INVZ

Ouster Inc. OUST is riding the Physical AI lidar wave. The company reported a narrower-than-expected loss in the second quarter of 2026. Revenues of $55 million rose 56% year over year and surpassed the consensus estimate of $51 million by 7.6%. Ouster, Inc. price-consensus-eps-surprise-chart | Ouster, Inc. Quote Year to date, shares of Ouster have doubled, matching the performance of Aeva Technologies AEVA, one of its closest peers. The company outperformed other peers like Hesai Group HSAI and Innoviz Technologies INVZ, whose shares fell 14% and 55%, respectively, year to date. Image Source: Zacks Investment Research While Ouster’s share gains are backed by improving fundamentals, the company is still unprofitable, and production scaling remains an execution risk. But do these risks warrant staying on the sidelines, or are there enough catalysts to help the stock gain more upside? Let’s dig deeper to assess if this is a buy at current levels. Ouster is extending beyond lidar into a unified sensing and perception platform spanning cameras, AI compute, sensor fusion, software and AI models. The StereoLabs acquisition has broadened its reach in robotics, while the ZED X Nano has drawn substantial customer uptake in humanoid and robotic manipulation applications. In the second quarter of 2026, Ouster also expanded relationships across industrial automation, mining, security, autonomous vehicles and robotics, and deeper NVIDIA integration brought Rev8 to the DRIVE and Jetson platforms, simplifying deployment for customers building Physical AI systems. That platform expansion is already translating into commercial traction. Rev8, which introduces native color lidar, along with the longer-range OS1 Max, has drawn multiple million-dollar-plus orders from customers including a major heavy-equipment manufacturer, an autonomous agriculture developer and an autonomous vehicle provider. Ouster is scaling Rev8 production and expects to reach production volumes by the end of the third quarter of 2026, supported by an expanded Benchmark manufacturing arrangement with capacity above 100,000 units annually. Rev8 is set to become a critical part of revenues in the second half of 2026. Smart infrastructure adds a second growth engine. BlueCity supported a 42-location digital traffic twin in New Jersey and 30 intersections in Georgia, while a new order covers several hundred intersections for the Utah Department of Transportation. With roughly 300,000 signalized intersections in North America and only hundreds to thousands currently using Ouster technology, the runway remains largely untapped. The results are already showing up in the numbers. Ouster delivered its 14th consecutive quarter of product revenue growth, with product revenues up 51% year over year to $53 million, supporting management's long-term target of 30-50% annual revenue growth. The company ended June 2026 with $263 million in cash, restricted cash and short-term investments and no debt and added about $191 million of net proceeds in July, giving it sufficient liquidity to fund operations through its path to profitability. The Zacks Consensus Estimate for 2026 and 2027 revenues implies year-over-year growth of 32% and 37%, respectively. The consensus mark for 2026 and 2027 bottom line implies a year-over-year improvement of 6% and 48%, respectively. The estimates for loss per share have narrowed over the past 60 days. Image Source: Zacks Investment Research Ouster's transition from a lidar hardware vendor to a full-stack Physical AI sensing platform is starting to show up in both bookings and margins, not just narrative. With Rev8 nearing production scale, smart infrastructure barely penetrated and a fortified balance sheet removing near-term funding risk, the setup favors continued execution. Shares have already doubled this year, but that reflects improving fundamentals catching up to the story, not the story running ahead of itself. The Wall Street average price target for Ouster calls for an upside of 27% from current levels. Image Source: Zacks Investment Research As such, OUST remains a buy for investors willing to hold through the volatility that comes with a still-unprofitable, high-growth name. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ouster, Inc. (OUST) : Free Stock Analysis Report Aeva Technologies, Inc. (AEVA) : Free Stock Analysis Report Innoviz Technologies Ltd. (INVZ) : Free Stock Analysis Report Hesai Group Sponsored ADR (HSAI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 9:00 a.m. ET Head of Investor Relations - Ada Menaker Chief Executive Officer - Omer Keilaf Chief Financial Officer - Eldar Cegla Need a quote from a Motley Fool analyst? Email [email protected] Operator: Ladies and gentlemen, thank you for standing by, and welcome to Innoviz's Second Quarter 2026 Earnings Call. [Operator Instructions] I must advise you that this call is being recorded. I would now like to hand over the call to our first speaker, Ada Menaker, Head of Investor Relations. Ada, please go ahead. Ada Menaker: Good morning. I would like to welcome you to the Innoviz Technologies Second Quarter 2026 Earnings Conference Call. Joining us today are Omer 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 like 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 publicly update or revise them. For a discussion of some important risk factors that could cause actual results to differ materially from any forward-looking statements, please see the Risk Factors section of our Form 20-F filed with the SEC on March 4, 2026. Omer, please go ahead. Omer Keilaf: Thank you, Ada, and good morning to everyone joining us for our second quarter earnings call. The recent months have been transformative for Innoviz as we enter the defense and homeland security markets. For the past decade, we built our LiDARs to the toughest bar in the industry, automotive functional safety and automotive qualification. That work established a strong technological moat and a leading position in LiDAR for the auto market, a high-volume, long-term business. And those same capabilities now let us take our proven LiDAR platform into defense and homeland security, which is a market with faster growth and much higher margins. Governments are allocating tens of billions of dollars in Israel, the U.S., Europe and elsewhere to counter emerging threats, establishing what could be a multibillion-dollar TAM. We are serving this market under a dedicated new brand, Perciz, with our existing sensors expected to be going into Counter-UAS, perimeter security and unmanned ground vehicle UGV applications. We've also appointed retired major general Yoav Har-Even, the former President and CEO of Rafael to our Board of Directors to advance our efforts in this market. So far, 6 companies have publicly announced that they are engaging with us to adopt LiDARs in defense and security applications, and we are in active conversations with dozens more. We've received our first multimillion dollar defense order for Counter-UAS and perimeter security, and our LiDAR solutions have been installed and are fully operational in several locations. We believe the Defense and Security business will be complementary to our automotive business, driving revenue growth and gross margin improvement with ASPs that are in order of magnitude higher than in the auto space. In automotive, growth continues. We announced the development of a LiDAR-based perception stack with a top 10 global OEM for highway driving. Mobileye announced its own robotaxi on the drive platform with 9 Innoviz LiDARs in every vehicle. The same platform powers the ID. Buzz soon to be operating in 6 cities. More SOPs are on track to follow, including VW's Level 3 and Daimler Trucks Level 4 platform. Combined, our automotive programs and our new security and defense wins drove all-time record revenues of $18.1 million in the quarter. We also strengthened our balance sheet through our recent registered direct offering with a participation from well-known institutional investors, including Neuberger, which grew its existing position. Other investors included some of the largest funds in the world. We believe that the transaction will enhance long-term value and allow us to unlock large defense agreements while supporting our automotive ramp ahead of upcoming SOPs. Looking ahead, we expect non-automotive sales to grow from 1% of revenues in 2025 to 10% in '26 and to 20% to 30% in 2027, expanding further after that. Including the Counter-UAS orders we just received, our Defense and Security backlog for 2026 is approximately halfway to our 2026 target. For 2027 and beyond, we believe that the automotive end market will drive substantial revenue growth through unit scale and multiple programs are likely to ramp quickly starting late next year. We expect NRE to remain at their current levels. The defense and security end market will drive gross margin uplift aided by shorter cycle times with ASPs that are in order of magnitude higher than in the auto space. Together, we believe they can create a flywheel effect, which strengthening the other and adding the potential for additional end market expansion. For now -- and now let's jump into the details. The security threat landscape around the world is changing profoundly. Traditional sensing and security architectures can't keep up with autonomous systems and asymmetric tactics. Our LiDAR-based solutions change the equation in 3 specific areas: Counter-UAS, perimeter security and unmanned ground vehicle and robotics. Drone warfare has become one of the most pressing security challenges facing the world today from Ukraine to Israel and beyond. The FBI Deputy Director, Chris Raia, recently said that it's only a matter of time before Battlefield-style drone attacks reach the U.S. Small drones fly below radar and fiber optic or autonomous control defeat jamming and RF-based detection. Swarms and erratic flight paths overwhelm tracking systems, while birds and vegetation drive false positives. And these inexpensive drones often require expensive and comparatively slow interceptors to neutralize them. On the perimeter security side, current detection systems based on cameras and radar have inherent technological limitations. Weather, difficult terrain and slow or irregular movement make it hard for them to locate and identify threats. Bad actors know these weaknesses and know how to exploit them. This is the soft underbelly of perimeter defense. LiDAR-based solutions are expected to close these