Mobileye (MBLY) - 2025 Q4 - Annual Report

Financial Performance - For fiscal year 2025, Mobileye reported revenue of $1.9 billion, a 15% increase from $1.7 billion in 2024, while revenue for 2023 was $2.1 billion[22]. - The company recorded net losses of $392 million in 2025, $3,090 million in 2024, and $27 million in 2023, with the 2024 loss primarily due to a $2,695 million non-cash impairment of goodwill[22]. - The company's Adjusted Net Income for 2025 was $286 million, compared to $205 million in 2024 and $659 million in 2023[22]. Product Development and Technology - Mobileye's EyeQ™6 High is expected to deliver a 10-times improvement in frames-per-second processing compared to EyeQ™5 High, despite only double the headline processing power[46]. - The latest EyeQ™6 High SoC achieves a ten-fold increase in frames-per-second processing compared to the EyeQ™5 High SoC, with only a two-times increase in overall processing power[97]. - The company is focusing on the development of next-generation EyeQ™ SoCs and software-defined imaging radar to enhance its ADAS and autonomous driving solutions[191]. - The company aims to grow its substantial dataset to improve the intelligence and robustness of its solutions, enhancing ADAS offerings and positioning for autonomous driving[121]. Market Position and Collaborations - Mobileye is actively collaborating with over 50 Original Equipment Manufacturers (OEMs) worldwide to implement its ADAS solutions[24]. - The company has made significant progress with the second generation of SuperVision™, targeting upcoming vehicle launches with VW Group brands Porsche and Audi, which will enhance hands-off driving capabilities[114]. - The partnership with STMicroelectronics continues to strengthen, co-developing six generations of EyeQ™ SoCs, including EyeQ™6, to accelerate autonomous innovation and market adoption[129]. Data Collection and Utilization - Mobileye collected 34.5 billion miles of road data in 2025 from over 8 million REM™-enabled vehicles, contributing to the creation of high-precision maps[32]. - Since deploying REM™ in 2018, the company has harvested a total of 91.5 billion miles of road data, covering over 95% of approximately 0.8 million miles of motorway, trunk, and primary road types in the US and Europe[95]. - The company has assembled a dataset of hundreds of petabytes of real-world driving experience, enabling the development of advanced computer vision algorithms[107]. Regulatory and Compliance Issues - U.S. export controls on advanced computing integrated circuits and related items to China are not expected to materially impact sales to existing customers, but future regulations could affect operations[141]. - Compliance processes have been developed for new U.S. regulations on connected vehicles, with prohibitions on certain transactions taking effect in model years 2027 and 2030[141]. - The company is subject to various data protection laws across jurisdictions, including the GDPR and the PRC Personal Information Protection Law, which impose strict compliance obligations[146][148]. Competitive Landscape - The company faces intense competition in the ADAS and autonomous driving markets from Tier 1 suppliers and technology companies, including Bosch, Tesla, and Waymo[152][153]. - The competitive landscape includes challenges from emerging players in humanoid robotics and urban mobility applications, requiring continuous innovation and adaptation[155][156]. - The company is heavily reliant on STMicroelectronics for the manufacturing of EyeQ™ SoCs, with no long-term pricing or quantity guarantees in their contractual relationship[207]. Workforce and Corporate Structure - As of February 3, 2026, the company had approximately 4,130 employees, down from 4,200 employees as of December 27, 2025, following a workforce reduction and the acquisition of Mentee Robotics[165]. - Approximately 85% of full-time employees are engaged in research and development, focusing on algorithms and autonomous driving technologies, providing a competitive edge[163]. - The company’s dual-class stock structure concentrates voting power with Intel, which may limit shareholder influence on corporate matters[188]. Supply Chain and Production Challenges - The company has faced supply chain constraints due to the global semiconductor shortage, which impacted the supply of its EyeQ™ SoCs in 2021 and 2022[186]. - Increased demand in the AI industry has resulted in component shortages and price increases, impacting the company's cost structure and gross margins[212]. - The company relies on a limited number of suppliers, including TSMC, for critical manufacturing steps, making it vulnerable to supply chain disruptions[207].