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AEye, Inc. (LIDR)·Q1 2025 Earnings Summary

Executive Summary

  • AEye’s Q1 2025 was operationally constructive with first Apollo units produced at Tier 1 partner LITEON, NVIDIA DRIVE integration in final test phase, and 20+ customer engagements, but financials remain de minimis (revenue $0.06M) and losses persist; management signed two POC contracts in ITS and defense, adding non-auto near-term revenue options .
  • No S&P Global consensus was available for Q1 2025 revenue/EPS; therefore, no beat/miss determination can be made (consensus not available).
  • Guidance: raised FY25 cash burn outlook to $27–$29M (from $25M) due to a litigation settlement and potential cash repayment of part of the convertible note; underlying burn unchanged, with Q2 burn elevated before trending to ~$5M/quarter in 2H25 .
  • Liquidity: $25.9M cash and marketable securities at quarter-end, and ~$(74)M potential liquidity including ELOC/ATM facilities; management reiterated runway to mid-2026, but noted Q2 cash burn will reflect the lease settlement outflow .
  • Potential stock catalysts: completion of NVIDIA integration and OEM ecosystem activation, conversion of 20+ engagements into POCs and deployments, and Apollo B-sample deliveries in Q2 2025; offset by higher FY25 cash burn and ongoing micro revenue scale .

What Went Well and What Went Wrong

  • What Went Well

    • Apollo manufacturing line at LITEON is operational; first units produced with B‑sample deliveries to OEMs expected in Q2 2025, a key production-readiness milestone .
    • NVIDIA DRIVE integration reached final independent testing phase, which should open broader OEM access through the platform once validation completes .
    • Early commercial traction outside automotive: 20+ active technical engagements and two signed POC contracts (ITS and defense), offering nearer-term revenue opportunities and market diversification .
    • Quote: “We achieved a critical step toward mass production of Apollo, with the first units coming off the manufacturing line of our Tier 1 supplier partner, LITEON.” – CEO Matt Fisch .

  • What Went Wrong

    • Financial scale remains minimal: Q1 revenue of $0.06M and gross loss of $0.03M underline the early commercialization phase and lack of material top-line contribution .
    • Cash burn outlook increased to $27–$29M for FY25 (from $25M) due to lease settlement and potential cash repayment under the convertible, implying higher near-term cash needs than previously expected .
    • Near-term cash burn to rise in Q2 from the lease settlement payout; Q1 included ~$3.1M of one-time payroll timing, and financing-related costs also weighed on net loss per management .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$0.104 $0.046 $0.064
GAAP Net Loss per Share ($)$(1.01) $(0.93) $(0.46)
Non‑GAAP Net Loss per Share ($)$(0.70) $(0.69) $(0.33)
Gross Loss ($USD Millions)$(0.202) $(0.003) $(0.032)
GAAP Operating Expenses ($USD Millions)$7.644 $8.992 $6.768
Non‑GAAP Operating Expenses ($USD Millions)$6.1 $6.8 $6.0
Cash Burn (excl. net financing) ($USD Millions)$5.6 $4.8 $8.0
Cash, Cash Equivalents & Marketable Securities ($USD Millions)$22.4 $22.3 $25.9

Notes:

  • Q1 cash burn rose on one-time items and will be elevated in Q2 due to lease settlement; management targets a ~$5M quarterly run-rate thereafter .
  • Non-GAAP excludes stock-based comp, issuance costs, fair value changes, gain on lease termination, and other items per company reconciliation .

KPIs and Operating Milestones

KPIQ3 2024Q4 2024Q1 2025
Apollo manufacturing readinessPlan to begin LITEON line in Q4 2024 First units expected Q1 2025 First units produced; B‑samples to OEMs in Q2 2025
NVIDIA DRIVE progressMet Hyperion specs; major in-vehicle test completed Proven meets specs; partnership evolving Final independent testing phase underway
Customer funnelSamples to OEMs; increased interest Field tests in China/EU via partners 20+ active engagements; 2 POC contracts (ITS, defense)
Liquidity (potential)~$75M potential liquidity ~$80M potential liquidity ~$(74)M potential liquidity

