Good day. My name is David, and I'll be your conference facilitator. I would like to welcome everyone to the Aeva Technologies Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded and simultaneously webcast. I would now like to turn the call over to Andrew Fung, Senior Director of Investor Relations and Corporate Development. Andrew, please go ahead.

Thank you, and welcome, everyone to Aeva's Third Quarter 2025 Earnings Conference Call. Joining on the call today are Soroush Salehian, Aeva's Co-Founder and CEO; and Saurabh Sinha, Aeva's CFO. Ahead of this call, we issued our third quarter 2025 press release and presentation. which we will refer to today and can be found on our Investor Relations website at investors.aeva.com. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K. In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of Aeva's performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. The webcast replay of this call will be available on our company website under the Investor Relations link. And with that, let me turn the call over to Soroush.

Thanks, Andrew, and good afternoon, everyone. It has been an incredibly busy and productive quarter here at Aeva. Following Aeva Day this summer, where we shared how our breakthrough unified perception platform is enabling new levels of perception for customers across a broad range of applications, interest for Aeva's technology has continued to grow significantly. Our focus has been on achieving important milestones for our partners and positioning Aeva to meet the expanding demand to adopt our differentiated FMCW technology. The key highlight this quarter is our progress with the top 10 global passenger OEM. At the start of the year, we announced that the OEM had selected Aeva for a development program and also issued Aeva a letter of intent for production, where upon successful completion of the development program, the engagement would transition to a serious production award opportunity. I am very pleased to share that we have completed the development program ahead of plan and are now in late-stage contract negotiations for a series production award and more on that later. We also continue to make good progress on the Daimler Truck production program. Aeva's deliverables for the initial vehicle builds have been completed, and we are now shifting our focus to support Daimler Truck's growing vehicle fleet in 2026 and have already received the initial orders for next year's shipments of our Atlas final samples. And overall, we remain on track for Daimler Truck's planned market entry in 2027. Outside of automotive, we are pushing deeper into precision sensing. We have already started shipping against our first 1,000-plus units orders for our Eve 1D sensors. And in just a few months, we have expanded our precision sensing product line with the unveiling of our Eve 1V sensor. This builds on the EV 1D product by adding…

Thank you, Soroush, and good afternoon, everyone. Let me share more about Aeva's third quarter 2025 financial results. Starting with revenue, it was $3.6 million in Q3, with contribution from ongoing sensor shipments to multiple customers as well as NRV, such as for the Daimler Truck program. Moving to non-GAAP operating loss for this quarter. It declined by 13% year-over-year to $27.2 million, which largely reflects our target to reduce full year 2025 non-GAAP operating expense by 10% to 20% year-over-year. Aeva's gross cash use, which we define as operating cash flow less CapEx, was $33.6 million in Q3, which is higher than the prior quarter due to timing of certain payments and working capital adjustments. In addition, we have received cash of $32.5 million in gross proceeds from LG Innotek upon closing of their strategic equity investment. This brought total available liquidity at end of September to $173.9 million, excluding the Apollo investment we announced today. This is comprised of $48.9 million in cash, cash equivalents and marketable securities and a $125 million in undrawn facility that is fully available to draw at Aeva's sole discretion. Let me talk a bit more about the capital raise we announced today. The $100 million in convertible senior notes will provide incremental capital for Aeva to continue to accelerate our ongoing growth. The notes have a coupon of 4.375% payable in cash or stock at the option of the company and conversion price of 115% to the stock price. The notes are due in 7 years in November 2032. This represents a flexible source of unsecured capital, with no financial or maintenance covenants, and we will retain the flexibility to settle the convertible in cash, shares or any combination at our election upon a conversion. For additional details, please refer to the related 8-K. Including the new investment, our total pro forma liquidity position now stands at approximately $270 million, which we believe provides Aeva's strong competitive advantage to support existing programs as well as secure more wins. As we detailed at Aeva Day this summer, Aeva's unified perception platform enables us to bring new levels of perception to a broad range of large markets and applications. Our momentum has only grown since then. And as we continue to execute, we believe that we are in a strong position to convert additional opportunities into wins. With that, let me turn the call back to Soroush for closing remarks.

Thanks, Saurabh. At a pivotal time for the industry, Aeva is increasing its leadership position in next-generation sensing and perception. We are firing on all cylinders, achieving major milestones on existing programs, progressing towards additional wins and strengthening our balance sheet to scale multiple programs across many markets. I would like to thank the Aeva team for their continued dedication and our stakeholders for their ongoing support. Together, we are in a strong position to realize Aeva's vision to bring the next wave of perception to all devices. And with that, we will now move to Q&A.

