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DATE

Thursday, May 14, 2026 at 9 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Omer David Keilaf
  • Chief Financial Officer — Eldar Cegla

TAKEAWAYS

  • Revenue -- $7.1 million, driven by record unit shipments, with some NRE revenue milestones shifted into future quarters due to expanded customer requirements.
  • 2026 Revenue Outlook -- Management reaffirmed targeted full-year revenue of $67 million to $73 million, representing anticipated growth of approximately 27% at the midpoint.
  • Non-Automotive Physical AI Revenue Mix -- Company projects up to 10% of total 2026 revenue will come from non-automotive physical AI applications, a significant increase from approximately 1% in 2025.
  • Gross Margin -- Stated gross margin for the quarter was approximately -22% due to mix and under-absorption of fixed costs, with management expecting improvement as production volumes increase.
  • Cash Position -- Ended the quarter with approximately $60.1 million in cash, cash equivalents, short-term deposits, and marketable securities, and reported no long-term debt.
  • Cash Used in Operations and Capex -- Totaled about $15.8 million, with a sequential increase driven by higher working capital requirements and timing of NRE payments.
  • Defense and Homeland Security Entry -- Announced availability of InnovizSMART and InnovizTwo ultra-long range for this sector, citing "premium pricing and higher margins" with a rapidly growing customer pipeline.
  • Automotive SOP Progress -- Advancing with customers including Volkswagen, Mobileye, Daimler Truck, and LOXO, with multiple significant vehicle programs slated for global deployment by year-end.
  • Product Development -- Launched InnovizTwo ultra-long range sensor offering up to 1-kilometer sensing capability, with first customer samples delivered and broad industry targeting indicated.
  • NRE Revenue Expectations -- Company expects NRE revenues to remain stable in absolute dollars, planning $20 million to $30 million new payments in 2026 in addition to current plans.
  • Cost Reduction Milestones -- "Between InnovizOne and InnovizTwo, it was around a 70% cost reduction. Between InnovizTwo and Innoviz3, there is another nice step of roughly 35% to 40%."
  • Customer Adoption and Pipeline -- Signed agreements and received prepayments for LiDAR integration with customers such as Kela and a large holding group in defense; active on over 100 open opportunities across key sectors.

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RISKS

  • Gross margin was approximately -22% this quarter, with CFO Eldar Cegla attributing it to "the revenue mix as well as lower absorption of fixed cost associated with unit production."
  • Cash used in operations and capital expenditure increased sequentially due to "higher working capital needs due to our ongoing production ramp at Fabrinet as well as the shift in NRE payments."

SUMMARY

Innoviz Technologies Ltd. (INVZ 18.30%) reported quarterly revenue of $7.1 million during a period affected by deferred NRE milestones but affirmed its full-year guidance. The company formally entered the defense and homeland security segment, launching new LiDAR offerings and securing strategic agreements with customers such as Kela. Management expects a material shift in revenue mix toward physical AI applications, targeting up to 10% of revenue from this segment in the current year, supported by new product launches including the InnovizTwo ultra-long range. The balance sheet remains debt-free with $60.1 million in liquidity, while gross margin stayed negative amid ongoing production ramp. Leadership anticipates continued revenue growth, improvement in gross margins, and broader customer adoption as ramp-up accelerates into the second half of the year.

  • The company highlighted "from unit shipments" in the period, stating these accounted for a significant share of revenue mix despite delayed recognition of some NRE sales.
  • Management reiterated its expectation to recognize all delayed NRE revenues within the year, clarifying that outstanding purchase orders are in place and milestone completions are underway.
  • CEO Omer David Keilaf stated, "we have over 100 open opportunities right now," underscoring the breadth of the current commercial pipeline.
  • The LOI with LOXO positions InnovizTwo as a potential replacement for an FMCW LiDAR on a Level 4 autonomous digital driver platform, subject to successful evaluation.
  • Management identified a "high sense of urgency" in defense sector applications, particularly in drone detection, suggesting accelerated adoption potential and above-automotive ASPs.
  • Production partnerships, such as the ramp at Fabrinet, are facilitating volume increases expected to improve cost absorption and operating leverage later in the year.

