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    LIDR
    Earnings call· Jun 2026(Q2 FY26)

    AEye Q2 FY26 earnings call LIDR

    Aug 6, 2026 Source

    Executive summary

    AEye Q2 FY26 — Strong Revenue Growth and New Market Expansion

    AEye continued its strong momentum in Q2 FY26, achieving significant year-over-year and quarter-over-quarter revenue growth driven by expanding sales pipeline and repeat defense orders. The company successfully entered the sports analytics market with a new commercial win, showcasing the versatility of its software-defined LIDAR architecture. While operating expenses and net losses increased due to investments in production capacity and non-cash compensation, the company maintains a strong balance sheet and reaffirms its full-year cash use outlook, anticipating a meaningful revenue inflection in the second half.

    Highlights

    5

    • Q2 revenue grew approximately nine times year over year to $202,000.

    • Revenue grew roughly 100% quarter over quarter to $202,000, marking the fourth consecutive quarter of growth.

    • Sales funnel proof-of-concept programs with revenue-generating customers increased to 25 from 21.

    • Engagements and quote activity increased approximately 25% and 40% quarter over quarter, respectively.

    • Secured a new commercial program as the preferred LIDAR vendor for Alive3D, a sports analytics provider, expanding into a new market category.

    Concerns

    4

    • GAAP operating expenses increased to $10.6 million from $8.9 million in Q1, primarily due to non-cash stock-based compensation and non-recurring engineering costs.

    • GAAP net loss widened to $10 million, or $0.22 per share, compared to $8.3 million, or $0.18 per share in Q1.

    • Non-GAAP net loss increased to $7.6 million, or $0.17 per share, from $6.7 million, or $0.15 per share in Q1.

    • Cash consumption is expected to run higher in the second half of the year as manufacturing build ramps, despite reaffirming the full-year cash use outlook of $30 million to $35 million.

    Guidance & targets

    1
    CategoryTargetConfidence
    Full-year 2026 cash use
    $30 million to $35 million
    high materiality
    High

    Operational metrics

    27
    Revenue
    $202,000up 9x YoY, up 100% QoQ
    Q2 FY26

    Fourth consecutive quarter of growth.

    Revenue
    $101,000
    Q1 FY26

    Baseline for Q2 FY26 QoQ growth.

    Revenue
    $22,000
    Q2 FY25

    Baseline for Q2 FY26 YoY growth.

    First half revenue
    $303,000exceeds FY25 revenue of $233,000
    H1 FY26
    Full-year revenue
    $233,000
    FY25

    Exceeded by H1 FY26 revenue.

    Contract development revenue
    $30,000new this quarter
    Q2 FY26

    Second distinct source of revenue; expected to become a more regular contributor.

    Proof-of-concept programs (revenue-generating customers)
    25up from 21
    Q2 FY26

    Best barometer of progress.

    Engagements
    up approximately 25%QoQ
    Q2 FY26

    Commercial momentum accelerating.

    Quote activity
    up approximately 40%QoQ
    Q2 FY26

    Commercial momentum accelerating.

    GAAP operating expenses
    $10.6 millionvs $8.9 million in Q1
    Q2 FY26

    More than half of increase from non-cash stock-based compensation; balance from non-recurring engineering, tooling, and test costs.

    GAAP operating expenses
    $8.9 million
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    Non-GAAP operating expenses
    $8.2 millionvs $7.4 million
    Q2 FY26

    Excludes stock-based compensation; characterized as investment ahead of volume.

    Non-GAAP operating expenses
    $7.4 million
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    GAAP net loss
    $10 millionvs $8.3 million
    Q2 FY26
    GAAP net loss
    $8.3 million
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    GAAP EPS
    $0.22vs $0.18
    Q2 FY26
    GAAP EPS
    $0.18
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    Non-GAAP net loss
    $7.6 millionvs $6.7 million
    Q2 FY26
    Non-GAAP net loss
    $6.7 million
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    Non-GAAP EPS
    $0.17vs $0.15
    Q2 FY26
    Non-GAAP EPS
    $0.15
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    Cash consumption
    $7.5 millionvs $9.2 million
    Q2 FY26

    Reflects decrease from one-time payroll costs in Q1, offset by payments for professional fees, non-recurring engineering costs, and inventory purchases.

    Cash consumption
    $9.2 million
    Q1 FY26

    Baseline for Q2 FY26 comparison.

    Cash and investments balance
    $71.5 millionvs $77.2 million
    Q2 FY26

    As of end of Q2 FY26.

    Cash and investments balance
    $77.2 million
    Q1 FY26

    As of end of Q1 FY26.

    Apollo manufacturing capacity
    60,000 units annually
    annual

    Through LightOn, using off-the-shelf telecom components.

    Revenue growth
    continue doubling QoQ
    H2 FY26

    Management aims to continue the trend of the last four quarters.

