Joby Aviation(JOBY) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Condensed Consolidated Financial Statements (Unaudited) The unaudited condensed consolidated financial statements present Joby Aviation's financial position, results of operations, and cash flows for the three and six months ended June 30, 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $1.26 billion from $1.20 billion at year-end 2024, with total liabilities growing to $361.6 million and stockholders' equity slightly decreasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,259,876 | $1,203,465 | | Cash, cash equivalents and short-term investments | $990,984 | $932,851 | | Property and equipment, net | $134,999 | $120,954 | | Total Liabilities | $361,584 | $291,102 | | Warrant liability | $108,861 | $95,410 | | Earnout shares liability | $159,199 | $117,416 | | Total Stockholders' Equity | $898,292 | $912,363 | Condensed Consolidated Statements of Operations For Q2 2025, net loss significantly increased to $324.7 million, driven by fair value changes in warrants and earnout shares, a private placement loss, and higher R&D expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $15 | $28 | $15 | $53 | | Research and development | $136,387 | $112,996 | $270,674 | $228,632 | | Loss from operations | $(167,864) | $(144,287) | $(331,148) | $(290,184) | | Loss from change in fair value of warrants | $(126,295) | $9,814 | $(55,275) | $48,841 | | Net loss | $(324,674) | $(123,292) | $(407,080) | $(217,879) | | Net loss per share | $(0.41) | $(0.18) | $(0.52) | $(0.32) | Condensed Consolidated Statements of Comprehensive Loss Comprehensive loss for Q2 2025 was $324.6 million, increasing from $123.7 million in 2024, primarily due to the rise in net loss Comprehensive Loss (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $(324,556) | $(123,744) | | Net loss | $(324,674) | $(123,292) | | Other comprehensive gain (loss) | $118 | $(452) | | Six Months Ended June 30 | $(407,051) | $(219,432) | | Net loss | $(407,080) | $(217,879) | | Other comprehensive gain (loss) | $29 | $(1,553) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased to $898.3 million by June 30, 2025, as net loss was largely offset by capital raised from stock issuances and stock-based compensation - The company issued 49,701,790 shares in a private placement, raising $290.2 million in net proceeds during the six months ended June 30, 2025[20] - Total stockholders' equity stood at $898.3 million as of June 30, 2025, down from $912.4 million at the beginning of the year[20] Condensed Consolidated Statements of Cash Flows Net cash used in operations was $217.5 million for H1 2025, while financing activities provided a substantial $298.0 million, leading to a $136.6 million net increase in cash Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(217,533) | $(205,471) | | Net cash provided by investing activities | $56,156 | $171,271 | | Net cash provided by financing activities | $297,994 | $5,283 | | Net change in cash, cash equivalents and restricted cash | $136,617 | $(28,917) | - Financing activities in the first six months of 2025 were primarily driven by $249.9 million net proceeds from a private placement and $43.0 million net proceeds from an at-the-market public offering[26][157] Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, fair value measurements, stock warrants, and related party transactions, including a private placement with Toyota and a subsequent acquisition agreement - In May 2025, the company completed an initial closing of a stock purchase agreement with Toyota, issuing 49.7 million shares for $250 million, resulting in a noncash loss of $40.3 million[93] - On August 1, 2025, the company agreed to acquire Blade Air Mobility's passenger segment for up to $125.0 million, payable in cash or stock, including $80 million at closing[103] - On July 17, 2025, a triggering event caused 3,426,000 Earnout Shares to vest as the company's stock price exceeded the $12.00 threshold[101][102] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Joby's eVTOL aircraft development, operational progress, and financial results, highlighting increased R&D spending and strong liquidity from recent financing activities - Joby is developing a piloted, all-electric, vertical take-off and landing (eVTOL) aircraft with a target range of up to 100 miles and speeds up to 200 mph, aiming for commercial launch in 2026[107][108] - The company has made significant progress with the FAA, having completed or substantially completed three of the five stages of the type certification process[115] - As of June 30, 2025, the company had an accumulated deficit of $2.26 billion and has funded its operations primarily through stock issuances[109] Results of Operations R&D expenses increased by 21% in Q2 2025, contributing to a significantly widened net loss primarily due to non-cash losses on warrants and a private placement Comparison of Operating Results (in thousands) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $136,387 | $112,996 | $23,391 | 21% | | Selling, general and administrative | $31,482 | $31,304 | $178 | 1% | | Loss from operations | $(167,864) | $(144,287) | $(23,577) | 16% | | Net loss | $(324,674) | $(123,292) | $(201,382) | 163% | - The decrease in Total Other Income was primarily driven by a $136.1 million unfavorable change in the fair value of warrants and earnout shares and a $40.3 million loss on the common stock issuance in a private placement in Q2 2025[138] Liquidity and Capital Resources As of June 30, 2025, the company held $991.7 million in cash and investments, deemed sufficient to fund operations beyond initial commercial launch, bolstered by recent financing - As of June 30, 2025, the company had cash, cash equivalents, and restricted cash of $337.0 million and short-term investments of $654.7 million[148] - In the first half of 2025, the company raised $249.9 million net from a private placement with Toyota and $43.0 million net from its ATM offering[147][157] - The company believes its current cash and investments will be sufficient to fund operations beyond the initial commercial launch[149] Quantitative and Qualitative Disclosures About Market Risk The company faces interest rate risk on its $991.7 million in short-term investments, though a 10% rate change is not expected to have a material impact - The company's primary market risk is interest rate changes affecting its $991.7 million in cash, cash equivalents, and short-term investments as of June 30, 2025[163] - Management does not believe a hypothetical 10% change in interest rates would materially impact its financial position or interest income[163] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[167] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[168] PART II. OTHER INFORMATION Legal Proceedings The company is subject to various claims in the ordinary course of business but does not anticipate a material adverse impact on its financial position - The company is not involved in any material legal proceedings and believes existing claims will not have a material adverse impact[170] Risk Factors This section highlights risks associated with the planned acquisition of Blade Air Mobility's passenger operations, including closing uncertainties, potential stock dilution, and integration challenges - A new risk factor has been added regarding the acquisition of Blade's passenger operations, which is subject to closing conditions that may not be met[173][175] - The acquisition payment of up to $125 million may be made in Joby's common stock, which could cause dilution to existing stockholders[173] - The company acknowledges risks associated with investing in new offerings and acquiring other companies, which may divert management attention, result in dilution, and disrupt business[177] Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the period - None[178] Defaults Upon Senior Securities There were no defaults upon senior securities during the period - None[178] Mine Safety Disclosures This item is not applicable to the company - Not applicable[179] Other Information Two company officers adopted Rule 10b5-1 trading plans in May 2025 to sell shares of common stock starting in September 2025 - Chief Legal Officer Kate DeHoff adopted a Rule 10b5-1 trading plan to sell up to 303,285 shares of common stock[180] - Chief Policy Officer Greg Bowles adopted a Rule 10b5-1 trading plan to sell up to 176,169 shares of common stock[181] Exhibits This section lists exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents, material contracts, and officer certifications - The report includes exhibits such as the Amended and Restated Certificate of Incorporation, recent agreements with Toyota, and officer certifications required by the Sarbanes-Oxley Act[184]