Mobileye Global Q3 Earnings Call Highlights

Key Points

• Mobileye raised its full-year outlook after third-quarter adjusted operating income increased 20% to $89 million and EyeQ shipments reached 9.5 million units. Revenue guidance was lifted to approximately $2.008 billion, while adjusted operating income guidance rose to $400 million at the midpoint.
• Growth was driven by strong EyeQ demand and better-than-expected SuperVision deliveries, with nearly 60,000 systems shipped through the first nine months. However, a higher mix of lower-priced Chinese OEM shipments and memory-cost pass-throughs pressured average selling prices and margins.
• Mobileye highlighted longer-term growth from higher-content ADAS products, including Surround ADAS, cloud-enhanced systems and SuperVision, while advancing Volkswagen programs and planning an initial 100-vehicle robotaxi deployment in 2027.

Mobileye Global NASDAQ: MBLY reported third-quarter revenue of $492 million, down about 2% from $504 million a year earlier, while adjusted operating income rose 20% to $89 million. The advanced driver-assistance technology company said EyeQ shipment demand continued to exceed expectations, helping it raise its full-year revenue and adjusted operating income outlook.

CEO and President Amnon Shashua said Mobileye’s year-to-date revenue increased 8% year over year, adjusted operating income climbed 42%, and operating cash flow exceeded $300 million. He attributed the company’s performance to demand for its EyeQ products, with shipments rising 11% through the third quarter even as global automotive production declined slightly.

“Demand for our technology is outpacing production at our top 10 customers, while Chinese OEMs continue to choose our solutions for export markets,” Shashua said.

EyeQ volume and China mix shaped quarterly results

Mobileye shipped 9.5 million EyeQ units in the third quarter, at the high end of its 9.3 million to 9.5 million outlook. CFO Moran Shemesh said unit volume increased 3% year over year during the quarter, though revenue was affected by a larger mix of Chinese OEM shipments that carried lower software content and pricing.

Chinese OEM mix alone reduced year-over-year average selling price by about $1, Shemesh said. The company said Chinese automakers are selecting Mobileye products to support export expansion, particularly in Latin America, South Asia and Eastern Europe. Management also cited increased ADAS fitment by legacy automakers responding to Chinese competition in emerging markets.

Mobileye expects more than 4.5 million chips to be delivered to China during 2026, with demand remaining sustained through the year. The company said it expects full-year EyeQ shipments to rise about 10% at the midpoint compared with 2025.

Higher memory costs added approximately $7 million of revenue in the quarter through a customer pass-through arrangement, but generated no gross margin. Shemesh said the higher SuperVision volume and memory-cost pass-through together reduced corporate average gross margin by roughly 100 basis points.

Guidance raised as SuperVision deliveries outperform

Mobileye raised its full-year revenue midpoint by $13 million to approximately $2.008 billion, narrowing its outlook to a range of $1.995 billion to $2.02 billion. The guidance implies annual revenue growth of 5% to 7%.

The company also raised the midpoint of its adjusted operating income outlook to $400 million from $395 million, with a new range of $380 million to $420 million. The outlook includes approximately $190 million from Israel’s R&D incentive at the midpoint.

• Third-quarter adjusted operating margin was 18%, up about three percentage points from a year earlier.
• The Israeli R&D credit contributed $51 million of contra-R&D expense during the quarter.
• Mobileye expects full-year non-GAAP operating expenses of about $910 million at the midpoint, including $180 million to $200 million of R&D credits.
• First-nine-month operating cash flow totaled $303 million.
• Cash equivalents, marketable securities and deposits stood at $1.5 billion.

The increased outlook primarily reflects stronger-than-expected EyeQ5 High-based SuperVision deliveries. Mobileye delivered more than 15,000 SuperVision systems in the third quarter and nearly 60,000 through the first nine months, already modestly above its original full-year expectation. It now expects about 65,000 SuperVision systems for the full year.

However, management continued to forecast lower fourth-quarter volume, citing expected inventory adjustments and component-shortage-related inventory building. At the midpoint of its annual outlook, Mobileye expects fourth-quarter revenue of $450 million and adjusted operating income of roughly $60 million. EyeQ orders currently point to 8.8 million to 8.9 million units in the fourth quarter, compared with 9.5 million in the third quarter.

Company outlined higher-content ADAS opportunity

Management said its future growth opportunity rests on both broader ADAS adoption and greater content per vehicle. Shashua said Mobileye is expanding beyond front-camera perception systems as automakers pursue lower-cost hands-free highway functions and more advanced point-to-point driving features.

Three automakers—Volkswagen, Mahindra and a large U.S. OEM—have selected Mobileye’s Surround ADAS solution based on EyeQ6 High, according to Shashua. Stellantis, a top-five Asian automaker and a top-10 Japanese OEM have selected an alternative approach that adds Mobileye’s road-experience management, or REM, capabilities to existing EyeQ6 Lite programs.

Nimrod Nehushtan, Mobileye’s executive vice president of corporate strategy, said cloud-enhanced ADAS with REM can add “a few tens of dollars per EyeQ,” depending on volume and adoption rates. He said Surround ADAS carries roughly twice the average selling price of base ADAS, while SuperVision is priced above $1,000 per vehicle and Chauffeur is priced at about $2,500 per vehicle.

Management expects Surround ADAS and cloud-enhanced ADAS production launches to be primarily 2028 events. For 2027, Shemesh said the company expects EyeQ ASPs to be relatively flat, with potentially a moderate decrease depending on software-content mix.

Volkswagen programs and robotaxi plans progress

Shashua said Mobileye’s nominated Volkswagen Group programs—including base ADAS, Surround ADAS, SuperVision led by Porsche, Chauffeur led by Audi, and the ID. Buzz program with Moia—are operating on production hardware and production-intent vehicle platforms. The company is focused on software hardening ahead of planned launches across multiple vehicle models in 2027 and 2028.

Regarding Volkswagen’s CARIAD software unit, Shashua said CARIAD’s partner selection process does not affect Mobileye’s existing production programs. He said CARIAD’s future architecture decisions would relate to longer-term opportunities rather than currently nominated Mobileye programs.

In robotaxis, Mobileye said it has integrated Moovit’s rider-experience and fleet-orchestration stack and has begun initial testing in Tel Aviv. The company said it is seeking a vehicle-platform arrangement that could support rapid scaling after initial commercialization.

Shashua said Mobileye plans to deploy 100 vehicles in one city in 2027, with Orlando under consideration and Miami potentially following. The company is working with partners on operational infrastructure, including fleet management, maintenance, warehouses and parking facilities. It also said it is working with OEMs on a Level 4-ready platform that could be purchased at scale beginning in 2028 and beyond.

Mobileye said its long-term robotaxi sensor strategy emphasizes cameras and imaging radar, with Shashua stating that the company believes lidar may not be needed over time. The company also disclosed that it has repurchased approximately $33 million of shares since launching its buyback program in April, at an average price of $9.36 per share.

About Mobileye Global (NASDAQ:MBLY)

Mobileye Global Inc NASDAQ: MBLY develops advanced driver-assistance systems and autonomous driving technologies for vehicle manufacturers worldwide. Founded in 1999 and headquartered in Jerusalem, Israel, the company provides computer-vision and artificial-intelligence solutions designed to improve vehicle safety and support automated driving.

Its product portfolio includes EyeQ system-on-chips, camera-based driver-assistance features, and software for functions such as automatic emergency braking, lane-keeping assistance, adaptive cruise control, and traffic-sign recognition.

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