Thank you, Donna. Hello, everyone.

Welcome to Mobileye's fourth quarter and full year 2025 earnings conference call for the period ending December 27th, 2025. Please note that today's discussion contains forward-looking statements based on the business environment as we currently see it.

Such statements involve risks and uncertainties. Please refer to the accompanying press release, which includes additional information on the specific factors that could cause actual results to differ materially.

Additionally, on this call, we will refer to both GAAP and non-GAAP figures. A reconciliation of GAAP to non-GAAP financial measures is provided in our posted earnings release.

Joining us on the call today, as usual, are Professor Amnon Shashua, Mobileye CEO and President; Moran Shemesh, Mobileye CFO; and Nimrod Nehushtan, Mobileye EVP of Business Development and Strategy. Thanks, and now I'll turn the call over to Amnon.

Hello, everyone, and thank you for joining our earnings call. As I look back on 2025, there are a number of meaningful positives to highlight, both for our company and the industry.

In a very uncertain geopolitical environment, demand for our products came in higher than expected throughout 2025, demonstrating the resilience of the auto industry and our product offerings. Results were quite strong, with revenue up 15%, adjusted operating profit up 45%, and operating cash flow up more than 50%.

The industry began to clarify the structure and features of the next generation of ADAS for mass-market vehicles. Several forces are coming together here: demand for incremental safety, demand for convenience in the form of highway hands-off driving, and the need to consolidate the technology on a single ECU to keep the system's cost low.

Mobileye's EyeQ6 High chip is very well-positioned, and we won the first two major programs with two of the biggest six OEMs in the world. Waymo's commercialization provided a number of supporting proof points on consumer acceptance and demand for autonomous mobility services.

This led to a major uptick in demand signals from transportation network companies and public transport groups, which led to an expansion of expected volume through our Volkswagen ecosystem to 100,000 units by 2033. We are now one year closer to the launch of our advanced products with the Volkswagen Group.

We expect the first major public milestone to be removal of the safety drivers in MOIA's robotaxi fleet in 2026. We are implementing a unique fast-think, slow-think structure to our advanced products that we believe accelerates both precision and scalability.

This includes novel technologies like vision-language-semantic-action models and artificial community intelligence. Finally, Mobileye took a decisive step to expand its footprint into the humanoid robotics field with acquisition of Mentee Robotics.

Mentee has achieved a fully vertically integrated, low-cost, highly capable robot that has a clear path to commercialization into the structured environments of industrial and logistic services fields, and with its distinctive technology to cater to unstructured environments like home use cases. Aside from our 2025 results, we detailed all of these areas in my CES talk on January 6th.

I encourage anyone with an interest in Mobileye or just physical AI in general to make sure to view that presentation. Turning to guidance.

Moran will spend some time on it, but I'll address it briefly. We are encouraged by the volume growth we are expecting, despite global auto production that's expected to be flattish again.

While we don't expect the volume levels of Q1 to be sustained throughout the year, it is a strong signal for the year, and order flows for Q1 has been rising for the last month or two. Turning to technology.

At CES, I talked a bit about the debate around approach, specifically this concept of data-in, commands-out, which is a false debate because no legitimate actors in our field are actually doing that. There's always a need for structure and architecture, and everyone's architectures have evolved given advancements in AI over the last few years, including ours.

We introduced two new innovations that are accelerating our path to precision scalable autonomous vehicles. One is artificial community intelligence, referred to as ACI.

This is a simulation concept using a self-play reinforcement learning technique that we are using to train our planning engine, also known as driving policy. This is the first-ever productization of a technique proposed in academic research.

A strong motivation for ACI is that the sample complexity for planning is much higher than for perception because the multi-agent nature of driving where actions that you take will impact the actions of other road users. Therefore, the amount of data one needs to collect could be unwieldy, even for large data collection fleets.

As a solution, we have created simulators that can achieve 1 billion hours of training overnight. Mobileye has unique advantages here since our REM maps, which cover much of the globe, can be used as a realistic and diverse baseline structure for the training.

The other advantage is we have developed sophisticated sim-to-real techniques that have the required understanding of the noise model of our perception engine when transferring the driving policy to the real world. That sim-to-real technology is also very relevant to humanoid robotics and will be a key area of technology sharing between Mobileye and Mentee.

We also introduced a fast-think, slow-think concept that utilizes specialized vision-language models to provide contextual information and to address robustness to vehicle decision-making. This is not necessarily about safety, it's more about understanding the semantics of complex scenes.

For example, a scene where a policeman signaled that the road we would like to take is blocked. The safety layer ensures that we won't hit the policeman, but we also need to understand the scene, figure out that we shouldn't try to overtake the policeman, but rather we should either wait or take a different route.

