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    INVZ
    Earnings call· Jun 2026(Q2 FY26)

    Innoviz Technologies Q2 FY26 earnings call INVZ

    Aug 5, 2026 Source

    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

    7
    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

    2
    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

    Operational metrics

    11
    Revenue
    $18.1 millionall-time record
    Q2 FY26

    All-time record revenues driven by NRE recognition and defense shipments.

    Cash used in operations and capital expenditure
    $15.2 million
    Q2 FY26

    Cash burn for the quarter.

    Cash and investments balance
    $48.5 million
    Q2 FY26 end

    Cash, cash equivalents, short-term deposits, and marketable securities on the balance sheet, prior to the registered direct offering proceeds.

    Gross proceeds from registered direct offering
    $30 million
    July 29, 2026

    Additional capital raised, significantly strengthening the balance sheet.

    Non-GAAP gross margin
    positivereturned to positive levels
    Q2 FY26

    Gross margins returned to positive levels in the quarter, supported by NRE recognition and defense unit shipments.

    Non-GAAP gross margin
    positive
    FY26

    Expected to be positive for the full year, supported by increasing unit shipments, NRE payments, and automotive volume ramp.

    Operational runway
    into 2028
    post-offering

    The recent capital raise provides operational runway to realize expansion in 2027 and beyond.

    NRE recognition
    significant uplift
    Q2 FY26

    Reflects meeting key milestones for programs approaching SOP.

    Defense and Security order value
    $3.5 millionfirst large order
    recent

    First multimillion-dollar defense order, with potential for more significant volumes.

    Defense and Security backlog for 2026
    approximately halfway to target
    FY26

    Progress towards the 2026 non-automotive revenue target.

    Non-automotive sales as % of revenue
    1%
    FY25

    Baseline for non-automotive sales.

    Industry KPIs

    7
    MetricValueDetails
    Orders book to billapproximately halfway to our 2026 target
    Segment revenue growth$18.1 millionUSD
    Content per device per vehicle9 unitsunits
    Design wins product cycle ramps—
    Recurring software services mixsignificant uplift
    Capacity expansion internal sourcingramping up
    End market revenue mix organic growth10%%

    Orderbook & backlog

    1
    Defense and Security backlogapproximately halfway to our 2026 targetQ2 FY26

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

    Product announcements

    3
    ProductTypeDetails
    InnovizTwo LiDARupdate
    InnovizThree LiDARupdate
    Persis brandlaunch

    Deals & partnerships

    6
    Top 10 global OEMDevelopment 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 GroupIntegration 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 DefenseCollaboration to improve counter UAS performance

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

    CognitivePowering 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.

    PriorFilling Innoviz LiDARs across their unified platform

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

    Risks & headwinds

    2
    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

    5

    Defense and Security revenue contribution

    next quarter (Q3 FY26) and Q4 FY26
    Currentapproximately halfway to 2026 target
    Target10% 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.

    Q&A highlights

    7

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

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