Second Quarter 2025 Business Review JULY 30, 2025 1 © 2025 | AURORA PROPRIETARY Cautionary statement regarding forward-looking statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including but not limited to, those statements around our ability to achieve certain milestones around, and realize t ...

Group 1 - Kodiak Robotics is merging with Ares Acquisition Corporation II in a deal valued at $2.6 billion, indicating significant investment interest in the autonomous trucking sector [1] - The company has projected a substantial total addressable market for autonomous trucking, highlighting the industry's growth potential [1]

Market & Policy Landscape - Markets favor certainty, and with the budget resolved and some tariff issues addressed, the environment is becoming clearer [3][4] - The venture market is showing signs of renewed liquidity after four years of stagnation, driven by a more friendly FTC, encouraging IPOs and M&A [5] - Tech regulation primarily occurs at the state level, often overlooked in favor of federal politics [9] Crypto & Digital Assets - The market momentum of crypto makes it difficult to assess using traditional logic [11] - The acceptance of crypto by the federal government, including banks' involvement in stablecoins, raises questions about future growth potential [12] - Proactive positive movements by the SEC and the White House on crypto suggest further bullish potential [13] Regulatory Environment & Industry-Specific Issues - Deregulation by the Trump administration could resolve regulatory issues, contrasting with the hands-off approach of the Biden administration [8] - The Genius Act, a stable coin act, has passed the Senate but awaits House approval, with the market potentially pricing it in [6] - Autonomous trucking faces regulatory hurdles, with the US DOT yet to issue sensible interstate regulations [8]

Core Insights - Kodiak Robotics and Roush Industries are collaborating to scale the deployment of Kodiak Driver-equipped autonomous trucks, with production expected to begin in the second half of 2025 [1][3] - Roush will establish a production line for upfitting trucks with Kodiak's modular and vehicle-agnostic hardware, which includes proprietary SensorPods and AI compute systems [3][4] - The partnership aims to enhance manufacturing flexibility and quality management, allowing for customization of various vehicle configurations to meet diverse trucking industry demands [5] Company Overview - Kodiak Robotics, founded in 2018, specializes in AI-powered autonomous vehicle technology aimed at addressing supply chain challenges and enhancing transportation safety [6][7] - The Kodiak Driver is operational without a human driver and has been deployed in both commercial and public sector applications, marking a significant milestone in driverless trucking [7] - Roush Industries has nearly 50 years of experience in product development and is recognized for its expertise in upfitting complex vehicles, including autonomous ones [4][8] Market Potential - The collaboration is positioned to tap into the trucking industry's estimated global market opportunity of over $4 trillion, with Kodiak planning to accelerate its go-to-market strategy through a proposed business combination with Ares Acquisition Corporation II [5]

Financial Data and Key Metrics Changes - In Q1 2025, operating expenses totaled $211 million, with R&D expenses at $153 million, which included $871,000 in pilot revenue, reflecting a 22% quarter-over-quarter and 54% year-over-year increase [35] - The company ended Q1 2025 with nearly $1.2 billion in cash and short-term investments, including $68 million from the issuance of shares [37] - The expected quarterly cash use for the remainder of 2025 is projected to be between $175 million and $185 million [38] Business Line Data and Key Metrics Changes - The Aurora driver has begun regular driverless operations, completing over 4,000 driverless miles, which is longer than the distance across the United States [19] - The company has achieved a 100% API metric during Q1, exceeding the commercial launch target of 90% [18] Market Data and Key Metrics Changes - The Dallas to Houston launch lane represents a significant commercial opportunity, with plans to expand operations to Fort Worth, El Paso, and Phoenix in the second half of 2025 [22] - The Aurora driver is validated for operations in daytime with clear weather conditions, focusing on 53-foot drive-in and refrigerated trailers [22] Company Strategy and Development Direction - The company aims to prove the technology's promise, increase product value for customers, and become an essential partner in the freight industry [12] - A crawl, walk, run approach is being adopted for scaling operations, with plans to operate multiple lanes and expand capabilities to include night driving and adverse weather conditions by the end of 2025 [70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the safety and performance of the Aurora driver, highlighting strong customer interest and enthusiasm following the launch [55][56] - The company is focused on demonstrating the technology's value and plans to provide regular updates on driverless miles and revenue metrics [62] Other Important Information - The company has developed a safety case framework for autonomous trucking, achieving 100% completion for its launch lane [13] - The company plans to raise between $650 million and $850 million prior to achieving positive free cash flow, anticipated in 2028 [38] Q&A Session Summary Question: What do competitors underestimate about bringing autonomous solutions to market? - Management highlighted the complexity of delivering a safe product and the importance of partnerships and validation processes, which competitors may not fully appreciate [44][46] Question: Can you provide insights on customer and industry feedback since the launch? - Management reported near-universal enthusiasm from partners and customers, indicating a significant increase in interest following the launch [55][57] Question: How will the company determine the next steps for expansion? - The focus will be on operational execution and feedback from the operations team, with plans to scale confidently based on experience [59] Question: What metrics will be shared quarterly? - Management indicated that updates on driverless miles and revenue will be provided, moving away from development metrics [62] Question: How critical is simulation technology for expanding routes? - Management emphasized the importance of simulation in validating the vehicle's performance in various conditions, which is crucial for safe operations [95] Question: How will pricing be approached in the future? - Management believes that substantial value will be demonstrated, allowing for potential pricing strategies that reflect the benefits of the technology [98][100]

