Mobileye Global Inc.

Greetings. Welcome to Mobileye's second quarter 2026 earnings 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 keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Galves. Mr. Galves, you may begin.

Thanks, Sherry. Hello, everyone, and welcome to Mobilize Second Quarter 2026 Earnings Conference Call for the period ending June 27, 2026. Please note that today's discussion contains forward-looking statements based on the business environment as we currently see it, including regarding our future financial outlook. Such statements involve risks and uncertainties. Please refer to the accompanying press release, which includes additional information on the specific factors that 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, Mobilized CEO and President, Moran Shemesh, Mobilized CFO, and Nimrod Nehushtan, Mobilized EVP of Business Development and Strategy. Thanks, and now I'll turn the call over to Amnon.

Thank you for joining, everyone. Mobileye's core business continues to perform very well in 2026, providing a strong foundation as we build towards upcoming advanced product launches. In the second quarter, IQ volume was up 3%, outperforming the volume of our top 10 customers by more than 8 percentage points. While ASP came in modestly below our expectations due to a higher contribution from China OEM export volume, Revenue was essentially flat and still outperformed production at our top customers by roughly 5%. Profitability benefited from recognition of the new R&D credit law, which came into effect shortly after the end of Q1 and is retroactive to the beginning of 2026. Adjusted operating profit was up 46% year over year and adjusted operating margin expanded by 10 points to 31%. Moran will get into detail on the credit law itself, but we view the benefits as sustainable. This policy was primarily designed to offset a higher Israeli corporate tax rate and to act as a retention tool to encourage continued R&D activity in Israel. Considering the R&D credit booked in Q2, also included in the Q1 impact, we think that the first half provides a more representative view of Mobileye's underlying performance. On that basis, results were very strong, with first-half revenue up 13% year-over-year compared to our core customers' production volume decline of 3%. First-half adjusted operating margin was 23%, up 6 points on a year-over-year basis. Cash flow remained robust, with $210 million of operating cash flow generated in the first half of the year. Overall, our current business is a robust, extremely profitable foundation. We see multiple secular drivers, including growth opportunities in India, China OEM exports into emerging markets, and new customers, all of which are supporting continued volume growth above the broader market, which surround ADAS as expected to drive ASP growth starting in 2028. Moreover, we continue to secure new design wins across virtually all of the high-volume, mass-market applications our core customers need. When we move beyond high-volume ADAS into more advanced technology, such as point-to-point, eyes-on, hands-off, and level 3 eyes-off, the pace of additional traction will depend in part on demonstrating real-world performance through upcoming supervision, chauffeur, and drive launches. We have been consistent on this point the last few quarters, until OEMs see a vertically integrated supplier system performing at scale, on the road, Some are choosing to experiment with multi-supplier architectures that they integrate themselves, typically on lower-volume programs where the commercial and operational risk is more contained. The recent Stellantis Awards are a good example of this dynamic. Mobileye won the high-volume 2027 program with cloud-enhanced ADAS, supporting highway hands-free driving and a cost-efficient package for the OEM, while a lower-volume, later-timing, and higher-risk program was awarded to other suppliers. We view that outcome as consistent with how OEMs are allocating risk today. Mobileye continues to win where scale reliability and production readiness matters most, while some OEMs continue to test alternative architectures on platforms that carry less risk to their business. On cloud-enhanced ADAS specifically, this product provides an attractive economic bridge between base ADAS applications and more advanced autonomy, with gross profit per unit roughly equivalent to surround ADAS, and well more than double than of a base ADAS program. On the Robotaxi front, we remain encouraged by the progress with Volkswagen Group Company, Moya, both in terms of the performance testing of our self-driving system as well as the build-out of Moya's infrastructure. The program achieved a very recent milestone when Moya began public rider testing with safety drivers in Hamburg, Germany, in vehicles equipped with our self-driving system. We are looking forward to additional milestones throughout 26 and 27. As the confidence in our technology has grown, it has led to our decision to establish a fully vertically integrated Robotaxi offering where Mobileye will control all aspects of the value chain. This initiative, which will proceed in parallel and leverage the same self-driving system technology we have been developing for the last several years, targets launch in 2027 in at least one U.S. city. We believe this is a natural evolution to expand our potential share of this very large town. In addition to technology confidence, data from early stage commercial services has clarified many question marks. Consumer demand has been strong, revenue per vehicle is robust and would be profitable under our cost structure, and the regulatory environment is supportive. We have also noted slower than expected scaling by the perceived leaders in the space, which we see as providing ample time for us to build our ecosystem. This combination of factors made this a very clear decision for us. We have already established a cross-functional team to build this business and are deeply engaged with subcontractors for the vehicle platform, self-driving system installation and vehicle uplift, and local logistics and infrastructure support. Our Movit division is fully engaged and is a high-value asset for fleet supply, demand optimization, trip planning, and rider engagement. We are forming joint Movit Mobileye teams to leverage Movit's past proof-of-concept work with multiple mobility partners and accelerate development. Movit will restructure its resources, moving away and reducing headcount from the B2B side of its business, in order to later focus on this new strategy. Finally, we will add the Mobileye logo to Movit's app in the U.S. across hundreds of thousands of consumer users to enhance consumer recognition of the Mobileye brand. We see value in building the capability to participate across the entire Robotaxi value chain. But the most important action is responsibility for the vehicle as it comes out of the applet facility as a fully validated driverless car. This opens up many go-to-market options for us, including operating the vehicles within our own service, deploying them on a third-party platform, or selling the vehicles to Robotaxi service operators with recurring revenues as the vehicle generates rider fares. We also expect operating outside of an OEM to lead to more rapid validation and software update cycles. Before turning it over to Moran, I'll say a few words on my decision to step down as CEO once we appoint a successor. Mobileye is my brainchild. It started as an idea 27 years ago that machine learning can transform a monocular camera empowered by an appropriate system on chip into a system that can warn and mitigate imminent accidents at scale. Since then, we have delivered more than 250 million units of products, generated more than $13 billion of revenue, created thousands of jobs, and saved scores of lives by preventing and mitigating accidents. We helped create an industry and changed how the world thinks about road safety. Eventually, fully autonomous driving became the overarching goal. Today, with supervision, chauffeur, and drive moving towards commercialization, Mobilize is entering a new phase. Our business that runs through automakers remains central to Mobileye. At the same time, Robotaxi and humanoid robotics are major long-term opportunities built on the same physical AI foundation and require new operational models and new go-to-market strategies. Our next decade may be even more ambitious than the prior 27 years. That is why I believe this is the right time to begin a search for a new CEO. The next leader should bring operating profile to scale to scale these opportunities and the mandate to lead the company into its next stage. This will be a singular opportunity to lead one of the most important physical AI companies in the world. As for me, following the nomination of my successor, my goal is to contribute to the technology strategy, innovation, and long-term opportunities that can shape Mobilize' future. I'm proud of what we built and I'm even more excited what comes next. I will turn the call over to Moran.