MicroVision, Inc.

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Thank you, Jenny. Good afternoon. I'm here today with our Chief Executive Officer, Glen DeVos, and our Interim Chief Financial Officer, Steve Hrynewich. Following their prepared remarks, we will open the call to questions. Please note that some of the information you will hear in today's discussion will include forward-looking statements, including but not limited to strategic plans and execution progress, expectations regarding customer engagement and product deliveries, product applications and use cases, market opportunities, cash flow forecasts, liquidity and financing activities, availability of funds and access to capital, expected near-term and future revenue operating expenses and cash usage, as well as statements containing words like believe, expect, plan, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our SEC filings, including our most recently filed Form 10-K and quarterly reports on Form 10-Q. These filings describe risk factors that could cause our actual results to differ materially from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call and, except as required by law, we undertake no obligation to update this information. In addition, We will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure, as well as for all the financial data presented on this call, please refer to the information included in our press release and in our Form 8-K, dated and submitted to the SEC today. both of which can be found on our corporate website at ir.microvision.com under the SEC Filings tab. This conference call will be available for audio replay on the Investor Relations section of our website at www.microvision.com. Now, I would like to turn the call over to Glen DeVos, our Chief Executive Officer. Glen?

Thank you, Drew, and good afternoon, everyone. Welcome to MicroVision's second quarter 2026 earnings call. Earlier this year, we introduced LiDAR 2.0, the next chapter in MicroVision's evolution. It marked a deliberate shift from a hardware-first company proving out technology for automotive to a LiDAR-based perception company with solutions designed to offer value to customers across multiple industries and use cases. I want to share with you the tremendous progress we have made during the second quarter and how we have positioned Microvision to now accelerate our revenue growth. The shift isn't a slogan, it's operational and it's fundamentally changing how we work with customers, productize our offerings and achieve meaningful commercial momentum. And most importantly, I want to share with you that it's working. Microvision today is more vertically integrated, aligned and commercially active than at any point in our history. We are building traction simultaneously across our core markets in industrial, security and defense and automotive, as well as adjacent markets like robotics and AI. This is driven by the breadth of our product portfolio and our design to cost engineering philosophy and underpinned by our open software framework. Today's call will cover a number of areas. First, an update on our LIDAR 2.0 strategy and how it fuels our revenue forecast. Back in a walkthrough of our commercial momentum, delving into the announcements and customer milestones of the past quarter and providing more context on the launch of MicroVision Semiconductor. Third, our product portfolio and roadmap, sharing the status of our nearest-term catalysts, the Movia Air and Movia Air Plus launch, and the Movia S Industrial launch. Fourth, the strong leadership additions we've made this quarter to deepen our bench and then a bit about our financing strategy before diving into our financials. So let's get into it. So I'll start with LIDAR 2.0 and where we are with that strategy. LIDAR 2.0 encapsulates what we believe it takes to win in this market across a diversity of industries, the right performance at the right price, using software-enabled perception to lower system costs and support for multiple verticals with our industry-leading portfolio, all delivered with the operational discipline that customer requires from long-term suppliers. One of the strongest validation points from MicroVision's execution this year has been how quickly the company stabilized and commercialized the acquired Luminar business. The MicroVision acquired Luminar's LiDAR business had inherited far more than the Iris and Halo product lines. The acquisition included inventory, engineering talent, customer contracts, and active commercial programs. The real challenge was ensuring those customers continued receiving products and support without disruption. Within roughly one quarter of closing that acquisition, we had successfully integrated the Luminar engineering teams, consolidated manufacturing operations to improve efficiency, resumed shipping existing iris inventory, maintained customer relationships while pursuing new opportunities, and reduced operating expenses through streamlined operations. This has been a significant operational achievement. Perhaps the biggest accomplishment is that existing IRIS customers continue to be served with our broader product portfolio. Rather than forcing customers through a redesign or a platform migration, MicroVision preserved their investment while expanding the future roadmap. And instead of being a standalone product, IRIS now sits with our broader perception platforms, MOVIA for short range, IRIS for long range applications, Halo is the next generation evolution of long range sensing, FMCW Technology from Scantinel, and Perception Software across the entire portfolio. This allows Microvision to deliver the best sensor for each application instead