Core Viewpoint - Aeva Technologies, Inc. is expected to experience revenue growth, reaffirming previous assessments made in August [1] Company Analysis - The company operates in sectors that are often overlooked, focusing on small-cap stocks, energy, and commodities [1] - Aeva Technologies is positioned to benefit from fundamental momentum indicators such as Earnings Per Share (EPS), Return on Equity (ROE), and revenue growth [1] Investment Strategy - The investment strategy employed is based on the CAN SLIM framework, enhanced by the use of econometric tools like GARCH and Granger causality to assess risk and market cycles [1] - The approach emphasizes building conviction through a combination of technical analysis, fundamental data, and market catalysts [1]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for a better experience [1]

Financial Performance - Revenue increased by $1.3 million, or 59%, to $3.579 million for the three months ended September 30, 2025, compared to $2.250 million for the same period in 2024[139] - Revenue increased by $6.1 million, or 96%, to $12.5 million for the nine months ended September 30, 2025, compared to the same period in 2024[151] - Net income for the three months ended September 30, 2025, was $107.495 million, a significant increase compared to a net loss of $37.396 million for the same period in 2024[139] - Net loss increased by $3.999 million, or 3%, to $120.1 million for the nine months ended September 30, 2025[150] Cost and Expenses - Cost of revenue increased by $0.2 million, or 6%, to $3.149 million for the three months ended September 30, 2025, from $2.971 million for the same period in 2024[141] - Cost of revenue increased by $5.1 million, or 55%, to $14.4 million for the nine months ended September 30, 2025, primarily due to a $3.8 million loss on a joint development agreement[152] - Research and development expenses decreased by $5.0 million, or 18%, to $22.1 million for the three months ended September 30, 2025, from $27.1 million for the same period in 2024[142] - Research and development expenses decreased by $11.8 million, or 15%, to $66.5 million for the nine months ended September 30, 2025[153] - General and administrative expenses increased by $1.2 million, or 14%, to $9.6 million for the three months ended September 30, 2025, compared to $8.5 million for the same period in 2024[143] - General and administrative expenses decreased by $0.7 million, or 3%, to $24.8 million for the nine months ended September 30, 2025[154] - Selling and marketing expenses increased by $0.2 million, or 14%, to $1.8 million for the three months ended September 30, 2025, from $1.6 million for the same period in 2024[144] Fair Value and Liabilities - Change in fair value of warrant liability showed an increase of $69.787 million, resulting in a value of $68.524 million for the three months ended September 30, 2025, compared to a loss of $1.263 million in the same period in 2024[139] - Fair value gain on settlement of share subscription liability was $1.7 million during the nine months ended September 30, 2025[158] - The company assesses whether equity-linked instruments should be classified as liabilities or equity based on specific terms and applicable guidance under ASC 480 and ASC 815-40[173] - Equity-linked instruments classified as liabilities are recognized and measured at fair value at inception and each reporting period, with changes in fair value recorded as a component of fair value loss on share subscription liability[176] Cash Flow and Investments - Cash used in operating activities was $92.9 million for the nine months ended September 30, 2025[166] - Net cash provided by investing activities was $77.7 million for the nine months ended September 30, 2025[167] - As of September 30, 2025, the company had cash and cash equivalents and marketable securities totaling $48.9 million[164] - The company issued 3,509,719 shares of common stock at a price of $9.26 per share, resulting in gross proceeds of $32.5 million from the private placement closed on August 20, 2025[178] Market and Operational Outlook - The company anticipates fluctuations in revenue and gross margins as customers continue their research and development projects and begin to commercialize advanced driver assist and autonomous solutions[124] - Aeva is expanding its manufacturing capacity through third-party manufacturers to meet anticipated demand for its products[118] Risk Factors - The company is exposed to market risk primarily due to fluctuations in interest rates, with no material change in exposure reported since the previous disclosure[181] - The company evaluates anticipated losses on contracts when estimated contract costs exceed expected consideration, recognizing a provision for the entire anticipated losses as soon as the loss becomes evident[177]