This is what slow thinking gives. Since this is not safety-critical, the contextual information can be inputted into the system at a lower frequency than perception, which is typically analyzed at 10 frames per second.

Structuring our architecture with fast-think and slow-think components saves compute and even brings use of cloud-based compute into the picture. As a result, we can put a very sophisticated VLM on the in-car compute, but call on much, much bigger VLMs in the cloud when the situation warrants.

This has very positive effects on the mean time between intervention metrics, but can also eventually lead to scalability benefits in terms of cars per teleoperator, as the VLM can replace a human teleoperator in many cases. Turning briefly to our announced acquisition of Mentee Robotics.

Most of the AI that humans are using every day is in the digital world. The two main applications of AI in the physical world are autonomous vehicles and robotics.

It makes sense for these two expressions of physical AI to be together because there's a great deal of technology overlap. Both extensively use computer vision and control, fast-slow thinking concepts, make heavy use of VLMs, and extensive sim-to-real techniques.

Mentee itself, compared to other companies we evaluated, has a superior combination of strength, including a high level of vertical integration, a pure AI approach with the ability to demonstrate high-level capabilities with no teleoperation, a design strategy that results in an optimized cost versus usefulness ratio, and above all, a distinctive AI technique to continue to do continuous on-the-job learning from passive demonstrations. A truly practical approach to capitalize on the most near-term industrial and logistics markets and then expand to more challenging markets over time.

We believe access to Mobileye's tools, simulation, and data training infrastructure will accelerate Mentee's development. A number of technologies developed for robots, such as self-play simulation and sim-to-real techniques, can also bolster Mobileye AV development.

Finally, there's potential for catalysts as we continue to demonstrate the strong capabilities of the Mentee robot and execute on customer proof of concept work in the near term. I will now turn the call over to Moran.

Thank you, Amnon. Thanks for joining the call, everyone.

Before I begin, please be aware that all my comments on profitability will refer to non-GAAP measurements. The primary excluding Mobileye non-GAAP numbers is amortization of intangible assets, which is mainly related to Intel's acquisition of Mobileye in 2017.

We also exclude stock-based compensation. Our full year 2025 revenue of $1.9 billion slightly exceeded the high the high end of our prior guidance.

Full year revenue was up 15% year-over-year compared to our original guidance of 6% growth at the midpoint. It was a very good year where a combination of minor upside in global production trends, EyeQ program launches, and higher than expected ADAS and SuperVision volumes from China OEMs led to significant growth.

Full year adjusted operating income is $280 million, up 45% year-over-year, and margin was 15%, up about 300 basis points versus 2024. The fourth quarter included a nonrecurring expense of $7 million related to works workforce efficiency initiative we undertook in Q4.

That expense was not part of our guidance as of the October earnings call. If you exclude that, adjusted operating income would have also been slightly above the high end of the guidance.

Like I said earlier, we saw consistent positive revisions from our customers throughout 2025, and we continue to see that over the last month or two during our 2026 planning process. 2025 EyeQ volume was 35.6 million across the full year, which was well above our original expectations of 32 to 34 million.

We've seen a fairly consistent demand trend of 9 million units per quarter, with some minor fluctuations across quarters. For example, in 2025, Q2 and Q3 were higher than trend.

Q1 and Q4 were a bit lower. One more point on Q4 before turning to the future.

Modest upside to the higher end of of our prior guidance was related to higher than expected SuperVision units. EyeQ volume was consistent with the high end of our guidance of about 8.2 million units.

This level, at the start of the quarter, looked a bit below the demand trend, as our customers desired to end the year with lean inventory. The demand trend in Q4 ended up higher than we expected.

As a result, we believe that inventory at our Tier 1 customers ended 20 2025 extremely low. We believe there is some level of adjusting safety stock that will occur in Q1 to get back to normal levels.

We expect about 10 million EyeQ units shipped in Q1, which supports our outlook of approximately 19% year-over-year growth in the first quarter. After that, customer forecasts indicate a reversion to the trend of slightly above 9 million units per quarter.

Turning to the full year guidance. We are expecting revenue in the range of $1.9 billion to $1.98 billion, representing flattish to 5% growth.

The midpoint of our guidance incorporates EyeQ volume of slightly above 37 million units, which, again, consists of 10 million units in Q1 and an assumption of a bit over 9 million per quarter in the balance of the year. If we look specifically at our top 10 customers, we are assuming that their overall production is down 2%, but our volume with those customers is up 6% at the midpoint.

This includes about 700,000 units for a new OEM program that requires two EyeQ4 chips per car. That program is clearly a positive as we will generate higher gross profit in dollars per vehicle.

