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Aurora (AUR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Jul 29, 2026

Source: earnings call transcript

Executive summary

Aurora Q2 FY26 — Driverless Truck Scaling and Commercial Momentum

Aurora entered its commercial scaling phase with the launch of Aurora Driver 2 and a new fleet of driverless trucks, securing new customer agreements and expanding existing partnerships. The company is focused on scaling its Driver-as-a-Service model, supported by significant hardware cost reductions and a strong cash position, while navigating substantial operating losses in its investment phase.

Highlights

5

  • Launched Aurora Driver 2 and new fleet of driverless trucks, marking the start of commercial scaling.

  • Secured new Transportation-as-a-Service (TaaS) agreements with Charger Logistics and Value Truck, expanding customer base.

  • Achieved 440,000 driverless miles since launch with 100% on-time performance and zero Aurora Driver attributed collisions.

  • Second-generation hardware kit expected to drive 50%+ reduction in Aurora Driver hardware costs.

  • Ended the quarter with a strong balance sheet, including nearly $1.2 billion in cash and short-term investments.

Concerns

3

  • Reported a Q2 FY26 operating loss of $266 million, including stock-based compensation.

  • Used approximately $225 million in operating cash during Q2 FY26.

  • Cost of revenue totaled $7 million in Q2 FY26, exceeding reported revenue of $2 million.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Revenue
$14 million to $16 million
high materiality
High
Driverless Trucks in Operation
more than 200
high materiality
High
Quarterly Cash Use
approximately $190 million to $220 million
medium materiality
High
Full-year 2026 Capital Expenditures
approximately $150 million
medium materiality
High
Driverless Trucks in Operation
20 to 25
medium materiality
High
Roush Manufacturing Annual Run Rate
1,000 trucks
medium materiality
High
Volvo Autonomous Solutions Driverless Operations Launch
first quarter of 2027
high materiality
High
Volvo Autonomous Solutions Driverless Trucks
more than 300
high materiality
High
Volvo Autonomous Solutions Autonomous Revenue
$3 billion
high materiality
High
AUMOVIO Start of Production
second half of 2027
medium materiality
High
Light Snow and Cold Weather Operation
added
low materiality
Medium

Product announcements

ProductTypeDetails
Aurora Driver 2launch
New Fleet of Driverless Trucks (International LT series)launch

Deals & partnerships

Charger Logistics Transportation as a Service agreement

Starting on the Dallas-Laredo route. Intent to move into Driver-as-a-Service in 2027.

Value Truck Transportation as a Service agreement

Between Dallas-Laredo and Fort Worth-Phoenix corridors. Intent to move into Driver-as-a-Service in 2027.

Volvo Autonomous Solutions Expanded operations for commercial freight service

Powered by the Aurora Driver.

Detmar Logistics Driverless operations deployment

Deployed driverless operations between their facility in Midland, Texas and Capital Sand's mining site in Monahans, Texas along I-20. Validated a frac sand trailer.

Hirschbach Memorandum of Understanding (MOU) for DaaS 2027 and 2028

MOU continues to progress and will create the framework for future DaaS partnerships.

AUMOVIO Manufacturing partnership for third-generation hardware

Built Volvo development trucks equipped with components of Aurora's third-generation commercial hardware kit manufactured by AUMOVIO. Planned start of production in H2 2027.

PACCAR Jointly defining path for third-generation hardware integration

Jointly defining the path to a scalable launch of Aurora's third-generation commercial hardware kit integrated with PACCAR's future autonomy-enabled platform on their assembly lines.

Capital programs

Roush Manufacturing Facility for Aurora underway

Benefit:Annual run rate of 1,000 trucks

Roush has commenced manufacturing at a dedicated facility for Aurora. Initial builds received, expected to ramp to 1,000 trucks annual run rate in October.

What to watch in Q3 FY26

Driverless Trucks in Operation (Q3 FY26)

End of Q3 FY26
Current handful of International trucks
Target 20 to 25 International trucks

Why it matters

Verifies the ramp-up of the new fleet and the initial commercial scaling phase.

We expect to have 20 to 25 driverless trucks in operation by the end of the third quarter.

Find out whether AUR delivers this. Inve re-checks your case every morning.

Q&A highlights

What specific catalysts will drive the next inflection point in commercial adoption, given strong tailwinds and recent industry announcements? Is Aurora directly involved with TFI?

Chris Urmson stated that continued building of trust and credibility, along with the visible success of more second-generation trucks on the road, will drive adoption. He declined to comment on potential partnerships like TFI.

“I think it's just a continued building of trust and credibility, right? And we've seen with each step forward of the technology and each step forward with the customer adoption, we get this flywheel effect where the engagement we have with our commercial team just continues to grow and grow.”

asked by George Gianarikas · answered by Christopher Urmson

2 min read 6 chapters

Detailed narrative

Commercial Scaling with Aurora Driver 2

Aurora officially entered its commercial scaling phase with the launch of Aurora Driver 2, combining new software, second-generation commercial hardware, and the International LT series truck platform. The company is fully allocated to operate 200 driverless trucks by year-end and is negotiating Driver-as-a-Service (DaaS) agreements for 2027 and beyond, leveraging a customer flywheel effect.

Expanded Customer Engagements

New Transportation-as-a-Service (TaaS) agreements were executed with Charger Logistics and Value Truck, focusing on key freight corridors like Dallas-Laredo and Fort Worth-Phoenix. Operations with Volvo Autonomous Solutions also expanded, launching commercial freight service for DSV and AVI-SPL, demonstrating the Aurora Driver's versatility across complex networks.

Operational Milestones and Safety

The Aurora Driver completed nearly 440,000 driverless miles since launch through June, maintaining 100% on-time performance and zero Aurora Driver attributed collisions. A safety example highlighted the system's ability to perceive a red-light runner 6 seconds prior to a collision, even when in manual mode, underscoring its superhuman safety capabilities.

Hardware Advancements and Cost Reduction

The second-generation commercial hardware kit, engineered for 1 million miles, significantly increases uptime and reliability. It features a more efficient computer and an extended 1-kilometer range for FirstLight LiDAR, providing 34 seconds of reaction time at highway speeds. This kit is expected to drive a 50%+ reduction in hardware costs, crucial for achieving breakeven gross margins.

Manufacturing and Ecosystem Development

Roush has commenced manufacturing at a dedicated facility for Aurora, expected to ramp to an annual run rate of 1,000 trucks in October. Volvo Autonomous Solutions plans driverless operations in Q1 2027 and projects over 300 driverless trucks by end of 2027, with $3 billion in autonomous revenue within five years. Development for the third-generation hardware kit is also underway with AUMOVIO and PACCAR.

Regulatory Progress

California recently permitted driverless truck deployment, and Aurora has applied for driver testing in the state. At the federal level, the bipartisan BUILD America 250 Act, featuring a dedicated framework for nationwide autonomous truck deployment, passed the U.S. House Transportation Infrastructure Committee, aiming to harmonize state laws and address operational updates.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.