MicroVision's Q3 2025 Earnings Call: Contradictions Emerge on Technology, Market Strategy, Industrial/Defense Focus, Automotive Opportunities, and Defense Revenue Expectations

Date of Call: November 11, 2025

Financials Results

• Revenue: $0.2M for Q3 2025 ("For the third quarter, we reported revenues of $0.2 million.")

Guidance:

• MOVIA S production launch planned for Q4 2026; MOVIA S revenue ramp expected in 2027 (possible minor revenue tail in late 2026).
• LCAS (MOVIA L) launch targeted for Q2 2026.
• Scantinel asset purchase expected to close later this year; product plans/timing to be detailed at CES and in follow-ups.
• Annual spending to increase ~ $1.5M–$2M per quarter to support aerial systems, D.C. office, senior hires and Scantinel integration; Q4 modest ramp.
• Full-year 2026 cash burn guidance to be provided with 2025 year-end results.

Business Commentary:

* Strategic Product Launches and Cost Reduction: - MicroVision introduced its industry-leading ultra-wide field of view solid-state sensor, MOVIA S, at the IAA in Munich. - The company plans to launch MOVIA S in Q4 of 2026, aiming to reduce lidar costs to achieve mass adoption. - These developments are part of a broader strategy to move from electromechanical systems to wafer-level processes to lower costs.

• Defense and Aerial Systems Expansion:
• MicroVision established a new Aerial Systems team, expected to complete initial proof-of-concept phases by year-end for both fixed-wing and rotor drones.
• The addition of this team is part of a strategic push to enhance real-time mapping, ISR, and denied environment navigation capabilities.

• The focus on defense and aerial systems aims to diversify revenue streams and capitalize on growing opportunities in these sectors.

• **Revenue and Financial Performance:

• The company reported $0.2 million in Q3 revenue, primarily driven by sales in industrial and automotive verticals.
• Despite a cash burn of $16.5 million, including a $3.2 million inventory buildup cost, the company maintained a strong cash position with $99.5 million in cash and equivalents.

• Financial performance was impacted by ongoing supply chain challenges and strategic investments in product development and sales organizations.

• Acquisitions and Technology Advancements:

• MicroVision announced an asset purchase agreement with Scantinel Photonics, securing access to next-generation ultra-long-range lidar technology.
• This acquisition is expected to enhance the company's product portfolio and provide comprehensive solutions across end-market sectors.
• The integration of this technology aims to accelerate MicroVision's long-term vision of leading the lidar industry by offering a full range of lidar solutions.

Sentiment Analysis:

Overall Tone: Positive

• Management repeatedly emphasized momentum and product roadmaps: “MOVIA S production launch planned for Q4 of 2026,” “LCAS launch in Q2 of 2026,” and CFO: “we finished this quarter with $99.5 million in cash... extended our financial runway into 2027.” Multiple statements highlight strong post-IAA customer interest and strategic Scantinel acquisition to broaden capabilities.

Q&A:

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): The Scantinel FMCW acquisition is interesting — historically FMCW is costlier; can you get it down to your target ASPs and where will initial markets be?
  Response: They expect to industrialize Scantinel's FMCW via wafer-level/chip-scale integration to drive cost down, targeting commercial vehicles first and ultimately passenger cars; FMCW offers range, velocity and windshield-transmission advantages.

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): Are customers indicating that mounting lidar behind the windshield is important?
  Response: Behind-windshield mounting is attractive for cleaning/heating and superior viewpoint despite transmission losses; success requires extreme miniaturization.

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): Does Scantinel already generate revenue or is it pre-revenue?
  Response: Scantinel is pre-revenue; acquisition adds ~20 engineers and incremental integration cost expected to be under ~$2M per quarter while MicroVision handles packaging and industrialization.

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): You cited $200 short-range and $300 long-range ASP targets — is that correct and what is the timing?
  Response: Yes — $200/$300 targets; MOVIA S is targeted for next year with more precise timing/details to be provided on the next earnings call as product readiness and manufacturing are accelerated.

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): Will those price points give you leadership versus Western lidar competitors?
  Response: Management believes those ASPs would establish a competitive leadership position versus Western vendors and must be combined with software/value propositions to compete globally, including versus China.

• Question from Casey Ryan (WestPark Capital, Inc., Research Division): In defense applications, is price or functionality more important?
  Response: Cost matters—especially for attritable platforms like drones—but defense pays higher ASPs; reusing common sensors across automotive/industrial/defense makes offerings cost-effective.

• Question from Webcast (Submitted): What is the status of the RFQs, timing, and how can MicroVision compete against Chinese lidar makers?
  Response: RFQs remain active and are progressing at OEM pace; MicroVision competes not only on hardware price but via its open software framework and value-added capabilities to differentiate versus low-cost Chinese suppliers.

• Question from Webcast (Submitted): Concern that a $200 price could be unprofitable (e.g., Luminar/Volvo). How will MicroVision be different?
  Response: The $200 target is based on a bottom-up cost model; management will be 'maniacal' on cost control and design to avoid unprofitable unit economics and intends to drive costs below $200 over time.

• Question from Webcast (Submitted): You referenced predevelopment contracts at IAA — clarify current engagement stages and timing for sales.
  Response: Engagements include predevelopment evaluations and formal qualification/testing; feedback is positive but commercial contracts remain to be secured before revenue conversion.

• Question from Webcast (Submitted): How does Luminar's upheaval affect opportunities at Volvo Auto and Volvo Trucks?
  Response: Supplier issues can reopen OEM sourcing and create opportunities; MicroVision must prove maturity, production readiness and supply resilience to capture any reopened business.

