Executive Summary

Q2 2025 revenue of $0.155M missed consensus and fell sharply year over year as industrial-led shipments were light, while non-GAAP adjusted EBITDA loss improved modestly; management highlighted NVIDIA DRIVE AGX integration and expanding industrial and defense pipelines .
Operating expenses declined 44% YoY to $14.1M, extending the cost-down trajectory; GAAP net loss improved to $14.2M ($0.06 per share) from $23.9M ($0.11) in Q2 2024, aided by lower OpEx and non-cash derivative/warrant gains .
Liquidity strengthened: cash and equivalents rose to $91.4M (incl. investment securities), with total accessible capital of $106.5M via ATM and convertible facilities; CFO now targets runway into 2027, up from 2026 in Q1 .
Near-term revenue catalysts are anchored in industrial AGV/AMR retrofit solutions and defense tech demonstrations (autonomous swarming drones mapping in GPS/RF-denied environments), with H2 2025 revenue contribution expected and momentum into 2026 .
Automotive RFQs continue, but OEM timelines for L3 are reformulating; MVIS will unveil a cost-reducing multi-sensor architecture at IAA Munich to support broader adoption at lower system cost—potentially a narrative shift catalyst for the stock .

What Went Well and What Went Wrong

What Went Well

Integrated MOVIA lidar into NVIDIA’s DRIVE AGX platform, strengthening credibility with automotive OEMs and Tier-1 ecosystems .
44% YoY OpEx reduction in Q2 2025 ($14.1M vs $25.0M), with adjusted EBITDA loss improving to $11.2M vs $12.6M; cash used in operations fell to $12.7M vs $18.6M YoY .
Management deepened defense focus: added defense industry advisors and outlined a 1H 2026 public demonstration of autonomous swarming drones with real-time map sharing; “our products and technologies can significantly impact this segment” .

What Went Wrong

Revenue of $0.155M declined 91.8% YoY vs $1.9M and fell 73.7% QoQ vs $0.589M, missing consensus; industrial shipments were softer than anticipated .
Gross loss widened to $(0.561)M vs Q1 gross profit of $0.039M, reflecting low revenue absorption against fixed costs; cost of revenue was $0.716M .
Automotive awards remain elusive; RFQs reformulated and sourcing timing uncertain, with potential shifts into 2026 even as launches target 2028–2029, keeping scale revenue visibility pushed out .

Financial Results

Sequential Performance (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$1.650	$0.589	$0.155
GAAP Net Loss ($USD Millions)	$(31.155)	$(28.779)	$(14.229)
Diluted EPS ($)	$(0.14)	$(0.12)	$(0.06)
Gross Profit (Loss) ($USD Millions)	$(2.466)	$0.039	$(0.561)
Total OpEx ($USD Millions)	$16.006	$14.079	$14.095
Cash Used in Operations ($USD Millions)	$(15.0)	$(14.098)	$(12.7)
Cash & Equivalents ($USD Millions)	$74.7 (incl. investment securities)	$69.0 (incl. investment securities)	$91.4 (incl. investment securities)

Year-over-Year Comparison

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$1.900	$0.155
GAAP Net Loss ($USD Millions)	$(23.930)	$(14.229)
Diluted EPS ($)	$(0.11)	$(0.06)
Total OpEx ($USD Millions)	$25.0	$14.1
Cash Used in Operations ($USD Millions)	$(18.6)	$(12.7)
Adjusted EBITDA ($USD Millions)	$(12.6)	$(11.2)

KPIs and Liquidity

KPI	Q2 2025	Notes
Cost of Revenue ($USD Millions)	$0.716	Fixed overhead absorption drove gross loss
Contract Liabilities ($USD Millions)	$0.337 (current)	Indicator of customer prepayments/backlog
Accessible Capital ($USD Millions)	$106.5 (ATM $76.5 + convertible $30)	Subject to conditions
At-the-Market (ATM) Availability ($USD Millions)	$76.5	Fundraising flexibility
Convertible Note Outstanding/Terms	~$33M at $1.06 conversion; payments from Sept 1, 2025 (cash or stock at holder option)	CFO indicates cash ability

Segment breakdown: MVIS does not provide formal segment revenue reporting; management indicated Q2 revenue was driven by industrial customers (AGV/AMR) .

