Earnings call transcript: Aeva Technologies Q3 2025 sees revenue rise, stock stable

Aeva Technologies reported its Q3 2025 earnings with revenue reaching $3.6 million, marking a significant step in its financial journey. Despite a 13% year-over-year decline in non-GAAP operating loss, the company’s stock showed resilience in the aftermarket, rising by 1.34% to $13.98. Aeva’s strategic initiatives, including a $100 million infusion from Apollo Global Management, bolster its liquidity to approximately $270 million, setting a promising stage for future endeavors.

Key Takeaways

• Aeva’s Q3 2025 revenue stood at $3.6 million.
• Non-GAAP operating loss decreased by 13% year-over-year.
• The company secured $100 million in convertible notes from Apollo.
• Stock rose 1.34% in aftermarket trading.
• Expanded product lines with new sensor technologies.

Company Performance

Aeva Technologies demonstrated a robust performance in Q3 2025, with revenue hitting $3.6 million. The company reduced its non-GAAP operating expenses by 10-20% year-over-year, highlighting efficiency improvements. Aeva’s strategic focus on innovation and expansion into new markets, such as manufacturing automation, positions it well against competitors in the precision sensing sector.

Financial Highlights

• Revenue: $3.6 million
• Non-GAAP Operating Loss: $27.2 million (13% decline YoY)
• Gross Cash Use: $33.6 million
• Total Available Liquidity: $173.9 million
• Pro Forma Liquidity: Approximately $270 million

Outlook & Guidance

Looking ahead, Aeva is on track for Daimler Truck’s 2027 market entry and is in late-stage negotiations with a top 10 global passenger OEM. The company is targeting Level 3 driving capabilities and is expanding its precision sensing product lines, anticipating increased interest from OEMs following its development program.

Executive Commentary

CEO Soroush Salehian emphasized the company’s strong positioning, stating, "We believe that we are positioned to finish the year strong, including closing the top 10 global passenger OEM production program decision." CFO Saurabh Sinha highlighted the strategic use of the Apollo investment, noting, "This $100 million in convertible notes is for general corporate purposes."

Risks and Challenges

• Supply Chain Issues: Potential disruptions could affect production timelines.
• Market Saturation: Increased competition in the precision sensing market.
• Economic Pressures: Macro factors could influence consumer and OEM spending.
• Integration Challenges: OEM integration cycles may be longer than anticipated.
• Technological Advancements: Keeping pace with rapid innovation is critical.

Aeva Technologies’ Q3 2025 earnings call underscores its commitment to innovation and strategic growth, with a focus on enhancing its market position through new partnerships and product developments.

Full transcript - Aeva Technologies Inc (AEVA) Q3 2025:

Andrew, Investor Relations/Call Moderator, Aeva Technologies: Thank you, and welcome everyone to Aeva’s third quarter 2025 earnings conference call. Joining on the call today are Soroush Salehian, Aeva’s Co-founder and CEO, and Saurabh Sinha, Aeva’s CFO. Ahead of this call, we issued our third quarter 2025 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.aeva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

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

Soroush Salehian, Co-founder and CEO, Aeva Technologies: Thanks, Andrew, and good afternoon, everyone. It has been an incredibly busy and productive quarter here at Aeva. Following Aeva Day this summer, where we shared how our breakthrough unified perception platform is enabling new levels of perception for customers across a broad range of applications, interest for Aeva’s technology has continued to grow significantly. Our focus has been on achieving important milestones for our partners and positioning Aeva to meet the expanding demand to adopt our differentiated FMCW technology. The key highlight this quarter is our progress with the top 10 global passenger OEM. At the start of the year, we announced that the OEM had selected Aeva for a development program and also issued Aeva a letter of intent for production, whereupon successful completion of the development program, the engagement would transition to a serious production award opportunity.