INDUSTRY GLOSSARY

  • NRE (Non-Recurring Engineering): One-time revenues received for customer-specific engineering services, typically milestone-based and variable by quarter.
  • SOP (Start of Production): The formal launching point when a new vehicle program or product line enters series manufacturing.
  • FMCW LiDAR: Frequency-Modulated Continuous Wave LiDAR, a specific type of light detection and ranging technology competing with time-of-flight solutions.
  • ASP (Average Selling Price): The average price realized per unit sold, an indicator of revenue mix and margin profile.

Full Conference Call Transcript

Omer David Keilaf: Thank you, Ada, and good morning to everyone joining us for our first quarter earnings call. In the early months of 2026, we reached critical technical--with our new products, made progress on existing programs, and continued to engage with new automotive and non-automotive customers. We also announced our entry into the defense and open security market. Some of our first quarter NRE milestones which can be variable, shifted forward in part due to request for additional content. As a result, we generated revenues of $7.1 million. We believe we will be able to recognize the delayed revenues, all of which have POs in place in the coming quarters.

Our outlook for the full year remains unchanged, as we continue to target revenues of $67 to $73 million. Our long term outlook likewise remains unchanged. It is driven by our view that LiDAR is the most reliable method for digitizing the physical world and is indispensable Starting this year. Show that we are on the way to becoming a meaningful player in the defense sector. In automotive, we are advancing towards SOPs with customers including Volkswagen, Mobileye, and Daimler Truck. On Wednesday, we announced an agreement with a leading autonomous driving technology company to evaluate the development of enhancement on-sensor LIDAR perception capabilities.

And last week, we signed an LOI with LOXO to integrate the InnovizTwo long range into its Level 4 digital driver platform. Subject to a successful completion of testing. Global interest in both Level 4 and Level 3 automation continue to expand. And there are a number of new opportunities arising at both traditional and new automotive OEMs and in areas such as heavy equipment and agriculture. On the technology and production front, we recently launched InnovizTwo ultra-long range. Which delivers up to 1-kilometer sensing, unlocking new capabilities across physical AI applications. The Fabrinet ramp is going well, and we are delighted to be able to tell you we shipped a record number of units in the first quarter.

Our shipments were about half of what we shipped in all of 2025, and we expect them to further accelerate in the second half of the year. In all, our product and customer pipelines are robust. And we are continuing to execute on our 2026 plan. In 2025, NREs made up approximately 70% of our revenues Over time, we continue to expect NRE revenues to remain a stable part of our business on a dollar basis. As our current program reaches SOPs, and we expect to win additional programs in our existing and new end markets, including security and defense, we believe we will see a significant step up in LiDAR revenues and gross margins.

This will likely drive meaningful growth and a shift in our revenue mix away from NREs and towards LiDAR sales. Further, we believe that sales of LiDARs in nonautomotive physical AI applications will increase approximately 1% of revenues in 2025 to up to 10% of our revenues in 2026. We expect this trend further accelerate in the coming years as LiDAR plays a key role across a variety of physical AI applications. Now let's jump into the details. Starting with our entry into defense and homeland security. Last month, we announced that the InnovizSMART and the newly launched InnovizTwo ultra long range are now available for defense and security applications.

This is a rapidly growing market with premium pricing and higher margins. We believe that many existing sensing solutions face limitations in this space, and we see an opportunity for high performance LiDAR to address gaps in detection range weather resilience, and reliability. We are in active discussions with tens of potential customers. And system integrators to provide a holistic solution including sensors, perception, and analytics. We have a dedicated team focused on expanding our position in this end market. In the defense and security space, we will focus on a broad variety of use cases.

We think our LiDARs are ideally suited to applications such as perimeter intrusion, and border surveillance, where they can offer reliable around the clock monitoring in all weather conditions. Traditional radar and camera systems can be easily evaded. Especially in challenging or busy terrain and their weaknesses are well known. Leaving them ripe for exploitation. Our LiDARs deliver a combination of long range 3 d detection, weather resilience, and ease of deployment. In applications such as mapping and situational awareness, our dense point cloud provides rich 3 d environmental data mission planning and terrain mapping in complex environments.