of trying to fit every customer into a single product or technology. This diversified portfolio is now a key strength and a significant differentiator for Microvision. And this is why we have confidence in our revenue guide for the current year with significant growth expected in 2027. building on a solid recurring revenue foundation. We continue to see expanding customer engagements across all products and end markets with a significant increase in near-term booking opportunities. As I stated earlier, the efforts in Q1 and Q2 are delivering on MicroVision's revenue growth plans. Let's talk about momentum building and the recent announcements. So turning to our recent commercial momentum, we are making great progress, as I stated. We continue to be successful in converting Luminar customer accounts into MicroVision development agreements and purchase orders. This is exactly what we planned for with the Luminar acquisition. Additionally, we see strong increase in increased customer engagements with Muvia S as we prepare for our October launch. Let me share some examples. On April 14th, we launched our global partner and reseller program, establishing reseller integrated relationships across Japan. North America, Europe, Korea, and Singapore, targeting industrial, defense, and mobility customers. That includes a partnership with one of Japan's largest, most established technology resellers covering automotive heavy industry, mining, agricultural rail safety, and marine and offshore use cases. On June 10th, we signed a long-term development agreement with the leading construction and mining equipment OEM to integrate two IRIS LiDAR sensors The future potential to add Halo to that platform as well. On June 16th, we delivered Iris sensor shipments to Lexusion Technologies as they and Timberline Aerospace expanded collaboration on situational awareness solutions. and on June 29th, we delivered Movia sensors to a leading AI company and hyperscaler for evaluation across robotics, autonomous systems and next generation AI applications. A strong proof point that our diversification beyond automotive is real, not just aspirational. On July 1st, we appointed IDI Laser as our premier partner for industrial, defense and security markets across Southeast Asia, extending our reseller footprint beyond the initial five-country base we had announced in April. On July 6th, we engaged with J.A. Green and Company to accelerate our U.S. defense market strategy and strategic partnerships, a deliberate investment in the defense and security channel specifically. And on July 14th, we formalized Microvision Semiconductor, Inc. It's another key unlock in this strategy and Microvision Semiconductor, which we introduced to the market last month and which I'll cover in more detail in a moment. It's owning that custom basic and mixed signal design. It brings it in-house rather than outsourcing it. And it's how we protect both the cost curve and the integration advantage that LIDAR 2.0 depends on. On July 15th, James Byam joined us as Microvision's first chief commercial officer. which I'll also cover in more detail shortly. And another example of the acceleration of our traction, just last week, we received an order from a prime contractor supplying autonomous UGVs, or unmanned ground vehicles, to the military, highlighting the importance of IRIS's 1550 nanometer technology, which is invisible to night vision goggles, as the customer phases out the use of 905 nanometer sensors. We also received an order for iris sensors from a key defense and aerospace contractor for use in unmanned aircraft applications. And earlier this week, we unveiled Muvia Air and Muvia Air+. Autonomous aerial systems represent one of the fastest growing opportunities for perception technology. As drones evolve from remote controlled platforms to fully autonomous systems, They need more than imagery. They need the ability to understand and react to the world around them in real time. And this is exactly what Muvia Air delivers with its ability to combine lighter and camera sensing to build and transmit high definition 3D maps in real time to UGBs, command centers, or to other airborne assets. More importantly, it demonstrates the scalability of our business model. The same core technologies we developed for automotive and industrial applications can now be deployed across aerospace, defense, logistics, and security. Every new vertical expands our opportunity to monetize the investments we've already made in our LIDAR and perception platform. Well, the error is more than just a new product launch. It is another proof point that our technology platform scales across industries, applications, and autonomy use cases, and that's exactly what our LIDAR 2.0 strategy is designed to achieve. were also encouraged by the early market response. Before the official launch, we've delivered units and are in active development with a major industrial drone delivery company and a provider of advanced resource exploration. And the Movia air product family is being evaluated by an additional nine prelaunch partners across industrial defense and autonomous aerial applications. These programs reinforce what we've been hearing from customers that the market is increasingly looking beyond just simply raw sensor performance and towards complete perception solutions that can enable real-time decision-making in demanding environments. Next week, we'll publicly demonstrate Muvia Air Plus at GIFX. That's the Joint Interagency Field Experimentation Research Program run by the Naval Postgraduate School. This is where the Navy tests new defense and security technologies customers will see live perception and autonomous navigation