Mobileye Global Inc.

Greetings and welcome to the Mobileye Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone pad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Gauss, Chief Communications Officer. Thank you, Mr. Gauss. You may begin.

Thanks, Maria. Hello, everyone, and welcome to Mobileye Second Quarter 2025 Earnings Conference Call for the period ending June 28, 2025. Please note that today's discussion contains forward-looking statements based on the business environment as we currently see it. Such statements involve risks and uncertainties. Please refer to the accompanying press release, which includes additional information on the could cause actual results to differ materially. Additionally, on this call, we will refer to both GAAP and non-GAAP figures. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted earnings release. Joining us on the call today are Professor Amnon Shashua, Mobileye CEO and President, and Nimrod Nuhustan, Mobileye's EVP of Business Development and Strategy. Unfortunately, our CFO, Maron Chamash, recently experienced a death in her family and will not be joining the call today. I'm sure everyone listening joins me in wishing the best to Maron and her family. For today's earnings call, I will essentially take on Maron's role. Thanks, and now I'll turn the call over to Amnon.

Hello, everyone, and thanks for joining our earnings call. Starting with the results, Q2 revenue was up 15% year over year as demand for the IQ was strong across regions and OEMs. Adjusted operating income was up 34% and adjusted operating margin rose 3.2 to 21%. Q2 was a good display of the strong operating leverage created by our business model. On a year over year basis, more than 40% of the revenue growth converted to operating income. Compared to Q1, nearly 70% of the higher revenue dropped to operating income. Operating cash flow was again a highlight, over $200 million for the quarter and over $300 million for the first half, about 33% of revenue. Our ADAS business is highly cash generative and we are maintaining strong working capital discipline. The core ADAS business is performing well with volumes at or above $8.5 million per quarter for the last four periods. And we are raising our full year revenue outlook by 4% and our adjusted operating income outlook by 14% at the midpoint. Our core ADAS business truly illustrates that mobilize an execution machine. IQ6 Lite will be the future high volume chip for this segment and the ramp up of that new system has been seamless. Only one year after the first SOP, we already have IQ6 Lite based systems on the road in North America, Europe, China, Japan and India. On the advanced product side, we are the only OEM neutral platform that is cost efficient and scalable and has a credible technology path to eyes of autonomy in both privately owned vehicles and robotaxis. All four of our advanced products surround ADAS, supervision, chauffeur and drive, share common elements including the IQ6 high inference chip, major portions of the perception and policy AI stacks, REM, crowd source driving intelligence, our safety frameworks and the company's data and validation infrastructure. This common backbone creates many synergies for us and our customers, enables us to develop and execute all four solutions simultaneously and leaves us agnostic to whether the market moves faster in one way or another. Whereas a couple of years ago OEMs were primarily focused on supervision, we are now seeing broad momentum across our portfolio from next generation ADAS to full point A to point B, eyes on hands free to level three systems and to robotaxi. The IQ6 high based surround ADAS system continues to develop as the next generation of standardized driving assist on high volume vehicles platforms. This system addresses multiple objectives in a cost efficient package. It's designed to meet stricter late decade safety standards, enables highway hands free performance for a lower cost than current systems and supports OEM goals to consolidate ECUs and to integrate technology on a single SOC. In recent months we have seen growing demand from OEMs to shift away from already sourced single camera programs towards our multi camera surround ADAS bundle. Overall opportunities to substantially grow content per vehicle in the ADAS space have improved over the last six months. Supervision activity remains robust but lack of competitive pressure is enabling OEMs to continue to take their time with decision making. Meanwhile, chauffeur has generated multiple new OEM prospects that sees eyes off on highway as a breakthrough feature that allows drivers to reclaim their time during commutes. The central question around eyes off consumer AV programs is simply technological maturity. How likely is it for a technology provider like Mobili to execute a system with human level safety and an expansive ODD? In this context, our four production programs with Volkswagen Group are significant strategic assets. They showcase our rapid progress in transforming our core technologies into scalable products. Our ability to demonstrate these products to other customers including production level hardware and software associated KPIs is an important proof point that our competitors do not have and will drive increasing competitive pressure as we approach launch. Turning to RoboTaxi, Waymo's achievement of 25% market share in San Francisco despite offering no time or cost advantage over human driven alternatives is very encouraging and has reignited industry enthusiasm. When you look at the RoboTaxi opportunity, two pillars are critical, safety and scalability. On safety, this means reaching the meantime between failures that exceed human statistics as well as other critical safety standards. Safety has long been a strength of Mobili supported by foundational innovations like our RSS model which we developed in 2017 and the PGF, our recently published framework for fusing multiple subsystems. Once safety goals have been reached, the second pillar is scalability. The name of the game here is how fast can you scale? This should be evaluated across three different vectors. The first scalability vector is geographic. How fast can you expand from city to city? REM is a huge asset here. The second is cost. What are all the all in operating costs of the system? Our in-house design compute, imaging radar, efficient AI, supply chain synergies, these all combine to create significant cost efficiency advantages relative to the competition. Finally, scalability also entails production capacity and business model. The fact that we work in partnership with OEMs that produce vehicles where our system is integrated during the mass production line rather than being uplifted in a different facility after the vehicle has been produced is very important. This approach allows us to be capital light but it's not just about capital light. It also allows us to scale fast. Even if we had all the capital to go and purchase 100,000 vehicles and then build production plans that would uplift the self-driving technology, it would have slowed us down. We are working with Volkswagen, of course, but also Hollon, which has a production facility underway and have advanced engagements with other high-scale OEMs. On the operations and distribution side, we have arrangements with Volkswagen's mobility arm, Moya, and Japanese fleet manager, Marubeni, to provide operations and the customer-facing technology. Finally, we have announced real engagements with demand generators, Uber and Lyft in the US, and public transport operators in Europe to provide a demand platform. All of these actors have skin in the game, which is also important to drive scale. So, Mobili, with the kind of partnerships that we're building, is in a very good position to scale rapidly once we start commercial deployment in 2026. In terms of a technology update on RoboTaxi, we recently successfully transitioned into our full production hardware inside the ID.Buzz test vehicle. The meantime between failure of performance is tracking well to the KPIs that were laid out at the start of the program. We expect to reach our KPI goals by the end of 2025, then start adding teleoperations, and then remove the driver in 2026. So, it's all on track. In summary, the opportunity set in front of us today is larger, broader, deeper, and more urgent than it was when we went public in 2022. OEMs are indicating increased clarity in planning and decision making. Near-term volumes are strong. The demand for both higher performance and lower cost is intensifying. And eyes of performance, whether for personal cars or RoboTaxi, is no longer seen as a science experiment, but as an achievable and commercially viable product. This is exactly where Mobili thrives. I'll turn the call over to Dan to cover the finance section.