I am very pleased to share that we have completed the development program ahead of plan and are now in late-stage contract negotiations for a serious production award. More on that later. We also continue to make good progress on the Daimler Truck production program. Aeva’s deliverables for the initial vehicle builds have been completed, and we are now shifting our focus to support Daimler Truck’s growing vehicle fleet in 2026 and have already received the initial orders for next year’s shipments of our Atlas final samples. Overall, we remain on track for Daimler Truck’s planned market entry in 2027. Outside of automotive, we are pushing deeper into precision sensing. We have already started shipping against our first 1,000-plus units orders for our EVE 1D sensors. In just a few months, we have expanded our precision sensing product line with the unveiling of our EVE 1V sensor.

This builds on the EVE 1D product by adding motion measurements to our product line to address what we believe is more of the multi-billion-dollar manufacturing automation market. Reception has been really strong, with multiple customers already placing initial orders with the opportunity to incorporate EVE 1D and 1V into their product portfolios. In Q3, we completed installation and bring-up of the production line for our EVE sensors in Thailand. The first sensors have come off the line and shipped to customers, and we believe we now have the capacity ahead of time to fulfill next year’s volume and will continue to increase the capacity as the demand grows. Now, to support our growing commercial traction across multiple segments and our scaling, today we announced a $100 million investment from one of the world’s leading investment firms, Apollo Global Management, in the form of convertible notes.

This comes at a defining time in the industry, and we believe it further positions Aeva to support not only the scaling of our existing programs but to also win additional programs. This also follows our partnership and strategic investment from LG Innotek that we announced earlier this year, further reinforcing Aeva’s leadership position in next-generation of sensing and perception. To sum up this quarter, Aeva continues to execute on the exciting and vast opportunities we highlighted at Aeva Day. We believe that we are positioned to finish the year strong, including closing the top 10 global passenger OEM production program decision. With our differentiated technology and strong balance sheet, we see this as just the beginning, with significant potential to continue our momentum into 2026 and forward. Now, let’s go into more detail on our key business developments.

Starting first with our engagement with the top 10 global passenger OEM. As we shared at the start of this year, this OEM selected Aeva for a development program using our Atlas Ultra sensor for the OEM’s next-generation global production platform. We expected to complete the development program by the end of this year, and I am pleased to say that we have successfully completed it in Q3 ahead of plan. The development program was focused on packaging and integration to be able to incorporate our Atlas Ultra as one standard platform across the OEM’s multiple vehicle model lines. This is a global production program with a worldwide rollout plan across geographies, excluding China. The OEM plans to offer level 3 across a broad range of their global vehicle model lineup, not just the top-of-the-line models.

As part of our joint development, we also successfully completed key performance testing to help ensure that Atlas Ultra enables the OEM to introduce new functions of Level 3 driving, including both highway and city driving. In addition, we completed comprehensive manufacturing audits with our partner, LG Innotek, for this OEM and detailed out our industrialization plan for the OEM’s planned production. All of this now paves the way for the OEM to make the series production award. As we disclosed earlier this year, we secured a letter of intent from this OEM toward the series production program award, whereupon successful completion of the development program, the engagement would transition to a global production program opportunity for Aeva. We are now in late stages of contract negotiations and believe that Aeva is well positioned to supply for the series production program.

Beyond this particular program, we believe that the top 10 OEM’s selection of Aeva for their global series production program would represent one of the strongest validations of our technology platform. In particular, of the superior performance and maturity of our technology. This OEM has a long history of leading in the automotive industry, with significant influence and a reputation for excellence and introducing industry-defining features in automotive at mass volume on a global scale. This would also be the first time a passenger OEM would transition from Time-of-Flight to FMCW to enable Level 3 for both highway and city driving. As such, we believe their vote of confidence in Aeva has the potential to accelerate the interest in FMCW technology as a blueprint for other fast-follower passenger car makers.

