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Innoviz Technologies (INVZ) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 5, 2026

Source: earnings call transcript

Executive summary

Innoviz Technologies Q2 FY26 — Record Revenue Driven by Defense Entry and Automotive Progress

Innoviz reported record Q2 FY26 revenues, driven by its strategic entry into the defense and homeland security markets under the new Persis brand, alongside continued progress in its automotive programs. The company secured initial defense orders and strengthened its balance sheet, providing operational runway into 2028. Management highlighted the synergy between its automotive expertise and the high-margin defense sector, with significant growth anticipated from both segments in the coming years.

Highlights

5

  • Achieved all-time record revenues of $18.1 million in the quarter.

  • Secured first multimillion-dollar defense order for $3.5 million for several hundred LiDAR units.

  • Strengthened balance sheet with $30 million gross proceeds from a registered direct offering.

  • Gross margins returned to positive levels in the quarter and are expected to be positive for the full year.

  • Announced development of a LiDAR-based perception stack with a new top 10 global OEM.

Concerns

1

  • Bulk of second half revenues expected to come in Q4 FY26, indicating potential H2 weighting.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Revenue
$67 million to $73 million
high materiality
High
Non-automotive sales as % of revenue
10%
medium materiality
High
Non-automotive sales as % of revenue
20% to 30%
medium materiality
Medium
New NRE payment plans
$20 million to $30 million
medium materiality
Medium
New programs
2 to 3
medium materiality
Medium
Gross margins
positive
high materiality
High
Operational runway
into 2028
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Automotive
Programs with existing customers are on track, including the Volkswagen ID Buzz and Mobileye Drive platform. Engagements with OEMs for Level 3 and Level 4 applications are ongoing. New development of a LiDAR-based perception stack with a top 10 global OEM for highway driving.
LiDARs per Mobileye Robotaxi: 9 unitsID Buzz cities operating by year-end: 6 cities
————
Defense and Homeland Security (Persis brand)
New market entry with faster growth and higher margins. First multimillion-dollar order received for $3.5 million for several hundred LiDAR units for counter UAS and perimeter security. Solutions are already operational in several locations. Active conversations with dozens of potential customers.
Revenue contribution FY25: 1% of total revenueRevenue contribution FY26 target: 10% of total revenueRevenue contribution FY27 target: 20-30% of total revenueDefense and Security backlog for 2026: Approximately halfway to target
———Higher margins than auto space

Orderbook & backlog

Defense and Security backlog approximately halfway to our 2026 target Q2 FY26

Refers to the 2026 target for non-automotive sales (10% of total revenue).

Product announcements

ProductTypeDetails
InnovizTwo LiDARupdate
InnovizThree LiDARupdate
Persis brandlaunch

Deals & partnerships

Top 10 global OEM Development of a LiDAR-based perception stack for highway driving

New OEM relationship, developing platforms targeting both Level 3 and Level 4. Current work dedicated to Level 3, using Innoviz LiDAR and perception system to assess KPIs.

Drive Group Integration of Innoviz LiDAR into defense applications

Intends to integrate Innoviz LiDAR into applications such as drone localization, border security, and critical infrastructure protection.

Regulus and Givon Defense Collaboration to improve counter UAS performance

Working together to improve counter UAS performance in complex operational awareness environments.

Cognitive Powering new counter UAS model for advanced security platforms

Expanded engagement to power Cognitive's new counter UAS model.

Arona (part of Israel Shipyard industry group) Collaboration to integrate Innoviz technology into open architecture command and control platform

Integrating Innoviz technology into their open architecture command and control platform for counter UAS operations.

Prior Filling Innoviz LiDARs across their unified platform

Prior announced they will be filling Innoviz LiDARs across their unified platform.

Risks & headwinds

Risk of selecting or continuing to use Chinese LiDARs

explicitly unquantified

Mitigation:Robust interest in Innoviz technology from platform providers and OEMs as an alternative; Innoviz's proven functional safety and durability.