gaps. They can precisely localize small drones and therefore, have the ability to support better protection of borders and critical infrastructures like airports and energy facilities. Finally, in UGVs or robots, we can combine all of our capabilities in one deployment, enabling a functionally safe drone-aware autonomous vehicle. As governments around the world address these threats and build new capabilities, the robust 3D perception layer we enable is gaining attention quickly here in Israel and abroad. Our new brand, Perciz, brings the sensing, perception and AI expertise we built for autonomous driving to the defense and security market. A dedicated brand under the Innoviz name lets us offer our proven LiDAR solutions with centimeter level 3D localization to government agencies, defense contractors, system integrators and security technology partners. From our customers' experience, the traditional camera and radar-based solutions for counter-UAS applications will only tell you that there is a drone presence. This is not sufficient to protect an area or a critical installation, and many systems are either too large or too expensive to be relevant, especially in a moving platform. Systems supported by our LiDARs can reliably locate the threat in real time, even at low altitude and in cluttered urban environments at close range, allowing those systems to accurately react while minimizing collateral damage. In perimeter security applications, we have the ability to support intrusion detection for critical infrastructure and border security at distances of up to 1 kilometer. By integrating LiDAR camera and AI, such systems will be able to detect and classify humans and vehicles in very complex environments. This includes behind trees and fences, under power lines and in many other conditions where radar camera fusion solutions fall short. When it comes to solutions in the defense and security space, our customers are looking for 4 major KPIs: outdoor performance with range and resolution, resilience to occlusions such as dirt, water, bugs, et cetera, production readiness and geopolitically secure. Our LiDARs offer all of the above. In particular, our resilience is a true unique proposition. As in automotive, a LiDAR in defense applications cannot be derailed by environmental factors or obstructions. The video you've been watching showcases our LiDAR ability to withstand occlusions and demonstrates our readiness to serve this market today. We believe these are significant differentiators. Our work in defense and security is already starting to pay off. Last week, we announced our first large orders from a prominent defense customer, $3.5 million for several hundred LiDAR units that will be deployed in Counter-UAS and perimeter security. This program is in its early days, and there is potential for more significant volumes following the successful completion of the first deployment. We are in active conversations with dozens of potential customers, many of whom have already purchased LiDAR units for testing, development and integration. We believe that some of these programs could drive partnerships and large-scale orders. Just in the past 3 months, 6 customers have announced engagement with us. Drive Group said that they intend to integrate our LiDAR into applications such as drone localization, border security and critical infrastructure protection. This collaboration is a foundation for potentially building meaningful revenue with Drive Group targeting $20 million sales opportunity by the end of 2027. We are also working with Regulus and Givon Defense to improve Counter-UAS performance in complex operational awareness environments. We expanded our engagement with Cogniteam and are powering their new Counter-UAS model for advanced security platforms. AeroNous, part of Israel Shipyards Industry Group, announced a collaboration to integrate our technology into their open architecture command and control platform for Counter-UAS operations. Finally, prior to our May call, Kela has announced that they will be building Innoviz LiDARs across their unified platform. As defense contractors and system integrators build out real Counter-UAS perimeter security and UGV capability, we believe Innoviz is well positioned to serve these applications. Our LiDARs are already operational in several locations, supporting potentially life-saving solutions. Customers in the defense space need a sensor they can trust. And through synergies with our automotive business, we deliver a production-ready product that can support their mission. Perciz is off to a strong start as our teams focus on additional engagements in Israel and beyond. We believe that we are in the early stages of this business and the programs and traction we see already are very encouraging as we address what we think is a multibillion-dollar TAM. Let me now update you on our automotive business. Our programs with our existing customers are on track. The Volkswagen ID. Buzz is progressing on multiple fronts. It's being tested in L.A., Orlando, Austin, Hamburg, Munich and Oslo with partners such as MOIA , Uber and Beep. MOIA has started the next phases of its autonomous mobility program with the ID. Buzz in Hamburg as part of the ALIKE project. Passengers can already book rides. During the quarter, Mobileye announced its vertically integrated robotaxi business, which has a potential of opportunity of 150,000 units to our pre-existing programs with Mobileye, Volkswagen, Daimler Trucks and others. For our Level 4 Daimler Truck program in collaboration with Torc, we are delivering units to support milestones through SOP. We are continuing our development work with LOXO on their Level 4 autonomous delivery platform. And on Level 3, we are advancing on our SOPs with Mobilize Software and programs such as Audi. Globally, automakers are targeting deployment of life-saving autonomous capability in Level 3 for passenger vehicles and Level 4 for commercial vehicles. Importantly, given the increased level of regulatory scrutiny, OEMs have been carefully assessing the risk of selecting or continuing to use Chinese LiDARs. There is robust interest in our technology from both platform providers and OEMs. Just yesterday, we announced the development of a LiDAR-based perception stack with a top 10 global OEM. The project includes our InnovizTwo LiDAR and perception capabilities powered by NVIDIA hardware. We are actively participating in multiple processes with OEMs with decisions expected to be made in the coming quarters. For programs prior to 2028 SOP, we are offering our suite of InnovizTwo products. For programs of later SOPs, we are also offering the InnovizThree, which was designed with a smaller form factor and reduced power consumption, making it ideally suited for deployment behind the windshield. The customer reception of the InnovizThree has been very encouraging. Now let's talk about our outlook for 2026. We are reiterating the '26 targets we set earlier this year. We expect revenues of $67 million to $73 million, driven by the ramp of LiDAR shipments and NRE payments. Given the timing of customer milestones and SOPs, we expect the bulk of our second half revenues to come in the fourth quarter. In 2026, we expect up to 10% of our revenues to come from nonautomotive physical AI applications, largely in defense and security, and we expect defense and security to make up a growing portion of revenue thereafter. We target new NRE payment plans of $20 million to $30 million in addition to our existing plans. We expect to add 2 to 3 new programs this year, and now I will turn it over to Eldar to discuss our financials. Eldar Cegla: Thank you, Omer. In the second quarter, revenues were an all-time record of $18.1 million. They reflect a significant uplift in customers' NRE recognitions as we meet key milestones for programs approaching SOP. Consequently, gross margins in the quarter returned to positive levels, and we believe gross margins will be positive for the full year, supported by an increasing numbers of units being shipped to defense and security customers, continued NRE payments and the ramp of volume production for automotive. For the quarter, cash used in operation and capital expenditure was approximately $15.2 million. For the full details of our operating expenses and stock-based compensation, please see the tables in our press release. We continue to have no long-term debt, and we ended the quarter with approximately $48.5 million in cash, cash equivalents, short-term deposits and marketable securities on the balance sheet. This does not include the additional of $30 million gross proceeds of the transaction we closed on July 29, significantly strengthening our balance sheet. The use of the proceeds will include supporting the commercialization of Perciz, our Defense and Security brand. We expect that the Defense and Security business will become a meaningful segment for us, driving revenues growth with a quicker cycle as well as improving profitability. In 2027, we expect to see significant growth from LiDAR unit sales into both our focus segments, which will further accelerate into 2028. We believe the transaction we just closed will provide us with operational runway into 2028, allowing us to realize this expansion in 2027 and beyond. Our recent performance reflects our ongoing commitment to our automotive customers. I'm also very proud of what we have been able to achieve in the defense and security sector in just the past few months. Our efforts are already bearing fruit, and I'm excited about the opportunity ahead. And with that, I'll turn the call back to Omer for his closing remarks. Omer Keilaf: Thank you, Eldar. Before I wrap up the call and open for Q&A, I want to recap our recent accomplishments. We are seeing strong traction in defense and security with our new Perciz brand as governments face new and urgent challenges and are allocating significant funds to address these threats. Our customers in this end market appreciate our automotive expertise. They understand how our commitment to functional safety directly translates to their need for a reliable product that can withstand harsh conditions. Just last week, we announced our first multimillion dollar defense orders for Counter-UAS and perimeter security applications, and this engagement has the potential to grow substantially. There have been 6 partner announcements in just the past 3 months across a variety of applications, and we are in conversations with dozens of