To that end, we are already engaged with a number of OEMs and industry players across RFI and RFQ stages looking to leverage Atlas 40 LiDAR for passenger vehicles, trucking, and mobility. Over the course of this year, our pipeline has continued to grow, and we expect our first passenger OEM win to further increase interest in Aeva as other OEMs view the top 10 OEM’s decision as a reference design for implementing Level 3 automotive driving functionality. Turning to our production program with Daimler Truck, we are progressing well on the OEM’s milestones, keeping us on track to meet Daimler Truck’s planned market entry in 2027. We have now completed sensor deliveries for the OEM’s initial vehicle builds, and Daimler Truck, together with its subsidiary Torc, are operating this fleet of trucks on large routes to validate production intent, hardware, and autonomous capabilities ahead of commercialization.

Aeva is the exclusive long-range and ultra-long-range LiDAR supplier for Daimler Truck’s autonomous truck production program, with our Atlas 40 LiDAR playing an important role as the primary detection sensor. We are now preparing for next year to support the expansion of vehicle fleet rollout by Daimler Truck and Torc. We have already received the first orders for 2026 and plan to deliver our Atlas C samples to fulfill Daimler Truck’s scaling of vehicle builds throughout next year and ahead of launch. Now, moving to precision sensing, with the introduction of our EVE 1V motion sensor, Aeva is expanding into a whole new category of applications within the multi-billion-dollar manufacturing automation market.

EVE 1V uses our core FMCW LiDAR on-chip technology to deliver high-precision, contactless motion sensing, which means we can consistently do this more accurately, faster, and without the wear and tear challenges of traditional encoders and tactile sensors that are used to measure an object’s motion in manufacturing today. We also designed EVE 1V for a wide range of applications and flexibility for users across multiple processes. This has the potential to be a game changer for the industry, and reception so far has been very encouraging. We have already received initial orders from multiple customers for our EVE 1V sensor. Now, more broadly, the number of engagements for our precision sensing capabilities continues to increase since we first announced our product line this year.

Precision sensing is a unique market opportunity for Aeva due to our technology’s ability to achieve the needed micron-level accuracy that is not really possible with traditional Time-of-Flight LiDAR. We are working aggressively now to meet the growing interest, including ramping up manufacturing. Importantly, over time, we plan to expand our product lines for industrial manufacturing and robotics to new categories beyond 1D and 1V to address even more of this major market opportunity. Key to enabling this is the precision sensor manufacturing line at our partner, Fabrinet, a leader in the manufacturing of optical components. This quarter, we completed installation and bring-up of our line with the first sensors produced and shipped to customers. We now have the capacity in place to fulfill next year’s expected volumes for EVE 1D and building capacity for our 1V sensors following its introduction.

We have also started shipping against our initial orders of over 1,000 units that we received just a few months ago. Our ability to scale is driven by our chip-based architecture, which we designed specifically for fully automated assembly process steps. By integrating all optics onto a silicon photonics module, we have significantly reduced the number of components within a LiDAR that can be manufactured with greater efficiency and quality. Through our partnership with global manufacturing leaders, we believe that we can lean on their expertise and scale to ramp production quickly without the need to invest significant levels of CapEx. With that, let me now turn the call to Saurabh, who will discuss our financial results. Thank you, Saurabh, and good afternoon, everyone. Let me share more about Aeva’s third-quarter 2025 financial results.

Starting with revenue, it was $3.6 million in Q3, with contribution from ongoing sensor shipments to multiple customers as well as NRE, such as for the Daimler Truck program. Moving to non-GAAP operating loss for this quarter, it declined by 13% year-over-year to $27.2 million, which largely reflects our target to reduce full-year 2025 non-GAAP operating expense by 10%-20% year-over-year. Aeva’s gross cash use, which we define as operating cash flow less CapEx, was $33.6 million in Q3, which is higher than the prior quarter due to timing of certain payments and working capital adjustments. In addition, we have received cash of $32.5 million in gross proceeds from LG Innotek upon closing of their strategic equity investment. This brought total available liquidity at the end of September to $173.9 million, excluding the Apollo investment we announced today.

