Lucid Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third quarter revenue of $350.3 million, a 4% increase year-over-year, contrasting with a 41% decline in the US BEV market.
• Free cash flow consumption declined 30% sequentially to $1.04 billion, driven by the cash flow improvement plan.
• Net loss attributable to common stockholders was $1.08 billion for the quarter, compared to $1.03 billion in the prior year period.
• Adjusted EBITDA for the quarter was $(726.3) million, compared to $(717.7) million in the prior year period.
• Total liquidity ended the quarter at $2.0 billion, increasing to $3.75 billion on a pro forma basis following a $1.75 billion expansion of the DDTL facility with PIF.
• Cash and cash equivalents stood at $930.7 million as of September 30, 2026, down from $997.8 million as of December 31, 2025.
• Inventory increased to $1.22 billion as of September 30, 2026, from $1.11 billion as of December 31, 2025.
• Total liabilities increased to $6.75 billion as of September 30, 2026, from $5.39 billion as of December 31, 2025.
• Stockholders' equity deficit was $(2.10) billion as of September 30, 2026, compared to a positive equity of $717.3 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects to communicate its mid-term plan and targets early next year.
• The company expects its current liquidity level to fund operations and key investments into Q4 2027, bridging the period through the start of production for the Midsize program.
• Lucid expects to announce reveal and production dates for the Midsize program in the first quarter of 2027.
• AMP-2 manufacturing facility inauguration in Saudi Arabia is expected in early 2027.
• Midsize pilot production is entering its final phase, with full production planned for the second half of 2027.

Business Segments and Product Lines:

• Advanced Manufacturing Plant 2 (AMP-2) in Saudi Arabia has entered the final stages of industrialization and commissioning.
• Autonomy & Robotaxi: Lucid achieved all project milestones scheduled by the end of Q3 in partnerships with Uber and Nuro, with the program expanding to over 100 vehicles on the road.
• Lucid announced a partnership with Bolt, a leading European mobility platform, with an initial goal of deploying at least 25,000 vehicles.
• The company achieved $0.8 billion in savings year-to-date under its $1.4 billion Cash Flow Improvement Plan and remains on track to achieve the full-year target.
• Testing, final-stage prototyping, and validation for the Midsize vehicle continued during Q3.

Market and Competitive Landscape:

• Lucid reported revenue growth of 4% year-over-year while the broader US BEV market declined 41% over the same period.
• The company is advancing its transformation through investment in leadership, customer experience, strategic programs, and brand revamp.

Risks and Challenges:

• Risks include uncertainties regarding the timing of expected business milestones and commercial product launches, including the Midsize program.
• Potential risks involve the construction and expansion of manufacturing facilities, supply chain logistics, inventory management, and quality control.
• The company faces risks related to the outcome of its broader business review, which remains underway.
• Risks include changes in regulatory requirements, governmental incentives, and the potential impact of geopolitical events, including conflicts in the Gulf region and broader Middle East.
• There are risks associated with the ability to realize anticipated benefits from partnerships and the potential for negative press or reputational harm.

Management Commentary and Tone:

• CEO Silvio Napoli stated the transformation is beginning to show progress, with the company acting with urgency, strengthening fundamentals, and driving greater discipline.
• CFO Alexander De Bock noted that the operating reset actions to align manufacturing capacity with demand and reduce inventory are showing results in Q3.
• Management expressed gratitude for continued financial support from anchor shareholder PIF and emphasized a focus on execution and commitments to build a sustainable Lucid.

Other Key Points:

• Liquidity increased by $1.75 billion through the expanded support from PIF via the DDTL facility.
• The company issued Series C redeemable convertible preferred stock to a related party, raising $550 million during the nine months ended September 30, 2026.
• Proceeds from borrowings from related parties totaled $1.74 billion for the nine months ended September 30, 2026.
• The company incurred $72.9 million in workforce reduction charges year-to-date.
• Inventory and firm purchase commitments write-downs totaled $621.3 million for the nine months ended September 30, 2026.
• A gain on extinguishment of debt of $116.4 million was recorded in the nine months ended September 30, 2025, with no such gain recorded in the current period.