Mobileye Global Inc. (MBLY) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals strong financial performance, with a notable increase in operating cash flow and EyeQ volumes exceeding expectations. Despite some margin pressures, the raised guidance and strategic advancements in ADAS and robotics indicate potential growth. The Q&A section highlights competitive advantages and partnerships, reinforcing optimism. Overall, the positive elements outweigh the negatives, suggesting a positive stock price movement.
Key Financial Performance
Revenue Full year 2025 revenue of $1.9 billion, up 15% year-over-year. Reasons for growth include minor upside in global production trends, EyeQ program launches, and higher-than-expected ADAS and supervision volumes from China OEMs.
Adjusted Operating Income Full year adjusted operating income of $220 million, up 45% year-over-year. Margin was 15%, up about 300 basis points versus 2024. Reasons for growth include consistent positive revisions from customers and higher-than-expected demand.
Operating Cash Flow Operating cash flow increased by more than 50% year-over-year. Reasons for growth were not explicitly detailed but align with overall strong financial performance.
EyeQ Volume 2025 EyeQ volume was 35.6 million units, well above the original expectation of 32 million to 34 million units. Reasons for growth include consistent demand trends and higher-than-expected volumes in Q2 and Q3.
Gross Margin Gross margin was impacted by EyeQ5-related cost headwinds, modest vehicle mix headwinds, and the impact of a dual-chip program. These factors led to a decline in gross margin year-over-year.
Operating Expenses 2025 operating expenses were $1.003 billion, slightly above the original budget of $995 million. Reasons include nonrecurring termination-related bookings in Q4 and FX headwinds related to the Israeli currency appreciation.
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Operating Highlights
EyeQ6 High chip: Positioned well for next-gen ADAS for mass market vehicles; won first 2 major programs with two of the biggest 6 OEMs globally.
Artificial Community Intelligence (ACI): Introduced as a simulation concept using reinforcement learning for training planning engines, achieving 1 billion hours of training overnight.
Fast-think, slow-think structure: Implemented to enhance precision and scalability, utilizing vision language models for contextual decision-making.
Mentee Robotics acquisition: Expanded into humanoid robotics with a focus on industrial and logistics services, leveraging AI and Sim2Real techniques.
Volkswagen ecosystem expansion: Expected volume increased to 100,000 units by 2033, driven by demand from transportation network companies and public transport groups.
China OEMs: Significant growth in ADAS and supervision volumes in 2025, aligning with export volume growth.
Revenue growth: 2025 revenue reached $1.9 billion, up 15% year-over-year, exceeding prior guidance.
EyeQ volume: 2025 volume was 35.6 million units, surpassing expectations; Q1 2026 forecasted at 10 million units.
Workforce efficiency initiatives: Undertook initiatives in Q4 2025, incurring a $7 million nonrecurring expense.
Humanoid robotics entry: Acquired Mentee Robotics to expand into robotics, leveraging shared AI technologies between autonomous vehicles and robotics.
Advanced product launches: Progressing towards major launches in 2026 and 2027, including robotaxi milestones with Volkswagen Group.
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Risk or Challenges
Geopolitical Environment: Uncertain geopolitical environment could impact demand for products and overall business stability.
Global Auto Production: Flattish global auto production expected, which may limit growth opportunities.
Inventory Levels: Extremely low inventory levels at Tier 1 customers could lead to supply chain disruptions or challenges in meeting demand.
China OEM Volumes: Expected decline of 0.5 million units in Chinese OEM volumes compared to 2025, posing a risk to revenue from this market.
Gross Margin: Gross margin expected to decline due to EyeQ5-related cost headwinds, vehicle mix headwinds, and dual-chip program pricing structure.
Operating Expenses: Operating expenses projected to grow by 10% in 2026, driven by salary inflation, infrastructure costs, and FX headwinds related to Israeli currency appreciation.
Workforce Efficiency Initiatives: Nonrecurring expenses related to workforce efficiency initiatives could impact short-term financials.
Advanced Product Execution: Execution risks associated with advanced product launches in 2026 and 2027.
Mentee Robotics Acquisition: Integration and development costs for Mentee Robotics could strain resources and delay expected benefits.
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Guidance & Outlook
Volume Growth: Encouraged by the volume growth expected despite global auto production being flattish. Q1 volume levels are strong, with order flows rising in the last month or two.
Revenue Guidance: Expecting revenue in the range of $1.9 billion to $1.98 billion for 2026, representing flattish to 5% growth.
EyeQ Volume: Forecasting slightly above 37 million units for 2026, with 10 million units in Q1 and slightly above 9 million units per quarter for the rest of the year.
Gross Margin: Gross margin expected to decline year-over-year due to EyeQ5-related cost headwinds, vehicle mix headwinds, and the impact of a dual-chip program. These cost headwinds are expected to gradually decline starting in 2027.
Operating Expenses: 2026 operating expenses expected to grow by 10% to around $1.1 billion, driven by salary inflation, infrastructure for advanced products, Mentee R&D expenses, and FX headwinds.
China OEMs: Expecting a decline of about 0.5 million units in 2026 compared to 2025, but remain optimistic about continued growth in export volumes.
Advanced Products and Robotaxi Business: Positive execution progress ahead of advanced product launches over the next 1-2 years, with accelerating momentum in customer demand for next-gen ADAS and robotaxi business.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What is Mobileye's view on the competitive environment in the advanced autonomous solutions space?
