Financial Data and Key Metrics Changes - In Q3 2025, Amprius Technologies reported revenue of $21.4 million, representing a 42% increase from Q2 and a 173% increase from Q3 2023 [9][24]. - The gross profit margin improved to 15%, up from 9% in the previous quarter, driven by a favorable product mix and higher volumes [26][39]. - The adjusted EBITDA loss decreased to negative $1.4 million from negative $3.8 million in the previous quarter, indicating a reduction of over 60% [27]. Business Line Data and Key Metrics Changes - The second-generation CyCore batteries significantly contributed to revenue, with shipments increasing more than 4X compared to Q3 2023 [10]. - Approximately 75% of Q3 revenue came from the aviation segment, primarily from unmanned aerial systems (UAS), while the remainder was from the light electric vehicle (LEV) sector [10][11]. Market Data and Key Metrics Changes - 75% of revenue was generated from international markets, highlighting strong customer diversification despite uncertainties from US tariffs and government shutdowns [11]. - A notable $35 million purchase order from a leading UAS manufacturer was secured, indicating strong demand and repeat business [11][25]. Company Strategy and Development Direction - Amprius aims to expand its manufacturing capacity and diversify its supply chain, collaborating with the US Government Defense Innovation Unit [30]. - The company is focused on developing next-generation lithium-ion battery performance and broadening its product portfolio to align with customer requirements [32]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the electric aerospace market, projecting it to grow from $40 billion-$50 billion today to $80 billion by the end of the decade [17]. - The company anticipates increased interest from defense customers due to government funding and policy changes that promote domestic drone production [18]. Other Important Information - The company introduced two new CyCore pouch cells and three new cylindrical cells optimized for UAS and electric aircraft applications [16]. - Amprius has a backlog of $53.3 million in orders, which is 83% higher quarter-over-quarter, indicating strong demand [25]. Q&A Session Summary Question: Can you discuss the cadence of US capacity and potential contract manufacturing? - Management indicated plans for both US and NDAA-compliant country contract manufacturers, with ongoing expansion of partnerships [34]. Question: What led to the increase in new customers this quarter? - The increase was attributed to heightened awareness of Amprius products and timing of customer engagements that were initiated over the past year [37]. Question: Can you break down the improvement in gross margin? - The primary driver for the increase in gross margin from 9% to 15% was the product mix, particularly the higher share of CyCore products [39]. Question: What is the timeline for cash flow break-even? - Management noted that achieving cash flow break-even is contingent on incremental revenue growth, with positive EBITDA expected with additional sales [42]. Question: How does the product mix affect gross margins? - The gross margin profile varies between longer-term agreements and shorter-term applications, impacting overall margin fluctuations [54].