Aurora Innovation(US:AUR)2025-10-28 21:24Revenue and Commercialization - Revenue for the three months ended September 30, 2025, was $1 million, attributed to the commercial launch of Aurora Driver for Freight in April 2025[85]. - The company launched Aurora Driver for Freight as its first driverless trucking subscription service, targeting high-volume highway routes[83]. - The company plans to commercialize the Aurora Driver in a Driver as a Service (DaaS) model, partnering with OEMs and fleet operators to scale operations[82]. Expenses and Financial Performance - Research and development expenses increased by $10 million, or 6%, to $179 million for the three months ended September 30, 2025, primarily due to increased non-cash stock-based compensation[87]. - Selling, general and administrative expenses rose by $11 million, or 41%, to $38 million for the three months ended September 30, 2025, driven by higher personnel costs and realignment of resources[88]. - Net cash used in operating activities was $435 million for the nine months ended September 30, 2025, a decrease of $34 million from $469 million for the same period in 2024[103]. - Net cash provided by financing activities was $828 million for the nine months ended September 30, 2025, an increase of $353 million from $475 million for the same period in 2024[105]. Financial Position and Capital Needs - As of September 30, 2025, the company had $87 million in cash and cash equivalents, $1,160 million in short-term investments, and $357 million in long-term investments[97]. - The company expects to continue incurring operating losses and will need to opportunistically raise additional capital to support the development and commercialization of the Aurora Driver at scale[98]. Market Risks - The company is exposed to various market risks, including interest rate changes and inflation impacts[108]. - Interest rate risk is sensitive to factors such as governmental policies and economic conditions, but a 100-basis point change is not expected to materially affect the business[109][110]. - Inflation has not materially impacted the company's financial condition, aside from general economic effects, but rising costs could pose challenges if not offset by price increases[111]. Other Financial Metrics - The change in fair value of derivative liabilities resulted in income of $12 million for the nine months ended September 30, 2025, compared to an expense of $15 million for the same period in 2024[95].