[Operator Instructions] We'll take our first question from Colin Rusch with Oppenheimer & Company.

Can you talk a little bit about the ramp in Metrology sales? I mean, certainly, it looks like you have a pretty meaningful opportunity there in a number of applications. I'd just love to understand kind of how that cadence of product rollout really starts to hit as we get to the balance of this year and into 2026.

Yes. Colin, this is Soroush. Happy to answer that. So obviously, as you know, we're -- as I said, we're firing on multiple cylinders here. So, we announced our Eve 1D sensor just a few months ago earlier this year. Since then, we talked about how the traction in the market has been very strong. Following that, we started getting initial orders. We talked about the first 1,000-plus units orders. And since then, a couple of things that we've done in the past 2 or 3 months. One, we pulled forward our setup of our manufacturing line for the Eve sensor due to this increasing demand. Our team is engaged with multiple tens of customers in this space alone. Each one represents significant opportunity volumes for us. And in this quarter, what we talked about just earlier today was we've now been able to set up the line quickly within a couple of months' time frame and also start building out the units off of this line, and we started to ship the first unit against those 1,000-plus units order already. So that's very important for us, which means we're starting to now crank that gear around shipping units towards those customers. Separate from that, as we also get in the market, we're also getting feedback from customers about the capabilities of our sensors. So beyond measuring micron level accuracy for distance sensors, we have also been able to provide an initial SKU or a new type of product with our Eve 1V sensor, which is now measuring the speed of things on the manufacturing line at a very high level of accuracy, right? So sub-millimeter per second precision. So that is what provides additional opportunities for us. We are already starting getting some orders for that as well from…

Okay. Perfect. And then as a follow-up, just the L2 ADAS and kind of L2+ ADAS opportunity on the trucking side seems pretty substantial. Obviously, those are some longer sales cycles, but also the articulation of the insurance needs and all the other value capture for the truck OEMs seems pretty substantial. Can you talk about the breadth and depth of customers looking at your solution for that L2 and L2+ sort of application in the trucking market?

Yes, absolutely. So as I mentioned on the call earlier, we've been focused on the one unified perception platform that can allow us to enter multiple market segments with one core technology without a ton of optimizations using the same hardware platform with adaptive software that can go into addressing these multiple markets across automotive, both for Level 3 and driving as well as entering into Level 2+, especially in commercial vehicles, which is your question, I'll get to that in a second. But also, then applying that to the other markets, including industrial that we just talked about. So specifically, on L2+, one of the biggest debates that we have talked about over and over again in the past few years is the need for LiDAR and then the famous quotes around, you don't need LiDAR for even going into Level 2 -- Level 3 applications maybe but Level 2. I think over time, that argument has fallen. I think Level 3 is very clear with our progress and the successful completion of this top 10 OEM that Level 3 with LiDAR is going to be standard and it's going to be the key enabling feature for making these vehicles and driving the customers' choice of purchase. But on the Level 2+, I think we have a unique opportunity at Aeva, due to our unique technology, which is because of the fact that we can measure velocity, because of the fact that we can do some of the perception of the sensor, we've been able to demonstrate that we can do more, reducing the need and maybe the cost of other modalities in the Level 2 traditional stack, which is today, especially for commercial vehicles, tends to be camera image sensors plus maybe radar and then some compute box.…

We'll take our next question from Suji Desilva with ROTH Capital.

Congratulations on the progress here. My question is really around the length of the design cycle for additional customer opportunities. Looking at the Tier 1 you're on the brink of signing with; I'm wondering the step of having to proliferate the design across their model line. I'm curious, what's involved there and how detailed a process that is? And if there can be learnings from what you're doing here, kind of building a catalog of placements and tweaks and software updates that would be leverageable to shorten the design cycle for future customers.

Yes, Suji, happy to answer that. This is Soroush. So, look, I think, first of all, I hope you can hear our voice. We are very excited about the progress that we have made and the successful completion of this top 10 passenger OEM program. To give a quick recap, earlier in the year, we announced and said that, we were awarded a development program from this top 10 passenger OEM, along with a letter of intent for the series production award. And we set out that, there are going to be a number of milestones that we're going to be working together to really develop a scalable modular platform for their global production platform. And that's going to be applied to multiple vehicle model lines. So since then, we have completed all the key milestones satisfactorily, which includes, as I mentioned earlier, around packaging and integration of our sensors to make sure that really works across the OEM's multiple vehicle model lineup -- and this is not intended to go into one top trim or premium model only. It's intended to be really as a standard platform across their multiple vehicle models. And two was around aligning our performance, making sure that it really addresses the key use cases, most importantly, to enable Level 3 driving from the get-go, both across highway and then also eventually around city driving, which is we think is going to be a key driver. And then third piece was around really the industrialization and manufacturing, in which together with our partnership with LG Innotek, which we secured along with a strategic investment, we then got to work, and we did comprehensive audits of our manufacturing line with a manufacturing partner, LG Innotek and this top 10 OEM and really defined a clear industrialization…