This is comprised of $48.9 million in cash, cash equivalents, and marketable securities, and a $125 million in undrawn facility that is fully available to draw at Aeva’s sole discretion. Let me talk a bit more about the capital raise we announced today. The $100 million in convertible senior notes will provide incremental capital for Aeva to continue to accelerate our ongoing growth. The notes have a coupon of 4.375% payable in cash or stock at the option of the company and conversion price of 115% to the stock price. The notes are due in seven years in November 2032. This represents a flexible source of unsecured capital with no financial or maintenance covenants, and we will retain the flexibility to settle the convertible in cash, shares, or any combination at our election upon a conversion. For additional details, please refer to the related 8-K.

Including the new investment, our total pro forma liquidity position now stands at approximately $270 million, which we believe provides Aeva a strong competitive advantage to support existing programs as well as secure more wins. As we detailed at Aeva Day this summer, Aeva’s unified perception platform enables us to bring new levels of perception to a broad range of large markets and applications. Our momentum has only grown since then. As we continue to execute, we believe that we are in a strong position to convert additional opportunities into wins. With that, let me turn the call back to Saurabh for closing remarks. Thanks, Saurabh. At a pivotal time for the industry, Aeva is increasing its leadership position in next-generation sensing and perception.

We are firing on all cylinders, achieving major milestones on existing programs, progressing towards additional wins, and strengthening our balance sheet to scale multiple programs across many markets. I would like to thank the Aeva team for their continued dedication and our stakeholders for their ongoing support. Together, we are in a strong position to realize Aeva’s vision to bring the next wave of perception to all devices. We will now move to Q&A. At this time, if you’d like to ask a question, please press the star and one keys on your telephone keypad. Keep in mind you may remove yourself from the question queue at any time by pressing star and two. In the interest of time, we do ask that you limit yourself to one question. Again, it is star and one to ask a question today.

We’ll take our first question from Colin Rush with Oppenheimer & Company. Please go ahead. Your line is open. Thanks so much, guys. You know, can you talk a little bit about the ramp in metrology sales? I mean, certainly, it looks like you have a pretty meaningful opportunity there and a number of applications. We’d just love to understand kind of how that cadence of a product rollout really starts to hit as we get to the balance of this year and into 2026. Yeah. Hi, Colin. This is Saurabh. Happy to answer that. So obviously, as you know, we’re, you know, as I said, we’re firing on multiple cylinders here. You know, we announced our EVE 1D sensor just a few months ago, earlier this year. Since then, we talked about how the traction in the market has been very strong.

Following that, we started getting initial orders. We talked about the first 1,000-plus units orders. Since then, a couple of things that we’ve done in the past two or three months. One, we pulled forward our setup of our manufacturing line for the EVE sensor due to this increasing demand. You know, our team is engaged with, you know, multiple tens of customers in the space alone. Each one represents significant opportunity volumes for us. In this quarter, what we talked about just earlier today was, we’ve now been able to set up the line quickly within a couple of months’ time frame and also start building out the units off of this line. We started to ship the first units against those 1,000-plus units order already.

That is very important for us, which means, you know, we are starting to now crank that gear around shipping the units towards those customers. Separate from that, as we also get into the market, we’re also getting feedback from customers about the capabilities of our sensor. Beyond measuring micron-level accuracy for distance sensors, we have also been able to provide an initial SKU or a new type of product with our EVE 1V sensor, which is now measuring the speed of things on the manufacturing line to a very high level of accuracy, right? Sub-millimeter per second precision. That is what provides additional opportunities for us. We are already starting getting some orders for that as well from existing customers, also some new customers.

You know, just to give you a rough sense of that, the market for this industry, as we talked earlier, is about 2 million sensors a year for these kind of displacement sensors. It’s, you know, roughly, ASPs are higher than automotive, so it’s multi-billion dollars, $4 billion going to about $6 billion in the coming years. We are partnering already with some of the key leaders in the space, including SICK and LMI and others that are coming down the pipe that we can talk about hopefully as we go forward. Those themselves represent double-digit % of the market share here, right? You’re talking about, for example, SICK maybe shipping 200,000 or 250,000 sensors annually every year, right? When you look at that, I think.

