Aurora Innovation, Inc.

Greetings and welcome to the Aurora Second Quarter 2026 Business Review Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Stacy Feit, Vice President, Investor Relations. You may now begin.

Thanks, Paul. Good afternoon, everyone, and welcome to our second quarter 2026 business review call. We announced our results earlier this afternoon. Our shareholder letter and a presentation to accompany this call are available on our investor relations website at ir.aurora.tech. The shareholder letter was also furnished with our Form 8-K filed today with the SEC. On the call with me today are Chris Urmson, co-founder and CEO, and David Maday, CFO. Chris will provide an update on the progress we've made across the key pillars of our business, and David will recap our second quarter financial results. We'll then open up the call to Q&A. A recording of this conference call will be available on our investor relations website at ir.aurora.tech shortly after this call has ended. I'd like to take this opportunity to remind you that during the call, we will be making forward-looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed, projected, or implied during this call. In particular, those described in our risk factors included in our annual report on Form 10-K for the year ended December 31st, 2025, and other documents filed with the SEC, as well as the current uncertainty and unpredictability in our business, the markets, and economy. Additional information will also be set forth in our quarterly report on Form 10-Q for the quarter ended June 30th, 2026. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of the date hereof, and Aurora disclaims any obligation to update any forward-looking statements except as required by law. Our discussion today may include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Information regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results, may be found in our shareholder letter, which was furnished with our Form 8-K filed today with the SEC and may also be found on our investor relations website. Our discussion today may also include reference to forward-looking free cash flow, a non-GAAP financial measure, To the extent that this forward-looking financial measure is provided, it's presented on a non-GAAP basis without a reconciliation due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. With that, I will now turn the call over to Chris.

