Aurora Innovation(AUR) - 2025 Q2 - Quarterly Report

Part I - Financial Information This section presents Aurora Innovation's unaudited condensed consolidated financial statements, MD&A, and disclosures, reporting first-ever revenue of $1 million and a net loss of $201 million for Q2 2025 Financial Statements The unaudited condensed consolidated financial statements show the company's financial position and performance, including $1 million revenue, a $201 million net loss, and $2.21 billion total assets Condensed Consolidated Balance Sheets Total assets increased to $2.214 billion from $2.138 billion, driven by short-term investments, while liabilities decreased and equity rose to $1.991 billion Condensed Consolidated Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,340 | $1,254 | | Cash and cash equivalents | $206 | $211 | | Short-term investments | $1,103 | $1,012 | | Total Assets | $2,214 | $2,138 | | Total Current Liabilities | $79 | $105 | | Total Liabilities | $223 | $263 | | Total Stockholders' Equity | $1,991 | $1,875 | Condensed Consolidated Statements of Operations Q2 2025 saw the first revenue of $1 million, but operating expenses led to a $230 million loss from operations and a $201 million net loss, or $0.11 per share Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1 | $0 | $1 | $0 | | Cost of revenue | $5 | $0 | $5 | $0 | | Research and development | $190 | $170 | $372 | $336 | | Selling, general and administrative | $36 | $28 | $65 | $55 | | Loss from operations | ($230) | ($198) | ($441) | ($391) | | Net loss | ($201) | ($182) | ($409) | ($347) | | Basic and diluted net loss per share | ($0.11) | ($0.12) | ($0.23) | ($0.22) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, operating activities used $286 million, investing activities used $99 million, and financing activities provided $380 million, resulting in a $5 million net cash decrease Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($286) | ($326) | | Net cash (used in) provided by investing activities | ($99) | $221 | | Net cash provided by financing activities | $380 | $6 | | Net decrease in cash | ($5) | ($99) | Notes to Financial Statements Notes detail accounting policies, including new revenue recognition, and report $399 million net proceeds from an ATM stock offering and $89 million in stock-based compensation for H1 2025 - The company began recognizing revenue from transportation services on an over-time basis as goods are transported, with cost of revenue including hardware depreciation, personnel, insurance, and other related costs[35][36] - During the six months ended June 30, 2025, the company sold 67 million shares of Class A common stock through its ATM Program, generating net proceeds of $399 million[54] Stock-Based Compensation Expense (in millions) | Period | Research & Development | Selling, General, & Administrative | Total | | :--- | :--- | :--- | :--- | | Q2 2025 | $44 | $11 | $55 | | Q2 2024 | $32 | $6 | $38 | | Six Months 2025 | $73 | $16 | $89 | | Six Months 2024 | $63 | $11 | $74 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the April 2025 launch of Aurora Driver for Freight, noting increased R&D and SG&A expenses, and confirms sufficient liquidity for the next twelve months Business Overview and Recent Developments Aurora is developing its Driver as a Service (DaaS) platform, with a focus on freight, and launched driverless commercial operations between Dallas and Houston in April 2025 - The company's primary business model is Driver as a Service (DaaS), where customers subscribe to the Aurora Driver on a fee-per-mile basis, enabling an asset-light approach for Aurora[83] - In April 2025, the company launched its first commercial product, Aurora Driver for Freight, and began driverless hauling of customer loads between Dallas and Houston, Texas[85] Results of Operations Q2 2025 saw $1 million in revenue and $5 million in cost of revenue, with R&D up 12% to $190 million and SG&A up 29% to $36 million, leading to a $201 million net loss Comparison of Operations for Three Months Ended June 30 (in millions) | Account | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1 | $0 | $1 | n/m | | Cost of revenue | $5 | $0 | $5 | n/m | | Research and development | $190 | $170 | $20 | 12% | | Selling, general and administrative | $36 | $28 | $8 | 29% | | Net loss | ($201) | ($182) | ($19) | 10% | - The increase in R&D expenses was primarily driven by higher personnel costs and hardware development costs[89] - The increase in SG&A expenses was primarily driven by an increase in personnel costs[90] Liquidity and Capital Resources As of June 30, 2025, liquidity included $206 million cash and $1.103 billion short-term investments, bolstered by $399 million from an ATM program, deemed sufficient for the next year - Principal sources of liquidity as of June 30, 2025, were $206 million in cash and cash equivalents and $1,103 million in short-term investments[101] - The company raised net proceeds of $399 million from its ATM stock offering during the six months ended June 30, 2025[103] - Management expects total liquidity to be sufficient to meet working capital and capital expenditure requirements for at least twelve months from the report date[104] Quantitative and Qualitative Disclosures About Market Risk The company identifies interest rate and inflation risks but believes a 100-basis point interest rate change or current inflation levels would not materially affect its financial condition - The company does not believe that a 100-basis point increase or decrease in interest rates would materially affect its business, financial condition, or results of operations[114] - Inflation is not believed to have had a material effect on the business, but the company continues to monitor potential impacts on costs[115] Controls and Procedures As of June 30, 2025, disclosure controls and procedures were effective, with new processes implemented for revenue and cost of revenue following commercial launch, and no other material changes - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[117] - In Q2 2025, the company designed and implemented new processes to record revenue and cost of revenue, which was the only notable change to internal controls[118] Part II - Other Information This section covers legal proceedings, risk factors, and equity sales, reporting no material legal issues, highlighting limited operating history as a key risk, and an intent to increase the ATM stock offering to $1 billion Legal Proceedings The company is not currently involved in any claims, lawsuits, or proceedings considered material to its business, operating results, or financial condition - The company does not consider any currently pending claims, lawsuits, or proceedings, individually or in the aggregate, to be material to its business[120] Risk Factors Investors are directed to the 2024 Annual Report's risk factors, with a new emphasis on the company's limited operating history and challenges in transitioning to commercial operations - A key risk is the company's limited operating history since 2017, which makes it difficult to evaluate future prospects and challenges, particularly as it transitions from R&D to commercial activities[122] Other Information The company plans to increase its at-the-market (ATM) offering to $1 billion, having already sold 69.1 million shares for $420.6 million under the existing $500 million program - The company is increasing the size of its at-the-market (ATM) offering to $1 billion after having sold shares for gross proceeds of $420.6 million under the original program[129][130] Exhibits This section lists all exhibits filed with the Form 10-Q, including legal opinions, compensation policies, and required CEO/CFO certifications - The report includes several exhibits, such as legal opinions, compensation policies, and required CEO/CFO certifications (Exhibits 5.1, 10.1, 31.1, 31.2, 32.1, 32.2)[133]