additional potential customers in Israel and beyond. Our automotive business is progressing well, and we have products launching this year to support programs set for SOP with our existing customers. We have several development projects underway and are actively competing on Level 3 and Level 4 RFIs and RFQs. The outlook for the full year remains unchanged, and we are pleased with the operational and business momentum we've seen so far this year. Longer term, we view the automotive business and the Perciz business as highly synergistic, driving key elements of our long-term growth and profitability. And with that, operator, let's begin the Q&A. Operator: First question will be from Mark Delaney with Goldman Sachs. Mark Delaney: I was hoping you could start with more context on what the Defense and Security bookings mean for sales from here, including how much annual revenue has now been booked when these awards fully ramp? And if you can speak more on your visibility and confidence at securing the rest of the awards needed for Innoviz to meet its goal for non-auto revenue to be about 10% of the total in 2026. Omer Keilaf: Yes. So I think that the more we are working in this field, we're getting higher and higher confidence about this market to be a very promising opportunity for us, not only for this year, but also for the coming years. Specifically on your question about the bookings. So as we said, we've already booked halfway our target for the year. And in terms of the opportunities that we are currently in discussion with several customers, we have high confidence we will be able to meet our 10% target. We also said that we are expecting next year that the contribution of the defense platform would be roughly between 20% and 30%. This is coming from the second row of some of the activities that we are working on, which are expected to grow. Mark Delaney: Helpful. And then on the award environment in the auto area, including personal vehicles as well as EVs. You mentioned that's ongoing. I don't know if you could share a little bit more context on how those engagements are progressing. I think you said you're most active at the moment on L4 awards, but any incremental color you can share both on the consumer vehicle front as well as commercial robotaxi type applications? Omer Keilaf: Sure. Yes. There are several activities in terms of collaboration with different OEMs, both on Level 3 and Level 4. When it comes to Level 3, primarily, this is with InnovizThree for behind the windshield. There are a few OEMs that are evaluating InnovizThree. I believe that one of them would probably also turn into a development project quite soon. And there are a few programs that I expect that at least some of them would turn into serious awards. In terms of Level 4, I think InnovizTwo has already been proven as a product that has a very high fit for the automotive market, especially when it comes to durability. As I try to express every time because I think this is, I think, a hidden gem or I would say it's a topic that is not discussed enough. When it comes to autonomous driving, the LiDAR acts as redundancy to the camera. And as you saw from the video we showed earlier, the LiDAR and the camera should never fail simultaneously. If that's the case, then the LiDAR is not really providing redundancy. A very obvious use case for failure mode for a camera is dirt. And when a car drives over a puddle of mud, both the LiDAR and the camera fails, they can fail together. If they are both covered with mud, you will not have redundancy. And it means that the system becomes completely blind. As far as we know, Innoviz is currently the only LiDAR company that is capable of offering a solution for this use case. Many companies talk about functional safety for autonomous driving. And if their LiDAR is unable to fulfill redundancy for the camera, it's not the case. You cannot be functionally safe without the capability to operate in these environments. For this reason, any OEM that is interested and desires to have real functional safety, it needs to use a LiDAR that does not fail under those conditions. For that reason, I believe that Innoviz's ability to succeed in the Level 4 with this very distinctive and very important capability, our ability to sustain and get more awards is high. Our product is mature. It is ready to production and several OEMs that have been using LiDARs that are coming from China in the U.S. are aware about the risk that they are taking and are looking for alternatives. Innoviz's set of LiDARs, which are combining of short, mid-range, long range and now ultra-long range is a one-stop shop that we are able to offer, including our ability to close some of the gaps related to perception software or MRM systems as we are showing more and more activity with OEMs that are looking for partners that can offer everything. For that reason, I believe that we will be able to extend our market share and have additional awards. Mark Delaney: Very helpful. Just lastly for me was on OpEx. R&D fell meaningfully sequentially in the second quarter. Can you share a bit more on what the driver of the reduced R&D expense was in 2Q? And any guidance on how to think about R&D going forward? Eldar Cegla: It's strongly related to reallocation of costs towards COGS once we recognize NRE. So the NREs are served by the R&D team and then there is some reallocation. So it's more technical than substantive. The R&D team is practically the same R&D team as it was. Operator: Our next question is from Jash Patwa from JPMorgan. Jash Patwa: Maybe just to start on the automotive side. Could you give us more color on what developing a LiDAR perception stack with the top 10 automaker actually means? What are you solving for them? And is there any way to size the revenue tied to that contract? And just as a quick follow-up on that, does a development of a LiDAR perception stack typically sits right at the start of an automaker's program? Just wondering if you could give us more color on that. And I have a quick follow-up. Omer Keilaf: Sure. So first, I want to make sure it's clear. We're talking about a new OEM relationship. It's not an OEM that we've been working with so far. It's a top 10 OEM and therefore, opens a new opportunity with the engagement of working together. towards possible opportunity for series production. The development work that we are doing with the OEM is -- maybe I would add here, this OEM is developing platforms that are targeting both Level 3 and Level 4. The work that we are doing right now with the OEM is dedicated on Level 3, where while on Level 4 right now, the engagement is related to the LiDARs. When it comes to the Level 3 activity, there is similar to what we've done in the past with BMW. As a reminder, BMW vehicles that are operating Level 3 are using not only our LiDAR, we are -- the vehicles are operating by using the LiDAR and the perception software, which means that our perception software has met the automotive requirements and are used for functional safety. As you can imagine, reaching SOP for Level 3 for the LiDAR alone is a very unique, I would say, capability that Innoviz has demonstrated. As far as I know, we are the only -- we are also the only one we're able to reach SOP with automotive perception along with the LiDAR. The same capabilities that we offer for BMW are now being served to this new OEM. They have several KPIs that they want to assess with the LiDAR, while they are preparing towards the next step where they want to start working on the series production program. This is a development stage where they are going to use the LiDAR alongside with our perception system in order to learn how to prepare the platform for the next stage of their development stage. In terms of the volume or I would say, the revenue, this is related primarily to NRE and sales of LiDAR. We did not give color on the amount. It's a development program, which we believe would tie the relationship between the teams that we later can translate to the series production. Jash Patwa: Understood. That's very helpful. And congrats on that contract. Just as a follow-up, any feedback on how the LiDAR units are performing on the test ID. Buzz units? Maybe just what has surprised you to the upside or downside? And relatedly, is there an updated timing on the SOP for the Mobileye Drive platform? And how are you and your suppliers ramping the supply chain ahead of that? Omer Keilaf: Sure. So I would start with the first question. The feedbacks are very good. We are getting very good feedback from the customer who is very pleased with the LiDAR. This is obviously very -- we're very happy to hear that. And this is part of -- also in discussions about the next platform, where as far as we see right now, get the feedback from the team that they are planning to use the same 9 LiDAR platform for the next rollout or, say, the next platform or hardware refresh, you might call it. I know that in the past, there were some discussions about possibly LiDARs would be displaced with imaging radars or so, but it's definitely not the case. They are very satisfied with the LiDAR performance and happy with the relationship as well. We have a very good relationship with Volkswagen. And I think the collaboration is very successful. We are fortunate to work with a good team as well, both from Volkswagen and Mobileye. In terms of the time line, so there is -- there are 6 cities where the ID. Buzz is planned to serve by the end of this year. We are ramping up our production capacity where we expect to have a meaningful uplift already next year and then even more significant one in '28 and et cetera. So eventually, there are already vehicles on the road in several cities, and we expect to have at least 6 cities by the end of this year that will -- which will unlock the increase that is expected next year. Operator: Our next question is from Colin Rusch from Oppenheimer. Colin Rusch: I'm just curious, as you moved into a little bit more diversity of applications with the LiDAR, I'm curious about the pipeline and how many different form factors we should be thinking about the integration of the technology really being able to address. It seems like the near term or the short term or the short-range LiDAR has a lot of applications and that there are a limited number of suppliers that can actually do what you guys do for a number of these new merchant bought form factors. Omer Keilaf: Sure. Let me add something here. You are right that