Core Viewpoint - Aeva Technologies is experiencing a significant decline in stock price following its Q3 2025 financial results, which, despite beating revenue expectations, fell short on earnings, leading to a revised bearish outlook from analysts [1][4][5]. Financial Performance - Aeva reported Q3 2025 revenue of $3.6 million, exceeding analysts' expectations of $2.8 million [4]. - The company reported an adjusted loss per share of $0.46, which was $0.01 below analysts' expectations [4]. Stock Market Reaction - Aeva's shares have dropped 25.3% from the end of trading last Friday to Thursday afternoon [2]. - Roth Capital has revised its price target for Aeva stock from $25 to $20 while maintaining a buy rating [5]. Investment Considerations - Aeva is currently unprofitable, making traditional valuation metrics less applicable [6]. - Investors bullish on the automation industry may find Aeva stock appealing, especially with its ongoing deal with Daimler Truck [6]. - For those with lower risk tolerance, investing in a self-driving car exchange-traded fund (ETF) may be a more suitable option [6][7].

Group 1 - Aeva Technologies has reached a turning point with its FMCW LiDAR technology, providing a competitive advantage over traditional time-of-flight competitors [1] - The company has transitioned from being stuck in prototype revenue for many years to a more promising phase [1] Group 2 - Aeva's advancements indicate a shift in its business model and potential for growth in the LiDAR market [1]

Core Insights - Aeva Technologies, Inc. specializes in advanced sensing and perception systems for autonomous vehicles, aiming to enhance safety and efficiency in autonomous driving [1] - The company reported a quarterly loss of $0.46 per share, slightly missing the Zacks Consensus Estimate of a $0.45 loss [2][6] - Aeva achieved a positive revenue surprise with $3.58 million for the quarter, exceeding the Zacks Consensus Estimate by 24.14% and marking a significant increase from $2.25 million a year ago [3][6] Financial Metrics - Aeva has a price-to-earnings (P/E) ratio of approximately -2.51, indicating it is not currently profitable [4] - The price-to-sales ratio stands at about 56.14, suggesting investors are paying $56.14 for every dollar of sales [4] - The enterprise value to operating cash flow ratio is approximately -7.04, indicating negative cash flow from operations [4] - The company's debt-to-equity ratio is approximately -0.015, suggesting more equity than debt, which can be a positive sign [5] - The current ratio is around 0.65, indicating potential liquidity challenges in covering short-term liabilities [5] Management Actions - CEO Dardashti Soroush Salehian sold 39,702 shares at approximately $13.64 per share, leaving him with 2,093,455 shares [2][6]

Company Performance - Aeva Technologies reported a quarterly loss of $0.46 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.45, but an improvement from a loss of $0.55 per share a year ago [1] - The company posted revenues of $3.58 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 24.14%, compared to revenues of $2.25 million in the same quarter last year [2] - Over the last four quarters, Aeva has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Aeva Technologies shares have increased approximately 190.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.1% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.42 on revenues of $6.6 million, and for the current fiscal year, it is -$1.76 on revenues of $18.37 million [7] Industry Outlook - The Automotive - Original Equipment industry, to which Aeva belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Aeva's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $3.6 million, driven by ongoing sensor shipments and non-recurring engineering (NRE) contributions [16] - Non-GAAP operating loss decreased by 13% year-over-year to $27.2 million, reflecting a target to reduce full-year 2025 non-GAAP operating expenses by 10%-20% [16] - Gross cash use was $33.6 million in Q3, higher than the previous quarter due to timing of payments and working capital adjustments [16] - Total available liquidity at the end of September was $173.9 million, excluding a new $100 million investment from Apollo Global Management [16][17] Business Line Data and Key Metrics Changes - Aeva completed the development program with a top 10 global passenger OEM ahead of schedule and is in late-stage contract negotiations for a series production award [4][10] - Progress was made on the Daimler Truck production program, with initial vehicle builds completed and initial orders received for 2026 shipments [12] - The EVE 1D sensor has started shipping against initial orders of over 1,000 units, and the EVE 1V sensor was unveiled to expand the product line [5][13] Market Data and Key Metrics Changes - The precision sensing market is projected to be a multi-billion-dollar opportunity, with strong initial orders for the EVE 1V sensor from multiple customers [5][24] - The automotive market is seeing increased interest in Aeva's FMCW technology, particularly for Level 3 driving capabilities [10][54] Company Strategy and Development Direction - Aeva is focused on expanding its unified perception platform to meet growing demand across various applications, including automotive and precision sensing [6][18] - The company aims to leverage partnerships, such as with LG Innotek and Apollo Global Management, to enhance its market position and support scaling efforts [6][17] - Aeva's technology transition from Time-of-Flight to FMCW is expected to set a precedent for other OEMs, potentially accelerating interest in FMCW technology [10][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the production program with the top 10 global passenger OEM and highlighted the potential for significant market validation [10][37] - The company anticipates strong momentum into 2026, supported by a robust balance sheet and ongoing commercial traction [6][18] - Management noted that the successful completion of the development program could serve as a blueprint for other OEMs, enhancing Aeva's competitive landscape [10][54] Other Important Information - Aeva announced a $100 million investment from Apollo Global Management in the form of convertible notes, which will provide additional capital for growth [6][17] - The company has established a strong liquidity position of approximately $270 million, enhancing its competitive advantage [18] Q&A Session Summary Question: Can you talk about the ramp in metrology sales? - Management noted strong market traction for the EVE 1D sensor and initial orders for the EVE 1V sensor, with a significant market opportunity projected in the multi-billion-dollar range [20][21][24] Question: Can you discuss the L2 ADAS opportunity in trucking? - Management highlighted the unique opportunity for Aeva's technology in Level 2+ applications, particularly through partnerships with key players like Bendix [26][30][31] Question: What is the timeline for the top 10 OEM program? - Management indicated that the timeline for the launch is on track for late 2027 to early 2028, with ongoing negotiations progressing positively [47][49] Question: What is the intended use of the $100 million investment from Apollo? - The investment is for general corporate purposes, aimed at supporting ongoing growth and capitalizing on market opportunities without significant increases in expenditure [44][45] Question: What factors are driving interest from other major OEMs? - Management cited the successful completion of the development program with the top 10 OEM as a catalyst for increased engagement from other automotive players [50][53]

