Innoviz Technologies Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Innovis' fourth quarter 2025 earnings call. Our presentation today will be followed by a Q&A session, at which time, if you wish to ask a question, you will need to either raise your hand using your mobile or desktop application or press star nine on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded. I'd now like to hand over the call to our first speaker, Ada Menaker, Head of Investor Relations. Please go ahead.

I'd like to welcome you to the Innovis Technologies' fourth quarter and full year 2025 earnings conference call. Joining us today are Omer Kelaf, Chief Executive Officer, and Eldar Tzedli, Chief Financial Officer. I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at ir.innovis.tech. Before we begin, I would like to remind you that our discussion today will include forward-looking statements that are subject to risks and uncertainties relating to future events in the future financial performance of InnoVis. Actual results could differ materially from those anticipated in the forward-looking statements. Forward-looking statements made today speak only to our expectations as of today, and we undertake no obligation to publicly update or revise them. For a discussion of some important risk factors that could cause actual results to differ materially from any forward-looking statements, please see the Risk Factors section of our Form 20F filed with the SEC on March 12, 2025. My Mayor, please go ahead.

Thank you, Ada, and good morning to everyone joining us today on the call. 2025 was a pivotal year for Innoviz in terms of customer engagements, production readiness, and end market expansion. We achieved the financial and operational goals that we set for ourselves at the start of the year, growing our market presence and strengthening our financial foundation. Since the last earnings call, we announced that the major commercial vehicle OEM with whom we have an agreement for serious production of level 4 trucks is Daimler Trucks and its subsidiary TORQ Robotics. We also announced our next generation Innobis 3 with a smaller form factor and lower power consumption for behind the windshield integration. The holy grail for automotive applications. Combined with an RGB camera, the InnoVis 3 is a compact sensor fusion module that simplifies integration and deployment. The InnoVis 3 is also more affordable than the InnoVis 2, which increases its potential time. You can actually see right now we are being filmed using our InnoVis 3 LiDAR. I'll tell you more about it later on. Our InnoBeat Smart, which we introduced last summer for non-automotive application. is available for shipment, and we are seeing excellent traction with a variety of customers. We are very pleased with the inroads the InnoVis Smart is making in the security market, and we recently announced that an InnoVis Smart-based solution has been deployed across several sites in critical infrastructure as an off-the-shelf system comprising the LiDAR, cameras, and analytic software. At CES, we demonstrated the Innobis Smarter integrated with NVIDIA Jetson Ori Nano to enable edge compute deployments in bandwidth-constrained areas, simplified installation, and cloud applications. To meet the demand of our automotive and non-automotive customers, we have continued to ramp capacity at FabriNet and expect production this year to be three to four times higher than last year. On the financial front, in 2025, we grew revenue to $55.1 million, more than double the level achieved last year. Our gross margin for the year was 23% versus approximately minus 5% in 2024. OPEX for the year was $80.6 million versus $108 million in 2024, a 20% decrease. As we kick off 2026, our NRE payments plan stand on approximately $111 million versus $80 million at the start of 2025. We've recognized approximately $45 million of revenues of these NREs agreements in 2025. We have $66 million remaining. We expect to recognize almost all of our existing NREs in 2026 and 2027. And we expect to sign additional NRE payments plans in 2026. As our current programs reach SOPs and we win new programs across automotive and non-automotive, we expect to see significant growth in LiDAR revenue over the coming years. Longer term, as sales of flighters expand, we expect them to make a growing proportion of revenues versus NREs. We believe that sales of flighters into the non-automotive physical AI applications will grow from approximately 1% to up to 10% of our annual revenues in 2026, accelerating further in the coming years. In all, we believe Innobis is in a very strong position for 2026 and the years ahead, as we expect to play a significant role in what could be one of the most important technological advances of the future. After transforming digital workflows through software and large language models, AI is moving into the physical world. It will power vehicles, robots, infrastructures and machines that must perceive, reason and act under real-world constraints and real-time. This transition, often referred to as physical AI, represents one of the largest and longest-duration technology opportunities of the coming decades. Physical AI must function in safety-critical environments, tolerate environmental variability, and scale at infrastructure level. As a result, it requires a fundamentally different foundation with perception at its center. Perception powers world models, models grounded not in text or images but in physics, and they are meant to emulate complex real-world systems. LiDAR is emerging as the most reliable method for digitizing the physical world into accurate real-time 3D representations, creating trusted world models that can drive machine decisions. Earlier this week, we published part one of a white paper on the role innovation is playing and will continue to play in the rise of physical AI and how we bring world models to life. I invite you to read it on our website. Part two will be out soon. And in March, we'll also host a webinar on the subject with Q&A. Please stay tuned for details. As the need for LiDAR as part of this new phase of physical AI becomes better understood and as the technical become more stringent, many players have been driven out of the market. We expect additional fallout in the future, with the market consolidating around just a few players. Automotive OEMs need behind the windshield solutions with lower power and smaller form factors. Non-automotive applications, especially in the areas of industrial and security, demand enhanced reliability and safety. InnoVis stands ready to meet these challenging customer requirements. With the maturity and production readiness of our InnoVis 2 and the smaller size, lower power consumption, and lower cost of InnoVis 3, We believe we are well positioned to become the world's premier large-scale supplier of ladder solutions, enabling autonomous driving and the rise of physical AI. And now, let's jump into the details. Starting with our