there are very few Western LiDAR suppliers that can support short-range LiDARs. I think here, it's even more, I would say, differentiated. LiDAR companies have developed a short-range LiDAR, which basically means being able to capture a very wide field of view. In the automotive space, it is only needed for a very short range, 20 to 30 meters. The InnovizTwo short range is called short range because that was the gap that was needed by the OEM. But actually, the LiDAR optical performance is identical to the ultra-long range. So basically trying to say the short-range LiDAR, which enables a very wide field of view, can allow us to use the same optical performance of the ultra-long range of the 1 kilometer, you can say, in the same field of view. When it comes to the defense market and specifically come to U.S., you can imagine that the KPIs that customers are looking for is very wide field of view because you're looking at a very large scene in the sky, and you want to capture a very small object as several hundreds of meters. To be able to do so, you need to have both very wide field of view, very high resolution and very high sensitivity. Innoviz's products, which are off the shelf, same product that we are currently offering for the ID. Buzz is able to do so. So our ability to serve immediately customers that are looking to localize, find, et cetera, drones is already served by the existing product. In terms of their sensitivity on size, et cetera, of course, there is less sensitivity. But I would say with a caveat, today, one of the biggest programs that we are involved is related to Counter-UAS for vehicles. One of the most challenging problems today in the world is related to drone threats on convoys and vehicles because they have no way to protect themselves. When you talk about infrastructure, you can possibly invest hundreds of thousands of dollars in infrastructure that can allow you to have some defense capabilities. When it comes to -- you can buy hundreds of thousand dollars of radars that can possibly give you some capabilities. This is a theoretical capability that is obviously very expensive and could be done the same by using our LiDARs. This is a theoretical capability, but for mobility, for convoys, it's completely impossible. You cannot mount 4 huge expensive radars on every vehicle. And therefore, the advantages related for a single LiDAR that can capture -- can solve the problem of Counter-UAS is very unique for LiDARs. And therefore, it's one of the things that we believe would be very material to our ability to sell in this market. Colin Rusch: And then as you see kind of the increased number of applications for the hardware, I'm curious about the need or opportunity for you guys to migrate into software in a more robust way and what that might look like from an internal development spending perspective or if there's acquisitions that might make sense for you guys? Omer Keilaf: So let me start by saying in the automotive space, Innoviz is acting as a Tier 1, where we are responsible end-to-end for the LiDAR integration into the vehicle. In some cases, also for the software. When it comes to defense and homeland security, our motivation is time to market. We are looking for ways to penetrate the market as fast as possible. For that reason, we are acting as a Tier 2, working with different system integrators that are already selling today defense systems to the end customers. This allows us to reach the market faster. And in many cases, by the way, we are already operating in the field operationally. You can imagine that if we are already installed in villages for perimeter security, it did not require us to go through the RFI and RFQ, et cetera. This was done by a partner that was already awarded and decided to displace the radar that they were using so far with the LiDAR that we are offering. This gave them the opportunity to improve the customer satisfaction and while keeping the same price points. And because of the maturity of the product, it was possible. They tried -- they believe it was the right thing to do for them because they understood that while showing the capabilities they can achieve with the LiDAR, they will be able to convince many others to do the same and give them the advantages. In those kind of applications, the overall system is not only a LiDAR. It's also a fusion with a camera and control system into the control rooms, et cetera. So our desire was not to be involved in that category. When it comes to the Counter-UAS, the situation is slightly different because Counter-UAS is a new market. And for that reason, any company today that wants to offer Counter-UAS by using a LiDAR. And basically, Counter-UAS can be split to 2 parts. One is detection. When it comes to detection, you can use a camera or radar, you can possibly detect a drone even at 2 kilometers away. This gives you the ability to become aware that there is drone. The problem with today is that the threat of FPVs and fiber optic or autonomous drones they are undetectable until they reach the last mile. In this category, there are no available solutions. And therefore, the companies that we work with are looking to close the gap. Today, companies that are selling into defense, they provide multiple solutions to deal with different threats. And they see the need to close the gap when it comes to FPV, which everyone is interested with. So we work with these teams. Alongside, we are providing them not only with the LiDAR, but also with software capabilities, reminding you that we are developing the LiDAR and the SMART and the SMARTer. The SMARTer that we announced beginning of the year, it's a platform which includes processing power, which can run applications on the LiDAR itself. Specifically for the drone market, we are not offering the LiDAR. We are not offering only the LiDAR, we are offering as well the compute and the tracking system that can allow our customers to run faster. So there are different ways that we can monetize not only from the LiDAR, also from the compute and the software and will continue to evolve over time. But now our focus is time to market. Operator: There are no further questions. I'm handing the call back to Omer for closing remarks. Omer Keilaf: Thank you very much. I want to repeat and say we are in a very interesting time for the company. There is -- there are many activities related to the defense market. I'm spending much time with drones, and it's exciting to see that we are able to offer a product that is ready for such an important task. And I hope that we'll be able to show you more and more how that this market will materialize for us. Thank you very much. Eldar Cegla: Thank you. Before you buy stock in Innoviz Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Innoviz Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* Now, it’s worth noting Stock Advisor’s total average return is 939% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Innoviz (INVZ) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Launched Perciz brand to serve the defense and homeland security market; six partnership announcements in the past three months across counter-UAS and perimeter security applications Received first multimillion-dollar orders from a defense customer; perimeter security solutions installed and fully operational in multiple locations Announced the development of a LiDAR-based perception stack with a top 10 global OEM; automotive customer programs with VW, Mobileye, and Daimler Truck on track to SOP Record revenue of $18.1 million in Q2; FY 2026 revenue outlook unchanged at $67–$73 million Appointed Maj. Gen. (Ret.) Yoav Har-Even, former President and CEO of Rafael Advanced Defense Systems, to the Board of Directors to support efforts in defense and security TEL AVIV, Israel, Aug. 5, 2026 /PRNewswire/ -- Innoviz Technologies Ltd. (NASDAQ: INVZ) (the "Company", "we", or "Innoviz"), a leading supplier of high performance, automotive-grade LiDAR sensor platforms for the automotive, security, defense and industrial markets, today provided commercial and strategic updates on its business, reported its financial results for the quarter ended June 30, 2026, and reiterated its financial and operational targets for 2026. "In recent months Innoviz began its expansion into the defense and homeland security markets, which we believe have the potential to be a significant driver of long-term growth," said Omer Keilaf, CEO and Founder of Innoviz. "For the past decade, we developed and built our LiDARs to meet the toughest bar in the auto industry, meeting functional safety requirements and achieving automotive qualification. Now, our precise, robust, automotive-grade sensors are starting to be adopted in the defense and security markets across applications such as counter-UAS and perimeter protection. As governments around the world allocate billions of dollars to address new threats, our newly launched dedicated defense and security brand, Perciz, aims to meet today's urgent needs. In the past three months, we have added six collaborations spanning a variety of use cases, and systems with our sensors have already been deployed in several locations, serving as potentially life-saving defenses. We are in conversations with dozens of prospective customers, and on July 30, we received our first multimillion-dollar orders from a defense customer totaling approximately $3.5 million. We believe this early traction, combined with our execution experience in the automotive market, positions us to pursue what we see as a significant opportunity in defense. In addition, in the automotive space, our partnerships with VW, Mobileye, Daimler Truck, and others are on track, and we recently announced the development of a LiDAR-based perception stack with a top 10 global OEM. We believe the combination of the automotive market and the defense and security markets has the potential to create a flywheel effect, and over time may support stronger growth and improved financial performance as we work to become a premier worldwide supplier of best-in-class LiDAR solutions." Commercial and Strategic Updates Launched Perciz – Perciz, Innoviz's new dedicated brand for the defense and homeland security markets, utilizes the Company's commercially available LiDAR sensors and brings the Company's expertise in centimeter-level 3D sensing, AI, and machine intelligence to counter-UAS, perimeter security, and situational awareness applications. Six New Engagements in Defense and Security – Kela, Drive Group, Regulus, Givon Defense, Cogniteam, and AeroNous each announced engagements with Innoviz in the past three months across counter-UAS and perimeter security applications. Received First Large Defense Orders – On July 30, we received initial defense orders for $3.5 million from a major defense customer for several hundred LiDAR units, with the potential for additional units upon the successful completion of the first deployment. Appointed Yoav Har-Even to the Board of Directors – The appointment of Maj. Gen. (Ret.) Yoav Har-Even, the former President and CEO of Rafael Advanced Defense Systems, is expected to advance Innoviz's growing momentum in defense and security markets. Automotive Programs Progressing – The VW ID. Buzz, based on the Mobileye Drive platform featuring nine LiDARs, is being tested in LA, Orlando, Austin, Munich, Hamburg, and Oslo; Mobileye's new robotaxi business on the Drive platform represents a potential opportunity of approximately 150,000 LiDAR units incremental to Innoviz's existing programs with Mobileye, VW, Daimler Truck, and others. Announced Development of LiDAR-Based Perception Stack with Top 10 Global OEM – Under the terms of the engagement, Innoviz will develop and validate a LiDAR-based perception stack including Innoviz's LiDAR sensor and perception capabilities powered by NVIDIA hardware. Q2 2026 Financial Results Revenues in Q2 2026 were a record $18.1 million compared to revenues of $9.7 million in Q2 2025. The revenues resulted from a combination of NRE services and sales of LiDAR units. Operating expenses in Q2 2026 were $19.1 million, an increase of 3% compared to operating expenses of $18.5 million in Q2 2025. Liquidity as of June 30, 2026 was approximately $48.5 million, consisting of cash and cash equivalents, short-term deposits, marketable securities, and short-term restricted cash. Such amount does not reflect the gross proceeds of approximately $30 million for the Company's registered direct offering, which closed on July 29, 2026. FY 2026 Financial and Operational TargetsThe Company is reiterating its FY 2026 targets of: Revenues of $67-$73 million; 2-3 new program wins; LiDAR sales for non-automotive Physical AI applications up to 10% of revenue; and New NRE payment plans of $20-$30 million. Conference CallInnoviz management will hold a web conference today, August 5, 2026, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss commercial and strategic updates, financial results for Q2 2026, and financial and operational targets. Innoviz CEO Omer Keilaf and CFO Eldar Cegla will host the call, followed by a question-and-answer session. Investors are invited to attend by registering in advance here. All relevant information will be sent upon registration. A replay of the web conference will also be available shortly after the call in the Investors section of Innoviz's website for 90 days. About InnovizInnoviz is a leading provider of LiDAR technology, serving as a Tier-1 supplier to the world's leading automotive manufacturers while extending its existing sensing solutions into defense, homeland security, industrial, and smart infrastructure markets. Innoviz's LiDAR sensors and complementary software suite are designed to deliver exceptional range, resolution, and reliability, providing accurate 3D sensing even in harsh weather conditions. Built to meet the automotive industry's strict standards for performance and safety, Innoviz's sensors are increasingly supplied for applications that demand precise, real-time spatial awareness and continuous object localization. Operating across the U.S., Europe, and Asia, Innoviz designs solutions for automotive OEMs, system integrators, municipalities, commercial enterprises, government organizations, and other customers worldwide. Under the Perciz brand, Innoviz offers its existing automotive-grade LiDAR sensors for defense, counter-UAS, perimeter intrusion detection, and homeland security applications. For more information, visit innoviz.tech. Join the discussion: Facebook, LinkedIn, YouTube, X Media [email protected] Investor [email protected] Forward Looking Statements This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services and products offered by Innoviz, the anticipated technological capability of Innoviz's products, the markets in which Innoviz operates, and the Company's ability to successfully enter and compete in the defense and homeland security markets, expected NRE payments, the anticipated scaling of production and/or the potential volume of product units under third-party platform programs, and Innoviz's projected future operational and financial results, including revenue and NREs and the potential for synergies between the Company's automotive and defense market activities. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "potential", "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. "NRE (Non-Recurring Engineering)" is booked services that may be ordered from Innoviz usually as part of a program design win and includes, among other things, application engineering, product adaptation services, testing and validation services, standards and qualification work and change requests (usually during the lifetime of a program). NREs may be paid based on milestones over the development phase of the project which may take a few years. Many factors could cause actual future events, and, in the case of our forward-looking revenues and NRE bookings, actual orders or actual payments, to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to implement business plans, forecasts, and other expectations, the ability to convert design wins into definitive orders and the magnitude of such orders, the ability to achieve broader market adoption of Innoviz's products and solutions, the ability to maintain and scale initial deployments and evaluations into long-term commercial relationships, the risk that initial purchase orders do not convert into anticipated volumes and that results depend on the success of third party integrators and partners, the risks associated with the defense and homeland security market, including procurement cycles, budgetary constraints and regulatory and export control considerations, the early stage of the Company's defense and security business; the dependency on third-party platform decisions, regulatory approvals, and market conditions with respect to projected product volumes under programs; the risk that anticipated synergies between the automotive and defense markets may not materialize or that these markets have different sales cycles, regulatory regimes, and margin profiles, the ability of preliminary arrangements, including evaluation engagements and letters of intent, to result in definitive supply, development, or commercial agreements on expected terms and volumes, the possibility that NRE would be set off against liabilities and indemnities, the ability to identify and realize additional opportunities, potential changes and developments in the highly competitive LiDAR technology and related industries, and our expectations regarding the impact of geopolitical developments in the Middle East including the evolving conflict in Israel on our ongoing operations. The foregoing list is not exhaustive. You should carefully consider such risk and the other risks and uncertainties described in Innoviz's annual report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission ("SEC") on March 4, 2026, and in other documents filed by Innoviz from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. The agreements and letters of intent referenced in this announcement are subject to various conditions, including, in certain cases, successful completion of evaluation phases, negotiation of definitive terms, and customer election to proceed. There can be no assurances that any such arrangement will result in definitive agreements, firm orders, payments, or series production, or that volumes, timing, or commercial terms will align with current expectations. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Innoviz assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Innoviz gives no assurance that it will achieve its expectations. Logo - https://mma.prnewswire.com/media/1496323/Innoviz_Technologies_Logo.jpg View original content:https://www.prnewswire.com/news-releases/innoviz-reports-second-quarter-2026-results-302843599.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The company is leveraging its automotive-grade LiDAR technology to enter the defense and homeland security markets under the new 'Perciz' brand, targeting Counter-UAS, perimeter security, and unmanned ground vehicles. Management attributes the strategic pivot to defense to the sector's faster growth cycles and significantly higher average selling prices (ASPs) compared to the long-term, high-volume automotive business. Record Q2 revenue of $18.1 million was driven by a combination of automotive program milestones and initial defense contract wins, reflecting a shift toward a more diversified revenue base. The technological moat is built on 'functional safety' and resilience to environmental occlusions like mud or dirt, which management claims provides a unique redundancy for cameras that competitors lack. Strategic positioning in the defense sector is being accelerated by geopolitical shifts, as Western OEMs and governments increasingly seek alternatives to Chinese-made LiDAR sensors due to regulatory and security concerns. The company strengthened its balance sheet through a $30 million registered direct offering to support the commercialization of Perciz and bridge the gap to upcoming automotive start-of-production (SOP) ramps. Management reiterated 2026 revenue targets of $67 million to $73 million, with non-automotive sales expected to grow from 1% in 2025 to 10% in 2026 and up to 30% by 2027. The 2026 revenue profile is expected to be back-end weighted, with the bulk of second-half performance occurring in the fourth quarter due to the timing of customer milestones. Gross margins are projected to remain positive for the full year 2026, aided by the higher-margin defense shipments and the ramp of volume production for automotive partners. Operational runway is now projected into 2028, providing a buffer to realize the revenue acceleration expected from multiple automotive programs ramping in late 2027. Future R&D spending is expected to remain stable, though reported figures may fluctuate due to the technical reallocation of costs to COGS as NRE milestones are achieved. The company secured its first multimillion-dollar defense order ($3.5 million) for several hundred units, serving as a proof-of-concept for larger-scale deployments. A new partnership with a top 10 global OEM was announced to develop a LiDAR-based perception stack, marking a significant expansion of the company's automotive footprint. The appointment of retired Major General Yoav Har-Even to the Board is a strategic move to navigate the complex procurement cycles of the global defense market. Management highlighted the risk of 'blindness' in autonomous systems if LiDAR cannot handle occlusions, positioning their hardware as the only solution meeting true functional safety standards. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they have already booked approximately half of their 2026 defense and security target. Confidence is driven by active discussions with dozens of customers and the expectation that defense will contribute 20% to 30% of total revenue by 2027. The project involves developing a perception stack for Level 3 highway driving using InnovizTwo hardware and NVIDIA compute. This is a new relationship with an OEM not previously in the portfolio, serving as a development bridge toward potential series production awards. The platform currently uses 9 Innoviz LiDARs per vehicle and is being tested in 6 global cities. Management dismissed concerns about LiDAR being replaced by imaging radar, stating the customer is satisfied and plans to keep the 9-sensor configuration for future hardware refreshes.