• Question from Webcast (Submitted): Are industrial deals still in play and what are expected revenue timings for industrial, defense and auto?
  Response: Industrial revenue expected in 2026 (MOVIA L), MOVIA S launches Q4 2026 with 2027 ramp; automotive revenue likely around 2029 (limited 2028), defense timing uncertain but could be faster—initially NRE then product sales.

• Question from Webcast (Submitted): Inventory rose since 6/30—where are these sensors and why stockpile without sales?
  Response: Inventory is MOVIA L stock built with ZF (France) anticipating industrial demand; management expects this inventory to convert to revenue in 2026 as commercial organization scales.

• Question from Webcast (Submitted): Does Scantinel replace MAVIN, is FMCW better than TOF, and how does Scantinel compare with Aeva?
  Response: Scantinel complements MAVIN (MAVIN/MOVIA for 50–200m; Scantinel FMCW targets 50m–~1km/400m for CV); FMCW and TOF have different strengths; detailed Aeva comparison deferred; Scantinel's single-photonic-IC/wafer-level packaging is a differentiator.

• Question from Webcast (Submitted): Any update on AR vertical and is MicroVision in HoloLens 3?
  Response: No active AR pursuit today; not aware of MicroVision tech in HoloLens 3 and resources are focused on industrial, defense and automotive verticals.

• Question from Webcast (Submitted): Prior CEOs failed to realize the promise — how will Glen succeed and by what measures/timeframe should he be held accountable?
  Response: Glen's accountability is execution: hit product milestones (MOVIA S launch Q4 2026, LCAS Q2 2026), industrialize Scantinel, convert demonstrations into commercial contracts and build a resilient backlog across 2026–2027.

• Question from Webcast (Submitted): Why has the company issued many shares (dilution) in last 6 months and how will you sustain the company?
  Response: Dilution was used to fund runway, attract senior talent and stabilize operations; management argues it was necessary to extend runway (cash + ATM + undrawn facilities) into 2027 and position the company to compete.

Contradiction Point 1

Technology and Market Strategy

It involves the company's strategic approach to technology development and market positioning, which are crucial for competitive advantage and market success.

How does MicroVision compete with Chinese lidar makers? - Casey Ryan (WestPark Capital, Inc., Research Division)

2025Q3: Competition cannot be solely based on price. MicroVision offers innovation through its open software framework, enabling more value or competitive pricing, critical for market success. - Glen DeVos(CEO & Director)

How will you compete with lidar companies like Ouster and SICK in the industrial sector? - Casey Ryan (WestPark Capital, Inc.)

2025Q2: We compete through technology, ruggedness, and software integration. Our flash lidar has cost advantages, and we provide a comprehensive software stack. - Glen W. DeVos(CTO)

Contradiction Point 2

Focus on Industrial and Defense Markets

It highlights the company's strategic focus on different market segments, impacting resource allocation and revenue expectations.

Will Scantinel's business generate revenue post-integration? - Casey Ryan (WestPark Capital, Inc., Research Division)

2025Q3: We're seeing traction with retrofittable solutions, which are faster to market. - Glen DeVos(CEO & Director)

What is causing order delays with industrial OEMs evaluating our technology? What is the status of other industrial companies evaluating our products? - Anubhav Verma (Senior VP, CFO & Treasurer)

2025Q2: We focus on geofencing, mixed-use, and ADAS in industrial segments. The main channels are distribution channels for widespread adoption. - Sumit Sharma(CEO & Director)

Contradiction Point 3

Automotive Market Opportunities and Lidar Solutions

It highlights differing expectations regarding the timing and progress of automotive market opportunities and lidar solutions, which are crucial for the company's growth strategy.

What are the implications of the target ASP of $200 for short-range and $300 for long-range? - Casey Ryan (WestPark Capital)

2025Q3: Discussions are active for model year 2028 programs, with a target to have solutions ready for implementation. - Glen DeVos(CTO)

Have there been significant updates or accelerated timelines for the seven automotive RFQs? - Anubhav Verma (CFO)

2025Q1: We have a strong pipeline of 7 RFQs with different automotive OEMs globally. And these RFQs are typically for model year 2028 programs. - Glen DeVos(CTO)

Contradiction Point 4

FMCW Technology Integration and Revenue Impact

It involves the integration of FMCW technology and the expected impact on revenue, which are crucial for the company's growth strategy and investor confidence.

Will Scantinel's business generate revenue post-integration? - Casey Ryan (WestPark Capital)

2025Q3: Scantinel will be integrated with MicroVision's processing, packaging, and hardware. The focus is on industrializing the technology, not immediate revenue. - Glen DeVos(CEO)

Is this the first quarter with commercial sales instead of NRE or R&D? - Casey Ryan (WestPark Capital)

2025Q1: Scantinel is pre-revenue, and MicroVision will use its existing talent for packaging. - Glen DeVos(CEO)

Contradiction Point 5

Defense Market Engagement and Revenue Expectations

It represents differing perspectives on the company's engagement and revenue expectations within the defense market, which could impact strategic planning and investor sentiment.

Are there pricing considerations in the defense sector? - Casey Ryan (WestPark Capital)

2025Q3: For defense, it's still early days, and we're working to formulate our strategy. Revenue targets will be updated once we quantify projects we're taking part in. - Anubhav Verma(CFO)

Is the potential $30–50 million including defense work, or is it additional to current expectations? - Jesse Sobelson (D. Boral Capital)

2025Q1: The $30 million to $50 million is primarily driven from the industrial vertical. For defense, it's still early days, and we're working to formulate our strategy. Revenue targets will be updated once we quantify projects we're taking part in. - Anubhav Verma(CFO)