For us, the way we see the ramp-up is obviously it’s not going to be overnight, but it’s going to be faster also than some of the automotive applications. It helps us kind of also fill in that revenue growth pipeline for the company as we go along. We’re very encouraged by the reception that we’re seeing from the market. Importantly, we’re now shifting gears on focus on building the units, and we’re bringing up the manufacturing line and getting ready for the demand ahead of time for next year, right? That’s what I can share at this point. As we are able to get additional information from our customers and orders, of course, we’ll be talking about that as well. Okay, perfect.

And then as a follow-up, you know, just the L2 ADAS and your kind of, you know, L2 plus ADAS opportunity on the trucking side seems pretty substantial. You know, obviously, those are some longer sales cycles, but also, you know, the articulation of the insurance needs and all the other value capture for the truck OEM seems pretty substantial. Can you talk about the breadth and depth of customers looking at your solution for that L2 and L2 plus sort of application in the trucking market? Yeah, absolutely. As I mentioned on the call earlier, you know, we have been focused on the one unified perception platform that can allow us to enter multiple market segments with one core technology without a ton of optimizations, using the same hardware platform with.

Adaptive software that can go into addressing these multiple markets across automotive, both for Level 3 and plus driving, as well as entering into Level 2 plus, especially in commercial vehicles, which is your question. I’ll get into that in a second. Also then applying that to the other markets, including industrial that we just talked about. Specifically on L2 plus, one of the biggest debates that we have talked about over and over again the past few years is the need for LiDAR and then, you know, the famous quotes around, "You don’t need LiDAR for even going into Level 2, Level 3 applications, maybe, but Level 2." I think over time, that argument has fallen.

I think Level 3 is very clear with our progress and the successful completion of this top 10 OEM, that Level 3 with LiDAR is going to be standard and is going to be the key enabling feature for making these vehicles and driving the customer’s choice of purchase. On the Level 2+ side, I think we have a unique opportunity at Aeva due to our unique technology, which is because of the fact that we can measure velocity, because of the fact that we can do some of the perception on the sensor. We have been able to demonstrate that we can do more, reducing the need and maybe the cost of other modalities in the Level 2 traditional stack, which is today, especially for commercial vehicles, tends to be camera image sensors plus maybe radar, and then some compute box.

One of the partnerships that we have there that we talked about earlier is with Bendix, which is the market leader in North America, part of a large tier one company. Around providing Level 2+ ADAS. It’s really automatic emergency braking. This company is shipping already in the 200,000-300,000 Fusion systems every year, these automatic emergency braking systems every year. And they’re really standard as the technology of choice for the flagship models of many of the top vehicle OEMs, right? Volvo, Paccar, Navistar, even Daimler on some examples. We see.

An opportunity here together with Bendix to provide a next-generation Level 2+ solution that leverages our 4D LiDAR technology, reducing the need of some of those other components, and having the combination of image camera plus 4D information with processing on the edge, an edge device that I think is going to be bringing the cost down. Because we leverage the same core unified platform chip technology, we can use the economy of scale to then also provide those benefits and the flywheel effect into other markets. We think that’s a massive opportunity. We’re working towards that. We introduced this partner earlier in the year, but we think that could be another marquee win for us. Especially as we close out this top 10 passenger OEM.

We think that is going to set the reference as a blueprint for other OEMs in Level 3 for passenger, in Level 4 in trucking, but also maybe in Level 2+ for certain commercial vehicle trucking applications as well. We’ll take our next question from Suji De Silva with Roth Capital. Please go ahead. Your line is open. Hi, Soroush. Hi, Saurabh. Congratulations on the progress here. My question is really around the length of the design cycle for additional customer opportunities. You know, looking at the tier one you’re on the brink of signing with, I’m wondering, this step of having to proliferate the design across their model line, I’m curious what’s involved there and how detailed a process that is.

If there can be learnings from what you’re doing here, kind of building a catalog of placements and tweaks and software updates, that would be leverageable to shorten the design cycle for future customers. Yeah, Suji, happy to answer that. This is Soroush. Look, I think first of all, I hope you can hear in our voice that we are very excited about the progress that we have made and the successful completion of this top 10 passenger OEM program. To give a quick recap, earlier in the year, we announced and said that we awarded a development program from this top 10 passenger OEM along with a letter of intent for the series production award. We set out that there are going to be a number of milestones that we’re going to be working together to really develop a scalable modular platform for their global production.