Interested in Innoviz Technologies Ltd.? Here are five stocks we like better. Record Q2 revenue reached $18.1 million, driven by higher non-recurring engineering revenue tied to customer milestones; gross margin returned to positive territory. Innoviz is expanding into defense and homeland security under its Perciz brand, including a $3.5 million initial order for counter-drone and perimeter-security applications. Management expects non-automotive revenue to grow to as much as 10% in 2026 and 20%–30% in 2027. Automotive programs with Volkswagen, Daimler Truck, Mobileye and a newly announced top-10 automaker continue advancing. Innoviz raised $30 million in gross proceeds and reiterated its 2026 revenue target of $67 million to $73 million, with funding expected to extend its runway into 2028. The 3 Penny Stocks You Swore You’d Never Buy (But You’ll Check Anyway) Innoviz Technologies (NASDAQ:INVZ) reported record second-quarter revenue of $18.1 million as higher recognition of non-recurring engineering, or NRE, revenue tied to customer milestones helped lift results. The lidar developer also said it is expanding into defense and homeland-security applications through its new Perciz brand, citing an initial multimillion-dollar order and a growing customer pipeline. Chief Executive Officer Omer Keilaf said the company’s automotive-grade lidar technology is being adapted for counter-unmanned aerial systems, perimeter security and unmanned ground vehicles. He said governments in Israel, the U.S., Europe and elsewhere are increasing spending to address emerging security threats, creating what Innoviz views as a multibillion-dollar addressable market. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Innoviz said it received its first major defense order, valued at $3.5 million, for several hundred lidar units to be used in counter-UAS and perimeter-security applications. Keilaf said the systems have been installed and are operational in several locations, while the initial program could lead to larger volumes following its first deployment. The company said six organizations have publicly announced engagements involving Innoviz lidar technology during the past three months. These include Drive Group, Regulus, Givon Defense, Cogniteam, AeroNous and Kela. Keilaf said Innoviz is also in active discussions with dozens of potential customers, including some that have purchased units for testing, development and integration. → 3 Drone Stocks That Should Soar After the Summer Slump According to Keilaf, Drive Group is targeting a $20 million sales opportunity by the end of 2027 through applications including drone localization, border security and critical-infrastructure protection. Innoviz said its defense offering can provide three-dimensional localization for small drones and support intrusion detection at distances of up to 1 kilometer in perimeter-security applications. Keilaf said the defense business could complement Innoviz’s longer-cycle automotive operations because of shorter sales cycles, significantly higher average selling prices and potential gross-margin improvement. The company expects non-automotive sales to rise from 1% of revenue in 2025 to up to 10% in 2026, and to account for roughly 20% to 30% of revenue in 2027. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure In response to an analyst question, Keilaf said booked defense and security business is approximately halfway toward the company’s non-automotive revenue target for 2026. He said management has “high confidence” that Innoviz can meet its goal for the year. Innoviz said its automotive programs remain on track, including work supporting Volkswagen’s ID. Buzz autonomous vehicle program and Daimler Truck’s Level 4 platform. Keilaf said ID. Buzz vehicles are being tested in Los Angeles, Orlando, Austin, Hamburg, Munich and Oslo with partners including MOIA, Uber and Beep. He added that passengers can already book rides in Hamburg as part of MOIA’s ALIKE project. Mobileye has announced a robotaxi platform that uses nine Innoviz lidar units per vehicle, Keilaf said. He said the platform represents a potential opportunity of 150,000 units in addition to Innoviz’s existing programs with Mobileye, Volkswagen, Daimler Truck and others. The company also announced a development project with a top-10 global automaker involving an InnovizTwo lidar-based perception stack powered by NVIDIA hardware. Keilaf said the newly disclosed OEM relationship is focused on Level 3 driving applications, while the automaker is also developing platforms targeting Level 4 autonomy. He said revenue from the development effort will primarily consist of NRE payments and lidar sales, though Innoviz did not disclose the value of the project. The company expects the engagement to help establish a relationship that could later develop into a series-production program. Keilaf said Innoviz is participating in multiple OEM selection processes, with decisions expected over the coming quarters. For programs with start of production before 2028, the company is offering InnovizTwo products. For later programs, it is also offering InnovizThree, which it said has a smaller form factor and lower power consumption designed for behind-the-windshield installation. Chief Financial Officer Eldar Cegla said second-quarter revenue benefited from increased NRE recognition as programs approached start of production. Gross margin returned to positive territory during the quarter, and the company expects full-year gross margin to remain positive, supported by defense shipments, NRE payments and automotive volume production. Second-quarter revenue: $18.1 million Cash used in operations and capital expenditures: approximately $15.2 million Quarter-end cash equivalents, short-term deposits and marketable securities: approximately $48.5 million Long-term debt: none Gross proceeds from a registered direct offering closed July 29: $30 million Cegla said the $48.5 million quarter-end balance did not include the additional $30 million in gross offering proceeds. He said the company expects the financing to provide operational runway into 2028 and support commercialization of the Perciz defense and security business. Innoviz reiterated its 2026 revenue target of $67 million to $73 million, driven by lidar shipments and NRE payments. Management expects the bulk of second-half revenue to arrive in the fourth quarter because of the timing of customer milestones and start-of-production programs. The company also maintained its goal of securing $20 million to $30 million in new NRE payment plans and adding two to three new programs during 2026. Addressing a sequential decline in research-and-development expense, Cegla said the change was largely technical rather than operational, reflecting the reallocation of costs to cost of goods sold when NRE is recognized. He said the size of the company’s R&D organization was “practically the same” as it had been previously. Innoviz Technologies Ltd. (NASDAQ: INVZ) is a developer of high-performance solid-state LiDAR sensors and perception software designed to support advanced driver assistance systems (ADAS) and autonomous driving applications. The company’s core business focuses on providing automotive-grade LiDAR hardware, along with software algorithms that enable accurate 3D mapping, object detection and environmental perception in real time. Innoviz’s technology is tailored for integration into passenger vehicles, commercial fleets and other mobility platforms seeking improved safety and autonomy. Founded in 2016 and headquartered in Rosh Ha’ayin, Israel, Innoviz has emerged as a key supplier to leading global automakers and Tier 1 suppliers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Innoviz Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Mobileye Global (MBLY) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +216.67%. A quarter ago, it was expected that this maker of driver-assistance systems and autonomous driving technologies would post earnings of $0.08 per share when it actually produced earnings of $0.12, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Mobileye, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $508 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.96%. This compares to year-ago revenues of $506 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Mobileye shares have lost about 15.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While Mobileye has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Mobileye was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $472.29 million in revenues for the coming quarter and $0.28 on $1.98 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Innoviz Technologies Ltd. (INVZ), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Innoviz Technologies Ltd.'s revenues are expected to be $16.33 million, up 67.