Thanks, Stacy. The second quarter represented a meaningful leap forward in our path to scale, anchored by a number of customer wins. To capitalize on this growing demand, we've launched our new fleet of driverless trucks based on the International LT series, without a person behind the wheel. Last week, we debuted Aurora Driver 2, the combination of our new software, second-generation commercial hardware, and this new truck platform. If you didn't get a chance to join the live stream, check out the video on page 4 of the slide deck. This milestone officially moves Aurora into the start of our commercial scaling phase. Back by this momentum, we are fully allocated to exit the year with 200 driverless trucks in operation and are in negotiations with a number of drivers-of-service business customers for 2027 and beyond. Our commercial momentum continues to accelerate after a strong start to the year, driven by a powerful customer flywheel effect. We recently executed transportation-as-a-service agreements with two customers that aim to grow their networks with Aurora driver-powered trucks. starting in Laredo, Texas, where nearshoring is driving unprecedented freight volume. Charger Logistics will utilize the Aurora driver to add capacity on its network and drive higher utilization starting on the Dallas-Laredo route, one of the busiest corridors in Texas. Value Truck will initially focus on boosting route density between two key corridors, Dallas-Laredo and Fort Worth-Phoenix. In addition, we expanded our operations with Volvo Autonomous Solutions with their launch of commercial freight service powered by the Aurora driver for industry leaders DSV and AVI SPL. Proving the value of our technology across complex networks and diverse applications lays the groundwork for widespread market adoption. Every new customer acts as a pipeline multiplier. As the broader logistics industry prepares to adopt autonomy, we're streamlining our customer onboarding cycle. This velocity is a powerful testament to the pent-up demand for a solution that helps address systemic industry bottlenecks. While expanding our commercial relationships, the Aurora driver completed nearly 440,000 driverless miles since launch through the end of June, maintaining a 100% on-time performance record and zero Aurora driver-attributed collisions. With additional trucks entering service weekly, we expect driverless miles to accelerate meaningfully moving forward. Our scaling plan for this new fleet prioritizes driverless delivery to and from customer facilities to further strengthen the Aurora driver's value proposition. Our work with Detmar Logistics in West Texas illustrates this versatility. We've deployed driverless operations without a person behind the wheel between their facility in Midland, Texas and Capital Sands Mining Site in Monahans, Texas along I-20. To support this deployment, we validated a frac sand trailer with minimal integration work demonstrating the modularity and adaptability of the Aurora driver. To enable nationwide driverless trucking and ensure seamless end-to-end service for our customers, we recently began supervised testing of way station navigation and en route fueling. While robotaxis will require extensive infrastructure build-out, the freight ecosystem's established service networks and turnkey truck stop footprint makes trucking a plug-and-play market for autonomous technology. Leveraging this infrastructure, we're now piloting third-party fueling and scaling at truck stops. In these pilots, truck stop staff fuel the truck as the Aurora driver navigates in and out of the fuel island. Looking ahead, truck stop personnel will utilize automated arrival notifications to efficiently secure, fuel, and release Aurora driver-powered trucks, enabling continuous long-haul travel. To support customer demand that is accelerating, we continue to advance our hardware and autonomy-enabled truck programs. The launch of our new fleet of driverless trucks also marks the initial commercial deployment of our second-generation commercial hardware kit. Engineered for 1 million miles of operation, this kit is designed to significantly increase uptime and reliability. It also delivers substantial performance gains, including a more efficient computer and an extended one-kilometer range for First Light, our proprietary long-range FMCW LiDAR. This long-range capability provides the Aurora driver with more than 34 seconds of reaction time at highway speeds, setting a new superhuman standard for safety. Crucially, we expect this kit to drive a 50% plus reduction in Aurora driver hardware costs, a key lever supporting our break-even gross margin target. We expect to have 20 to 25 driverless trucks in operation by the end of the third quarter. To support our scaling plan, our upfitter, Roush, has commenced manufacturing at a dedicated facility for Aurora. We've already received the initial builds and expect Roush to ramp to an annual run rate of 1,000 trucks in October. Concurrently, our ecosystem for series production is on a clear trajectory to hit its stride. At Volvo Group's 2026 Capital Markets Day, the company announced plans for Volvo Autonomous Solutions to begin driverless operations on the Volvo V&L Autonomous in the first quarter of 2027. These trucks will be driven by the Aurora driver. They expect to exit 2027 with more than 300 driverless trucks, paving the way for industrial scaling in 2028. We're seeing broad enthusiasm and engagement around the industry with Volvo projecting $3 billion in autonomous revenue within five years. The industrialization of autonomous freight is definitively at an inflection point. Volvo has already completed several Aurora driver-powered trucks on their pilot line ahead of the first quarter 2027 driverless launch. Looking further ahead, We've also built Volvo development trucks equipped with components of our third generation commercial hardware kit manufactured by Amovio. Our partnership with Amovio is intended to support tens of thousands of trucks. We look forward to testing these systems in the coming quarters ahead of Amovio's planned start of production in the second half of 2027. In parallel, PACCAR and Aurora are jointly defining the path to a scalable launch of our third generation commercial hardware kit. integrated with PACCAR's future autonomy-enabled platform on their assembly lines. We designed our strategy to enable our asset-like commercial model to be deployed across the leading truck platforms, giving us unmatched flexibility to meet diverse fleet preferences as autonomous trucking scales. Our commercial readiness is matched by a highly supportive regulatory landscape California recently joined the majority of other states in the US to permit the deployment of driverless trucks. Last month, I had the privilege of representing our industry before the California Assembly Transportation Committee. This engagement provided an opportunity to share key learnings from our safe driverless operations, outline our thoughtful approach to regional expansion, and foster shared confidence in the future of autonomous freight in the states. We have submitted our application to begin the required driver testing in California. At the federal level, we're seeing historic momentum toward a unified national framework. In May, the US House Transportation Infrastructure Committee passed the Build America 250 Act 62-2, a truly bipartisan surface transportation reauthorization bill. This bill features a dedicated framework for the nationwide deployment of autonomous trucks that would help harmonize the current patchwork of state laws and addresses operational updates that Aurora has long championed. For example, the legislation would explicitly permit the use of cab-mounted warning beacons instead of manually placed warning devices when a commercial motor vehicle is stopped. We continue to engage closely with lawmakers to advance this critical legislation into law and secure American leadership in the global autonomous transportation race.