Drone threats (FPV, fiber optic, autonomous drones) ongoing

explicitly unquantified

Mitigation:Innoviz's LiDAR-based solutions for counter UAS, perimeter security, and UGV applications; ability to detect small drones at low altitude and in cluttered environments.

What to watch in Q3 FY26

Defense and Security revenue contribution

next quarter (Q3 FY26) and Q4 FY26
Current approximately halfway to 2026 target
Target 10% of total revenue for FY26

Why it matters

This is a key new growth driver with higher margins; achieving the target validates the market entry strategy.

Including the counter UAS orders we just received, our Defense and Security backlog for 2026 is approximately halfway to our 2026 target.

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Q&A highlights

What do the defense and security bookings mean for future sales, how much annual revenue has been booked, and what is the confidence in meeting the 2026 non-auto revenue target of 10%?

Management expressed high confidence in the defense market opportunity. They have already booked approximately halfway to their 2026 target for defense and security revenue and expect to meet the 10% non-auto revenue target for 2026. For 2027, they anticipate non-auto contribution to be between 20% and 30% of total revenue.

“As we said, we've already booked halfway our targets for the year. And in terms of the opportunities that we are currently in discussion with several customers, we have high confidence that we'll be able to meet our 10% target. We also said that we are expecting next year that -- the contribution of the defense and is a platform would be roughly between 20% and 30%.”

asked by Mark Delaney · answered by Omer Keilaf

2 min read 5 chapters

Detailed narrative

Strategic Entry into Defense and Homeland Security

Innoviz has successfully entered the defense and homeland security markets with its new Persis brand, leveraging its automotive LiDAR technology. This market offers faster growth and higher margins, with a potential multibillion-dollar TAM. The company secured its first multimillion-dollar defense order for $3.5 million for several hundred LiDAR units for counter UAS and perimeter security, with solutions already operational in several locations. This segment is expected to grow from 1% of revenues in 2025 to 10% in 2026 and 20-30% in 2027.

Automotive Business Progress and New OEM Engagement

The automotive segment continues to progress, with the Volkswagen ID Buzz advancing in multiple cities and Mobileye announcing its Robotaxi on the Drive platform, utilizing 9 Innoviz LiDARs per vehicle. Innoviz also announced a significant development of a LiDAR-based perception stack with a new top 10 global OEM for highway driving, powered by NVIDIA hardware. This engagement focuses on Level 3 applications, building on Innoviz's proven perception software capabilities demonstrated with BMW.

LiDAR Technology Differentiators and Functional Safety

Innoviz emphasizes its LiDAR's unique resilience to occlusions like dirt and mud, which is critical for functional safety in autonomous driving. This capability ensures redundancy to cameras, preventing simultaneous failure and maintaining system awareness in harsh environments. The company's products, including the InnovizTwo and InnovizThree, are production-ready and offer a one-stop shop solution for OEMs seeking real functional safety, especially as concerns rise over Chinese LiDAR alternatives.

Financial Performance and Capital Strengthening

Innoviz reported record Q2 FY26 revenues of $18.1 million, driven by significant NRE recognition and initial defense shipments. Gross margins turned positive in the quarter and are projected to remain positive for the full year. The company strengthened its balance sheet with a $30 million gross proceeds registered direct offering, increasing cash, cash equivalents, short-term deposits, and marketable securities to approximately $78.5 million (post-offering). This capital provides operational runway into 2028 to support commercialization and growth.

Strategic Outlook and Market Synergies

The company views its automotive and Persis (defense) businesses as highly synergistic, creating a flywheel effect that drives long-term growth and profitability. The defense market benefits from automotive expertise in functional safety and production readiness, while defense ASPs are significantly higher. Innoviz is actively pursuing additional engagements in both sectors, with expectations for substantial LiDAR unit sales growth in 2027 and beyond.

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