trucking customer win. Back in September, we announced that we were selected for series production of level four autonomous trucks by a major commercial vehicle OEM. In December, we were very pleased to be able to name the customer, which is Diamond Truck and its subsidiary Torque Robotics. Under the terms of the engagement, InnoVis will provide multiple lidars per vehicle for the customer's L4 Class 8 fightliner Cascadia platform. We have already begun shipping units to support Daimler's trucking fleet. This partnership positions InnoVis' technology as a critical component in Daimler's truck strategy to bring autonomous trucks to the market. Deployment is planned across highway and regional routes in North America to help fleet operators improve operational efficiency and enhance road safety. Having met the requirements of one of the world's largest commercial OEMs, we believe we are well positioned to gain additional wins in the trucking space. And as we roll out new technologies, including an upcoming ultra long range solution, we will continue to work with Daimler to explore additional opportunities based on our full portfolio of products. The agreement with Daimler that we just discussed underscores the traction we're seeing in level four applications. As we said before, the case for level four has become very clear to the automakers. They see the benefit of adding content to a vehicle, eliminating the driver and deploying the vehicles in fleets. Way more success in pushing others forward, and at CES, about two-thirds of the customers and potential customers we met were focused on Level 4 applications. We are working towards level four SOPs with Mobileye, Volkswagen, and Daimler Truck, and we believe we are the lighter company with the most significant level four Western SOPs. I just recently toured the VW ID.Bus production line in Germany, and it was truly impressive. This is the first automotive series production of a level four robot taxi in the world. And it was very exciting to see our suite of nine lidars being installed on each vehicle as part of the automated process. We expect fleets of these vehicles in six cities in the US and in Europe this year, targeted to ramp in the second half of the year. We're also progressing on our level three SOPs with the mobilized chauffeur and programs such as Audi expected in 2027 In terms of new programs, in addition to the strong interest in Level 4, we are also very excited about the increase in Level 3 activity, as well as our continued work with NVIDIA. Level 3 is now viewed as a KPI for upcoming car designs. And there are multiple RFQs for programs aiming for 2028 and beyond. Many of these programs are targeting behind the windshield deployments. Several OEMs have recently discussed their Level 3 efforts, specifically mentioning LiDAR as a key component. With significant progress in LiDAR designs and the availability of mature technologies, automakers are exploring their options, and we are poised to compete and win on new RFQs with our solutions. To support our customers' efforts, we've introduced the InnoVis 3. Over the last 10 years, the LiDAR space went through two phases, and we are now entering a third phase. In the first phase, there were many players, and the devices were largely proof of concepts. In the second phase, the automotive OEMs needed a mature, durable working product, and the number of players declined. As far as we are aware, there are only two companies that were able to launch a Level 3 product during the second phase, and Innoviz was one of them. The time, development, and effort that Innoviz invested in the first two phases are the foundation of the Innoviz Sprint, designed to enable us to meet the elevated requirements of this next phase. Here, the Holy Grail of automotive lighters is behind the windshield installation that doesn't compromise vehicle design or in-cabin environment. The Innoviz3 has been designed to meet these challenges with a smaller form factor and lower power consumption. The Innoviz3 also offers a lower price point. While the InnoVis 2 costs approximately 70% less than the InnoVis 1, the InnoVis 3 offers an incremental 35% cost reduction. This could make it a compelling solution for L2 Plus applications as well. At CES, we even showcased the InnoVis 3 combined with a camera. This solution simplifies OEM sensor integration and sensor fusion, streamlining packaging and enabling faster deployment. The LiDAR Plus camera can also be used in applications such as drones, micro-robotics and humanoids, further enabling physical AI. And by the way, as I said at the first of the call, we're using InnoVis 3 to make this call. I think you'll agree with me that this is unlike any other LiDAR image out there. By adding color capabilities directly into our LiDAR, we are giving OEMs a cleaner, more efficient, lower cost path to multi-sensor perception without compromising vehicle design. While the automotive space remains our primary area of focus, let me touch on our progress with the Innobis Smart, which is now available to order and the newly announced Innobis Smarter. The Innobis Smart is based on the Innobis 2 platform and optimized for non-automotive applications such as security smart city robotics and others one example is an innovative smart based perimeter security solution which has already been deployed in several locations This is an off-the-shelf system for protecting critical infrastructure and municipal areas. It combines our lidars with our partners, PTZ cameras, and analytic software. Unlike radar and camera systems, the solution can detect movement behind obstacles such as trees and fences, maintains performance in harsh conditions, and deliver reliable detection of slow-moving or camouflaged targets. The InnoVis Smarter integrates the InnoVis Smart LiDAR with an NVIDIA Jetson Orion processor that will deliver a one-box edge solution for real-time 3D perception, enabling wireless deployment of LiDARs in bandwidth-constrained environments. At CES, we showcased the InnoVis Smarter by livestreaming a point cloud of the Las Vegas Strip, which was compressed at the edge. The video you've been seeing in the recorded output, as you can see, it flawlessly showed the landmarks, people walking, moving cars, and even the textures of buildings. These are all great examples of what LiDAR can do in terms of helping build a world model for physical AI, and we are seeing a lot of interest in our smart products from a variety of end markets. Now let's talk about our outlook for 2026. Driven by ongoing NRE payments and the ramp of ladder shipments, we expect to grow revenues by approximately 27% to $67 to $73 million. In 2026, we expect up to 10% of our revenues to come from non-automotive physical AI applications, up from 1%. We expect new NRE payments plan of 20 to 30 million dollars in addition to our existing plans. We expect to add two to three new programs this year. And now I'll turn it over to Elda to discuss our financials.