Platform. That is going to be applied to multiple vehicle model lines. Since then, we have completed all the key milestones satisfactorily, which includes, as I mentioned earlier, around packaging integration of our sensors to make sure that really works across the OEM’s multiple vehicle model lineup. This is not intended to go into one top trim or premium model only. It is intended to be really as a standard platform across their multiple vehicle models. Two, was around aligning on performance, making sure that it really addresses the key use cases, most importantly, to enable level 3 driving from the get-go, both across highway and then also eventually around city driving, which we think is going to be a key driver.

The third piece was around really the industrialization and manufacturing, in which together with our partnership with LG Innotek, which we secured along with a strategic investment, we then got to work and we did comprehensive audits of our manufacturing line with a manufacturing partner, LG Innotek, and this top 10 OEM, and really defined a clear industrialization plan of how we’re going to go to production. In some way, this was really the first phase of the series production development. What we have now is, we said at the beginning of the year, we’re going to complete this by the end of the year. We are seeing now the OEM is very eager to also move forward faster, and they’re pulling forward that timeline. We were able to successfully complete this a quarter early, which is now in Q3. We have completed that.

The work from here really is around. We’re in late stages of commercial negotiations. We’re feeling good about that. Obviously, it’s not done until the ink is dry, but we’re feeling confident about our position about securing this program. That’s what I would say. I think you asked an important question, which is, what is the work from here, the cycles with additional wins, and how could this OEM be relevant? This OEM is a major OEM, a top 10 OEM globally. We see that this program is for worldwide deployment, excluding China. They are making millions of vehicles every year. They’re known as a leader to bring in new technology, but also do it at scale. That’s very important.

I think that what we believe that does, as they have shown time and again over the many decades, is that it’s going to provide a blueprint and a reference design for other OEMs that are looking to provide this Level 3 functionality. Really, with FMCW technology, we believe, to use that and also implement that. That is going to be basically, from a competitive landscape, we think that is going to be critical. We believe that this could be a defining moment when we would have that award around our company, but also the industry for the adoption of Level 3 technology in the next three plus years, right? That, I think, is very important in our plans ahead. That’s a quick background on that. Okay.

A quick follow-up there on the applicability to mobility as urban scenarios, where is time of flight sufficient there versus FMCW? Curious your thoughts there as you sound like you’re kind of addressing both highway and mobility in your comments. Yeah. Look, the way I think. The OEMs and this OEM and others kind of see it is. They’re making a platform technology choice that they’re going to be working within hardware, hopefully for many years to come. This obviously would be a long-term kind of production going into the next decade. The idea is that. We’ve talked about it. You need to future-proof the stack, right? We believe we are at this inflection point where. This is one of the first times, it will be the first time, actually, that an OEM in the passenger car space will be transitioning from time of flight LiDAR to FMCW.

This obviously is a testament to both the technology capability as well as maturity of our products, but also it is important because we think that is going to lead up to other, of course, programs. My personal opinion is that in a few years from now, consumers, when they buy vehicles, it’s not going to be just based on any more specs on feeds or speeds or infotainment. It’s going to really be also importantly around the ease of use and saving us time in our daily commutes and our day-to-day life. That, I think, is going to be one of the key enablers by level three. Level three driving is going to be the key driver for the sales of cars, not these other things. That is why I think we’re going to see that.

As you’re starting to see some of that in Asia, we’re going to see that for the rest of the world. That is going to be the key driver for, I think, most key OEMs to go to really have Level 3 from the get-go. This means it needs to be end-to-end, right? You get in the car and you get to a destination from point A to point B, which includes city driving as well as highway. The long form of that is, yes, we believe that they’re choosing one hardware and they’re going to use it for all use cases and use a software approach of upgrade over time to be able to enable highway, city driving, but most importantly, that Level 3 functionality into it. We’ll take our next question from George Gianarikas with Canaccord Genuity. Please go ahead. Your line is open. Hey, everyone.