Guidance Changes

Metric	Period	Previous Guidance/Commentary	Current Guidance/Commentary	Change
Cash Runway	Corporate	Runway into 2026 (Q1)	Runway into 2027 (Q2)	Raised
Operating Expenses	FY 2025	Sustained at ~$11M cash R&D+SG&A per quarter (ex non-cash)	Sustained spending level through rest of year	Maintained
Near-term Revenue Timing	H2 2025–2026	$30–$50M over next 12–18 months, primarily industrial (not formal guidance)	Expect H2 2025 revenues and continuation into 2026; focus on industrial and defense	Clarified timing
Automotive RFQs	Program Sourcing	Engaged in 7 RFQs; pre-development likely before large awards	RFQs reformulating; some awards may slide into 2026; launches 2028–2029	Timing pushed
Capital Access	Ongoing	Access to $143.4M (Q1) incl. ATM/convertible	Access to $106.5M (ATM $76.5, convertible $30) (Q2)	Updated mix

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Industrial (AGV/AMR) revenue	Q4: multiple industrial customers; ZF capacity; $1.7M Q4 revenue sales to multiple customers	Bolt-on LCAS retrofit product gaining traction; H2 2025 revenue expected; multiple customers in evaluation	Improving visibility; near-term revenue
Defense tech	Q4: expanding to defense; history in military displays; advisors planned	Autonomous swarming drones demo in 1H 2026; partnerships with primes; multimodal sensor fusion	Strategic expansion, programmatic
Automotive OEM RFQs & architecture	Q4/Q1: 7 RFQs; pre-development likely; L3 adoption evolving	New multi-sensor architecture to lower system cost; RFQ quality improving; sourcing may slide	Rationalization; cost-led approach
Tariffs/supply chain	Q1: minimal China exposure; ZF in France; tariff monitoring	“Minimal exposure to China” reiterated; ZF supports high-volume supply	De-risking supply chain
Cost discipline & runway	Q4/Q1: R&D+SG&A ~$11M cash/quarter; runway into 2026	Runway extended into 2027 with ATM raises; OpEx sustained	Strengthened liquidity
AR/VR legacy monetization	Q1: open to monetizing AR IP via partnerships/licensing	External market report spotlighted VRD market growth; MVIS cited among players	Optionality maintained

Management Commentary

“Our new MOVIA S and MAVIN offer the widest field of view… cost competitive performance… lower system power” (CEO) .
“We achieved full integration with NVIDIA’s Drive AGX platform… big step forward… several RFQs” (CFO) .
“We plan to publicly demonstrate an autonomous swarming drone system… GPS denied environments… real-time maps shared with other drones” (CEO/CTO) .
“We finished this quarter with $91.4M in cash and cash equivalents… runway into 2027” (CFO) .
“We’re redefining LiDAR for automotive… more efficient system architecture… lower total system cost” (CTO) .

Q&A Highlights

Industrial pipeline: Bolt-on LCAS retrofit product for forklifts and AMRs to speed adoption; H2 2025 revenues expected, continuing into 2026 .
Defense partnerships: Focus on primes and mission-specific projects (maritime, airborne, terrestrial); 1H 2026 drone demo to showcase tech .
Automotive RFQs: Quality improving, but sourcing may slide to 2026; launches 2028–2029 remain intact; MVIS to unveil multi-sensor cost-down architecture .
Capital and dilution: ~$33M convertible outstanding; first payment due Sept 1 with intent to pay in cash (stock at holder option); opportunistic ATM usage extended runway .
Competitive positioning: Emphasis on solid-state LiDAR plus onboard perception vs electromechanical incumbents; harsh-environment packaging and lower power cited as advantages .

Estimates Context

Metric	Q2 2025 Consensus*	Q2 2025 Actual
Revenue ($USD)	$600,000*	$155,000
Primary EPS ($)	$(0.065)*	$(0.06)
EBITDA ($USD)	$(10,065,000)*	$(9,910,000)

Values retrieved from S&P Global.

Consensus breadth: Revenue/EPS had 2 estimates each; limited coverage increases volatility of consensus comparisons.*

Key Takeaways for Investors

Revenue miss and steep YoY decline reflect timing of industrial rollouts; management still guides to H2 2025 revenue onset and continued momentum into 2026 .
Cost discipline is intact: OpEx down 44% YoY, adjusted EBITDA loss improved; cash use from operations decreased sequentially and YoY .
Liquidity and runway improved to 2027 via ATM usage and convertible flexibility, reducing execution risk across industrial/defense initiatives .
Strategic pivot to multi-sensor automotive architecture aims to lower system cost and broaden OEM adoption; IAA Munich could be a narrative catalyst .
Defense tech demo (1H 2026) and partnerships could unlock higher-margin program revenues and validate MVIS’s software-centric stack .
Industrial bolt-on LCAS retrofit product and ZF France manufacturing commitment de-risk supply and accelerate deployments without China exposure .
With limited analyst coverage, consensus volatility is high; results below revenue consensus but slightly better than EPS consensus suggest cautious estimate revisions likely.*

Citations:

MICROVISION, INC. (MVIS)·Q2 2025 Earnings Summary