Summary of Mobileye Global Conference Call Company Overview - **Company**: Mobileye Global (NasdaqGS:MBLY) - **Event**: 2026 Conference held on January 06, 2026 - **Keynote Speaker**: Professor Amnon Shashua, CEO of Mobileye Key Industry Insights - **Acquisition**: Mobileye announced the acquisition of Mentee Robotics, marking its entry into humanoid robotics [1] - **Partnerships**: Collaboration with Volkswagen's MOIA Group to develop autonomous vehicles for the US and Europe [1] Financial Performance and Projections - **RFQs Success**: Mobileye won 95% of all RFQs from its top 10 customers in 2025 [3] - **New Partnerships**: Secured design wins with Volvo and Subaru [3] - **Revenue Pipeline**: Projected pipeline of $24.5 billion over the next eight years, with $18 billion awarded since the IPO, representing a 40% increase since 2023 [4] - **Chips Deployment**: Over 230 million chips deployed, equating to one-eighth of the total cars globally [5] Technology Developments - **REM Technology**: 8 million cars contributing to high-definition map data, with 32 billion miles recorded in 2025 [5] - **Surround ADAS**: New system featuring multiple cameras and radars, with two design wins already secured [6] - **Testing**: Over 100 ID. Buzz vehicles in testing across various locations, including challenging weather conditions [10][14] Future Milestones - **Driverless Services**: Expected launch of driverless services in the US by the end of 2026, with EU homologation in 2027 [18] - **Market Expansion**: Plans to operate in six cities by the end of 2027 and have over 100,000 active self-driving vehicles by 2033 [21] Strategic Insights - **Ecosystem Approach**: Emphasis on integrating vehicle and self-driving systems into a turnkey solution for autonomous mobility [19] - **Cost Reduction**: Focus on reducing costs associated with sensors and computing to enable scalability [51] - **Physical AI Expansion**: Mobileye aims to broaden its scope to include all aspects of physical AI, leveraging synergies between autonomous driving and robotics [59] Technical Innovations - **Artificial Community Intelligence (ACI)**: A new training method using simulated environments to enhance driving policy and validation [36][40] - **Vision-Language Models (VLMs)**: Development of a slow system to provide deep scene understanding, reducing reliance on teleoperators [45] - **Chip Development**: Introduction of the IQ7 chip, designed for advanced workloads, with significant performance advantages over competitors [52] Conclusion - Mobileye is positioned for significant growth through strategic acquisitions, partnerships, and technological advancements in autonomous driving and robotics. The company is focused on scaling its operations while reducing costs and enhancing its product offerings to meet future market demands.

Financial Data and Key Metrics Changes - Q3 revenue reached $504 million, a 4% year-over-year increase, driven by an 8% growth in IQ volume, significantly outpacing the 1% growth in overall vehicle production among the top 10 customers [4][5] - Operating cash flow for Q3 was $167 million, with year-to-date cash flow nearly $500 million, reflecting a 150% year-over-year increase [4][17] - The company raised its full-year revenue outlook midpoint by 2% and adjusted operating income midpoint by 11%, with expected volumes about 2 million units higher than original guidance [5][17] Business Line Data and Key Metrics Changes - The core ADAS business is performing well, with volumes in a healthy range for the last five quarters, and expected to continue in Q4 [4] - SuperVision volumes exceeded expectations, with a revised full-year estimate of around 50,000 units, significantly higher than initial projections [15][19] - Gross margin declined by over 100 basis points year-over-year, primarily due to increased volumes from Chinese OEMs and higher costs associated with IQ5 programs [15] Market Data and Key Metrics Changes - Stronger-than-expected results in China contributed to overall performance, with better-than-expected shipments to Chinese OEMs and performance from Western OEM customers in China [5] - The company expects to outperform the production of top 10 OEM customers globally by about 5 percentage points in 2025 [6] Company Strategy and Development Direction - Mobileye is focusing on execution and innovation in its SuperVision and Chauffeur programs, with significant software updates expected in the coming months [9][44] - The company is positioning itself as an OEM-neutral platform with a credible technology path to eyes-off autonomy, targeting both privately owned vehicles and robotaxis [7][10] - The growth potential in India is becoming increasingly clear, supported by adoption trends and regulatory environments [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting that the opportunity set is larger and more urgent than when the company went public in 2022 [11] - The focus for 2026 is on execution rather than acquiring new business, with expectations to be production-ready for SuperVision and Chauffeur