Since the second chip is lower-priced relative to the first, it has an impact on overall ASP and gross margin. For Chinese OEMs, we are expecting a decline of about half a million units compared to 2025, which was a bit above 3 million units.

We are encouraged by the significant growth in China OEM volumes in 2025. It aligned with their export volume growth, the area where our business is the strongest with those customers.

We see no reason why that wouldn't continue into 2026, but prefer to remain conservative given we only have a short-term visibility into order flow with China OEMs. Gross margin will be down somewhat on a year-over-year basis, driven by continuation of EyeQ5-related cost headwinds.

We discussed this on the October earnings call as an impact to the second half of 2025 that would continue through 2026 and then will gradually decline beginning in 2027. We also have modest vehicle mix headwinds and the impact of the dual-chip program mentioned above.

Turning to operating expenses. 2025 ended up at $1.003 billion.

This was slightly above our original budget of $995 million, accounted for by the nonrecurring termination-related bookings in Q4 mentioned above. In 2026, we are expecting around $1.1 billion, or 10% growth.

The underlying growth in opex is approximately 5%, consisting of normal salary and benefit inflation as well as additional infrastructure to support execution of advanced products in 2026 and 2027. On top of that, we are including Mentee R&D expenses.

Finally, we are experiencing a FX FX headwind related to appreciation of the Israeli currency versus the US dollar that meaningfully raises our head count costs in dollar terms. This is being mostly offset by the workforce efficiency initiative noted above, but not completely.

To conclude, we are almost one month into 2026 and continue to see positive demand signals from our customers on the core business. As Amnon discussed, we are also seeing very good execution progress ahead of a large number of advanced product launches over the coming one to two years, as well as accelerating momentum in customer demand for next-gen higher-ASP ADAS and the transformative robotaxi business.

Thank you, and we will now take your questions.

Hi, everyone. Thank you so much for taking my questions.

I'd like to ask first maybe on your view on the competitive environment, particularly in light of some announcements at CES from Nvidia and others. Just your view on what's happening in the advanced autonomous solutions space.

Thank you.

I think that we have been we've obviously seen a lot more announcements and excitement around advanced solutions and autonomous driving in general, and also robotics. It was one of the key themes at CES this year for everyone who attended.

We still believe that we are closer to launching our advanced products than other competitors. This is one of our strongest advantages, combined with the maturity of our technologies and the advancement of our technologies.

We are, as we said, one year closer to launching a spectrum of products that spans from surround ADAS, SuperVision, Chauffeur, and robotaxi, starting from '26 and through 2027. We believe this will be a major transformation for kind of positioning Mobileye in the market, as having proven products on the field.

Right now, there is a lot of demos, a lot of referral to technologies and emerging technologies, and there's some we think noise and maybe simplistic description of some of these technologies and how useful they could be for a reliable system. There is a recent announcement by Nvidia about their open source model, Alpamayo, that they announced and supposedly given others ability to Amnon will maybe want to say a word about this, but we don't see that as something that changes kind of our positioning in the market, really.

Thank you. Maybe I can ask a follow-up on Mentee specifically.

You've mentioned yourself that there were a significant amount of startups and competitors at CES in the humanoid space. I'm just maybe a synopsis, a brief bullet point or two as to what the differentiation for Mentee will be as you try to attack the marketplace and commercialize the product.

Thank you. All right.

I think there are a lot of startups, mostly in China, but a lot of startups in the area of humanoids. Many of the demonstrations that you see out there are teleoperated.

Now to win this game, you need to have a fully autonomous control of the robot, from perception to action to understanding the scene, having an AI stack that can control the robot autonomously. This is what Mentee has been demonstrating quite consistently over the past year, year and a half.

At CES, I showed a number of clips. Mentee is also fully vertically integrated, with the design of the actuators, the gear, the AI itself, all the software components, the electronics, which is the crucial if you want to have a true end-to-end system.

Another, I would say, distinctive element is the ability to do continuous learning. Mentee has developed an AI technology that allows the robot to passively view a human performing the task, and imitate that task in a very, very short period of time without having any special equipment, no VR goggles or special suits, just passively observing a human performing the task.

This is I think very important as we move from structure to unstructured environment like home use. Taking everything together, we have here a company that is both thinking, practical, what is going to be the first domain launch, which is structured environment like like fulfillment centers, assembly plants, retail.

Also developing the technology for the next deployment for unstructured environments like home use. Fully vertically integrated, very strong in AI components, whether it's reinforcement learning, simulation, sim-to-real.

It's very strong, very interesting overlap technology overlap with Mobileye, it can go both ways the energies. Overall, this is a very good step for Mobileye to take a decisive step towards owning physical AI in its full scope.