You have Matt here on for George. Congrats on the quarter. Thank you for taking my questions. Of course, Matt. Go ahead. Just to start off, could you guys just provide a little more color on the timeline with Daimler? What’s kind of needed for the program to reach validation ahead of production? Maybe just a little bit about the Torc relationship. It looked like they were looking for a capital partner for that. With that and potential slipping of funding, do you foresee any slippage in the timeline? Yeah, sure. Happy to answer that. I think you have some questions that are maybe for Daimler, but I can tell you a high-level look. First of all, Daimler Truck and Torc, they have been very clear and public about their commitment to autonomy.

This is one of their key drivers of growth. If you look at that from Karen and the management team at Daimler talking even on their public earnings. They have been very clear and consistent about their messaging. 2027 market entry is on track. It’s a go for us. We are obviously a key portion for the technology and perception detection. As I mentioned, we’re the exclusive supplier for LiDAR on long range and ultra long range for Daimler Truck and Torc. We are progressing on track. They are also progressing on track in delivering on their milestones. We have a clear line of sight with 2026 vehicle build plans and the growing of that. We actually have received initial orders already, and we’re going to start shipping our C samples against that. That’s important. I think just to also you mentioned about capitalization.

Obviously, I think that’s a question for Daimler and Torc, but as you know, Torc is an independent subsidiary of Daimler Truck, right? They’re investing heavily in this, very committed. We don’t think that that is a risk topic for us to really worry about. I think overall, the program is really progressing well. I think, look, if any OEM has the scale to really make this happen and the resources, including capital, it is really Daimler Truck. Others, of course, are also working on it. We are also engaged with a number of other OEMs in the commercial vehicle space. Overall, I think we’re feeling good about that. I think Justin also mentioned Daimler Truck has publicly talked about, I think even recently, their outlook for autonomy.

Because of the use cases and the business case of over, I think, about $3 billion of annual revenues and $1 billion profit by 2030 just from autonomous trucking. I think it’s important for the industry that players, including Daimler Truck and others, make this happen. We think the timeline remains in 2027, and the scaling is going to go from there. We’re feeling confident about that and our ability to deliver against it. Great. Thanks. Maybe just to switch gears here. Looks like you guys obviously raised the $100 million investment from Apollo. Could you just provide a little more color on what you intend to use that for and how that’s going to help you just push commercialization faster? Hey, Matt, this is Saurabh. Happy to take your question. The $100 million in convertible notes is for general corporate purposes.

We are already, as we mentioned in our prepared remarks, making tremendous progress with our customers and potential customers. We use a unified perception platform, which helps us to execute on multiple wins and bring new customers on board without any step function increase in our expenditure. In fact, we have been very disciplined in our capital allocation and spending. This year, we are coming down from last year in the range of 10%-20% on a non-GAAP OpEx basis, despite increasing our commercial momentum. We feel pretty good about it. It is for general corporate purposes. Yeah. Just to add to that, I think obviously, Apollo by themselves, the name is one of the leaders in financial investments. We are excited to have them as partners. I think it sends a clear signal as a sole investor and party to.

Really support our growth and momentum here. It comes at an important time, I think, for our company, but also an inflection point in the industry. I think we have all the pieces in place. We have methodically, as we talked about, set out our plan to grow from each segment, established a leadership position within key players. We are executing on that. We are looking forward to executing that well, right? From automotive, from trucking with Daimler Truck, passenger top 10 OEM and others that we’re working on. Industrial with SICK, LMI. We have the partnership with LG Innotek around that for industrial as well as robotics applications, and then expanding from that. We are very excited about the progress so far. Obviously, we’re looking forward to continuing this momentum. We’ll take our next question from Richard Shannon with Craig-Hallum. Please go ahead.