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mobileye Global Inc. (MBLY) : Free Stock Analysis Report Innoviz Technologies Ltd. (INVZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: USD 7.1 million for the first quarter. Full Year Revenue Target: USD 67 million to USD 73 million. Cash and Equivalents: Approximately USD 60.1 million at the end of the quarter. Cash Used in Operations and CapEx: Approximately USD 15.8 million for the quarter. Gross Margin: Approximately minus 22% for the quarter. Non-Automotive Revenue Contribution: Expected to increase from 1% in 2025 to up to 10% in 2026. NRE Payments Plan: USD 20 million to USD 30 million expected in addition to existing plans. Warning! GuruFocus has detected 2 Warning Signs with INVZ. Is INVZ fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Innoviz Technologies Ltd (NASDAQ:INVZ) reached critical technical milestones with new products and made progress on existing programs. The company announced its entry into the defense and homeland security market, a rapidly expanding and high-margin space. Innoviz Technologies Ltd (NASDAQ:INVZ) signed agreements with Kela and another large holding group to field their LiDARs in defense applications. The company launched the InnovizTwo ultra-long range LiDAR, delivering up to 1 kilometer sensing, enhancing capabilities across various applications. Innoviz Technologies Ltd (NASDAQ:INVZ) expects significant growth in LiDAR revenues and gross margins, with a shift in revenue mix towards LiDAR sales. Revenues for the first quarter were USD7.1 million, with some revenues pushed into future quarters due to NRE milestone variability. Gross margins were approximately minus 22% due to the revenue mix and lower absorption of fixed costs associated with unit production. Cash used in operations and capital expenditure was approximately USD15.8 million, influenced by higher working capital needs. The competitive landscape in the LiDAR market remains challenging, with ongoing innovation and consolidation. There is no update on the top 5 auto OEM program, and Level 3 programs are progressing slower than Level 4. Q: For the nonautomotive program that Innoviz has won, how much revenue will those programs represent when fully ramped, and how long might that take? Also, can you discuss the profitability in nonautomotive applications? A: Omer Keilaf, CEO: The ASPs for InnovizSMART solutions in nonautomotive applications are significantly higher than in the automotive space. The ramp-up could be fast due to the high urgency in applications like drone detection. There's a high demand, and the ASPs are relevant to the nonautomotive space, which are high. Q: Can you provide an update on the competitive environment in the vehicle market, particularly regarding the LOXO engagement and the top 5 auto OEM program? A: Omer Keilaf, CEO: The competitive landscape hasn't changed much. InnovizThree is optimized for behind-the-windshield installation, and we are in a strong position with InnovizTwo for robotaxis. We are competing in several programs and are in a strong position, but there's no update on the top 5 auto OEM program. Q: What are the timing elements of NRE revenue that affected Q1, and do you expect to recover all of it this year? A: Omer Keilaf, CEO: We expect to meet all our targets for milestones this year. The delay was due to an OEM request for additional tasks, which extended beyond the quarter. We have made deliveries on that milestone and are working on others for the rest of the year. Q: What does "program" mean in terms of your goals, and how does it relate to automotive and other sectors? A: Omer Keilaf, CEO: Programs refer to agreements with yearly ramp-up plans, primarily in the automotive space, but also include trucks, agriculture, and construction vehicles. Q: How important is color integration in LiDAR solutions, and is it specific to certain markets? A: Omer Keilaf, CEO: Color integration in InnovizThree is optimized for behind-the-windshield integration in automotive applications. In nonautomotive solutions, packaging is less of a concern, but color can still be offered. Q: Can you discuss the evolution of the competitive landscape and the role of LiDAR with color integration? A: Omer Keilaf, CEO: The LiDAR space is evolving with improvements in range, resolution, and cost. Innoviz is leading in automotive optimization and is expanding into defense and homeland security. LiDARs will continue to evolve with smaller form factors and cost reductions. Q: What are the opportunities for cost reduction in LiDAR devices, and can this be accelerated? A: Omer Keilaf, CEO: We've achieved significant cost reductions between generations, with a 70% reduction from InnovizOne to InnovizTwo and a 35% reduction to InnovizThree. LiDARs will continue to become cheaper as volumes increase and production is industrialized. Q: Can you share insights from the initial ID Buzz test runs in L.A. and the role of LiDAR in driving decisions? A: Omer Keilaf, CEO: The feedback is positive, and the ID Buzz is seen as a critical asset for VW's future. LiDAR is a critical component in the sensor suite, used as redundancy with cameras in Mobileye's platform. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Strategic entry into the defense and homeland security markets targets high-margin, premium-priced opportunities where traditional radar and camera systems face limitations in drone detection and all-weather surveillance. Revenue of $7.1 million in Q1 was impacted by the shifting of certain NRE milestones into future quarters, primarily due to OEM requests for additional content and accelerated activity timelines. Achieved record unit shipments in Q1, representing approximately half of the total volume shipped in all of 2025, driven by the successful production ramp at Fabrinet. The non-automotive 'Physical AI' segment is expected to grow from 1% of 2025 revenue to up to 10% in 2026, reflecting urgent demand for LiDAR in security and autonomous delivery applications. Strategic positioning for future automotive programs centers on the Innoviz3, which features a smaller form factor and integrated color imaging to meet OEM requirements for behind-the-windshield installation. Management attributes long-term growth potential to the transition from NRE-heavy revenue (70% in 2025) toward higher-margin LiDAR series production as existing programs reach SOP. Reiterated full-year 2026 revenue guidance of $67 to $73 million, assuming the recovery of delayed NRE payments and continued acceleration of unit shipments in the second half of the year. Guidance assumes the addition of 2 to 3 new programs in 2026, supported by active participation in multiple RFQs with decisions expected in the second half of the year. Anticipates significant gross margin improvement later in 2026 as higher production volumes lead to better absorption of fixed costs at the Fabrinet facility. Expects to secure $20 to $30 million in new NRE payment plans during 2026, maintaining NREs as a stable dollar-basis component of the business during the transition to series production. The outlook for Level 4 autonomous platforms suggests potential for faster expansion than initially expected, particularly within the robotaxi and autonomous trucking ecosystems. Identified a critical gap in the defense market for drone detection 'under the radar,' where LiDAR's fine angular resolution provides a unique layer of protection against small, low-altitude targets. Reported a negative 22% gross margin for Q1, explained by a combination of revenue mix and low absorption of fixed production costs during the early stages of the ramp-up. Noted a shift in the competitive landscape toward directional sensors over traditional 'spinners' for Level 4 applications, positioning the InnovizTwo portfolio to capture replacement opportunities. Highlighted geopolitical discussions as a factor influencing the competitive environment, potentially favoring non-restricted LiDAR technology providers in Western markets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that defense ASPs are significantly higher than automotive, with a high sense of urgency for drone detection solutions driving fast adoption. Confirmed receiving multiple daily inquiries regarding defense applications, suggesting this segment could scale rapidly due to a lack of viable alternative technologies. Management claimed the Innoviz3 is the most optimized solution currently available for behind-the-windshield installation, a 'holy grail' requirement for OEMs. The integration of color into the LiDAR point cloud was specifically designed to solve packaging constraints where cameras and sensors compete for limited space. The revenue shift was caused by an OEM request to pull forward future activities, creating additional tasks that extended beyond the quarter's end. Management confirmed that POs are already in place for these milestones and expects to complete all related tasks and recognize the revenue within the 2026 calendar year. Innoviz achieved a 70% cost reduction between the first and second generations, with an additional 35% to 40% reduction expected for Innoviz3. Management emphasized that LiDAR has no 'fundamentally expensive' components, and further reductions will stem from silicon-based receivers, proprietary ASICs, and industrial scale.