If I may add to this. I think to kind of differentiate between the different actors, Mentee are, as we know, the probably the only Western humanoid robot company that is actively engaging with customers on proof of concepts and pilots that involve pure AI operations with no remote operation.

Which shows something about the advancement of the use of robots in a setting that a customer is willing to evaluate and deploy in a kind of a sterile setting. Unlike maybe some hyped videos that show something on a YouTube clip, this is an actual testing environment.

It's a different stage of maturity and covers engagement with potential customers. We believe that through integrating Mobileye's technologies, we have obviously strong strength in computer vision, in AI using cameras and using sensor fusion and designing safe systems for safety and reliability and how to integrate systems in a very cost-efficient manner and efficient compute.

All of these will help them even accelerate her the progress they made so far.

Thank you.

Thank you, George. Next question, please.

Yes. Good morning.

Good afternoon. Thank you very much for taking the questions.

For surround ADAS, the company's already reported on some strong momentum. You spoke about the two big OEMs that have already committed and given serious production awards.

As you look at the opportunity set in 2026, could you give a bit more details on the number of OEMs you're engaged with for surround ADAS and how many might be able to convert into awards this year?

I think the important point about surround ADAS is that this is a product that addresses a very clear pain point for customers and for OEMs. In the sense that it simplifies the system, it reduces cost, it provides advanced functionality, meets future regulation.

It ticks most of the boxes that OEMs want to tick for the high-volume vehicle segments in the upcoming years. Therefore, the first OEM that we announced with Volkswagen was kind of starting a trend that created a flywheel effect of more and more OEMs being interested.

Now, having announced the second design win with two we now have two out of the top six OEMs in the planet in major markets adopting this and launching this in a few years. This has definitely created a stronger realization amongst other OEMs that this has to happen for them, although, least to some degree.

We've seen an increase in the amount of engagements we have. I don't want to predict timing and quantities, but we're definitely encouraged by the increase in different engagements we have with multiple OEMs across our customer base.

We also believe that we have inherent advantages for this product category because it requires a very reliable system performance, very high safety standards, advanced functionalities like hands-free driving in primary roads and so on, but also be extremely cost-efficient. Just to give you some sense, these two programs we won are going to be integrated in the as kind of a standard fit across the highest-volume vehicle categories for these two OEMs.

Every dollar counts, and also the implications for the OEMs to adopt this product means how much conviction they have that they need such a product for, it's not a balloon project in a small amount of vehicles, that if it fails then, nothing happened. If this project is delayed, for example, this is obviously affects the entire vehicle portfolio.

It shows about the confidence they have in Mobileye, how much conviction they have in this product, and it's definitely an encouraging sign.

Thanks. My other question was on Mentee.

Given the announcement and engagements that you've had with potential future customers and industry participants, can you help us better understand to what extent it's catalyzed additional interest in partnering with Mentee Robotics, including opportunities to have your humanoid robots in factory and commercial environments to gather data? As you think about that 2028 commercialization target you shared at CES, how important is that data collection and gathering for hitting that timeframe?

Thank you.

I think it's a very interesting question. To we've had it's two weeks since the announcement at CES, and we have received reach-outs from a significant number of customers asking about our interest in and readiness to support on-site pilots and proof of concepts, and starting from our industrialization partners that want to contribute in manufacturing, in components, because they understand we do the full robot, starting from that, and really trying to attract us to work with them for manufacturing, and for all of our industrial partners, whether it's Tier 1s, OEMs, and others, that want to see how they can work with Mobileye in integrating robots into their logistics centers, warehouses, manufacturing lines.

The need is definitely there, and for them, it made perfect sense. I think one of the encouraging signs that we've seen is that already at CES, we've had meetings with OEMs, and in most of these meetings, it came up as, let's take a follow-up and schedule when we can actually talk about a plan to deploy this in our environment.

I think that the fact that they know Mobileye from the automotive business and they trust the standards of the company, and that they have a need for, longer-term re- finding solutions for human labor that is becoming a bigger and bigger problem for them, especially in developed countries, this gives them an easier path to evaluate a new technology in with a partner they trust, as opposed to working with a startup, in humanoids that, who knows what you can get from them and whether or not they can deliver. Definitely we’re leveraging these relationships.

We've definitely think of this as an area to continue to develop in the next few months.

Thank you.

Thank you, Mark. Next question, please.

Good morning. This is John Saager on for Chris McNally.

Thanks for taking the questions. Amnon, you've made the sandwich analogy for ADAS and AV demand, basically with high demand for surround at the low end and or Drive at the high end.