A:Mobileye believes it is closer to launching advanced products than competitors, with a spectrum of products like Surround ADAS, SuperVision, Chauffeur, and robotaxi expected to launch between 2026 and 2027. They see their maturity and technological advances as key advantages, despite recent announcements from competitors like NVIDIA.
Q:What differentiates Mentee in the humanoid robotics space?
A:Mentee is fully autonomous, vertically integrated, and capable of continuous learning by passively observing human tasks. It focuses on structured environments like fulfillment centers and assembly plants, with plans to expand to unstructured environments like home use. Mentee is also the only Western humanoid robot company actively engaging with customers on proof of concepts and pilots involving pure AI operations.
Q:What is the status of Surround ADAS engagements and potential awards?
A:Mobileye has seen increased interest and engagements with multiple OEMs for Surround ADAS. They have already secured commitments from two of the top six OEMs globally, and these programs will be integrated into high-volume vehicle categories. Mobileye believes the product's reliability, safety, and cost efficiency are driving its adoption.
Q:What is the progress and customer interest in Mentee Robotics?
A:Since CES, Mobileye has received significant customer interest for on-site pilots and proof of concepts for Mentee Robotics. Customers are interested in deploying humanoid robots in logistics centers, warehouses, and manufacturing lines. Mobileye plans to produce high tens of units in 2026 for proof of concepts and expand production in 2027 with a manufacturing partner.
Q:What are the near-term plans for Mobileye's Drive system and robotaxi deployments?
A:Mobileye plans to expand to six cities by 2027, including Los Angeles with Uber. Initial deployments will involve a few hundred vehicles per city, with potential for scaling based on success. Volkswagen has the manufacturing capacity to produce up to 100,000 vehicles by 2033, depending on demand.
Q:What is Mobileye's approach to memory supply issues in the automotive industry?
A:Mobileye is working with multiple vendors to ensure flexibility and mitigate cost impacts. They have opted for a conservative forecast for 2026 to account for industry volatility but have not seen direct evidence of volume risks due to memory supply issues.
Q:What is the impact of shekel appreciation on Mobileye's costs?
A:Mobileye has hedged more than 50% of its payroll expenses at favorable rates, but the appreciation of the shekel has increased costs. This has been factored into their guidance, with some offset from efficiency initiatives.
Q:What is the status of Porsche and Audi programs for SuperVision?
A:The programs for Porsche and Audi have been pushed to Q1 2027 due to unrelated delays. Mobileye does not expect meaningful volumes from these programs in 2026.
Q:What are the pricing dynamics for EyeQ chips?
A:Pricing is influenced by the mix of EyeQ generations and software features. While there is no significant change in average prices, higher volumes of EyeQ5-based products and a one-off use of two EyeQ4 chips in some vehicles have impacted pricing dynamics.
Q:What is the regulatory process for Mobileye's driverless demonstrations?
A:In the U.S., Mobileye follows a self-certification process with stringent KPIs. In Europe, homologation will start in 2026 and complete in 2027, facilitated by partnerships with Volkswagen and MOIA.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the number of OEMs likely to convert into Surround ADAS awards this year, the exact timing of SuperVision and Chauffeur engagements, and the financial impact of Mentee Robotics on Mobileye's overall business. Additionally, they did not clarify the exact pricing trends for EyeQ chips beyond general mix-related impacts.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ACI
CEO President
CES
Full
Mentee Robotics
VLM
VLMs
acquisition Mentee
action
architecture
area
auto
capability
car
cloud
commercialization
company
concept
debate
engine policy
field
learning
logistics
model
need
path
perception
planning
proof
robot
robotics
scalability
scene policeman
service
signal
simulation
structure
technique
teleoperator
thinking
training advantage
use
world
MBLY Transcript
Mobileye Global Inc. (MBLY) Q4 2025 Earnings Call Transcript
Positive1-22
The earnings call reveals strong financial performance, with a notable increase in operating cash flow and EyeQ volumes exceeding expectations. Despite some margin pressures, the raised guidance and strategic advancements in ADAS and robotics indicate potential growth. The Q&A section highlights competitive advantages and partnerships, reinforcing optimism. Overall, the positive elements outweigh the negatives, suggesting a positive stock price movement.
Mobileye Global Inc. (MBLY) Presents at UBS Global Industrials and Transportation Conference Transcript
Neutral12-3
Mobileye Global Inc. (MBLY) Q3 2025 Earnings Call Transcript
Positive10-23
The overall sentiment is positive due to raised revenue and operating income outlooks, strong EyeQ and Supervision volume forecasts, and a promising robotaxi deployment plan. Despite some margin declines and higher operating expenses, the positive guidance and strategic partnerships, such as the Lyft robotaxi program, outweigh these concerns. The Q&A session provided additional confidence with expectations of faster growth than top OEMs and advancements in ADAS technology, supporting a positive stock price movement.
Mobileye Global Inc. (MBLY) Q2 2025 Earnings Call Transcript
Positive7-24
The earnings call summary and Q&A highlight strong progress in design wins, technology integration, and strategic partnerships, particularly with Volkswagen and Lyft. Despite some uncertainties in management responses, the increased guidance for supervision units and strong EyeQ shipments indicate robust demand. Additionally, the strategic Imaging RADAR deal and unique business model for robotaxi systems position Mobileye well for future growth. While operating expenses are rising, the long-term outlook remains positive, with significant contributions expected from new product launches by 2027.
MBLY Report
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