Okay. A quick follow-up there on the applicability to mobility, I guess, urban scenarios, where is time of flight sufficient there versus FMCW? Curious your thoughts there as you sound like you're kind of addressing both highway and mobility in your comments.

Yes. I think -- look, the way I think the OEMs in this OEM and others kind of see it is they're making a platform technology choice that they're going to be working with in hardware, hopefully, for many years to come. This obviously will be a long-term production going into the next decade. And the idea is that, we've talked about it, you need to future-proof the stack, right? And we believe we are at this inflection point where this is one of the first times -- it will be the first time actually that an OEM in the passenger car space will be transitioning from time-of-flight LiDAR to FMCW. And this obviously is a testament to both the technology capability as well as maturity of our products. But also, it is important because they -- we think that is going to lead up to other, of course, programs. My personal opinion is that, in a few years from now, consumers when they buy vehicles is not going to be just based on any more specs on feeds or speeds or infotainment. It's going to really be also importantly around the ease of use and saving us time in our daily commutes and our day-to-day life. And that, I think, is going to be one of the key enablers by Level 3. Like Level 3 driving is going to be the key driver for the sales of cars, not these other things. So that is why I think we're going to see that as you're starting to see some of that in Asia, we're going to see that for the rest of the world that is going to be the key driver for, I think, most key OEMs to go to really have Level 3 from the get-go. And this means it needs to be end-to-end, right? Like you get in the car, and you get to a destination from point A to point B, which includes city driving as well as highway. So long form of that is, yes, we believe that they're choosing one hardware and they're going to use it for all use cases and use a software approach of upgrade over time to be able to enable highway city driving, but most importantly, that Level 3 functionality end-to-end.

And we'll take our next question from George Gianarikas with Canaccord Genuity.

You have Matt here on for George. Congrats on the quarter. So just to start off, could you guys just provide a little more color on the timeline with Daimler? Like what's kind of needed for the program to reach validation ahead of production? And then maybe just a little bit about the Torc relationship. It looked like they were looking for a capital partner for that. With that and potential slipping of funding, do you foresee any slippage in the timeline?

Yes, sure. Happy to answer that. I think you had some questions that I think maybe for Daimler. But I can tell you a high level, look, first of all, Daimler Truck and Torc, they have been very clear and public about their commitment to autonomy. This is one of their key drivers of growth. If you look at that from Karen and the management team at Daimler talking even on their public earnings, and they have been very clear and consistent about their messaging. 2027 market entry is on track as a go for us. We are obviously a key portion for the technology and perception detection. So, as I mentioned, we're the exclusive supplier for LiDAR on long range and ultra-long range for Daimler Truck and Torc. We are progressing on track. They are also progressing on track in delivering on their milestones. We have clear line of sight with 2026 vehicle build plans and the growing of that. We actually have received initial orders already, and we're going to start shipping our Atlas C samples against that. So that's important. I think just to also -- you mentioned about capitalization. Obviously, I think that's a question for Daimler and Torc. But as you know, Torc is an independent subsidiary of Daimler Truck, right? And they're investing heavily in this very committed. So, we don't think that, that is a risk topic for us to really worry about. I think overall, the program is really progressing well. And I think, look, if any OEM has the scale to really make this happen and the resources, including capital is really Daimler Truck. And others, of course, are also working on it. We are also engaged with a number of other OEMs in the commercial vehicle space. So overall, I think we're feeling good about that. I think Justin also mentioned Daimler Truck has publicly talked about, I think even recently about the outlook for autonomy because of the use cases in the business case of over, I think, about $3 billion of annual revenues and $1 billion profit by 2030 just from autonomous trucking. So that -- I think it's important for the industry that players, including Daimler Truck and others, make this happen. And we think the timeline remains in '27 and the scaling is going to go from there. So, we're feeling confident about that and our ability to deliver against it.

Great. And maybe just to switch gears here. It looks like you guys obviously raised the $100 million investment from Apollo. Could you just provide a little more color on what you intend to use that for and how that's going to help you just push commercialization faster?