Our LIDAR's fine angular resolution at long range is designed to support the detection and tracking of small, fast, low reflectivity targets that are difficult for radar and cameras to detect. Adding a new layer of security when applied to drone detection. Small drones are increasingly being flown at low altitudes, where radar cannot detect them. Literally under the radar. LiDAR adds a level of protection that is now just starting to be understood as crucial. Finally, the InnovizSMART and the InnovizTwo ultra long range can be deployed in autonomous and defense systems providing the perception, accuracy, and reliability required for safe navigation obstacle avoidance.

We believe that our automotive grade products, performance, reliability, and resilience can offer game changing capabilities to these applications. Our efforts in defense and security are already starting to pay off. We are seeing robust early traction. Yesterday, Kela, a fast growing Israeli defense company, announced its intent to use our lidars in deployments across its unified situational operations platform, including applications such as drone detection and perimeter security. Kela anticipates that the cooperation may scale in the coming years. In addition to Kela, we recently signed an agreement with a large holding group to incorporate Innoviz lidars into their defense and homeland security offerings. Look forward to their upcoming announcement that we will serve as their LiDAR partner.

We have already received a prepayment, completed an installation, and are excited about the opportunity to continue to work with this customer in the future. The intent in both of these collaborations is that our clients will utilize a combination of our long range, short to mid range, and ultra long range across a variety of applications. I am tremendously encouraged by these partnerships, we believe demonstrate the market's need for high performance, reliable, LIDAR solution and our product suitability for these important use cases. Let me update you on our automotive business. Our programs with our existing customers are progressing well. For our Daimler Truck program in collaboration with Torque, we are delivering units to support milestones through SOP.

MOIA has announced that they will deploy the VW ID Buzz on the Uber platform in Los Angeles by the end of the year, as well as with Beep in Orlando. Each of these vehicles is planned to have 9 InnovizTwo LiDARs. 3 long-range and 6 short- to mid-range delivering meaningful content per vehicle. We expect the vehicle to be in multiple cities around the world by the end of the year and we were happy to hear MobilEye say a few weeks ago that the robotaxi ecosystem had progressed significantly during the first quarter. Through the same Mobileye Drive Level 4 we are supporting HOLON and other customers.

We are seeing strong momentum for this platform with potential for faster expansion than we expected initially. Additionally, the feedback from our customers on our sensors performance has been very positive on Level 3, we are advancing on our SOPs with the mobilized chauffeur and programs such as with Audi. In addition to the advances on our existing programs, we recently entered into an agreement a development program with a leading autonomous driving technology company, to evaluate combining our LiDAR, with on-sensor perception software for future autonomous vehicles programs. As autonomous vehicle programs advance towards series production, OEMs require that perception capabilities extend beyond the central compute stack and execute directly on the sensor.

The on sensor approach is designed to deliver standardized safety critical outputs that operate independently of the vehicle's broader architecture. Finally, we just announced an LOI with LOXO. Swiss pioneer in autonomous last-mile delivery. LOXO and Innoviz are currently in advanced stages of testing and evaluation of InnovizTwo long-range LIDAR for LOXO's autonomous vehicle platform. Subject to the successful completion of this process, Luxo intends to nominate Innoviz as its LiDAR supplier with multiple LiDARs per vehicle. LOXO had previously evaluated other LiDARs and we would potentially be replacing an FMCW LiDAR in this platform. LOXO's feedback thus far has been very positive and we are excited to be working with them on the next generation of driverless delivery vehicles.

Currently, there are several RFQs open for both level III and level IV around the world, and we see robust interest in level IV from traditional and new automotive OEM as well as industrial and agricultural customers. We are actively participating in multiple processes a few decisions expected to be made in the second half of the year. For programs prior to 2028 SOP, we are offering our suite of InnovizTwo products. For programs with later SOPs, we are also offering the Innoviz3, which we unveiled earlier this year and which includes an option for a color image along with the 3 d data.

The holy grail for automotive LiDARs is behind the windshield in installation that does not compromise vehicle design or in cabin environment. The Innoviz3, with its robust performance, smaller form factor, lower power consumption, and reduced costs meets the OEM's most stringent requirements. Reception has been outstanding, and we believe that the Innoviz3 is well positioned to win a number of these upcoming programs. To support our customers' needs, we have recently launched the InnovizTwo ultra-long range or ULR LiDAR. This device delivers up to 1-kilometer sensing and higher point cloud density resolution.