Your line is open. Thanks, Saurabh, for taking my questions. Apologize for the ambient noise. We’re rolling through an airport here tonight. I guess I’ll ask kind of a two-parter on the top 10 OEM. Just want to make sure that you’re in an exclusive negotiation position. There aren’t any other competitors here. I think you’ve alluded to that’s probably the case, but just want to make sure that that is accurate. Also, maybe if you can elaborate, hopefully you didn’t mention this before when I was on the call, but what kind of time frames are we looking at for ramping here? I would assume it’s earlier than 2027, but just want to get your take on that, Saurabh. Thank you. Yeah, absolutely. Look, I don’t want to comment on anything that is.

Sensitive or confidential information, obviously, here, but I think hopefully you can see from the updates that we provided, we feel that we are the only party here that is going through this late-stage negotiations. I will stop at that. I think we’re feeling good about securing this production program. Importantly, I think the time of that is pulled forward to really get going on this. You asked about kind of what it looks like from here and kind of the timing. I think, look, the point of this initial development program was to ensure that we have a solution jointly that’s going to be applicable to the OEM’s broad vehicle lineup. It’s going to be, from an integration standpoint, it works across multiple trims, multiple models that the performance enables level three driving for both highway as well as city.

To also make sure that we have the proper industrialization plan and comprehensive audits and all of that so that we can really get the ground running. The team is working very diligently on that. This is, in another way or form, really the first stage of the series development already. We are really hitting the ground running, and we think that we are on track for this late 2027, early 2028 timeline for the launch of this OEM. That has been the timeline that we have been working with, and we are excited to deliver on it. Okay. Appreciate that detail. Saurabh, my last question here is just from this comment in the press release.

I suspect you maybe addressed this in the prepared remarks that I did not get an early view here, but you are just talking about growing interest and engagements from other major OEMs leveraging for L3 automotive applications here. Is there some sort of catalyst or other event here driving this, related either to the market or to Aeva’s products and technology development? And maybe just clarify what you meant by that. Thank you. Yeah, absolutely. Look, I think we have been obviously engaged in a number of programs across various stages from RFIs to RFQs in multiple segments within automotive as well as industrial. Your question, I think, is around automotive. Within automotive includes passenger, multiple programs there, and trucking. I think there are multiple, I think, factors that have been happening, of course, in the industry as well as, I think, with Aeva. First of all.

We have laid out a clear foundation of our path to winning business and delivering on it, which includes partnering with the leaders in each respective space, which means they have to also want to partner with us and select us. Two, leveraging our perception platform and the chip-based technology to scale that according to their timelines. Three, be able to apply that without having to invest heavily in a bunch of new CapEx or a bunch of new teams for different product lines and segments using this approach of the one platform. We have been able to do that. I think, obviously, with our progression and the successful completion of this development program with the top 10 passenger OEM, and we hope that upon a production win this would be the first time that.

A passenger car maker would be transitioning from time-of-flight to FMCW to enable a key use case that’s differentiated for the end customers. We think that is a key driver with some of those uptake and the engagements for us. We think that it has the potential to provide us with potential additional wins in a faster timeframe than we have in the first one. As you know, the first one is always the toughest. Importantly, because this OEM is really seen as a leader in automotive, introducing new technology but doing so at scale, they ship millions of vehicles every year. We think that is going to be a catalyst and really a blueprint or a reference design for other OEMs and fast followers to also enable that functionality. I think that’s part of the main interest in the space.

The second piece also, I think, is around some of the consolidation of the market. We have always talked about that even though Aeva came as one of the last players in the space. We took a contrarian path, but one that we believe is going to have the future-proof technology. Similar to radars who transitioned from kind of pulse-based autonomous flight system to FMCW, we have always believed and talked about that that will be a transition that will happen over time as well. I think that is, with both the developments in the market, some of the consolidation and the players, as well as the transition of the OEMs to technology here that is more FMCW-based, we think are going to be the catalysts in our growing momentum within automotive and also additional markets. Thank you. That does conclude the final question we have for today.

This will conclude Aeva Technologies’ third quarter 2025 earnings conference call. Thank you all for your participation. You may now disconnect.

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