Matt, this is Saurabh. Happy to take your question. So, the $100 million in convertible notes is for general corporate purposes. We are already, as we mentioned in our prepared remarks, making tremendous progress with our customers and potential customers. And we use our unified platform, perception platform, which helps us to execute on multiple wins and bring new customers on board without any step function increase in our expenditure. In fact, we have been very disciplined in our capital allocation and spending and this year, we are coming down from last year in the range of 10% to 20% on a non-GAAP OpEx basis despite increasing our commercial momentum. So, we feel pretty good about it. It's for general corporate purposes.

Yes. And just to add to that, I think, obviously, Apollo by themselves, the name is one of the leaders in financial investments. We're excited to have them as partners. I think it sends a clear signal as sole investor party to really support our growth and momentum here. And it comes at an important time, I think, for our company, but also an inflection point in the industry. I think we have all the pieces in place. We have methodically, as we talked about, set out our plan to grow from each segment, establish a leadership position within key players, we are executing on that, and we're looking forward to execute that well, right? So, from automotive, from trucking with Daimler Truck, passenger top 10 OEM and others that we're working on, industrial with SICK, LMI. We have the partnership with LG Innotek around that for industrial as well as the robotics applications and then expanding from that. So that we're very excited about the progress so far. And obviously, we're looking forward to continue on this momentum.

And we'll take our next question from Richard Shannon with Craig-Hallum.

Apologize for the ambient noise rolling through an airport here tonight. I guess, I'll ask kind of a 2-parter around the top 10 OEM. Just want to make sure that you're in an exclusive negotiation position. There aren't any other competitors here. I think you alluded to that's probably the case, but I just want to make sure that, that is accurate. And then also maybe if you can elaborate, hopefully, you mentioned this before when I was on the call, but what kind of time frames are we looking at for ramping here? I would assume it's earlier than '27, but just want to get your take on that sort of.

Yes, absolutely. Look, I don't want to comment on anything that is sensitive or confidential information, obviously here, but I think, hopefully, you can see from the updates we provided, we feel that we are the only party here that is going through this late-stage negotiations. But I will stop at that. I think we're feeling good about securing this production program. And importantly, I think the timing of that is pulled forward, so to really get going on this. So, you asked about kind of what it looks like from here and kind of the timing. I think, look, the point of this initial development program was to ensure that we have a solution jointly that's going to be applicable to the OEM's broad vehicle lineup. It's going to be from an integration standpoint, it works across multiple trends, multiple models that the performance enables Level 3 driving for both highway, as well as city, and to also make sure that we have the proper industrialization plan and comprehensive audits, and all of that so that we can really hit the ground running. The team is working very diligently on that. This is in another way or form, really the first stage of the series development already. So, we are really hitting the ground running. And we think that we are on track for this late '27, early '28 timeline for the launch of this OEM. So that's been the timeline that we have been working with, and we are excited to deliver on it.

Okay. Appreciate that detail, Soroush. My last question here is just from this comment in the press release, I suspect you may be addressed in the prepared remarks today, did not get it early to hear, but you're just talking about growing interest and engagements from other major OEMs leveraging for L3 automotive applications here. Is there some sort of catalyst or other event here driving this related either to the market or to Aeva's products and technology development? Maybe just clarify what you meant by that.

Yes, absolutely. Look, I think we have been obviously engaged in a number of programs across various stages from RFIs to RFQs in multiple segments within automotive as well as industrial. Your question, I think, is around automotive. Within automotive includes passenger, multiple programs there and trucking. I think one -- there's multiple, I think, factors that have been happening, of course, in the industry as well as, I think, with Aeva. So first of all, we have laid out a clear foundation of our path to winning business and delivering on it, which includes partnering with the leaders in each respective space, which means they have to also want to partner with us and select us; and two, leveraging our perception platform and the chip-based technology to scale that according to their time lines; and three, be able to apply that without having to invest heavily in a bunch of new CapEx or a bunch of new teams for different product lines and segments using this approach of the one platform. So, we've been able to do that. I think obviously, with our progression and the successful completion of this development program with the top 10 passenger OEM, and we hope that upon a production when this will be the first time that a passenger car maker will be transitioning from time-of-flight to FMCW to enable a key use case that's differentiated for the end customers. And we think that, that is a key driver with some of those uptick in the engagements for us. We think that, that has the potential to provide us with potential additional wins in a faster time frame than we have in the first one. As you know, first one is always the toughest. But I think importantly, because this OEM is really…

Thank you. That does conclude the final question we have for today, and this will conclude Aeva Technologies Third Quarter 2025 Earnings Conference Call. Thank you all for your participation. You may now disconnect.