It is designed to set a new standard for wide area sensing covering terrain, borders, runways, and large installations with the precision and reliability of our automotive grade LIDAR technology. The ULR addresses critical gaps in several applications by detecting and classifying small hazards at long ranges. It lets autonomous vehicles drive faster while maintaining safety, even for heavy trucks with longer stopping distances. It can also enable perimeter security systems to identify humans, vehicles, and animals over vast areas while reducing false alarms. Additionally, its long range and high resolution can support drone detection and tracking, In all, the ULR will give customers in a wide range of industries a tool that did not exist before.

And 1 that can perform reliably in harsh conditions. The first samples of the ULR have been delivered to key customers. Now let's talk about our outlook for 26. We are reiterating the 2026 targets we set earlier this year, driven by the ramp of LiDAR shipments and ongoing NRE payments we expect to grow revenues year over year 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 approximately 1% in 2025. We expect new NRE payments plan of $20 to $30 million in addition to our existing plans and we expect to add 2 to 3 new programs this year.

And now I will turn it over to Eldar Cegla to discuss our financials.

Eldar Cegla: Thank you, Omer, and good morning, everybody. In the first quarter, revenues were $7.1 million some of our revenues were pushed into the coming quarters due to NRE milestone variability. As Omar stated earlier, POs are in place for the delayed revenues, and we are already closing the gap. A significant contribution to revenues came from unit shipments in the quarter, which were a record high. We ended the quarter with approximately $60.1 million in cash, cash equivalents, short term deposit and marketable security, on the balance sheet. And we continue to have no long term debt.

For the quarter, cash used in operation and capital expenditure was approximately $15.8 million quarter over quarter increase in cash used was influenced by higher working capital needs due to our ongoing production ramp at Fabrinet as well as the shift in NRE payments. Gross margins in the quarter was approximately -22% due to the revenue mix as well as lower absorption of fixed cost associated with unit production. Fixed cost absorption is expected to significantly improve later this year as volumes ramp. Driving uplift in gross margins. For the full details, of our operating expenses and stock based compensation, please see the tables in our press release.

Despite lower revenues than expected, our full year and long term outlook remains unchanged due to the existing customer demand as well as orders from new customers. We view LiDAR as indispensable to the rise of physical AI and we believe the new and markets we entered into will further expand our reach in this area. With that, I will turn the call back to Omer for his closing remarks.

Omer David Keilaf: Thank you, Ada. Before I wrap up the call and open for Q&A, I want to recap our recent developments. We are very excited about our entry into the fast growing and high margin defense and homeland security space where our performance and reliability offer significant advantages. This end market is undergoing rapid expansion. And there is an enormous demand for new sensing technologies. We stand ready to address this demand. We are seeing strong traction with our offerings, And in addition to our engagement with Kela, we expect another large customer to make an announcement naming us soon. Our automotive business is progressing well.

And we have products launching this year to support programs set for SOPs across Level 3 and Level 4. These include programs with Volkswagen, and other customers on the MobileI drive and the chauffeur platforms as well as with Daimler Truck and Torc. We announced a new development program to evaluate combining our LiDAR with on-sensor perception software. We also announced an LOI with LOXO where we are in advanced stages of evaluation for inclusion in their autonomous vehicle program potentially replacing an FMCW LiDAR. Recently launched our InnovizTwo ULR LiDAR, which offers up to 1-kilometer range for a variety of applications. Our production capabilities continue to grow.

And after record levels in the first quarter, we expect shipments to accelerate further. Outlook for the full year remains unchanged, and we are pleased with the operational business momentum we have seen so far this year. And with that, operator, let's begin the Q&A.

Operator: To ask a question, please raise your hand using your mobile or desktop application or press 9 on your telephone keypad and wait for your name to be announced. Our first question will be for Mark Delaney with Goldman Sachs. Mark, please go ahead.

Analyst (Mark Delaney): Yes. Thank you very much for taking the questions. For the nonautomotive program, the Innoviz has won. I am hoping you can help us better understand how much revenue those programs will represent when they are fully ramped and how long that might take. And then you could also talk about the profitability and the nonautomotive applications.