If we could focus on just Drive for the time being, you guys announced VW MOIA, one of the two big partners, Marubeni, and an unnamed OEM, but the forecast is for a fleet of 100,000 AVs by 2033, obviously, a bit of a ways away. My question, can we get a sense for what the near-term demand for your Drive system might be for just the next two to three years, '27, '28, or on phase one for a growing on the growing list of cities?

We announced together with MOIA six cities to expand to six cities in 2027, and that includes also Los Angeles together with Uber. We have another high-volume program with Holon that will come six months later, will have also its expansion.

As the CEO of AVNT on stage mentioned that they foresee about 100,000 vehicles in the next eight years. The exact numbers of the rollout will depend on the success of 2027 the deployment of the first six cities.

We are talking about thousands of vehicles to start.

To add to this, I think it's may be somewhat challenging to understand what it means, 100,000, because it sounds like a big number. I think what we're taking away from this, what it means is that Volkswagen have in place the manufacturing capacity to produce as many vehicles as needed.

The 100,000, if we're successful in 2026 and 2027 and then in '28, which we have high confidence in our chances, means that 100,000 can also be a small number in hindsight. The manufacturing capacity they have and the findings they've pulled into this in the past few years to build everything needed to produce robotaxis in scale is Volkswagen.

They can produce 10,000 per year, 50,000 per year, 75,000 per year when the demand will be there. The demand from mobility operators, TNCs, municipalities is far greater than a tens of thousands per year globally.

Once the technology gets to this maturity level and allows quick economic and geographic expansion, which we believe we have clear advantages in, then the numbers will the demand will not be a problem, I think. We have a partner that can scale and give the supply at the best extent possible.

Understood. Just how should we think about the volume for a phase one launch?

Like should that be a thousand to 1500 Waymo in San Francisco?

You can think of it as a few hundreds of vehicles per city as a good testing as a good measuring stick. Just also seeing how Waymo rolled out.

That's roughly the numbers they've had. In some cities, it's 200.

Some cities, it's closer to 500. That's a sufficient number to kind of facilitate for the mobility demand in that city and also to build a meaningful business.

That's also roughly what we're planning.

Just one last follow-up. Do the AV customers pay for anything before the purchase of the $45,000 Drive content, like R&D in advance?

Or do you get any protection if their volumes are less than planned?

Without going into the details of our contracts, we are receiving we're delivering samples and engineering samples throughout the year, and there is an engineering budget that covers the direct engineering cost and development cost. There is definitely a good amount of investment well before the commercialization.

We I think when you have high confidence in your chances of getting to driverless, I think we're not that concerned about the downside potential.

Thank you so much.

Thanks. Hello, everyone.

I I just to maybe talk about a couple of, more more near-term things. Obviously, memory has become a larger issue and concern in the automotive industry.

I know I or I believe you don't really buy a lot of that memory directly, but clearly, it is used in the modules at your Tier 1 customers to to to assemble to sort of ship on to to the OEMs. I'm just curious, what you're hearing from your customers and the and the supply chain as to and whether this is really a pricing issue?

Is it a an availability issue? Is there any sort of volume risk embedded in your outlook?

Cuz if it's even if it's a pricing issue, I guess, do you see any risk of of de-contenting?

As you said, Joe, we're not let's say the exposure we have is not direct because we're not purchasing a lot of these units. It's mostly indirect through the fact that our Tier 1 customers are purchasing memory components.

What we have been doing in the past few months, and we have been actively working on this I think well before it was public knowledge that this dynamic is developing, is to create kind of maximizing our supply of these components and working with multiple vendors to ensure that we have enough flexibility to kind of mitigate the direct cost impact from specific vendors and that we will be able to ensure that vehicle manufacturing will not be impacted by these fluctuations. We haven't I think that we did last year, our forecast for this year is maybe opting for the conservative side.

You can see the difference between Q1 and other quarters. It does bake in some level of understanding that there is some volatility in the industry, we wanted to be on the more conservative side.

We haven't seen any let's say direct evidence or indication that there is an imminent change to volumes as a consequence. We will keep close monitoring on this as it develops, and we're doing everything in our powers with our Tier 1 partners to create the availability of these components.

Okay.

Thank you. The second question, just on the appreciation of the shekel, and I know you get very helpful exposure in your 10-Qs on what a change in that currency can do to your cost base.

I believe also at this time a year or earlier in '25, you made a comment on one of the calls about how a lot of the costs on the shekel were hedged. Did something change with the hedging strategy?

Maybe you could just update us on why it's a little bit maybe more of an issue now than you thought a year ago?

Yeah. I will start with 2025.