Financial Data and Key Metrics Changes - In Q1 2025, operating expenses totaled $211 million, with R&D expenses at $153 million, including $871,000 in pilot revenue, which increased by 22% quarter-over-quarter and 54% year-over-year [33][34] - The company ended Q1 with nearly $1.2 billion in cash and short-term investments, including $68 million from the issuance of shares [35] - The expected quarterly cash use for the remainder of 2025 is between $175 million and $185 million, reflecting an increase in capital expenditures as the company prepares to scale [35][36] Business Line Data and Key Metrics Changes - The launch of the Aurora driver in April 2025 marked the beginning of recognizing revenue, which will be reflected in the Q2 results [34] - The Aurora driver has completed over 4,000 driverless miles, demonstrating its operational capabilities [17] Market Data and Key Metrics Changes - The Aurora driver is validated for driverless operations on a significant freight corridor, with plans to expand operations to additional routes, including Fort Worth to El Paso and Phoenix by the second half of 2025 [20][21] - The company aims to operate tens of trucks by the end of 2025, starting with a crawl, walk, run approach to ensure a seamless product experience [18] Company Strategy and Development Direction - The company focuses on proving the technology's promise, increasing product value for customers, and becoming an essential partner in the freight industry [10][19] - The strategy includes expanding commercial lanes and validating night driving and operations in adverse weather conditions [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the safety and performance of the Aurora driver, highlighting its ability to address challenges in the freight industry, such as driver shortages and high turnover [19] - The company anticipates raising $650 million to $850 million before achieving positive free cash flow, expected in 2028 [36] Other Important Information - The company published a driverless safety report detailing the operational safety of the Aurora driver, which includes risk management and cybersecurity measures [12] - The company has received strong support from state officials, indicating a favorable regulatory environment for autonomous trucking [14] Q&A Session Summary Question: How do competitors underestimate the complexity of bringing an autonomous solution to market? - Management noted that competitors may not appreciate the extensive ecosystem and multi-year engagements required to industrialize the technology, emphasizing their structural advantage in validation and safety [39][46] Question: Is the financial guidance from the Analyst Day still applicable? - Management confirmed that the financial ambitions discussed previously remain generally correct, with a slight delay in the launch timeline [48][50] Question: What feedback has been received from customers since the launch? - Management reported near-universal enthusiasm from partners and customers, indicating a significant increase in interest following the launch [53][55] Question: How will the company determine the next steps for expansion? - The company will focus on operational execution and feedback from the operational team to scale confidently [56][58] Question: What improvements in AI are expected moving forward? - Management indicated that advancements in AI are already integrated into the Aurora driver, with ongoing efforts to enhance capabilities in various conditions [75][78] Question: How critical is simulation technology for expanding routes? - Management emphasized that simulation is essential for validating the vehicle's performance in diverse conditions, allowing for faster route expansion [90][92] Question: How will pricing be approached in the future? - Management stated that pricing will be based on the substantial value delivered to customers, with potential for premium pricing as the technology proves its worth [94][97]