Omer David Keilaf: Yeah. Sure. Gladly. So this is based on the Innoviz Smart Solutions. Obviously, the ASPs are significantly higher than the ones that we are offering in the automotive space. And in terms of the ramp up, part of the applications that we are offering today are solutions for drone detection. So really based on the application, there are I would say there are there is a high sense of urgency in some of those topics. So those could actually grow quite fast. Far as we understand, today, the world there is no viable solution for defense solution for drones. We are working very strongly with the different teams to offer the solution to solve this very difficult problem.

And, of course, we are also very proud to be able to provide a solution for this each topic. Over the last month or 2, I do not think there was a day I did not get a call, or 3 calls a day on this topic. This is a very important element, and I think that the sense of urgency related to that could drive fast adoption. In terms of the volume, then as you can understand, there is a high demand and the ASPs are relevant to the nonautomotive space, which are high.

Analyst (Mark Delaney): Understood. Thanks for that color. Secondly, I was hoping you could give more of an update on the competitive environment that Inoviz has seen in the vehicle market. It sounds from your comments like the LOXO engagements, would potentially be a competitive win from a competitor. But can you speak more broadly on what Innoviz has seen in the competitive landscape including with the top 5 auto OEM program where you have had the SODW that was complete? I think were waiting for feedback as of the last report. And just more broadly, you know, either with that, we have more and more generally, what Innoviz has seen from the competitive standpoint. Thanks.

Omer David Keilaf: Sure. So I believe that the competitive landscape has not changed. Today, there are less and less solutions offered by different companies. There is also the geopolitical discussion related to that. When it comes to a solution that can set can be set well within the design of the vehicle behind the windshield. I am not familiar with a solution that is that is optimized as Innoviz3. I believe that on that front, we are definitely in the lead. When it comes to robotaxis, etcetera, so there are platforms where we see the desire of some of the platforms to move away from spinners.

To directional sensors and InnovizTwo is a is a very strong offer in terms of our performance, our readiness, our full portfolio, of short to mid range, long range, and now the ultra long range. So I think that on that or the on that matter, we are also in a very strong position. There are several programs that we are competing on. I think that in all of those, we are, in a very strong position, and we are waiting to see how they are making progress.

Analyst (Mark Delaney): And just specifically to that top 5 auto OEM where you 'd had the SODW, and any more color you can share on when you hear back and if you think you are going to ultimately get a series production award?

Omer David Keilaf: No. there is no update to that specific program. There are many other programs that we are making good progress with. I think that, generally, Level 4 programs are moving faster than Level 3. But even on Level 3 opportunities, we see that when programs are designed behind the windshield, this is where we are seeing a lot of interest and good feedback from customers.

Analyst (Mark Delaney): Okay. And just lastly for me, you mentioned some timing elements of NRE revenue that affect Q1 Any more color you can share around, how the scope of those programs changed? It sounds like you have to do more work, but, the timing of when you are going to be able to recognize revenue is a little bit more extended. But if you could share a little bit more around what is going on there, that would be helpful. And just confirming, do you expect to get all of that back this year would some of that be beyond 2026?

Omer David Keilaf: No. We first, I will I will address the second question. So we expect to be able to meet all of our targets for milestones this year. This specific milestone is actually related to an ask from the OEM to pull in some of the activities that were planned for later. Because of the sense of urgency of the specific program that we are working on. That led to additional tasks that were added that went beyond the quarter. We have we have already made deliveries on that milestone, and we are working on other milestones. For the rest of the year. And I believe that we will be able to complete all of them within the year.

Analyst (Mark Delaney): Thanks. I will pass it on.

Operator: To ask a question, please raise your hand using your mobile or desktop. Application, or press 9 on your telephone keypad and wait for your name to be announced. Our next question is from Ryan Casey from WestPark Capital. Casey, please go ahead.

Analyst (Casey Ryan): Yeah. Thank you. Good morning, gentlemen. Great update. So I just wanted to ask a question about what we consider programs because it feels like you are announcing quite a few customer wins and opportunities. But what are we to think about in terms of a program? Is that something that is very long ranging, and maybe tied to a, automotive specifically? But can we dig into what program means in terms of your goals?