We have a hedging place plan that basically, caused that we can meet our opex expectation for 2025. For example, for the second half of 2025, the rate that we had in our financials was 5 or 6% favorable than the average market rate.

These are transactions that we made in the beginning of 2025. As the appreciation of the shekel continues into 2026, and we're talking about, I think, 10 or 12% in the last year, we still have hedging in place for 2026.

We are more than 50% hedged on our payroll expenses at a favorable rate. The risk is obviously heavier as the duration gets bigger.

We took it into account in our guidance. We took into account some, further hedging, but it will be at a less favorable rate, the fact that we are already more than 50% hedged.

I think we're in a good place in terms of the rate, but it's still the year-on-year impact because it's a significant impact, it's worth mentioning.

Okay. Thank you.

That's helpful. Appreciate it.

Thank you, Joe. Next question, please.

Thanks for taking the question. I want to kind of double-click on the Porsche and VW and the Audi kind of programs.

I'm curious, as you kind of thought about your guidance for this year, I think the initial expectation was maybe early volumes on Porsche late this year. Just give me an update on where we stand on some of those programs and how we should think about volumes appreciating that I think 2026 in the past has been more characterized as an execution year.

All right. 2026 is an execution year.

The SuperVision on Porsche and Audi should start Q1 next year, Q1 2027. There was some pushback of deadlines unrelated to us, that pushed the SOP to the first quarter of 2027.

You want to add something, Nimrod?

Just to say that it didn't really change the plans of the project. It's just a one-month change between December '26 to February '27.

It's not really material. We, I think, made clear in previous calls as well that we do not expect meaningful volumes from these programs in 2026.

Right. Appreciate that.

Then, as a quick follow-up, in the prepared comments, you talked about inventory levels at your customers, your major OEMs being fairly lean. I know you've guided 10 million, EyeQ units this quarter.

I'm just curious, can you kind of go a little bit deeper on what you're seeing as far as the inventory levels your customers are holding, and do you expect any replenishment when you gave the unit expectations for this year, or is it more, lean inventories continuing? I'm just curious of how you bake that into your guidance.

Thank you.

Yeah. I think for what we're seeing, and I mentioned it also in the remarks, we're seeing increased demand in terms of order flow for 2025, and higher than expectation.

2026 is, constantly increasing in terms of production. What happened specifically in Q4 was also that the orders were relatively low in the first place as December is a slow month in ordering.

It's a short month with holidays, etc. It was low, and then production level came up even higher.

It basically means that, we believe the inventory levels at our customers are, not reaching their inventory targets at the end of 2025. They are tighter than usual.

It has some impact on Q1. but again, we're also seeing very good demand.

2026 production levels are going up. but yeah, Q1 does have some impact of Q4 low volume combined with heavier or bigger demand.

Yep, thank you.

Thank you, Aaron.

Hi, thank you for taking our questions. Want to follow up on Mentee.

Can you give us a sense of what are the next steps with some of these customers you're talking with? I know you mentioned proof of concept.

Are you going to basically ship maybe a few units, and then if that turns out well, you'll ship, 30, 40, and then much more? How do we think about those kind of next steps to commercialization?

I believe that 2026 is going to be maybe high tens of units in terms of POCs. 2027 should be more, and 2028 should be even further.

2027, we go also into production with a production partner. So 2026 is tens of units.

What we would like also is to have in addition to the POCs, also to produce more units for the sake of Mobileye to start experimenting with robots, not only Mentee themselves. Again, it's going to be a high double-digit number of robots in 2026.

Just to add, from the viewpoint of the customers in these pilots, the purpose is to start with a smaller amount of robots that perform specific tasks that they're outlining. You just go to the logistic center, for example, and there's a few shelves with boxes, and human beings today are moving boxes according to their instructions and so forth.

Basically, want to see how robots can perform over a certain period of time, what's the precision, reliability, durability, maintenance, and so on, and gradually afterwards expand this to more and more tasks and in larger volumes. We are talking about companies that employ tens of thousands of employees today in these types of positions.

I think that it's, again, going to be a question of supply, and that's why it's so important to have a manufacturing partner, as Amnon said, that is already in '27 able to produce robots in a serious production manner, which is important both for costs and also for scale, for volume.

Understood. Appreciate the color.

Follow-up on robotaxi. Obviously, a lot of excitement coming out of CES.

Has your view on owning more of the, should we say, ecosystem changed at all? I ask this in the context of you obviously have a lot of parties involved.

Could that kind of hinder the speed of deployment or some of the logistical aspects? Obviously, it would require capital, but I think that's not that big of an issue anymore.

Thanks.

I think the current arrangement that we have with Volkswagen and MOIA is really optimized for speed of deployment. Going right now more vertically integrated, is not going to increase the volume of deployment.

