our actual results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call. Except as required by law, we undertake no obligation to update this information. In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G.

For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as for all the financial data presented on this call, please refer to the information included in our press release and in our Form 8-K, dated and submitted to the SEC today, both of which can be found on our corporate website at ir.microvision.com, under the SEC Filings tab. This conference call will be available for audio replay on the investor relations section of our website at www.microvision.com. Now, I would like to turn the call over to Glen DeVos, our Chief Executive Officer.

Glen? Thank you, Drew, and good afternoon, everyone.

Welcome to MicroVision's second quarter 2026 earnings call. Earlier this year, we introduced LiDAR 2.0, the next chapter in MicroVision's evolution. It marked a deliberate shift from a hardware-first company improving our technology for automotive to a LiDAR-based perception company with solutions designed to offer value to customers across multiple industries and use cases. I want to share with you the tremendous progress we have made during the second quarter and how we have positioned MicroVision to now accelerate our revenue growth. The shift isn't a slogan, it's operational, and it's fundamentally changing how we work with customers, productize our offerings, and achieve meaningful commercial momentum. Most importantly, I want to share with you that it's working. MicroVision today is more vertically integrated, aligned, and commercially active than at any point in our history.

We are building traction simultaneously across our core markets in industrial, security and defense, and automotive, as well as adjacent markets like robotics and AI. This is driven by the breadth of our product portfolio and our design-to-cost engineering philosophy, and underpinned by our open software framework. Today's call will cover a number of areas. First, an update on our LiDAR 2.0 strategy and how it fuels our revenue forecast. Second, a walkthrough of our commercial momentum, delving into the announcements and customer milestones of the past quarter and providing more context on the launch of MicroVision Semiconductor. Third, our product portfolio and roadmap, sharing the status of our nearest term catalysts, the MOVIA Air and MOVIA Air Plus launch, and the MOVIA S industrial launch.

Fourth, the strong leadership additions we've made this quarter to deepen our bench, and then a bit about our financing strategy before diving into our financials. Let's get into it. I'll start with LiDAR 2.0 and where we are with that strategy. LiDAR 2.0 encapsulates what we believe it takes to win in this market. Across a diversity of industries, the right performance at the right price, using software-enabled perception to lower system costs, and support for multiple verticals with our industry-leading portfolio. All delivered with the operational discipline that customer requires from long-term suppliers. One of the strongest validation points for MicroVision's execution this year has been how quickly the company stabilized and commercialized the acquired Luminar business. When MicroVision acquired Luminar's LiDAR business, it inherited far more than the IRIS and HALO product lines. The acquisition included inventory, engineering talent, customer contracts, and active commercial programs.

The real challenge was ensuring those customers continued receiving products and support without disruption. Within roughly one quarter of closing that acquisition, we had successfully integrated the Luminar engineering teams, consolidated manufacturing operations to improve efficiency, resume shipping existing IRIS inventory, maintain customer relationships while pursuing new opportunities, and reduce operating expenses through streamlined operations. This has been a significant operational achievement. Perhaps the biggest accomplishment is that existing IRIS customers could continue to be served with our broader product portfolio. Rather than forcing customers through a redesign or platform migration, MicroVision preserved their investment while expanding the future roadmap. Instead of being a standalone product, IRIS now sits with our broader perception platforms, MOVIA for short range, IRIS for long range applications, HALO is the next generation evolution of long-range sensing, FMCW technology from Scantinel, and perception software across the entire portfolio.

This allows MicroVision to deliver the best sensor for each application instead of trying to fit every customer into a single product or technology. This diversified portfolio is now a key strength and a significant differentiator for MicroVision. This is why we have confidence in our revenue guide for the current year with significant growth expected in 2027, building on a solid recurring revenue foundation. We continue to see expanding customer engagements across all products and end markets with a significant increase in near-term booking opportunities. As I stated earlier, the efforts in Q1 and Q2 are delivering on MicroVision's revenue growth plans. Let's talk about momentum building and the recent announcements. Turning to our recent commercial momentum, we are making great progress, as I stated. We continue to be successful in converting Luminar customer accounts into MicroVision development agreements and purchase orders.

This is exactly what we planned for with the Luminar acquisition. Additionally, we see strong increase in increased customer engagements with MOVIA S as we prepare for our October launch. Let me share some examples. On April 14th, we launched our global partner and reseller program, establishing reseller integrator relationships across Japan, North America, Europe, Korea, and Singapore, targeting industrial, defense, and mobility customers. That includes a partnership with one of Japan's largest, most established technology resellers, covering automotive, heavy industry, mining, agriculture, rail safety, and marine and offshore use cases. On June 10th, we signed a launching development agreement with a leading construction and mining equipment OEM to integrate two IRIS Lidar sensors per off-highway truck into their next generation autonomous hauling solution, with future potential to add HALO to that platform as well.

On June 13th, we delivered IRIS sensor shipments to Lake Fusion Technologies as they and Timberline Aerospace expand their collaboration on situational awareness solutions. On June 29th, we delivered MOVIA sensors to a leading AI company and hyperscaler for evaluation across robotics, autonomous systems, and next generation AI applications. A strong proof point that our diversification beyond automotive is real, not just aspirational. On July 1st, we appointed IDI Laser as our premier partner for industrial, defense, and security markets across Southeast Asia, extending our reseller footprint beyond the initial five country base we had announced in April. On July 6th, we engaged with J.A. Green & Company to accelerate our U.S. defense market strategy and strategic partnerships, a deliberate investment in the defense and security channel specifically. On July 14th, we formalized MicroVision Semiconductor, Inc.

It's another key unlock in this strategy. MicroVision Semiconductor, which we introduced to market last month and which I'll cover in more detail in a moment, is owning that custom ASIC and mixed signal design. It brings it in-house rather than outsourcing it, and it's how we protect both the cost curve and the integration advantage that Lidar 2.0 depends on. On July 15th, James Vian joined us as MicroVision's first Chief Commercial Officer, which I'll also cover in more detail shortly. In another example of the acceleration of our traction, just last week, we received an order from a prime contractor supplying autonomous UGVs, or unmanned ground vehicles, to the military, highlighting the importance of IRIS' 1550 nanometer technology, which is invisible to night vision goggles, as the customer phases out the use of 905 nanometer sensors.

We also received an order for IRIS sensors from a key defense and aerospace contractor for use in unmanned aircraft applications. Earlier this week, we unveiled MOVIA Air and MOVIA Air Plus. Autonomous aerial systems represent one of the fastest growing opportunities for perception technology. As drones evolve from remote controlled platforms to fully autonomous systems, they need more than imagery. They need the ability to understand and react to the world around them in real time. This is exactly what MOVIA Air delivers with its ability to combine LiDAR and camera sensing to build and transmit high definition 3D maps in real time to UGVs, command centers, or to other airborne assets. More importantly, it demonstrates the scalability of our business model. The same core technologies we've developed for automotive and industrial applications can now be deployed across aerospace, defense, logistics, and security.