Omer David Keilaf: Sure. So, we are referring to programs where we have an agreement, yearly planning of ramp up, primarily in the automotive space. We have also programs where we are working on trucks and basically vehicles that are going to be on whether it is also could be agriculture related or construction. Those are mostly related to automotive space.

Analyst (Casey Ryan): Okay. Okay. So automotive and maybe potentially mining and agriculture, tied to sort of vehicles and vehicle counts. Great. there is been a lot of discussion about the addition of color into solutions. Tell me how important color is or if color is really a specific market like smart cities or some other specific vertical. In your view?

Omer David Keilaf: Sure. I mean, sensor fusion has been used, for a very long time. We introduced color in Innoviz3 early this year, as you probably recall from our last earning when we actually showed the video live from Innoviz3 with the color point cloud. From our perspective, the decision to integrate color into Innoviz3 comes from our desire to optimize the solution for behind the windshield integration. Mhmm. The currently behind the windshield are hosting cameras. And in behind the windshield, there is a packaging problem. So from that regard, we decided to include color within the LIDAR. So solution would be more integrated. In non automotive solutions, that level of packaging is, I would say, probably less of a concern.

But, of course, we can offer color within the LiDAR for other applications as well.

Analyst (Casey Ryan): Okay. Terrific. And then just sort of 1 final question about autonomous trucking. It sounds like in talking to people in the industry that there may be 2 types of trucks, sort of this concept of, like, a lead truck and follow trucks. And that maybe their LIDAR configurations would be separate. Do you view the market as having 2 primary form factors, do you think most trucks will be equipped with the same LiDAR counts and technical specs, I guess.

Omer David Keilaf: Well, eventually, the track programs that we are involved with are related to long haul autonomous driving. The count of LIDARs is, of course, related to the geometry of the vehicle. In terms of providing it zero blind spot configuration. Usually, there is a mix between short mid range, long range, and ultra long range in some cases. Think that they do not vary that much between the different players.

Analyst (Casey Ryan): Okay. Alright. Thank you. Well, it was a great quarter with a lot of exciting updates, so thank you. We look forward to more in the coming quarters.

Omer David Keilaf: Thank you.

Operator: Our next question is from Colin Rusch from Oppenheimer.

Analyst (Colin Rusch): Hey, guys. How are you? Could you talk a little bit about the evolution of the competitive landscape? You know, obviously, there is a lot of happening right now, and you guys have done a lot as well. I am just curious about consolidation in the market, some of the functionality that is being rolled out, your ability to start looking at, you know, lidar with color, integration, capabilities. And how you see that kind of segmentation starting to happen among some of the leaders, in the space?

Omer David Keilaf: Sure. Again, as I said earlier, eventually, the lateral space is still evolving. And, you know, over the course of the last 10 years, you have seen LiDARs come from 50 meters to kilometer, and resolution you know, in several orders of magnitude improving costs being reduced New features are being introduced. And LiDAR's are going to serve many, many sectors. Whether it is automotive or defense or smart cities, ITS, And, basically, physical AI is overlapping everything now. LiDAS will continue to evolve. You will see smaller form factors. You will see cost reduction.

You will see integration into the LiDAR with compute such as we are working now on this new prod program where we are adding our brain into the LiDAR I think there are many directions where LiDARs can evolve. Into. I think that it depends on the market that you are focusing on and understanding the customer needs in each of them. Where we see where we saw recently a big gap was in the defense market, and this is why, we believe that we can fill that gap and actually help in a way.

In the auto multi space, we saw an opportunity to improve our off offering by including color into the LiDAR, in terms of solving behind the windshield integration. I am sure there are many applications where sensor fusion is helpful. I can also talk about perimeter security for drones where you see sensor fusion between LIDAR and radar. Sometimes LIDAR and camera. So think we are still in the early days where we you are going to see 3 d sensing going to be incorporated physical AI. You know, physical AI is many, many things.

And that will be you know, you will see different companies trying to opt optimize different areas think that so far, Innoviz has demonstrated the best optimization when it comes to the automotive space. We are starting to do so in the defense and homeland security. And obviously, we will continue to do so on other markets. As we see where we can provide our value in the best way.

Analyst (Colin Rusch): Excellent. And then, I guess on the cost side, as you start to see some scale and some more maturity in the space, I am wondering about the opportunity to start driving cost structure to more optimal levels? Obviously, you guys are getting a lot of performance out of the same materials. Or a lot of performance improvement. I am just curious about actual device cost reduction and the cadence of that, if there is an opportunity to accelerate it at all.

