Mobileye (MBLY) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Full year 2025 revenue reached $1.9 billion, up 15% year-over-year, exceeding prior guidance of 6% growth at the midpoint [15][16] - Adjusted operating income for 2025 was $280 million, a 45% increase year-over-year, with a margin of 15%, up about 300 basis points compared to 2024 [15][16] - Operating cash flow increased by more than 50% [4] Business Line Data and Key Metrics Changes - EyeQ volume for 2025 was 35.6 million units, exceeding the original expectation of 32 to 34 million units, with a consistent demand trend of nine million units per quarter [16] - The fourth quarter saw higher-than-expected SuperVision units, contributing to a modest upside in guidance [17] Market Data and Key Metrics Changes - The company expects about 10 million EyeQ units shipped in Q1 2026, supporting an outlook of approximately 19% year-over-year growth in the first quarter [18] - For 2026, revenue guidance is in the range of $1.9 billion to $1.98 billion, representing flattish to 5% growth [18] Company Strategy and Development Direction - Mobileye is focusing on launching advanced products, including the EyeQ6 chip, and has secured major programs with two of the largest OEMs [5][6] - The acquisition of Mentee Robotics aims to expand into humanoid robotics, leveraging synergies between autonomous vehicles and robotics technologies [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand signals from customers and the execution progress ahead of numerous advanced product launches [22] - The geopolitical environment has not hindered demand, with the auto industry showing resilience [4] Other Important Information - The company is experiencing a foreign exchange headwind due to the appreciation of the Israeli shekel against the U.S. dollar, impacting headcount costs [22] - Operating expenses for 2025 were slightly above budget at $1.003 billion, with expectations of around $1.1 billion for 2026 [20][21] Q&A Session Questions and Answers Question: Competitive environment and announcements at CES - Management noted increased excitement around advanced solutions and believes they are closer to launching products than competitors, citing the maturity of their technologies [25][26] Question: Differentiation for Mentee Robotics - Mentee's differentiation lies in its fully autonomous control, vertical integration, and the ability to learn from passive observation, which is crucial for unstructured environments [28][30] Question: Surround data opportunities and OEM engagements - Management indicated a growing interest from multiple OEMs in surround data products, with two major OEMs already committed [38][40] Question: Mentee's commercialization timeline - Initial commercialization is expected to involve high double-digit units in 2026, with gradual expansion based on pilot results [77][78] Question: Pricing dynamics for EyeQ - Pricing is influenced by the mix of EyeQ products, with no significant changes expected, although a second EyeQ4 chip is being used in some vehicles as a temporary measure [100][101]