MicroVision — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $2.4 million, a significant increase from $0.2 million in Q3 2025; year-to-date revenue reached $4.8 million, nearly five times the $1.0 million reported for the first nine months of 2025.
• Gross margin improved to 50% in Q3 2026 compared to a negative gross margin in the prior-year period; year-to-date gross margin was 46% versus negative 126% in the same period of 2025.
• Operating expenses were $22.5 million in Q3 2026, up from $12.0 million in the prior-year period due to the acquisition of Luminar, though down approximately 7.5% from the first-half quarterly average of $24.4 million.
• Net loss for Q3 2026 was $12.2 million ($0.45 per share), compared to a net loss of $14.2 million ($0.72 per share) in the prior-year period.
• Adjusted EBITDA loss was $11.1 million in Q3 2026, compared to $11.7 million in the prior-year period.
• Cash and cash equivalents stood at $28.9 million as of September 30, 2026.
• Cash used in operations was $13.6 million during the quarter.
• The company received a $6.3 million cash R&D grant from the German government included in current quarter results.
• Balance sheet data shows total assets of $90.8 million as of September 30, 2026, down from $103.1 million at December 31, 2025, with total liabilities increasing to $68.1 million from $47.6 million.
• Inventory increased to $4.4 million as of September 30, 2026, from $745,000 at December 31, 2025.
• Notes payable increased to $22.6 million as of September 30, 2026, from $19.2 million at December 31, 2025.

Guidance and Future Outlook:

• Full year 2026 revenue guidance remains in the range of $10 million to $15 million.
• 2027 revenue is expected to at least double from the expected 2026 level.
• The company expects to reduce operating cash burn to approximately $40 million in 2027, a reduction of roughly one-third from current levels.
• Strategic priorities for 2027 focus on accelerating revenue growth and operating cost optimization.

Business Segments and Product Lines:

• Industrial: Continued support for customer programs in mining, construction, material handling, logistics, and autonomous hauling, including a long-term development agreement with a leading construction and mining equipment OEM for a pathway from IRIS to HALO™ technology.
• Security and Defense: Announced new programs including Overland AI for the unmanned ground vehicle market; launched MOVIA™ Air and MOVIA™ Air Plus for autonomous aerial logistics and defense applications; demonstrated real-time mapping capabilities with partners Robinson Unmanned and Avular.
• Automotive: Advanced an autonomous mobility pilot in the Asia-Pacific region utilizing IRIS within a multi-sensor perception architecture, with potential transition to HALO for broader deployment.
• Intelligent Transportation Systems (ITS): Accelerated by an exclusive strategic alliance bringing Blue-Band's commercial contracts and revenue to MicroVision, plus a separate award to supply IRIS sensors for a speed enforcement program.
• MicroVision Semiconductor Inc.: Secured a selection by a prime government contractor to design a custom semiconductor solution for advanced photonics applications.
• Scantinel: Introduced the ELS-FP (external laser source small-form-factor package) pluggable module, opening commercialization opportunities in high-speed optical connectivity for AI data centers.
• Product Launches: Production launch of MOVIA™ Pro occurred earlier in the reporting month to meet urgent customer demand.

Market and Competitive Landscape:

• Customer demand for IRIS™ sensors grew significantly in the second half of the year.
• The company is actively delivering on a backlog of purchase orders to meet urgent demand.
• 1550nm long-range lidar is identified as a critical technology for the unmanned ground vehicle market.
• The company is transitioning from proof of concept toward value, deployment, and commercialization in the lidar-based perception solutions market.

Risks and Challenges:

• Forward-looking statements note risks including the ability to operate with limited cash or raise additional capital when needed.
• Risks include market acceptance of technologies, failure of commercial partners to perform, and competition regarding financial and technical resources.
• Potential challenges include rapid technological change, government regulation, intellectual property enforcement, and dependence on third parties for development and manufacturing.
• Risks also include potential product liability claims and the ability to maintain Nasdaq listing.

Management Commentary and Tone:

• CEO Glen DeVos stated that the commercial transformation is here, citing record lidar sales and consecutive quarters of revenue growth.
• CFO Christine Chambers emphasized a laser-focused path to profitability, significant reduction in operating expenses and cash burn, and alignment of resources with key revenue drivers.
• Management highlighted disciplined capital allocation, improved operating efficiency, and converting commercial opportunities into sustainable revenue as financial priorities.
• DeVos noted the organization is being structured to execute efficiently and respond to customer needs to translate technology investments into business performance.

Other Key Points:

• The company acquired Luminar, which contributed to the increase in operating expenses and the balance sheet changes (including goodwill and intangible assets).
• The company secured a $6.3 million cash R&D grant from the German government.
• The company hosts a conference call and webcast on October 28, 2026, at 4:30 p.m. Eastern Time.
• Non-GAAP measures including Adjusted EBITDA and Adjusted Gross Profit are presented to supplement GAAP results.