capabilities, obstacle avoidance, and real-time 3D mapping operating in realistic field conditions. We're incredibly excited about this and happy to be working with some outstanding partners in making that happen. We also plan to host our third product webinar later in August to provide our customers and partners with a deeper technical look at the platform and discuss how we're extending our perception capabilities into the rapidly growing aerial autonomy market. Here's what I want you to take away. We now have simultaneous traction across industrial off-highway, defense and security, drone and helicopter, robotics and AI, and automotive. That breadth is what de-risks this story relative to a single end market bet. If one vertical sales cycle flips, we are not dependent or affected by that. And just as importantly, we're seeing repeat orders and expanded scope with existing customers. That's the more durable signal. Anyone can announce a pilot or pre-development activities. What matters is whether that pilot turns into a second order and a bigger one or a long-term supply agreement. And if some of you have questions about why we can't name customer wins, then I would just reiterate my previous comments. When we're able to announce a customer name, we will. When they request that we do not, for purposes of confidentiality or competition, We always respect that and name the industry or category only. Now let me talk briefly about product portfolio and roadmap. Our industry-leading product portfolio encompassing short, long, and ultra-long range coverage across multiple architectures and wavelength approaches is the key to supporting multiple use cases across our end markets, industrial, defense, automotive, and beyond. Let me walk you through where we are with each product and where it stands and how they fit together and how they will continue to evolve over time. For short-range sensing, Muvia L offers a power-efficient solid-state design with sensing and perception running on board. It's easy to deploy, making Muvia L ideal for use cases like warehouses, mining vehicles, and agriculture. In October, we will launch Muvia S, our next-generation short-range sensor platform. Movia S is smaller, more cost-effective, more energy efficient, delivering high-performance perception in an ultra-compact design. We already have more than 25 active customer engagements and evaluations ongoing. And to be clear, this is where customers have our samples, we're in active quoting, and in some cases doing development. Movia S will be a game-changer for the industry with applications across all segments as we see strong interest from The Robotaxi, the Industrial, and the Defense OEMs. For long-range sensing, IRIS offers high-performance sensing engineered to enable advanced safety at high speeds up to 280 meters. IRIS is a robust and proven sensor that we're shipping to active commercial customers today in industrial, defense, and automotive. Halo represents MicroVision's next generation of long-range sensors. They will provide longer range sensing with greater precision in a design that is roughly one-third the size of IRIS. Stated in another way, HALA was 68% smaller by volume than IRIS. Bringing this level of performance into such a compact form factor will unlock new use cases not possible today. But, and this is really important, TataList system design is fully compatible so existing IRIS customers can transition seamlessly to the next generation product without needing to go through a massive reengineering or recertification or revalidation of their solution. It's truly a seamless transition. For aerial applications, Movia Air and Movia Air Plus are specially designed for drones and other lightweight use cases. for size, weight, cost, and power required to make drone-based ISR missions viable. And finally, for ultra-long-range sensing of 500 to 1,500 meters, our FMCW LiDAR on-chip solutions will provide advanced optical sensing that measures both distance and instantaneous velocity simultaneously. Now, all of these sensors are underpinned by our open software framework, which enables our customers to fully use our advanced perception and software features and development tool chain in a seamless fashion with their development environment. Now, while we are excited about our current products and upcoming launches, MicroVision, Semiconductor, Inc., and Scantinel are preparing for our next generation of products where we leverage our in-house semiconductor and photonics capability to deliver lighter on a chip. We talked about how silicon up-integration and chip-scale packaging are keys to further cost-reduce LiDAR while increasing performance. And this is exactly what Scantonella and MSI are developing for us with our next-day sample to be available by Q2 of 2027. Now, we'll be showcasing more about Scantonella at IAA in Hanover next month. And while that will focus on commercial vehicle and industrial markets, The underlying photonics technology has applications across multiple end markets, including high-speed data transmission, serving global communication networks, cloud infrastructure, and data centers. These efforts demonstrate our continued expansion of the product portfolio and reflect a clear roadmap for sustained growth, with additional capabilities planned to address evolving customer needs across all of the end markets that we serve. Now I've talked about the product portfolio, but I also want to address the reverse stock split directly, along with our broader capital markets activity. It goes without saying that our NASDAQ listing is an important asset, and it is vital that we maintain and protect the continued listing of our stock. With