Aeva Technologies, Inc.

Thank you and welcome everyone to Ava's third quarter 2025 earnings conference call. Joining on the call today are Suresh Salahian, Ava's co-founder and CEO, and Saurabh Sinha, Ava's CFO. Ahead of this call, we issued our third quarter 2025 press release and presentation, which we will refer to today and can be found on our investor relations website at investors.ava.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks, and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of AVA's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. The webcast replay of this call will be available on our company website under the investor relations link. And with that, let me turn the call over to Suresh.

Thanks, Andrew, and good afternoon, everyone. It has been an incredibly busy and productive quarter here at Ava. Following Ava Day this summer, where we shared how our breakthrough unified perception platform is enabling new levels of perception for customers across a broad range of applications, interest for AVA technology has continued to grow significantly. Our focus has been on achieving important milestones for our partners and positioning AVA to meet the expanding demand to adopt our differentiated FMCW technology. The key highlight this quarter is our progress with the top 10 global passenger OEM. At the start of the year, we announced that the OEM had selected AVA for a development program and also issued AVA a letter of intent for production, where upon successful completion of the development program, the engagement would transition to a serious production award opportunity. I am very pleased to share that we have completed this development program ahead of plan and are now in late-stage contract negotiations for a serious production award. and more on that later. We also continue to make good progress on the Daimler Truck Production Program. AVA's deliverables for the initial vehicle builds have been completed, and we are now shifting our focus to support Daimler Truck's growing vehicle fleet in 2026, and have already received the initial orders for next year's shipments of our Atlas final samples. And overall, we remain on track for DynaTrucks' planned market entry in 2027. Outside of automotive, we are pushing deeper into precision sensing. We have already started shipping against our first 1,000 plus units orders for our EVE 1D sensors. And in just a few months, we have expanded our precision sensing product line with unveiling of our EVE 1V sensor. This builds on the EVE 1D product by adding motion measurements to our product line to address what we believe is more of the multi-billion dollar manufacturing automation market. Reception has been really strong with multiple customers already placing initial orders with the opportunity to incorporate EVE 1D and 1V into their product portfolios. In Q3, We completed installation and bring up of the production line for our Eve sensors in Thailand. The first sensors have come off the line and shipped to customers. And we believe we now have the capacity ahead of time to fulfill next year's volume and will continue to increase the capacity as the demand grows. Now to support our growing commercial traction across multiple segments and our scaling, today we announced a $100 million investment from one of the world's leading investment firms, Apollo Global Management, in the form of convertible notes. This comes at a defining time in the industry, and we believe it further positions AVA to support not only the scaling of our existing programs, but to also win additional programs. This also follows our partnership and strategic investment from LG InnoTech that we announced earlier this year further reinforcing AVA's leadership position in next generation of sensing and perception. So to sum up this quarter, AVA continues to execute on the exciting and vast opportunities we highlighted at AVA Day. We believe that we are positioned to finish the year strong, including closing the top 10 global passenger OEM production program decision. And with our differentiated technology and strong balance sheet, we see this as just the beginning. with significant potential to continue our momentum into 2026 and forward. Now let's go into more detail on our key business developments. Starting first with our engagement with the top 10 global passenger OEM. As we shared at the start of this year, this OEM selected AVA for a development program using our Atlas Ultra sensor for the OEM's next generation global production platform. We expected to complete the development program by the end of this year, and I am pleased to say that we have successfully completed it in Q3 ahead of plan. The development program was focused on packaging and integration to be able to incorporate our Atlas Ultra as one standard platform across the OEM's multiple vehicle model lines. This is a global production program with a worldwide rollout plan across geographies excluding China. And the OEM plans to offer Level 3 across a broad range of their global vehicle model lineup, not just the top of the line models. As part of our joint development, we also successfully completed key performance testing to help ensure that Atlas Ultra enables the OEM to introduce new functions of Level 3 driving, including both highway and city driving. In addition, We completed comprehensive manufacturing audits with our partner LG Inotech for this OEM and detailed out our industrialization plan for the OEM's planned production. All of this now paves the way for the OEM to make the series production award. As we disclosed earlier this year, we secured a letter of intent from this OEM toward the series production program award, where upon successful completion of the development program, the engagement would transition to a global production program opportunity for AVA. We are now in late stages of contract negotiations and believe that AVA is well positioned to supply for the series production program. Beyond this particular program, we believe that the top 10 OEM selection of AVA for their global series production program would represent one of the strongest validations of our technology platform. in particular of the superior performance and maturity of our technology. This OEM has a long history of leading in the automotive industry with significant influence and a reputation for excellence and introducing industry defining features in automotive at mass volume on a global scale. This would also be the first time a passenger OEM would transition from time of flight to FMCW to enable Level 3 for both highway and city driving. As such, we believe their vote of confidence in AVA has the potential to accelerate the interest in FNCW technology as a blueprint for other fast-follower passenger car makers. To that end, we are already engaged with a number of OEMs and industry players across RFI and RFQ stages looking to leverage 4D LiDAR for passenger vehicles, trucking, and mobility. Over the course of this year, our pipeline has continued to grow, and we expect our first passenger OEM win to further increase interest in AVA as other OEMs view the Top 10 OEMs decision as a reference design for implementing Level 3 automated driving functionality.

Turning to our production program with Diamond Truck.