This is something perhaps to be considered towards the end of the decade or further than that. I think what we have in place is really optimal to where Mobileye's at.

Mobileye will be producing the self-driving system as a Tier 1, taking responsibility not only for the electronics, but also for the sensors, of course the software stack, and all the validation. The revenue per vehicle plus recurring revenue per mile is very, very attractive.

The focus is execution now.

Thank you very much.

Thank you, Edison.

Thanks a lot, guys. The first one I have is on the '26 adjusted operating expenses.

I think you guys said it's up $100 million. I know that FX was mentioned, some other issues.

Then the one that I'm wondering if that's the biggest piece of it is the Mentee R&D or maybe it's consolidating Mentee if it's operating at a loss. Just curious how we should think about that opex going higher, what's really, the biggest driver of that?

Then I have a follow-up.

Yeah. Okay.

I think I've mentioned that we have incorporated Mentee R&D into our guidance. Our guidance includes in terms of operating expenses, mainly 5% of regular inflation enhancement or compensation, and the additional portion is Mentee R&D.

These are the significant two items. I also mentioned we have also a headwind from the FX rate, but that is mostly offset by the efficiencies initiative we did in Q4.

Hope that answers the question.

Just to follow up, I think that's pretty clear, but just to follow up. We do expect to have normal opex inflation per year of around 5%.

This relates to salary and benefit inflation as well as additional infrastructure to support the AV activities and the advanced product activities. That's normal.

On top of that, this year, we are assuming consolidation of the Mentee R&D expenses. We talked about that as somewhere in the lower single digits, but probably think towards 4% type of thing.

Additionally, we do have this FX headwind, which is mostly offset by the workforce initiative we did in the fourth quarter, but not completely. That should give you a decent walk from 2025 to 2026.

I think you described it quite accurately, right? Take into account that also growing in terms of being a Tier 1 in a Tier 1 position with our programs with Porsche and Audi and Drive, and sometimes you need to make adjustments in terms of increasing head count.

Again, this is nonmaterial compared to the overall opex of Mobileye. Few percentage.

Take the walk-through that you mentioned that was quite accurate and add to it, few percentage of growth that we need to account for when we are taking a Tier 1 position and investing heavily into the future. Two years ago, we calculated our opex growth, but, we cannot be precise to the single percent in an area which is experiencing the rapid growth.

Got it. For a follow-up on Mentee, and this I know this is very early to ask this question, but look, we're seeing the market's reaction to the potential news out of from Hyundai with Boston Dynamics and the credit that Hyundai is getting.

Is this something you guys might think about in the maybe the distant future, I don't know, about trying to crystallize the value right now? There's so much appetite for, the capital markets certainly.

Is this something you could consider, meaning monetizing Mentee in some way? Or do you believe that, together is a combined entity that, that's how you kind of view the business?

I think that the market is taking some time to internalize the news of the acquisition or the news of Mobileye entering into humanoids. I do believe that in some near future, this would create the dividends the like of what happened between Hyundai and Boston Dynamics.

Mentee has all the potential to make big steps forward, has demonstrated quite a mature technology, as the clips that I have shown and the clips that they have on their website. Together with Mobileye, they can make rapid steps forward.

Now, whether we're going to see this dividend in a month or whether we're going to see this in a year, I don't know, but it has the potential to catalyze the same benefits that Hyundai is receiving from Boston Dynamics.

Got it. Thank you.

Thanks, Tom.

Thanks so much, guys. Could you talk a little bit about the near-term pricing dynamics on EyeQ?

Just curious, how much movement there really is as you see some of these larger volumes move through in the first part of the year and how we should think about that trend into the balance?

Maybe if you refer to the EyeQ prices, what to make sure Volume. or prices?

I didn't get the question.

I'm concerned about, pricing, as you ship a higher volume here and then, how that the pricing trends through the balance of the year as you normalize out.

The pricing is every year is affected by the mix of EyeQs. As the EyeQs have different generations with different software features and the software packages, and this has somewhat of a different price.

Overall, in average, we there's no, let's say, meaningful change in the prices. There is a different mix this year compared to last year, as Moran said in her remarks, where we see higher volumes of EyeQ5-based base ADAS products, and EyeQ5 has somewhat of a higher cost, but still it's advanced products with meaningful volumes this year compared to last year.

This does have some impact, but it's all natural mix in

that perspective. Also the second chip that I mentioned, combined the fact that the second chip is at a lower price than the first one, it's a higher gross profit per vehicle, but lower ASP.

I think that the combined natural mix that Nimrod mentioned and second chip impact is approximately $0.80 or so year-on-year.

