Kodiak AI — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the three months ended September 30, 2026, was $2.969 million, representing a 286% year-over-year increase compared to $770,000 in the prior year period.
• Revenue for the nine months ended September 30, 2026, was $8.298 million, compared to $2.744 million in the same period of 2025.
• Net income for the three months ended September 30, 2026, was $27.414 million, a significant improvement from a net loss of $269.935 million in the prior year quarter.
• Net income for the nine months ended September 30, 2026, was $66.381 million, compared to a net loss of $511.846 million in the prior year period.
• Net loss per common share (diluted) for the three months ended September 30, 2026, was $0.09, compared to a loss of $3.89 in the prior year quarter.
• Net loss per common share (diluted) for the nine months ended September 30, 2026, was $1.03, compared to a loss of $8.13 in the prior year period.
• Net cash used in operating activities for the quarter was $35.2 million.
• Free Cash Flow (Non-GAAP) for the quarter was negative $38.0 million.
• Cash and Cash Equivalents and Marketable Securities at the end of Q3 2026 totaled $113.6 million ($30.883 million in cash and $82.761 million in marketable securities).
• Total liabilities at September 30, 2026, were $86.690 million, down from $219.274 million at December 31, 2025.
• Total stockholders' deficit at September 30, 2026, was $(151.371) million, an improvement from $(283.052) million at December 31, 2025.
• Debt, current portion, was $666,000 at September 30, 2026, down from $1.065 million at December 31, 2025.
• Second lien loans were $12.632 million at September 30, 2026, up from $10.872 million at December 31, 2025.
• GAAP operating expenses for the quarter were $53.347 million, compared to $30.739 million in the prior year quarter.
• Non-GAAP operating expenses for the quarter were $44.521 million, compared to $25.494 million in the prior year quarter.

Guidance and Future Outlook

• The company targets a year-end unsupervised autonomous long-haul launch, with the Autonomy Readiness Measure advanced to 99%.
• Unsupervised autonomous deployments for the International LT platform are targeted for the second half of 2027.
• Management's priorities include growing recurring revenue, reducing the cost of the Kodiak Driver, and improving operating leverage as deployments scale.
• The company anticipates a path to profitability and free cash flow breakeven as the business scales.
• Free cash flow performance for the quarter exceeded guidance expectations.

Business Segments and Product Lines

• Secured a binding definitive agreement with DTL Transport to deploy 75 customer-owned and operated unsupervised autonomous trucks under the Driver-as-a-Service model.
• Delivered the first two Kodiak-powered Western Star 49X trucks to Atlas Energy Solutions, bringing their fleet of customer-owned autonomous trucks to 37 by quarter-end.
• Selected International LT as the third OEM platform, with engineering integration underway.
• Named IKEA Supply as the first long-haul launch partner for unsupervised autonomous operations, with plans to begin regular service on the Dallas-to-Houston corridor.
• Launched commercial freight operations with Charger Logistics along the Dallas-to-Laredo corridor.
• Completed the West Fraser trial in Alberta, Canada, demonstrating technology adaptability for rugged forestry operations.
• Successfully completed the U.S. Marine Corps ROGUE-Fires demonstration at Fort Hunter Liggett, showcasing autonomous convoy capabilities.
• Received a permit to test autonomous trucks in California and executed the first autonomous delivery in the state.
• Brought simulation capabilities, including AI-powered BreakPoint technology, fully in-house to accelerate development and reduce costs.
• Cumulative paid driverless hours surpassed 58,000, with nearly 30,000 cumulative loads delivered.
• Freight transported during Q3 exceeded 396,000 tons, more than double the tons transported in the prior quarter.

Market and Competitive Landscape

• The company operates across Long-haul trucking, Industrial, and Defense sectors.
• Commercial partners and customers include Atlas Energy Solutions, Werner Enterprises, IKEA, Bridgestone, Roehl Transport, General Dynamics Land Systems, and C.R. England.
• The company is building a scalable, Driver-as-a-Service business model with opportunities across multiple applications.
• The Kodiak Driver is designed to operate across long-haul, industrial, and defense markets using a vehicle-agnostic system.

Risks and Challenges

• Risks include changes in business, market, financial, political, and legal conditions.
• Rapid evolution of autonomous vehicle technology and potential flaws or errors in solutions.
• Risks related to the rollout of the business and timing of expected milestones.
• Effects of competition on the business.
• Supply shortages in materials necessary for production of the Kodiak Driver.
• Risks related to working with third-party manufacturers for key components.
• Risks related to retrofitting vehicles by third parties.
• Risks related to the termination or suspension of contracts or reduction in counterparty spending.
• Delays in the operational roadmap with key partners and customers.
• Risks related to raising capital in the future.

Management Commentary and Tone

• Don Burnette, CEO, described the quarter as approaching a "defining moment" with the Autonomy Readiness Measure at 99%.
• Burnette highlighted the DTL Transport agreement as a "significant commercial commitment" demonstrating growing customer confidence.
• Burnette stated the company is building toward "more trucks, more miles, and more customer contracts."
• Surajit Datta, CFO, noted that Q3 results reflect continued commercial progress toward a "more predictable, recurring revenue business."
• Datta emphasized that revenue growth was driven by expanding Driver-as-a-Service operations and a one-time Defense contribution.
• Management expressed clear priorities to grow recurring revenue, reduce costs, and improve operating leverage.

Analyst Questions and Answers

• No specific analyst questions and answers were included in the press release text provided.

Other Key Points

• Kodiak AI is listed on Nasdaq under the ticker symbol KDK.
• Management will present at the J.P. Morgan U.S. Opportunities Forum (November 12, 2026), Stephens Annual Investment Conference (November 17, 2026), and Northland Growth Conference (December 16, 2026).
• A conference call to discuss results was held on November 5, 2026, at 5:00 p.m. ET.
• The company completed a private placement resulting in $100.0 million in proceeds from the issuance of common stock and warrants during the nine months ended September 30, 2026.
• Proceeds from the exercise of stock options were $2.035 million, and proceeds from the exercise of common stock warrants were $7.156 million during the nine-month period.
• The company recorded a $201.2 million gain on the change in fair value of common stock warrants for the nine months ended September 30, 2026.
• A $46.1 million non-cash deemed dividend from a conversion price adjustment was included in the nine-month net loss per share calculation.
• The company has a Series A cumulative redeemable convertible preferred stock outstanding valued at $223.185 million.