Omer David Keilaf: Yeah. Sure. I mean, look. Be between the first generation, even before InnovizOne, every step or every generation, we were able to do some very significant cost reduction between InnovizOne and InnovizTwo, it was around a 70% cost reduction. Between InnovizTwo and Innoviz3, there is another nice step of roughly 35% to 40%. 35%. And, and, obviously, there is still much room to go. When you think about LiDAR fundamentally, there is nothing expensive in a LiDAR. You are talking about an emitter. A diode, a receiver, which we are using silicon based because we are using 905 nanometers. and a processor. And we are we are we developed our own ASIC. So there is nothing fundamentally expensive about LiDAR.

We are still in the early days, and volumes will increase. Industrialization will help in terms of production. And LiDARs will continue to be cheaper. And continue to bring more value.

Analyst (Colin Rusch): Awesome. Thanks, guys.

Operator: Our next question is from Jash Patwa from JPMorgan. Jash, please go ahead.

Analyst (Jash Patwa): Hi. Good morning, and thank you for taking my questions. Congratulations on all the progress. I was wondering if you would be able to share some early learnings from the initial ID.Buzz test runs in LA. Any insights you can provide on the role LiDAR is playing in driving decisions? Specifically whether it is being used as a primary sensor or more as a backup? That would be great. And I have a follow-up. Thanks.

Omer David Keilaf: Sure. What I can say is that the progress is really I mean, what the feedback we hear is that it is going very well. And we are hearing, I would say, good indications on growth. From this platform. And, you know, things that we hope to conclude soon. There are many tests in many areas, including in Oslo. In terms of tough weather conditions, snow, etcetera. We have conducted winter testing with the group. I per my understanding from full Volkswagen, they see the ID.Buzz as a very important asset on their future. They talk about it on any event Just the other day, was in an event, and the discussion on ID.Buzz from the VW was the centerpiece.

And we are already talking about the next platform extension, etcetera. So looks like this is a very important I would say, part of VW plans for the future. Have I missed any did I answer your question?

Analyst (Jash Patwa): Yes. No. I think in the Oh, yeah.

Omer David Keilaf: Okay. Sorry. Yeah. On the regards of the LiDAR yeah. The LiDAR is a very critical it is a critical component in the sensor. Suite, mobilize doing the platform software. And you are probably familiar with their architecture when you have the camera and the lidar. Incorporated. Used as redundancy to each other. So the LIDAR is a very critical component. Both the long range and the short range.

Analyst (Jash Patwa): Understood. No. that is very helpful color. And I appreciate all the discussion on InnovizSMART and the end markets thereof, in the prior questions. But I was curious if you were currently working with any humanoid robotics developers It seems like that could represent another long term volume growth opportunity. I am wondering if you could share any additional color on the technical or specific requirements needed to gain traction in this market. And whether there are any unique nuances compared to your core automotive or use cases today? Thank you. Sure.

Omer David Keilaf: I would say we are probably I think that any device with machine vision would benefit from a 3 d sensor. As a company, we are trying to find the market that are at the growth stage. In terms of our ability to benefit from our mature product. Of course, we are always in discussions with next generation, next markets, to understand the needs and understand how potentially next generation could provide value to them. In terms of where our I said earlier on the call that we have over 100 open opportunities right now with this multiplication, maybe 150.

Those are focused on applications that are already in ramp, and we know, and there is a sense of urgency around The humanoid market is interesting, but I think it is still in a very early stage. But again, whenever that market would grow, we are keeping an eye on its needs and we believe that we will be able to provide it with the best solution.

Analyst (Jash Patwa): Great. Thanks so much, and congratulations. Good luck.

Omer David Keilaf: Thank you.

Operator: There are no further I am handing the call over to Omer for closing remarks.

Omer David Keilaf: Thank you very much for attending our earnings. I believe that our entry into the defense and homeland security market would allow the company to share with you more and more updates Also, on the automotive space, we are making good progress especially when it comes to the Innoviz3. And we hope that we will be able to share with you some of that news soon. So thank you very much. And see you next time.