Just to clarify, this second chip for a car has two EyeQ4 chips, this is a one-off thing. It's not that we see a trend having two EyeQ chips in a car with one of the EyeQ chips at a discounted price.

This is what we call a bridge. This is a bridge towards EyeQ6 EyeQ6 Lite.

The carmaker wanted to meet certain regulatory environments that EyeQ4 alone could not meet. Therefore, a second EyeQ4 was added.

Again, this is a one-off. We don't expect it to be a trend.

Perfect. Thanks, guys.

As you think about doing the driver-out demonstration here later this year, can you talk about the regulatory process and any bottlenecks or hurdles that are still remaining here, things that are of concern that you guys are focused on getting ready to do that demonstration?

In the US, it's self-certification. We have stringent KPIs in terms of mean time between failures that we are meeting towards going driverless.

Outside of the US, there's homologation. As we mentioned, together with Volkswagen, homologation will occur in 2027 outside of the US.

Nothing on a regional basis or city basis that you guys are concerned about?

No, we don't see. Actually, the homologation in Europe will have a stronger tailwind given that the vehicles are produced by Volkswagen, level 4 vehicles, and our cooperation together with AVNT and MOIA and Volkswagen will allow us to go to the homologation in a much easier way than if we were doing it alone.

This is a significant entry barrier to the European market as it involves a lot of activities and direct engagements with regulatory bodies that we are already doing with Volkswagen. Getting this approval in '27, as Amnon mentioned, will also separate us in the European market from others.

It's an important point. Just to clarify on the timing of homologation, we're saying that it will be completed in 2027 and start in 2026.

The six cities commercialized in 2027 that Volkswagen talked about includes some European cities, which is going to require the homologation process to be completed.

Thanks so much, guys. Appreciate the time there.

Thank you, Colin.

Hey, guys. Thanks for taking my questions.

I guess, both at once. I guess to start, you highlighted the potential for conversions on surround ADAS this year, but you haven't made the same comments about SuperVision and Chauffeur.

Are those, maybe you can provide an update there? Are you guys de-emphasizing that in your go-to-market and conversations with customers?

Then for my follow-up that's, on a completely unrelated topic, Amnon, you've touched on this in the CES presentation, but I was hoping you could provide some more details about, specifically how your EyeQ road map is going to accelerate Mentee's time to market, and perhaps as important, how much software development is needed to move further into robotics, given EyeQ's design specifically for autos. Thank you.

We have multiple engagements also on SuperVision, Chauffeur. There's definitely active engagements there with the market.

Just to put things in perspective, our relationship with Volkswagen Group with the different brands on these products started maybe in 2021, and it took us a couple of years to cross all the items that need is needed. We are also focused now on opportunities that have a meaningful business potential as opposed to, smaller scientific projects that some OEMs are trying to explore, maybe in some cases it's in-house developments they they're doing and they want to allocate one car in the future and see if it works.

Now, we're trying to focus on opportunities that present significant volumes, multiple vehicle models, with concrete timelines so that we can, where we can scale the products. We are not looking for the, first opportunity.

We want to scale, and we have several of those. I don't want to predict timing, but we are, encouraged by the activity there.

Regarding Mentee, we feel that it's too early to talk about EyeQ chips on humanoid robots. We think this is a longer-term, this is a longer-horizon issue.

Currently, the robot are based on Nvidia's chips, and we see that we are very proud of that relationship, and we see that going on for the foreseeable future. when we go into really high-volume production where every cent counts, then I think EyeQ8, EyeQ9 could be quite relevant.

It's not in the foreseeable future.

Okay. Thank you both.

Hi, thank you for taking my question. This is MP on for Samik Chatterjee.

My first one would be since you said that Porsche and Audi programs are now pushed out to 1Q '27, will Drive or robotaxi be the biggest swing factor for 2026 revenues? On that itself, any updated thoughts on the monetization for Drive in terms of up-front revenues versus recurring consumption-based revenues?

For my follow-up, I wanted to ask on the second surround ADAS customer. You said that there could be a potential decision for the second architecture with this customer in 1Q.

If that happens, will that potentially double your pipeline with that customer? That's it.

Thank you.

MP, the answer to your first question is that we did not expect any meaningful impact from the advanced products in 2026. We've been saying that for the last several quarters, there's no change related to what you talked about.

We did not account for Drive revenue in 2026 guidance. There is no it's not in the guidance.

Regarding the second question on the second design win for surround ADAS, the discussions are obviously ongoing, and we're making good progress, and, again, don't want to go into predicting time. We continue to work on this, and it's progressing.

Thank you, MP.

Thanks, everyone, for tuning in to our earnings call, and we'll talk to you next quarter. Thank you very much.