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    AUR
    Earnings call· Jun 2026(Q2 FY26)

    Aurora Innovation Q2 FY26 earnings call AUR

    Jul 29, 2026 Source

    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

    11
    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

    Operational metrics

    19
    Revenue
    $2 million
    Q2 FY26

    Across driverless and vehicle operator supervised commercial loads.

    Operating Loss (GAAP)
    $266 million
    Q2 FY26

    Including stock-based compensation.

    Stock-Based Compensation
    $60 million
    Q2 FY26

    Component of operating loss.

    R&D (excluding SBC)
    $164 million
    Q2 FY26

    Excluding stock-based compensation.

    SG&A (excluding SBC)
    $37 million
    Q2 FY26

    Excluding stock-based compensation.

    Cost of Revenue
    $7 million
    Q2 FY26
    Operating Cash Use
    $225 million
    Q2 FY26

    Excluding $63 million in cash bonus payments, cash spend was within target.

    Capital Expenditures
    $31 million
    Q2 FY26
    Cash Bonus Payments
    $63 million
    Q2 FY26

    Funded through at-the-market program.

    ATM Program Net Proceeds
    $215 million
    Q2 FY26
    Liquidity Increase
    $126 million
    Q2 FY26

    After funding cash bonus payments and tax liability for RSUs.

    Cash and investments balance
    $1.2 billion
    Q2 FY26

    Ended the quarter with a strong balance sheet.

    Driverless Miles Driven
    440,000
    Since launch through June

    Expected to accelerate meaningfully with additional trucks.

    Aurora Driver Hardware Cost Reduction
    50%+
    Gen 2 vs Gen 1

    Key lever supporting breakeven gross margin target.

    FirstLight LiDAR Range
    1 kilometer
    Gen 2

    Proprietary long-range FMCW LiDAR, setting a new superhuman standard for safety.

    Transportation-as-a-Service Revenue Run Rate
    $80 million
    Exit FY26

    Establishes a powerful foundation for 2027 when the core Driver-as-a-Service business model is expected to commence.

    TaaS Revenue Per Mile
    $2+
    Current

    Higher per mile revenue outlook for full service.

    DaaS Revenue Per Mile
    $0.85+
    Target

    Targeting for Driver-as-a-Service model.

    Maximum TaaS Trucks Supported
    500
    If needed

    Flexibility in modeling and financing to support this many TaaS trucks if needed, though not expected to reach this level.

    Industry KPIs

    5
    MetricValueDetails
    Capacity CAPEX$31 millionUSD
    Revenue growth$2 millionUSD
    Arr net new arr$80 millionUSD
    Pricing model mix$2+USD per mile
    Ai product adoption monetization440,000miles

    Product announcements

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

    Deals & partnerships

    7
    Charger LogisticsTransportation as a Service agreement

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

    Value TruckTransportation as a Service agreement

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

    Volvo Autonomous SolutionsExpanded operations for commercial freight service

    Powered by the Aurora Driver.

    Detmar LogisticsDriverless 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.

    HirschbachMemorandum of Understanding (MOU) for DaaS2027 and 2028

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

    AUMOVIOManufacturing 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.

    PACCARJointly 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

    1
    Roush Manufacturing Facility for Auroraunderway

    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

    5

    Driverless Trucks in Operation (Q3 FY26)

    End of Q3 FY26
    Currenthandful of International trucks
    Target20 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.

    Q&A highlights

    7

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.