Cyngn — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $156,495, compared to $69,973 in Q3 2025.
• Nine months ended September 30, 2026, revenue was $405,527, compared to $150,851 for the same period in 2025.
• Revenue for both periods consisted of EAS software subscriptions from DriveMod tugger vehicle deployments.
• Total costs and expenses for the nine months ended September 30, 2026, were $20.5 million, a 6% increase from $19.3 million in the prior year period.
• Total costs and expenses for Q3 2026 were $6.6 million, a 23% decrease from $8.5 million in Q3 2025.
• Net loss for the nine months ended September 30, 2026, was $18.8 million, compared to $17.8 million in 2025.
• Net loss per share for the nine months ended September 30, 2026, was $1.41 (basic and diluted), compared to $5.20 in 2025.
• Net loss for Q3 2026 was $6.0 million, compared to $8.4 million in Q3 2025.
• Net loss per share for Q3 2026 was $0.41 (basic and diluted), compared to $1.20 in 2025.
• Weighted-average shares outstanding for the nine months ended September 30, 2026, were approximately 13.3 million, compared to 3.4 million in 2025.
• Weighted-average shares outstanding for Q3 2026 were approximately 14.7 million, compared to 7.0 million in 2025.
• Other income, net, for the nine months ended September 30, 2026, was $1.3 million, consistent with $1.3 million in 2025.
• Other income, net, for Q3 2026 was $446,100, compared to an expense of $21,600 in Q3 2025.
• Unrestricted cash and short-term investments totaled $34.9 million as of September 30, 2026, compared to $34.7 million as of December 31, 2025.
• Working capital was $34.3 million as of September 30, 2026, compared to $35.7 million as of December 31, 2025.
• Total stockholders' equity was $39.0 million as of September 30, 2026, compared to $38.8 million as of December 31, 2025.
• The Company had no debt as of September 30, 2026, or December 31, 2025.
• Deferred revenue increased to $1.8 million total ($575,289 current, $1.25 million non-current) as of September 30, 2026, from $1.66 million total ($395,348 current, $1.26 million non-current) as of December 31, 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $17.3 million, compared to $16.8 million in 2025.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $17.9 million, compared to $29.6 million in 2025.

Business Segments and Product Lines:

• Announced a follow-on order from an existing Fortune 100 heavy equipment manufacturer, extending DriveMod into an additional assembly-line material handling application.
• Launched DriveMod EasyLaunch™ in October, a simplified deployment program offering one autonomous tugger, one route, and a single monthly payment without upfront capital investment or long-term commitment.
• DriveMod technology is currently available on Motrec MT-160 Tuggers, which haul up to 12,000 lbs and target a payback period of less than 2 years.
• Implemented a more disciplined approach to customer qualification, pipeline accountability, and identifying applications aligned with the DriveMod Tugger following sales organization changes.
• Expanded use of AI-assisted tools across engineering and business operations to improve productivity.
• Achieved ISO 27001 certification in September and completed a SOC 2 Type II examination with zero exceptions in October.
• Holds a portfolio of 24 issued U.S. patents.

Other Key Points:

• No member of the current management team has sold any shares of the Company's stock to date.
• Proceeds from at-the-market equity financing, net of issuance costs, were $9.2 million for the nine months ended September 30, 2026.
• Proceeds from public issuance of common stock, net of offering costs, were $8.7 million for the nine months ended September 30, 2026.
• The Company recorded a realized gain on short-term investments of $18,167 and accretion on short-term investments of $1.1 million for the nine months ended September 30, 2026.
• Stock-based compensation was $1.1 million for the nine months ended September 30, 2026, compared to $1.3 million in 2025.
• Depreciation and amortization was $928,756 for the nine months ended September 30, 2026, compared to $894,312 in 2025.
• The change in accounting estimate related to capitalized software contributed to a $317,800 decrease in R&D expenses for the nine months ended September 30, 2026, and a $2.3 million decrease in R&D for Q3 2026.
• An increase in board of director's pay in lieu of the equity component of the director compensation program contributed to higher G&A expenses in both the nine-month and quarterly periods.
• The Company recorded a change in fair value of warrant liabilities of $1.1 million in 2025, with no such change in 2026.