Third Quarter 2025 Results © 2025 Aeva, Inc. Legal Disclaimer Forward-looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking s ...

Revenue Performance - Revenue for Q3 2025 was $3.6 million, an increase of 56.5% compared to $2.3 million in Q3 2024[6] - Revenue for the three months ended September 30, 2025, was $3,579 million, a significant increase from $2,250 million in the same period of 2024, representing a growth of 59%[20] Operating Loss - GAAP operating loss for Q3 2025 was $33.2 million, improved from a loss of $37.9 million in Q3 2024[11] - Non-GAAP operating loss for Q3 2025 was $27.2 million, compared to a loss of $31.4 million in Q3 2024[11] - Operating loss for the nine months ended September 30, 2025, was $98,502 million, an improvement from a loss of $124,133 million in the same period of 2024[20] - The company reported a non-GAAP operating loss of $78,189 million for the nine months ended September 30, 2025, compared to a loss of $95,503 million in the same period of 2024[24] Net Income - The company reported a net income of $107,495 million for the three months ended September 30, 2025, compared to a loss of $37,396 million in the same period of 2024[25] - Basic net income (loss) per share for the three months ended September 30, 2025, was $1.86, compared to a loss of $0.70 in the same period of 2024[27] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $48.9 million as of September 30, 2025[6] - Total current assets decreased to $66.4 million from $123.3 million as of December 31, 2024[18] - Cash and cash equivalents at the end of September 30, 2025, were $45,688 million, up from $30,462 million at the end of September 30, 2024[22] - Net cash used in operating activities for the nine months ended September 30, 2025, was $92,928 million, compared to $86,015 million in the same period of 2024[22] Business Developments - Aeva raised $100 million from Apollo Global Management to enhance commercial momentum[3] - The company advanced to late-stage contract negotiations for a large-scale series production award with a Top-10 global passenger OEM[5] - Initial orders were received for the Eve 1V motion sensing product line, expanding into manufacturing automation[5] - AevaScenes, the industry's first FMCW 4D LiDAR open dataset, was released to support research and adoption in autonomous vehicle perception[5] - The first vehicle builds for the Daimler Truck production program were completed, with orders for Atlas C Samples expected in 2026[5] Stock-Based Compensation - Stock-based compensation expense for the nine months ended September 30, 2025, was $16,528 million, slightly down from $17,130 million in the same period of 2024[20] Fair Value Changes - The company experienced a change in fair value of warrant liability, resulting in a gain of $68,524 million for the three months ended September 30, 2025, compared to a loss of $1,263 million in the same period of 2024[25]