platforms in the first half of 2026 [44] Other Important Information - The company is actively working on multiple advanced product lines, including surround ADAS, SuperVision, Chauffeur, and Drive, all sharing common technological foundations [8] - The IQ6 High chip is positioned as a cost-effective solution for high-volume vehicles, with significant traction among OEMs [85] Q&A Session Summary Question: Can you clarify the recent design win with a Western OEM? - The recent nomination is for a second surround ADAS program from a leading Western OEM, expected to be a significant portion of their vehicle lineup [23] Question: How do you anticipate gross margin changes with IQ6 ramping up? - The profitability of IQ6 is expected to be higher than IQ5, with no significant headwinds anticipated from the transition [25][28] Question: What factors are influencing Q4 expectations? - The company expects Q4 volume to align with full-year guidance, with no material impact from recent chip issues anticipated [34] Question: Can you provide details on the Lyft robotaxi program? - The program is in advanced testing stages, with the first city launch planned for Dallas-Fort Worth, and further details will be disclosed soon [36] Question: How does the competitive landscape look for surround ADAS? - Mobileye has a first-mover advantage in surround ADAS, focusing on cost optimization and efficient design to meet OEM needs [84][85]

Financial Data and Key Metrics Changes - Q3 revenue reached $504 million, a 4% increase year over year, driven by an 8% growth in IQ volume, significantly outpacing the 1% growth in overall vehicle production among the top 10 customers [3][4] - Operating cash flow was $167 million in Q3, with year-to-date cash flow nearly $500 million, reflecting a 150% increase year over year [3][15] - The company raised its full-year revenue outlook by 2% and adjusted operating income by 11%, with expected volumes about 2 million units higher than original guidance [4][16] Business Line Data and Key Metrics Changes - The core ADAS business is performing well, with healthy volume ranges maintained for the last five quarters [3] - SuperVision volume exceeded 20,000 units in Q3, with a full-year expectation of around 50,000 units, significantly higher than initial projections [12][13] - Gross margin declined by over 100 basis points year over year, primarily due to increased volumes from Chinese OEMs and higher costs associated with IQ5 programs [13][14] Market Data and Key Metrics Changes - Stronger-than-expected results in China contributed positively to overall performance, with significant shipments to both Chinese OEMs and Western OEMs operating in China [4] - The company expects to outperform the production of its top 10 OEM customers globally by about 5 percentage points in 2025 [4] Company Strategy and Development Direction - Mobileye is focusing on expanding its advanced product offerings, including surround ADAS, SuperVision, Chauffeur, and Drive, leveraging the IQ6 High-inference chip [5][6] - The company aims to transition from eyes-off to minds-off autonomy by 2029, with significant advancements expected in the next few years [8][9] - The growth potential in emerging markets like India is becoming increasingly clear, supported by regulatory environments [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet future demand for higher performance at lower costs, emphasizing that eyes-off capability is becoming a commercially viable reality [10] - The company is focused on execution in 2026, with significant software innovations expected in the near term [38][39] - Management highlighted the importance of maintaining strong relationships with OEMs and the competitive advantages of their technology in the evolving market landscape [46][72] Other Important Information - The company is actively pursuing robotaxi opportunities, with plans to remove safety drivers in the U.S. by 2026 and expand operations in Europe [10][81] - Mobileye is expanding its REM data collection efforts, which are crucial for enhancing AI training and improving front-facing camera performance [84] Q&A Session Summary Question: Clarification on Western OEM design win - The recent nomination is for a second surround ADAS program from a leading Western OEM, expected to be a significant portion of their vehicle lineup [21][22] Question: Gross margin impact from IQ5 and IQ6 - IQ5 volumes are expected to peak at around 15%, but the profitability difference between IQ5 and IQ6 is not significant [23][25] Question: Q4 expectations and market factors - The company does not expect material impacts from recent chip issues and anticipates Q4 volumes to align with full-year expectations [30] Question: Details on Lyft robotaxi program - The first city for the Lyft robotaxi program will be Dallas-Fort Worth, with advanced testing currently underway [32] Question: Competitive landscape for surround ADAS - Mobileye has a first-mover advantage in surround ADAS, focusing on cost optimization and efficient design to meet OEM needs [71][72]