Executive Summary

Q3 revenue of $504M grew 4% YoY and beat S&P Global consensus by ~$19M; Adjusted diluted EPS was $0.09, a slight beat versus ~$0.087*; GAAP diluted EPS was $(0.12) . Revenue consensus: ~$485.0M*; EPS consensus: ~$0.0869*.
Full-year 2025 guidance raised: revenue to $1.845–$1.885B (midpoint +2% vs prior) and Adjusted Operating Income to $263–$286M (midpoint +11%); GAAP operating loss narrowed to $(462)–$(439)M .
Management highlighted a second nomination for IQ6 High-based surround ADAS at a leading Western OEM, continued on-track execution with VW on SuperVision/Chauffeur, and targeted U.S. “driver-out” robotaxi in 1H26; next-gen SoCs (IQ7/IQ8) are aimed at a 2029+ “minds-off” roadmap .
Cash generation and balance sheet remain strengths (Q3 OCF ~$167M; YTD OCF $489M; cash $1.75B after a $100M repurchase) .

What Went Well and What Went Wrong

What Went Well
- Top-line and EPS beats, with stable ADAS demand: revenue +4% YoY to $504M (EyeQ volumes +8% YoY) and Adjusted diluted EPS $0.09 (vs ~$0.087* consensus) .
- Raised FY25 outlook on improved visibility and industry stability; revenue midpoint +2% and AOI midpoint +11% (typical incremental margins; stable OpEx) .
- Strategic traction: second surround ADAS nomination at a leading Western OEM; execution milestones with VW across advanced programs; driver-out target in 1H26 (U.S.) .
- Quote: “The business delivered another strong quarter... Continued auto production stability gives us confidence to again raise our full-year outlook...” — CEO Prof. Amnon Shashua .
What Went Wrong
- Gross margin headwinds: GAAP gross margin 48% (−55 bps YoY) and adjusted gross margin 67% (−124 bps YoY) driven by lower EyeQ ASPs (China mix) and mix of IQ products; IQ5 share rising (10% → ~15% in 2026) is a modest headwind .
- Q4 implied unit volume lower vs Q2/Q3 to normalize inventories (not indicative of a trend); seasonality distorted by tariff timing .
- SuperVision volumes, while better in Q3 (>20k units) and tracking ~50k for FY25, remain small in mix and can be lumpy .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025 Actual	Q3 2025 Consensus
Revenue ($M)	$486	$506	$504	$485.0*
GAAP Diluted EPS ($)	$(3.35)	$(0.08)	$(0.12)	—
Adjusted Diluted EPS ($)	$0.10	$0.13	$0.09	$0.0869*
GAAP Gross Margin (%)	49%	50%	48%	—
Adjusted Gross Margin (%)	68%	69%	67%	—
GAAP Operating Margin (%)	(578%)	(15%)	(22%)	—
Adjusted Operating Margin (%)	16%	21%	15%	—

Consensus values marked with an asterisk are retrieved from S&P Global. S&P Global data show EPS consensus ~$0.0869 and revenue consensus ~$485.0M; actual EPS $0.09 and revenue $504M imply modest EPS beat and ~3.9% revenue beat (about $19M)*.

KPIs and Operating Metrics

KPI	Q3 2024	Q1 2025	Q2 2025	Q3 2025
EyeQ + SuperVision Shipments (M units)	8.6	9.7	9.7	9.2
Average System Price ($)	53.3	49.0	49.7	51.7
SuperVision Units (quarter)	—	—	—	>20,000
Operating Cash Flow ($M)	—	109 (Q1)	322 (YTD)	167 (Q3) ; 489 (YTD)
Cash & Equivalents ($M)	—	1,527	1,709	1,749

Notes:

Q3 2024 GAAP operating margin depressed by goodwill impairment; YoY margin improvement reflects non-recurrence .
Q3 OCF of ~$167M cited on the call; nine-month OCF $489M in 8-K .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	FY 2025	$1,765–$1,885	$1,845–$1,885	Raised midpoint (+2%)
GAAP Operating Loss ($M)	FY 2025	$(512) – $(436)	$(462) – $(439)	Narrowed loss (better midpoint)
Adjusted Operating Income ($M)	FY 2025	$210–$286	$263–$286	Raised midpoint (+11%)
Share-based Comp ($M)	FY 2025	$279	$282	Slightly higher
IQ Unit Volumes (M)	FY 2025	33.5–35.5 (implied prior)	35.0–35.5	Raised low end
Gross Margin (Adj, %)	FY 2025	~Flat to slight up (implied)	~68% FY; slight uptick in Q4 vs Q3	Maintained/slight uptick
Non-GAAP OpEx ($B)	FY 2025	~<1.0 (implied)	Up ~7% YoY to just below $1B	Maintained