    Industry KPIs

    2
    MetricValueDetails
    Design wins product cycle rampsAlive3D selection
    Capacity expansion internal sourcing60,000 Apollo units annuallyunits

    Product announcements

    3
    ProductTypeDetails
    Apollomilestone
    Apollomilestone
    Apollolaunch

    Deals & partnerships

    4
    Alive3DSelected as preferred LIDAR vendor for next-generation sports analytics.

    Apollo's software-defined technology will enable Alive3D to deliver 3D spatial sports visualization, precise measurement, and advanced data analytics.

    Movable WheelsSigned an MOU to explore combining Apollo's long-range 3D object detection with Movable Wheels' acoustic road surface friction sensing.

    Evaluations are underway across select geographies, with discussions already ongoing with automotive OEMs about potential applications.

    SyntecActively promotes and ships Apollo to its customers.

    Syntec is a leading international defense systems company.

    ATIChina partnership actively quoting today.

    Partnership for the China market.

    Risks & headwinds

    2
    Increased cash consumption in H2 FY26H2 FY26

    Second half consumption to run higher than first half

    Mitigation: Reflects continued investment in commercial execution, sales coverage, partner support, and deployment infrastructure to convert pipeline into revenue ramp.

    Geopolitical risk and shifting trade policy

    not quantified

    Mitigation: Positioned to navigate better than peers as an American company with a globally diversified supply chain.

    What to watch in Q3 FY26

    5

    Revenue growth

    Q3 FY26
    Current100% QoQ in Q2 FY26
    Targetcontinued doubling QoQ

    Why it matters

    Verifying sustained rapid revenue expansion is crucial for validating the commercial momentum and pipeline conversion.

    we aim to continue down that path here in the back half of the year, and that's what we believe we can achieve.

    Q&A highlights

    6

    Can you quantify or characterize the expected ramp in output for the second half of the year, and identify any specific end markets or customers driving this?

    Management aims to continue doubling revenue quarter-on-quarter in the second half, similar to the past four quarters. The ramp in production indicates confidence in the pipeline and upcoming commercial opportunities, with more commercial wins expected in the next few months.

    “we aim to continue down that path here in the back half of the year, and that's what we believe we can achieve.”

    asked by Richard Shannon · answered by Unknown Speaker

    2 min read7 chapters

    Detailed Narrative

    01

    Momentum and Sales Funnel Expansion

    AEye reported its fourth consecutive quarter of growth, with Q2 revenue doubling quarter-over-quarter and increasing nine-fold year-over-year to $202,000. The sales funnel showed significant expansion, with proof-of-concept programs growing to 25 from 21, engagements up 25%, and quote activity up 40% QoQ, indicating accelerating commercial interest and pipeline conversion.

    02

    New Market Entry: Sports Analytics

    The company announced its selection as the preferred LIDAR vendor for Alive3D, a sports analytics provider. This marks AEye's entry into a new market category, leveraging Apollo's software-defined architecture to deliver 3D spatial sports visualization and advanced data analytics, demonstrating the platform's adaptability beyond traditional applications.

    03

    Defense Sector Strength

    Defense remains the most active vertical, with engagements doubling quarter-over-quarter. The lead defense customer placed its third consecutive paid order, and repeat business is emerging for UAV, UGV, and counter-UAS applications. The partnership with Syntec is actively promoting Apollo in global markets, expanding the addressable pipeline.

    04

    Automotive and Trucking Progress

    AEye continues to be active in multiple OEM Level 3 and Level 4 evaluation projects, with a new evaluation starting and an RFQ coming in during the quarter. A Memorandum of Understanding (MOU) was signed with Movable Wheels to explore combining Apollo's 3D object detection with acoustic road surface friction sensing for improved ADAS and autonomous driving in adverse weather.

    05

    NVIDIA Partnership and Ecosystem Integration

    Apollo was validated on NVIDIA Drive AGX Thor, deepening the relationship and confirming sensor-to-compute interoperability with NVIDIA Drive OS. This integration positions Apollo as a pre-qualified sensor within the NVIDIA Drive Hyperion ecosystem, reducing integration risk for OEMs and Tier 1 suppliers.

    06

    Manufacturing and Capital-Light Model

    The company's capital-light model, utilizing a dedicated production line through LightOn capable of up to 60,000 Apollo units annually, underpins its strategy. Output ramping has begun to match forecasted increased customer demand in the second half of the year, leveraging off-the-shelf telecom components for mass manufacturability.

    07

    Contract Development Revenue

    AEye recognized $30,000 in contract development revenue from customer-funded engineering work in the aerospace and defense sector. This new revenue stream is expected to become a more regular contributor as programs advance, indicating customers' willingness to invest in hardware modifications and functional enhancements for specific use cases.

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