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash Burn (Free Cash Flow Burn)FY 2025$25M (Feb-20 release) $27–$29M (May-8 release) Raised due to one-time litigation settlement and potential partial cash repayment of convertible note; underlying operational burn unchanged .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Apollo industrializationQ3: Plan to start LITEON line in Q4; samples shipped . Q4: First units expected Q1 2025 .LITEON line operational; first units produced; B‑samples to OEMs in Q2 .Improving/accelerating
NVIDIA DRIVE integrationQ3: Met Hyperion specs; major in-vehicle test . Q4: Proven spec compliance; evolving partnership .Final independent testing phase; unlocks OEM ecosystem access .Improving
Non-auto diversificationQ3: Growing interest; samples to partners . Q4: Field tests in China/EU .20+ engagements; two POC contracts signed (ITS, defense) .Improving
Supply chain/tariffs resilienceQ3/Q4: Focus on capital-light ops, cost structure .Diversified footprint (U.S., Mexico, W. Europe, Asia) to mitigate tariffs .Improving
Cash runway/liquidityQ3: ~$75M potential liquidity . Q4: ~$80M potential liquidity; runway mid-2026 .~$74M potential liquidity; runway mid-2026 reiterated; Q2 burn elevated .Mixed (adequate but down vs Q4)

Management Commentary

  • “We achieved a critical step toward mass production of Apollo, with the first units coming off the manufacturing line of our Tier 1 supplier partner, LITEON.” – CEO Matt Fisch .
  • “Apollo has entered their final independent testing phase [on NVIDIA DRIVE]… completion… opens up NVIDIA’s ecosystem and allows us to scale our conversations into more OEMs.” – CEO Matt Fisch .
  • “Excluding financing costs, first quarter cash burn was $8 million… we typically see higher cash burn in the first quarter and expect it to come down in subsequent quarters… a normalized run rate for us is about $5 million per quarter.” – CFO Conor Tierney .
  • “We’ve resolved our lease dispute… reducing potential cash liability exposure from $6.4 million to $1.4 million.” – CFO Conor Tierney .
  • “We are… in advanced negotiations on several proof‑of‑concept contracts… we’re seeing intelligent transportation systems and security as early standout opportunities where Apollo has a clear edge.” – CFO Conor Tierney .

Q&A Highlights

  • Cash burn trajectory: Q2 burn to be ~“$6M‑ish” due to lease payout, then trend to ~$5M per quarter; Q1 burn elevated on seasonal one-time payroll and financing costs .
  • Convertible note: 15‑month schedule; first two payments made in cash; noteholder can accelerate monthly (some accelerations satisfied in equity), with company electing cash/equity at its discretion .
  • NVIDIA timing and manufacturing scaling: Integration completion is a sales catalyst within NVIDIA’s OEM ecosystem; manufacturing scale will follow OEM contracts; sufficient inventory for near-term demand, with flexible scaling via LITEON .
  • Near-term revenue bridge: Two signed POCs (ITS and defense) reduce dependence on longer auto cycles; non-auto price points higher though volumes lower, aiding path to profitability against ~$25M annual burn rate .
  • TAM context: Automotive volumes dominate but ITS alone represents a ~$20B TAM across sensor modalities; AEye targets use-case leadership with long-range 1550nm, behind-windshield-capable Apollo .

Estimates Context

  • S&P Global (Capital IQ) consensus estimates for AEye’s Q1 2025 revenue and EPS were not available; therefore, no beat/miss determination can be made for the quarter (consensus not available).

Key Takeaways for Investors

  • Execution momentum: Apollo moved from pilot to first production units at LITEON; watch Q2 B‑sample deliveries and completion of NVIDIA’s independent testing as near-term catalysts .
  • Commercial pipeline: 20+ technical engagements with two signed POCs in non-auto verticals provide earlier revenue optionality; track conversion of POCs into deployments over ~6‑month cycles .
  • Cash and runway: ~$25.9M cash and securities with ~$(74)M potential liquidity and runway to mid‑2026, but FY25 cash burn raised to $27–$29M and Q2 burn elevated by lease settlement; funding cadence and note repayment mix are key watch items .
  • Operating leverage: GAAP and non-GAAP OpEx declined sequentially; management emphasizes a capital-light model and flexible Tier 1 scaling; monitor OpEx discipline as volumes begin .
  • Product differentiation: 1550nm, behind-windshield, long-range (up to 1 km) performance and software-defined configurability remain core differentiators that may command OEM attention amid Level 3 ADAS programs .
  • Risk balance: Minimal current revenue, increased FY25 burn, and dependency on OEM timelines offset positive technical and manufacturing milestones; non-auto POC progression is an important de-risking signal .

Management and Document Citations

  • Q1 2025 8-K/press release and financial tables: .
  • Standalone Q1 2025 press release: .
  • Q1 2025 earnings call transcript: .
  • Q4 2024 press release and transcript for prior-quarter comps: .
  • Q3 2024 press release/8‑K/transcript for two-quarters-back comps: .
  • Related Q1 2025 press release (LITEON first units): .