Management context: Q4 volume guide lower than Q2/Q3 is a supply-demand balancing to enter 2026 with lean inventories; not a trend change .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1, Q2 2025)	Current Period (Q3 2025)	Trend
Surround ADAS (IQ6 High)	Q1: First surround ADAS win with VW Group . Q2: Strong traction signaled .	Second nomination at a leading Western OEM; cost/performance and ECU consolidation cited as drivers .	Accelerating nominations; first-mover advantage reinforced .
SuperVision/Chauffeur execution	Q1: Progress toward wins . Q2: Production-level HW; AI-heavy software progress .	On schedule with VW; major AI software drops in coming months; eyes-off launch targeted 2027 with Audi .	Execution-focused; preparing for broader wins post-1H26 .
Robotaxi (Drive)	Q1: Lyft/Marubeni; Dallas initial ops . Q2: VW-Uber plan in LA; expanding engagements .	Driver-out in 1H26 (U.S.) targeted; OEM partner for Lyft path nearing finalization; EU homologation with VW advancing .	Execution gating commercialization; regulatory engagement supportive .
Supply-demand, tariffs, inventory	Q1: Reaffirm FY outlook with tariff assumptions . Q2: Raised FY; stability improving .	FY raised again; Q4 volume lower to normalize inventories; no material Q4 impact expected from chip issues; tariff backdrop embedded .	Improved visibility; prudently balancing inventory .
China/ASP & product mix	Q2: Slight EyeQ ASP reduction (China mix) .	YoY GM pressure from China mix and higher IQ5 share; IQ5 ~10% in 2025, peaking ~15% next year, then declining as IQ6 Light ramps from 2027 .	Ongoing near-term headwind; medium-term tailwind as IQ6 Light scales .
Imaging radar & long-term SoC roadmap	Q2: First imaging radar design win; L3 enabler .	IQ7 sample received; IQ7/8 aimed at 2029+ “minds-off,” with IQ6 sufficient for eyes-off/teleops robotaxi .	Investing for next compute step; eyes-off on IQ6 path .

Management Commentary

Strategy and outlook: “We again raised the midpoint of our full-year outlook... 2% in terms of revenue and 11% in terms of adjusted operating income... volumes to come in about 2 million units higher than our original guidance” — CEO .
Surround ADAS economics: “IQ6 High... can process all of these sensors and create a much richer sensing state... added cost... was very reasonable... two to three times more expensive for that silicon component” — EVP Strategy .
Competitive position: “IQ6 High... on par and in many cases better than Orin X... at a price point... less than 25% of it” — CEO .
Robotaxi timing: “We believe that in the first half of 2026, we can start removing the safety driver in one city in the U.S.” — CEO .
Gross margin drivers: “IQ ASP was down about $0.50 year over year... higher volume of Chinese OEMs... higher volume of ADAS programs based on IQ5...” — CFO .

Q&A Highlights

Surround ADAS win details: Second nomination with a leading Western OEM, upgrading from IQ6 Light to IQ6 High for ECU consolidation and richer features at attractive cost; strong cost/power advantages vs alternatives .
Q4 volume cadence: Lower Q4 implied units are inventory/supply-demand balancing; 2025 full-year ~35.5M units is the better run-rate proxy; seasonality affected by tariffs .
Margin mix: IQ5 share to ~15% next year is a modest headwind; IQ6 profitability similar to IQ4; medium-term margin tailwind as IQ6 Light ramps 2027+ .
Robotaxi ecosystem: U.S. driver-out 1H26; OEM partner for Lyft path close; Europe progression with VW and German authorities; regulatory engagement supportive .
Compute roadmap: IQ6 sufficient for eyes-off; IQ7/8 targeted for “minds-off” without revalidating eyes-off stack; cadence every ~2 years .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $504M vs ~$485.0M estimate (beat by ~$19M); Adjusted diluted EPS $0.09 vs ~$0.0869 (slight beat). Primary EPS estimates based on ~20 analysts; revenue ~19 analysts*.
Implications: Modest EPS beat and solid top-line outperformance plus raised FY guide likely prompt upward revisions to FY revenue and AOI; GM mix commentary (China, IQ5) may cap near-term EPS revisions despite better volumes .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Beat-and-raise quarter: Solid revenue outperformance and raised FY revenue/AOI guidance, with improving visibility into demand and supply normalization .
Strategic momentum: Surround ADAS is emerging as a high-volume, cost-optimized growth vector (second nomination); strong first-mover advantage and chip/power economics .
Execution year into 2026: Focus on delivery with VW (SuperVision/Chauffeur) and driver-out robotaxi in 1H26; potential catalysts include OEM reveal on Lyft program and regulatory milestones .
Margins: Near-term GM pressure from China mix and IQ5 share; medium-term tailwinds as IQ6 Light scales and surround ADAS ramps (starting 2027) .
Cash strength: Robust OCF and $1.75B cash provide flexibility; $100M buyback in Q3 signals capital allocation discipline .
Modeling notes: Use ~35.0–35.5M IQ units for FY25; Q4 lower units reflect inventory balancing, not trend; FY adj GM ~68% and non-GAAP OpEx just below $1B .
Stock catalysts: Additional surround ADAS nominations, concrete driver-out milestones, and SuperVision/Chauffeur software drops could drive multiple expansion if execution remains on track .

Sourcing/citations: All company results, guidance, and commentary from Q3 2025 8-K press release and call transcript; prior quarters from Q1 2025 8-K and Q2 2025 press release . Consensus values marked with an asterisk are retrieved from S&P Global.*

Mobileye Global Inc. (MBLY)·Q3 2025 Earnings Summary