our stock price now in a stronger position and delisting really no longer casting a shadow on our work, we can focus on continuing to intensify our engagement with customers, and accelerate commercial momentum across our target markets. Our post split stock price and the increase in authorized shares puts us in a much better position to ensure that our operations and business objectives are sufficiently financed and that we have flexible options to address the company's capital requirements. The key point is we need the capital structure, financial capacity and fiscal discipline that support our strategic plan and enable us to focus on delivering commercial wins. Now, finally, let me talk about the team. For LiDAR 2.0, we have talked about the right product portfolio with the right price and with the right people to make our vision a reality. Building out the commercial and technical leadership to match this strategy has been a priority, and we made some key appointments this past quarter. On July 20, James Bion joined us as Microvision's Chief Commercial Officer. a newly created role leading our global commercial organization. James brings more than 20 years of experience scaling commercial organizations in automotive, mobility, and technology with previous roles as managing director of global business development at AVA, as chief commercial officer at Innovusion, at Greystone as executive vice president and president of the global automotive group, and in the senior automotive relationship roles at SiriusXM. Having a dedicated commercial leader at this level who has successfully run similar playbook and prior roles reflects how seriously we're taking the commercially driven feature of LiDAR 2.0. I'm also pleased to welcome Cara Clare as our new head of marketing and communications. Cara brings nearly two decades of experience leading marketing, communications, brand strategy across the automotive technology, retail, manufacturing, and healthcare industries. At Microvision, Kara will lead our integrated marketing communication strategy. Her experience helping organizations communicate through periods of growth and transformation will be instrumental as we sharpen the Microvision narrative, bringing new products and capabilities to market and communicate the continued evolution of our growth and business. And I'm also very pleased to note that we are making very good progress on our CFO search and expect to provide an update very soon. In addition to these leadership appointments, during this quarter, we formed a dedicated semiconductor organization, MicroVision Semiconductor. We welcome this team, formerly known as Black Forest Engineering, which we acquired from Luminar. The team brings more than 30 years of semiconductor expertise and track record over 300 custom mixed signal IC designs across automotive, industrial, defense, aerospace, and scientific markets. and it expands our capability into custom ASIC development, next signal ICs, batonic sensing and advanced imaging, including manufacturing relationships with founding partners like Tower Semiconductor, TSMC and XFAB. MicroVision Semiconductor is the mechanism by which MicroVision now owns chip level design rather than depending on outside suppliers for it. that is direct structural support for the cost of integration goals at the center of LiDAR 2.0. But this isn't just about supporting the Microvision roadmap. The team is available for commercial engagement and customization for external customers as well and has a strong track record in delivering that. So how should investors grade us this quarter? Well, before I hand it over to Steve, I want to be explicit about what we think you should hold us accountable to. Rather than leave that to interpretation, here's the list we're grading ourselves against. The first, commercial traction, growth in our customers and prospect pipeline. Beyond the 100 we cited across three verticals in our Q1 call, in conversation and conversion and evaluation into repeat orders, an expanded scope with existing customers. Again, number one, commercial traction and growth. The second is the program build-up, participation in our reseller and partner programs and geographic expansion beyond our initial footprint in Japan, North America, Europe, Korea, and Singapore. These programs are vitally important as they provide an outstanding channel for our products to reach a broad market. The third is product execution, staying on track for introducing Movie Air to the market and for the Movie S industrial launch set for October 26th. These launches and these deliverables are key to making sure our products are right at the timing of the market. Cost and margin discipline. For example, raising our guidance to 40 to 45% for the year. This reflects the excellent work done by the team to manage our product costs and pricing and is a top focus for us. Balance sheet strength, stabilizing our compliance profile and strengthening market position evaluated against the financing flexibility goal I laid out earlier to ensure we have the capital resources and liquidity needed to support our strategic plan. Organizational build, proving that the addition of our new chief commercial officer and Microvision semiconductor team show up in visible commercial and product outcomes, not just simply headcount. And then finally, transparency. sharing what we can with you as soon as we can so that you can be aware of how hard a team is working to demonstrate the progress against our vision and our outcomes. That's the scorecard. I'd ask you to hold this to it. I'm now going to hand it over to Steve to share our second quarter results and where our full year guidance stands today.