Entering fast-growing, high-margin defense and security market; see strong momentum via engagements with Kela Technologies and a large holding group to be announced in the coming weeks Multiple automotive programs with product launches in 2026 and beyond; announced new agreement with a leading AV company to evaluate the development of on-sensor LiDAR perception capabilities; signed LOI with LOXO Launched InnovizTwo Ultra Long-Range with up to 1km sensing, driving new capabilities in applications across automotive and non-automotive end-markets FY2026 outlook unchanged at $67–$73M; Q1 $7.1M, reflecting NRE milestone variability TEL AVIV, Israel, May 14, 2026 /PRNewswire/ -- Innoviz Technologies Ltd. (NASDAQ: INVZ) (the "Company" or "Innoviz"), a leading supplier of high performance, automotive-grade LiDAR sensor platforms, today provided commercial and strategic updates on its business, reported its financial results for the quarter ended March 31, 2026, and reiterated its financial and operational targets for 2026. "In the early months of 2026, we announced our entry into the defense and homeland security market, reached critical technical milestones with our new products, made progress on existing programs, and continued to engage with automotive and non-automotive customers," said Omer Keilaf, CEO and Founder of Innoviz, "Several NRE milestones were pushed out of the first quarter, in part due to customers' requests for additional content, resulting in lower than anticipated revenues. Thanks to the hard work and dedication of our teams, we are already closing the gap, and our full-year outlook remains unchanged. Long-term, we are confident in our view that LiDAR is the most reliable method for digitizing the physical world, and is indispensable to the implementation of Physical AI. Over the past year, we've broadened our scope beyond the automotive industry and introduced our SMART products, which are now available for defense and security applications, in addition to traffic management, perimeter security, and robotics. We are seeing strong traction across these end-markets, which are fast-growing and high-margin, and yesterday, Kela, an Israeli defense company, announced its intent to field Innoviz LiDARs across their unified situational operations platform. We have also signed an agreement with a large holding group, which will offer Innoviz LiDARs in their defense and security solutions; we expect their announcement in the coming weeks. Our automotive programs with VW, Mobileye, and Daimler Truck are progressing well towards LiDAR product launches in 2026 and beyond to meet Start of Production (SOP) timelines. We recently announced an advanced development program with a leading autonomous driving technology partner to evaluate enhanced on-sensor perception software for the InnovizTwo LiDAR platform; additionally, we signed an LOI with LOXO to integrate InnovizTwo Long Range into LOXO's autonomous driving solution. The automotive ecosystem is exhibiting robust interest in both Level 3 and Level 4 automation, and we believe we can win upcoming RFQs with our suite of InnovizTwo LiDARs and our InnovizThree, whose small size, lower power consumption, and lower cost make it ideal for behind-the-windshield integration. To support our automotive and Physical AI customers, we recently launched the InnovizTwo Ultra Long-Range LiDAR, which enables up to 1km sensing and opens new capabilities across a variety of use cases. As we continue to ramp production at Fabrinet, we believe we are well-positioned to become a premier world-wide supplier of best-in-class LiDAR solutions for autonomous driving and broader sensing applications, enabling the rise of Physical AI." Commercial and Strategic Updates Entering the Defense and Homeland Security Markets with InnovizSMART and InnovizTwo Ultra Long-Range – Innoviz LiDARs, developed for automotive and civilian applications, offer rugged design, extended detection range, and automotive-grade reliability that make them well-suited for the rigorous requirements of the defense and security markets. They may serve a wide variety of applications, including in areas such as perimeter and facility security, mapping and situational awareness, and drone detection. Reached an Engagement with Kela – Kela Technologies, an Israeli defense company, announced its intent to field InnovizTwo LiDARs for a variety of applications, including perimeter security and drone detection, using Innoviz LiDAR solutions across its unified situational operations platform Signed Agreement to Incorporate Innoviz LiDARs into Defense/Homeland Security Offerings – We recently signed an agreement with a large holding company to incorporate Innoviz LiDARs into their defense and homeland security offerings, and we expect an announcement from the customer in the near future. Progressed on Customer Programs – Customer programs with VW, Mobileye, and Daimler Truck are progressing well toward 2026 LiDAR launches ahead of vehicle SOPs. Announced Advanced Development Program Combining LiDAR and On-Sensor Perception Software – Innoviz has entered a new agreement with a leading autonomous driving technology company to evaluate the development of enhanced on-sensor perception software. Signed LOI with LOXO – Innoviz signed an LOI with LOXO to integrate InnovizTwo Long-Range LiDAR into its Level 4 Digital Driver platform, subject to the successful completion of evaluation. Pursued Multiple Level 3 and Level 4 Opportunities – Innoviz is pursuing multiple RFQs with new and traditional OEMs as well as industrial and agricultural customers. Level 3 autonomy is viewed as a key feature for future SOPs, and InnovizThree is well-positioned to win behind-the-windshield designs with its smaller form factor, reduced power consumption, and lower cost. Launched InnovizTwo Ultra Long Range – InnovizTwo ULR delivers up to 1km sensing, addressing a gap in a variety of applications. It will enable ultra-early hazard detection and high-resolution perception for autonomous systems, including in heavy trucking, as well as border and wide area perimeter security use cases. Q1 2026 Financial Results Revenues in Q1 2026 were $7.1 million compared to revenues of $17.4 million in Q1 2025. The revenues resulted from a combination of sales of LiDAR units and NRE services. Operating expenses in Q1 2026 were $24.9 million, an increase of 18% compared to operating expenses of $21.0 million in Q1 2025. Liquidity as of March 31, 2026 was approximately $60.1 million, consisting of cash and cash equivalents, short term deposits, marketable securities and short-term restricted cash. FY 2026 Financial and Operational Targets The company is reiterating its FY 2026 targets of: Revenues of $67-$73 million; 2-3 new program wins; LiDAR sales for non-automotive Physical AI applications up to 10% of revenue; and New NRE payments plans of $20-$30 million. Conference Call Innoviz management will hold a web conference today, May 14, 2026, at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss commercial and strategic updates, financial results for Q1 2026, and financial and operational targets. Innoviz CEO Omer Keilaf and CFO Eldar Cegla will host the call, followed by a question-and-answer session. Investors are invited to attend by registering in advance here. All relevant information will be sent upon registration. A replay of the webinar will also be available shortly after the call in the Investors section of Innoviz's website for 90 days. About Innoviz Innoviz is a leading provider of LiDAR technology, serving as a Tier 1 supplier to the world's leading automotive manufacturers and working towards a future with safe autonomous vehicles on the world's roads. Innoviz's LiDAR and perception software "see" better than a human driver and reduce the possibility of error, meeting the automotive industry's strictest expectations for performance and safety. Innoviz's LiDAR sensors are designed to deliver exceptional range, resolution, and reliability, providing accurate 3D sensing in harsh weather conditions. Operating across the U.S., Europe, and Asia, Innoviz designs solutions for automotive OEMs, system integrators, municipalities, commercial enterprises, and other use cases worldwide. InnovizSMART is an off-the-shelf solution for security, defense and homeland security, intelligent traffic management, mobility, robotics, and aerial applications. For more information, visit https://innoviz.tech/ Join the discussion: Facebook, LinkedIn, YouTube, Twitter Media Contact [email protected] Investor Contact [email protected] Forward Looking Statements This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the services and products offered by Innoviz, the anticipated technological capability of Innoviz's products, the markets in which Innoviz operates, expected NRE payments, the anticipated scaling of production, and Innoviz's projected future operational and financial results, including revenue and NREs. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. "NRE (Non-Recurring Engineering)" is booked services that may be ordered from Innoviz usually as part of a program design win and includes, among other things, application engineering, product adaptation services, testing and validation services, standards and qualification work and change requests (usually during the lifetime of a program). NREs may be paid based on milestones over the development phase of the project which may take a few years. Many factors could cause actual future events, and, in the case of our forward-looking revenues and NRE bookings, actual orders or actual payments, to differ materially from the forward-looking statements in this announcement, including but not limited to, the ability to implement business plans, forecasts, and other expectations, the ability to convert design wins into definitive orders and the magnitude of such orders, the ability to achieve broader market adoption of Innoviz's products and solutions, the ability to maintain and scale initial deployments into long-term commercial relationships, the ability of preliminary arrangements, including evaluation engagements and letters of intent, to result in definitive supply, development, or commercial agreements on expected terms and volumes, the possibility that NRE would be set off against liabilities and indemnities, the ability to identify and realize additional opportunities, potential changes and developments in the highly competitive LiDAR technology and related industries, and our expectations regarding the impact of geopolitical developments in the Middle East including the evolving conflict in Israel on our ongoing operations. The foregoing list is not exhaustive. You should carefully consider such risk and the other risks and uncertainties described in Innoviz's annual report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission ("SEC") on March 4, 2026, and in other documents filed by Innoviz from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. The agreements and letters of intent referenced in this announcement are subject to various conditions, including, in certain cases, successful completion of evaluation phases, negotiation of definitive terms, and customer election to proceed. There can be no assurances that any such arrangement will result in definitive agreements, firm orders, payments, or series production, or that volumes, timing, or commercial terms will align with current expectations. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Innoviz assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Innoviz gives no assurance that it will achieve its expectations. Logo: https://mma.prnewswire.com/media/1496323/Innoviz_Technologies_Logo.jpg View original content:https://www.prnewswire.com/news-releases/innoviz-reports-first-quarter-2026-results-302772244.html